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International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
DOI : 10.14810/ijbiss.2014.3201 1
Mathematical Assessment of “Blogging Effect” on
Consumer Buying Behavior
Dr Riktesh Srivastava
Associate Professor, Information Systems
Skyline University College, Sharjah.
Abstract
The Internet has escorted in mammothalterations in the marketing strategy by coalescing many diversities
of business models involving affiliate marketing, direct sales, viral marketing and marketing online. It has
been evidenced that blogs play an imperative role in facilitating customers to form a buying decision. In
fact, blogs have an upshot on purchase behavior far more than the social networking platforms. Blogs have
unremittingly garnered a reliable audience. When the demonstrative bond between the blogger and the
consumers gets very substantial, it can lead the latter to really build a buying decision. The impact of blogs
is so intense that it is sometimes stated as “Blogging Effect” on buying behavior. The present study is an
endeavor to derive the two important mathematical instigation of the “blogging effect”-
1) To determine the average numbers of customers who purchases the products after reading the
blog,‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ, and
2) Average time (in seconds) the customer takes to read the blogs,	‫ݐܹ݅ܽ݃ݒܣ‬ሺ‫ݐ‬ሻ.
The study can be a channeled cradle for companies who are expending blogs as one of the medium for
online marketing.
Keywords:
AvgCust(n), AvgWait(t), Blogging effect, Consumer Buying Behavior (CBB), Consumer buying cycle
(CBC).
1. Introduction
In today’s world of marketing, internet and social media play an imperative role in aiding
shoppers find the stuffs they are eyeing for. It is indispensably vital that companies have a
buoyant existence in the social media podia, otherwise the target audience can effortlessly change
sellers. Such is the impact of blogs on consumer and their purchase decisions, that the effect is
often dubbed as “Blogging Effect”. (Chaffey, Ellis-Chadwick, Johnston & Mayer, 2006) defines
“Blogging Effect” as the methodology by which the consumers can easily and regularly publish
experiences on web pages, which are best described as online journals, diaries or news events
listings. (Alasilta, A., 2009) mentions blogs as an online page, where the text and/or multimedia
can be published.
Since the last 5 years, unfold of social media has further amended buying and selling systems.
With platforms like Facebook, Twitter and YouTube, shoppers are ready to dictum their
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
2
experiences with merchandise and companies and to share them with their networks. This has
directed to the mounting requisite for companies to engender positive client involvements so as to
attenuate the negative articulated messages, which might simply be revealed among the social
media platforms to diverse, the potential customers.
The traditional Consumer Buying Behavior (CBB) model proposed by (Kotler, P. 2000) is a set
of linear transactions of the various stages of consumers before buying the product. The model is
no longer effective for current trends of marketing, wherein, the companies go about their
business and interact with individuals.A tremendous amount of datais created by usage of Social
media sites, smartphones, and other consumer devices have allowed billions of individuals around
the world to sharethe information with others (Chui and Manyika, 2011). As indicated by (Sergio
Zyman, 2000), “The era of marketing as we have known it is over, dead, kaput – and most
marketers don’t realize it”.(Sergio Zyman, 2000) further clarifies that technology has given
people many more options than they had in the past and has created a consumer democracy in
which people around the world constantly use social-media platforms to seek and share
information from discussing consumer products to organizing political movements.
Enduring to the study, (Solomon, M. & Rabolt, N., 2009) proposed the circular transaction model
of CBB, termed as Consumer Buying Cycles (CBC). The model depicted in Figure 1 has 7 stages
of CBC.
Predeposition
Stimulus
Consider
SearchChoose
Buy
Experience
Figure 1: CBC proposed by (Solomon, 2009)
The process of CBC as stated in Figure 1, designates that in the beginning state, the consumer has no plans
of buying any precise product until they identify a convinced stimulus. In the ensuing steps, the buyer
contemplates the inevitability of the purchase, before moving to doing exploration to find the most apposite
product in rapports of factors (price, place or review by other users), where blogs play the foremost role.
