2. Real advocates, influencers and WOM
State of Word of Mouth Marketing Survey (WOMMA, 2014):
64% of the respondents WOM marketing is more effective than traditional marketing;
50% declare to incorporate WOM marketing into their marketing campaigns;
70% of respondents are planning to increase their online WOM marketing spend.
5. Literature
Influentials, Social influence and Word-Of-Mouth
Bass FM (1969). A New Product Growth Model for Consumer Durables, Management Science.
Chevalier and Mayzlin (2006). The Effect of Word of Mouth on Sales: Online Book Reviews, Journal of
Marketing Research.
Iyengar, Van den Bulte and Valente (2011). Opinion Leadership and Social Contagion in New Product
Diffusion, Marketing Science.
Watts (2011). Everything is Obvious: *Once You Know the Answer: How Common Sense Fails Us.
Shared consumption
Raghunathan and Corfman (2006). Is Happiness Shared Doubled and Sadness Shared Halved? Social
Influence on Enjoyment of Hedonic Experiences, Journal of Marketing Research.
Hartmann (2010). Demand Estimation with Social Interactions and the Implications for Targeted
Marketing, Marketing Science.
Delre, Broekhuizen and Bijmolt (2016). The Effects of Shared Consumption on Product Life Cycles and
Advertising Effectiveness: The Case of the Motion Picture Market, Journal of Marketing Research.
6. Battle of the sexes
It is a two-player coordination game. A couple agreed to meet, but cannot recall if
they will be attending the opera or a football game (and the fact that they forgot
is common knowledge). The husband would prefer to go to the football game. The
wife would rather go to the opera. Both would prefer to go to the same place rather
than different ones. If they cannot communicate, where should they go?
WIFE
HUSBAND
Two pure strategy Nash equilibria. UNFAIR
There is also a mixed strategies Nash equilibrium. INEFFICIENT