(Evans, D. 2010) gave the CBC influenced by Social Media as mentioned in Figure 2. Figure 2 clearly
indicates that the influence of blogs is larger in the beginning stages of the buying process. The users of
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
3
blogs have the opportunity to read about other consumer experiences. This can lead to getting users
attention, raising interest for the mentioned product or an actual desire to go and purchase the item.
Attention
Interest
Desire
Action
(Buy)
Use
Opinion
Talk
Figure 2: CBC influenced by Blogs
The research conducted in the study presents the stochastic analysis on determination of average
number of customers influenced by the blogs. Getting these numbers correctly and putting a
superfluous marketing exertion will unquestionably guide many companies who anticipate to use
blogs as one of the marketing contrivance. Althoughthree-fourths of marketers planned to
increase strategic efforts on social media and social networking sites this year, with 68% also
focusing more on SEO and 63% on blogs (2013-Mobile-Social-Lead-Shift-Traditional-Media-
Digital, 2013), getting average number of customers using blogs and the time they spend per blog
will guide them in following ways(44-ways-to-use-a-blog-as-a-small-business-owner, 2010):
• Build Trust, Authority and Credibility
• Market the Business
• Listen to and Engage With Customers and Readers
• Growing Online Presence and Network
The rest of the paper is divided as follows: Section 2 determines the mathematical assumptions of
determining “blogging effect” on CBB. The section defines‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ, average number of blog
readers, and, ‫ݐܹ݅ܽ݃ݒܣ‬ሺ‫ݐ‬ሻ, average time spend by each reader per blog. Section 3 does the
analysis of the outcomes based on the formula developed in Section 2. Section 4 mentions the
conclusion of the work.
2. Mathematical Assumptions
Using blogs, any new potential customers can be added to the market, and members of
subpopulation can consent the market with the parameters portrayed in form of ݂ሺߚ, ߛ, ߙ, ߤሻ as
mentioned below:
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
4
• β: Sharing rate , defines the rate at which the information is being shared through
blog.
• ߛ: Churn rate, rate at which the population depends on blog for an updated
information.
• α: Entering rate, rate at which the customers are entering the market.
• µ: Exiting rate, rate at which the customers are leaving the market.
According to (Kermack, W.O. & McKendrick, A.G.), there are three subdivisions of the total
population of Market, N, as
• S: S represents potential customers
• I: I represents current customers
• R: R represents former customers
Mathematically,
ܰ = ܵ + ‫ܫ‬ + ܴ (1)
Introduction of blogs and its usage moves the sub-population over time. The population of
potential customers may become current customers or current customers befits former customer
clearly signifying that ሺܵ, ‫,ܫ‬ ܴሻ are dynamic in nature.
It can be observed that the population entering the market becomes the part of “potential
customer” population. The number of new potential customers joining the market at any instance
of time is:
ߙሺܵ + ‫ܫ‬ + ܴሻ (2)
However, the population leaving the market can be part of any of the population and can be
represented as ߤܵ, ߤ‫.ܴߤ	݀݊ܽ	ܫ‬
1.1 Usage of ࡿ − ࡵ − ࡾ	epidemiological model to determine the Number of
potential customer
ܵ − ‫ܫ‬ − ܴmodel is used to compute the theoretical number of people entering the market owing
to “blogging effect” in a closed population over time. There is constantly arrival of potential
customers entering into the market. For this state, all the three parameters must be encompassed
in the model, using the ensuing differential equations:
ௗௌ
ௗ௧
= −ߚܵ‫ܫ‬ + ߤሺܰ − ܵሻ =	−ߚܵ‫ܫ‬ + ߙሺܵ + ‫ܫ‬ + ܴሻ − ߤܵ (3)
ௗூ
ௗ௧
= ߚܵ‫ܫ‬ − ߛ‫ܫ‬ − ߤ‫ܫ‬ (4)
ௗோ
ௗ௧
= ߛ‫ܫ‬ − ߤܴ (5)
Smearing equations (3), (4) and (5), to estimate
ௗே
ௗ௧
,
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
5
ௗே
ௗ௧
=
ௗሺௌାூାோሻ
ௗ௧
=
ௗௌ
ௗ௧
+
ௗூ
ௗ௧
+
ௗோ
ௗ௧
(6)
Evaluating eq. (6), we observe
ௗே
ௗ௧
= ሺߙ − ߤሻܰ (7)
න
݀ܰ
ܰ
				= ሺߙ − ߤሻ න ݀‫ݐ‬
∴ ݈‫ܰ	݃݋‬ = ሺߙ − ߤሻ‫ݐ‬
ܰ = ݁ሺఈିఓሻ௧
(8)
Based on eq. (8), there can be three possibilities(Srivastava, Riktesh, 2012):
1. Number of customer increases after reading the blogs and market grows exponentially,
ߙ > ߤ
2. Blogs had a neutral affect, ߙ = ߤ
3. Blogs had a negative effect, ߙ < ߤ
The objective of the study is to ascertain the stochastic analysis of “blogging effect” on the
market expending case 1.
For estimation of probability of "݊" customers from the complete population, ܰ, certain
assumptions are to be made, which includes,
1. ∆‫ݐ‬is a very small time in which any one of the situation, ܵ, ‫ܴ	ݎ݋	ܫ‬ occurs.
2. Case 1 needs to be maintained throughout the study.
3. ߙis entering rate of consumers into the market and ߤ is the exiting rate. Since, case 1
needs to be maintained, ߙ	should always be more than	ߤ.
Probability of one customer entering the market=ߙ∆‫ݐ‬
Probability of one customer exiting from the market=ߤ∆‫ݐ‬
Probability that no customer entering the market=1 − ߙ∆‫ݐ‬
Probability of no customer is exiting from the market=1 − ߤ∆‫ݐ‬
or,
ܲሺ‫ݐ‬ + ∆‫ݐ‬ሻ = ܲ௡ሺ‫ݐ‬ሻሺ1 − ߙ∆‫ݐ‬ሻሺ1 − ߤ∆‫ݐ‬ሻ + ܲ௡ାଵሺ‫ݐ‬ሻߤ∆‫ݐ‬ + ܲ௡ିଵሺ‫ݐ‬ሻߙ∆‫ݐ‬ (10)
ܲ଴ሺ‫ݐ‬ + ∆‫ݐ‬ሻ − ܲ଴ሺ‫ݐ‬ሻ
∆‫ݐ‬
= −ߙܲ௡ሺ‫ݐ‬ሻ − ߤܲ௡ሺ‫ݐ‬ሻ + ߙܲ௡ିଵሺ‫ݐ‬ሻ + ߤܲ௡ାଵሺ‫ݐ‬ሻ
For the stable condition,
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
6
lim
∆௧→଴
ቊ
ܲ௡ሺ‫ݐ‬ + ∆‫ݐ‬ሻ − ܲ௡ሺ‫ݐ‬ሻ
∆‫ݐ‬
ቋ =
݀
݀‫ݐ‬
ሼܲ௡ሺ‫ݐ‬ሻሽ = 0
So, eq. (11) becomes
ܲ௡ିଵሺ‫ݐ‬ሻߙ∆‫ݐ‬ − ሺߙ + ߤሻܲ௡ሺ‫ݐ‬ሻ + ߤܲ௡ାଵሺ‫ݐ‬ሻ = 0 (12)
Consider that there is no customer at time ሺ‫ݐ‬ + ∆‫ݐ‬ሻ in the market, then,
ܲ଴ሺ‫ݐ‬ + ∆‫ݐ‬ሻ = ܲ଴ሺ‫ݐ‬ሻሺ1 − ߙ∆‫ݐ‬ሻ + ܲଵሺ‫ݐ‬ሻߤ∆‫ݐ‬
௉೙ሺ௧ା∆௧ሻି௉೙ሺ௧ሻ
∆௧
= −ܲ଴ሺ‫ݐ‬ሻߙ + ܲଵሺ‫ݐ‬ሻߤ (13)
LHS of eq. (12) becomes
lim
∆௧→଴
ቊ
ܲ௡ሺ‫ݐ‬ + ∆‫ݐ‬ሻ − ܲ௡ሺ‫ݐ‬ሻ
∆‫ݐ‬
ቋ =
݀
݀‫ݐ‬
ሼܲ଴ሺ‫ݐ‬ሻሽ = 0
Eq. (13) can be mentioned as
ܲଵሺ‫ݐ‬ሻ = ൫ߙ
ߤൗ ൯ܲ଴ሺ‫ݐ‬ሻ (14)
For ݊௧௛
values, the eq. (14) can be refurbished as
∑ ܲ௜ሺ‫ݐ‬ሻ௡
௜ୀ଴ = ቄ൫ߙ
ߤൗ ൯
଴
+ ൫ߙ
ߤൗ ൯
ଵ
+ ൫ߙ
ߤൗ ൯
ଶ
+. … … … … . . +൫ߙ
ߤൗ ൯
௡
ቅ ܲ଴ሺ‫ݐ‬ሻ (15)
Based on the limiting condition, when݊ → ∞, and,ߙ
ߤൗ < 1, LHS of eq. (15) becomes 1 and RHS
of eq. (15) becomes ൤
ଵ
൫ଵିఈ
ఓൗ ൯
൨ ܲ଴ሺ‫ݐ‬ሻ
Rewriting eq. (16)
1 = ൤
ଵ
൫ଵିఈ
ఓൗ ൯
൨ ܲ଴ሺ‫ݐ‬ሻ (16)
Eq. (16) can be rewritten as
ܲ௡ሺ‫ݐ‬ሻ = ൫ߙ
ߤൗ ൯
௡
൫1 − ߙ
ߤൗ ൯ (17)
Thus, based on eq. (17), the probability for the presence of "݊" customers using blogs at any time
"‫"ݐ‬ can be computed, provided the values of ߙ and ߤ are known. The equation for defining the
average number of customers using blogs for purchasing can be depicted as,
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
7
‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ = ෍ ݊ܲ௡ሺ‫ݐ‬ሻ
ே
௡→ஶ
= ෍ ൫ߙ
ߤൗ ൯
௡
൫1 − ߙ
ߤൗ ൯
ே
௡→ஶ
= ൫1 − ߙ
ߤൗ ൯ ෍ ൫ߙ
ߤൗ ൯
௡
ே
௡→ஶ
= ൫1 − ߙ
ߤൗ ൯ ቄ1. ൫ߙ
ߤൗ ൯
ଵ
+ 2. ൫ߙ
ߤൗ ൯
ଶ
+ 3. ൫ߙ
ߤൗ ൯
ଷ
+. … … … … . . +݊. ൫ߙ
ߤൗ ൯
௡
ቅ
‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ =
൫ఈ
ఓൗ ൯
൫ଵିఈ
ఓൗ ൯
(18)
Based on eq. (18), the average waiting time for customer reads the blog is
‫ݐܹ݅ܽ݃ݒܣ‬ሺ‫ݐ‬ሻ =
ଵ
ఓ
ቀ
∅
ଵି∅
ቁ, where ∅ = ߙ
ߤൗ (19)
3. Outcomes and Analysis
As indicated in Section 2, the section portrays the outcomes of the mathematical
formulasdeveloped. The number of users in the blogs are taken into contemplation from 3
different marketing blogs expending DataMarket, which is an open data portal that consents to
access and explore thousands of publicly available datasets. Table 1 depicts ߙ andߤ, based on
which ‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ is calculated. Table1 also outlines the number of users using blogs, in terms of
percentage.
Α Μ
NUMBER OF
CUSTOMERS IN THE
MARKET (ONLINE
CUSTOMERS)
PERCENTAGE OF
CUSTOMERS DUE TO
BLOGGING EFFECT
66 100 7.33 11.11%
82 120 12.33 15.04%
99 140 19 19.19%
122 160 12.33 10.11%
131 180 89 67.94%
139 200 19 13.67%
144 220 21 14.58%
167 240 7.57 4.53%
181 260 20.67 11.42%
195 280 30.11 15.44%
212 300 26.27 12.39%
Table 1: Calculation of AvgCust(n)
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
8
Table 2 illustrates the average time each blogger takes to read the blog content. As revealed in
Table 2, the reader reads apiece blog in array of 1 to 10 seconds. The result does not delineates
the benevolent of blogs read by the reader and is centered in data collection of 3 dissimilar blogs
using DataMarket.
α Μ
WAITING TIME TO
READ THE BLOG (IN
SECONDS)
66 100 0.073
82 120 0.103
99 140 0.136
122 160 0.077
131 180 0.494
139 200 0.095
144 220 0.095
167 240 0.032
181 260 0.079
195 280 0.108
212 300 0.088
Table 2: Calculation of AvgWait(t)
4. Concluding Remarks
The study conducted used the model of CBB proposed by (Solomon, M. &Rabolt, N., 2009). The
study evaluates how the information given in blogs by varied sources are taken seriously by the
consumers. The outcomes cited in two tables, specifies that the part of blogs on CBB is relatively
significant, though the duration of reviews reading by the consumer is quite short. The paper does
not suffice any cause for short extent of review reading, but it is well assumed that the spell does
not have any much alteration on final buying verdicts. The study aims to be further augment the
research on part of blogs on post buying behavior, though, it is witnessed that the consumer go
back to the blog after purchase to leave their annotations about the product purchased, its
influence on CBB is still unknown.
References
[1] (Alasilta, A., 2009). “Blogituleetöihin”. Keuruu: OtavanKirjapainoOy. (Google Translation)
[2] (Chui and Manyika, 2011). “Big data: The next frontier for innovation, competition, and productivity”,
McKinsey Global Institute.
[3] (Evans, D. 2010). “Social Media Marketing. The next generation of business engagement”. Indiana:
Wiley Publishing, Inc.
[4] (Kermack,W.O. & McKendrick,A.G.), “A Contribution to the Mathematical Theory of Epidemics”,
Proceedings of the Royal Society, A Mathematical, Physical and Engineering Sciences,
(http://rspa.royalsocietypublishing.org/content/115/772/700.full.pdf+html
[5] (Kotler, P., 2000). “Principles of marketing”. Ninth edition. Essex: Prentice Hall.
International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014
9
[6] (Sergio Zyman,2000),“The end of Marketing as we know it”, HarperBusiness.
[7] (Solomon, M. & Rabolt, N., 2009). “Consumer Behavior in Fashion”, New Jersey, Prentice Hall.
[8] (Srivastava, Riktesh, 2012), “Analysis Of Job Scheduling Algorithm For An E-Business Model In A
Cloud Computing Environment Via GI/G/3/N/K Queuing Model”, International Journal of
Advancements in Technology, pp. 215-229, Vol. 3 No. 4.
[9] (2013-Mobile-Social-Lead-Shift-Traditional-Media-Digital,
2013),http://www.emarketer.com/Article/2013-Mobile-Social-Lead-Shift-Traditional-Media-
Digital/1009677
[10](44-ways-to-use-a-blog-as-a-small-business-owner,2010),http://blogforprofit.com/business-
blogging/44-ways-to-use-a-blog-as-a-small-business-owner/

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Mathematical Assessment of “Blogging Effect” on Consumer Buying Behavior

  • 1. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 DOI : 10.14810/ijbiss.2014.3201 1 Mathematical Assessment of “Blogging Effect” on Consumer Buying Behavior Dr Riktesh Srivastava Associate Professor, Information Systems Skyline University College, Sharjah. Abstract The Internet has escorted in mammothalterations in the marketing strategy by coalescing many diversities of business models involving affiliate marketing, direct sales, viral marketing and marketing online. It has been evidenced that blogs play an imperative role in facilitating customers to form a buying decision. In fact, blogs have an upshot on purchase behavior far more than the social networking platforms. Blogs have unremittingly garnered a reliable audience. When the demonstrative bond between the blogger and the consumers gets very substantial, it can lead the latter to really build a buying decision. The impact of blogs is so intense that it is sometimes stated as “Blogging Effect” on buying behavior. The present study is an endeavor to derive the two important mathematical instigation of the “blogging effect”- 1) To determine the average numbers of customers who purchases the products after reading the blog,‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ, and 2) Average time (in seconds) the customer takes to read the blogs, ‫ݐܹ݅ܽ݃ݒܣ‬ሺ‫ݐ‬ሻ. The study can be a channeled cradle for companies who are expending blogs as one of the medium for online marketing. Keywords: AvgCust(n), AvgWait(t), Blogging effect, Consumer Buying Behavior (CBB), Consumer buying cycle (CBC). 1. Introduction In today’s world of marketing, internet and social media play an imperative role in aiding shoppers find the stuffs they are eyeing for. It is indispensably vital that companies have a buoyant existence in the social media podia, otherwise the target audience can effortlessly change sellers. Such is the impact of blogs on consumer and their purchase decisions, that the effect is often dubbed as “Blogging Effect”. (Chaffey, Ellis-Chadwick, Johnston & Mayer, 2006) defines “Blogging Effect” as the methodology by which the consumers can easily and regularly publish experiences on web pages, which are best described as online journals, diaries or news events listings. (Alasilta, A., 2009) mentions blogs as an online page, where the text and/or multimedia can be published. Since the last 5 years, unfold of social media has further amended buying and selling systems. With platforms like Facebook, Twitter and YouTube, shoppers are ready to dictum their
  • 2. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 2 experiences with merchandise and companies and to share them with their networks. This has directed to the mounting requisite for companies to engender positive client involvements so as to attenuate the negative articulated messages, which might simply be revealed among the social media platforms to diverse, the potential customers. The traditional Consumer Buying Behavior (CBB) model proposed by (Kotler, P. 2000) is a set of linear transactions of the various stages of consumers before buying the product. The model is no longer effective for current trends of marketing, wherein, the companies go about their business and interact with individuals.A tremendous amount of datais created by usage of Social media sites, smartphones, and other consumer devices have allowed billions of individuals around the world to sharethe information with others (Chui and Manyika, 2011). As indicated by (Sergio Zyman, 2000), “The era of marketing as we have known it is over, dead, kaput – and most marketers don’t realize it”.(Sergio Zyman, 2000) further clarifies that technology has given people many more options than they had in the past and has created a consumer democracy in which people around the world constantly use social-media platforms to seek and share information from discussing consumer products to organizing political movements. Enduring to the study, (Solomon, M. & Rabolt, N., 2009) proposed the circular transaction model of CBB, termed as Consumer Buying Cycles (CBC). The model depicted in Figure 1 has 7 stages of CBC. Predeposition Stimulus Consider SearchChoose Buy Experience Figure 1: CBC proposed by (Solomon, 2009) The process of CBC as stated in Figure 1, designates that in the beginning state, the consumer has no plans of buying any precise product until they identify a convinced stimulus. In the ensuing steps, the buyer contemplates the inevitability of the purchase, before moving to doing exploration to find the most apposite product in rapports of factors (price, place or review by other users), where blogs play the foremost role. (Evans, D. 2010) gave the CBC influenced by Social Media as mentioned in Figure 2. Figure 2 clearly indicates that the influence of blogs is larger in the beginning stages of the buying process. The users of
  • 3. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 3 blogs have the opportunity to read about other consumer experiences. This can lead to getting users attention, raising interest for the mentioned product or an actual desire to go and purchase the item. Attention Interest Desire Action (Buy) Use Opinion Talk Figure 2: CBC influenced by Blogs The research conducted in the study presents the stochastic analysis on determination of average number of customers influenced by the blogs. Getting these numbers correctly and putting a superfluous marketing exertion will unquestionably guide many companies who anticipate to use blogs as one of the marketing contrivance. Althoughthree-fourths of marketers planned to increase strategic efforts on social media and social networking sites this year, with 68% also focusing more on SEO and 63% on blogs (2013-Mobile-Social-Lead-Shift-Traditional-Media- Digital, 2013), getting average number of customers using blogs and the time they spend per blog will guide them in following ways(44-ways-to-use-a-blog-as-a-small-business-owner, 2010): • Build Trust, Authority and Credibility • Market the Business • Listen to and Engage With Customers and Readers • Growing Online Presence and Network The rest of the paper is divided as follows: Section 2 determines the mathematical assumptions of determining “blogging effect” on CBB. The section defines‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ, average number of blog readers, and, ‫ݐܹ݅ܽ݃ݒܣ‬ሺ‫ݐ‬ሻ, average time spend by each reader per blog. Section 3 does the analysis of the outcomes based on the formula developed in Section 2. Section 4 mentions the conclusion of the work. 2. Mathematical Assumptions Using blogs, any new potential customers can be added to the market, and members of subpopulation can consent the market with the parameters portrayed in form of ݂ሺߚ, ߛ, ߙ, ߤሻ as mentioned below:
  • 4. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 4 • β: Sharing rate , defines the rate at which the information is being shared through blog. • ߛ: Churn rate, rate at which the population depends on blog for an updated information. • α: Entering rate, rate at which the customers are entering the market. • µ: Exiting rate, rate at which the customers are leaving the market. According to (Kermack, W.O. & McKendrick, A.G.), there are three subdivisions of the total population of Market, N, as • S: S represents potential customers • I: I represents current customers • R: R represents former customers Mathematically, ܰ = ܵ + ‫ܫ‬ + ܴ (1) Introduction of blogs and its usage moves the sub-population over time. The population of potential customers may become current customers or current customers befits former customer clearly signifying that ሺܵ, ‫,ܫ‬ ܴሻ are dynamic in nature. It can be observed that the population entering the market becomes the part of “potential customer” population. The number of new potential customers joining the market at any instance of time is: ߙሺܵ + ‫ܫ‬ + ܴሻ (2) However, the population leaving the market can be part of any of the population and can be represented as ߤܵ, ߤ‫.ܴߤ ݀݊ܽ ܫ‬ 1.1 Usage of ࡿ − ࡵ − ࡾ epidemiological model to determine the Number of potential customer ܵ − ‫ܫ‬ − ܴmodel is used to compute the theoretical number of people entering the market owing to “blogging effect” in a closed population over time. There is constantly arrival of potential customers entering into the market. For this state, all the three parameters must be encompassed in the model, using the ensuing differential equations: ௗௌ ௗ௧ = −ߚܵ‫ܫ‬ + ߤሺܰ − ܵሻ = −ߚܵ‫ܫ‬ + ߙሺܵ + ‫ܫ‬ + ܴሻ − ߤܵ (3) ௗூ ௗ௧ = ߚܵ‫ܫ‬ − ߛ‫ܫ‬ − ߤ‫ܫ‬ (4) ௗோ ௗ௧ = ߛ‫ܫ‬ − ߤܴ (5) Smearing equations (3), (4) and (5), to estimate ௗே ௗ௧ ,
  • 5. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 5 ௗே ௗ௧ = ௗሺௌାூାோሻ ௗ௧ = ௗௌ ௗ௧ + ௗூ ௗ௧ + ௗோ ௗ௧ (6) Evaluating eq. (6), we observe ௗே ௗ௧ = ሺߙ − ߤሻܰ (7) න ݀ܰ ܰ = ሺߙ − ߤሻ න ݀‫ݐ‬ ∴ ݈‫ܰ ݃݋‬ = ሺߙ − ߤሻ‫ݐ‬ ܰ = ݁ሺఈିఓሻ௧ (8) Based on eq. (8), there can be three possibilities(Srivastava, Riktesh, 2012): 1. Number of customer increases after reading the blogs and market grows exponentially, ߙ > ߤ 2. Blogs had a neutral affect, ߙ = ߤ 3. Blogs had a negative effect, ߙ < ߤ The objective of the study is to ascertain the stochastic analysis of “blogging effect” on the market expending case 1. For estimation of probability of "݊" customers from the complete population, ܰ, certain assumptions are to be made, which includes, 1. ∆‫ݐ‬is a very small time in which any one of the situation, ܵ, ‫ܴ ݎ݋ ܫ‬ occurs. 2. Case 1 needs to be maintained throughout the study. 3. ߙis entering rate of consumers into the market and ߤ is the exiting rate. Since, case 1 needs to be maintained, ߙ should always be more than ߤ. Probability of one customer entering the market=ߙ∆‫ݐ‬ Probability of one customer exiting from the market=ߤ∆‫ݐ‬ Probability that no customer entering the market=1 − ߙ∆‫ݐ‬ Probability of no customer is exiting from the market=1 − ߤ∆‫ݐ‬ or, ܲሺ‫ݐ‬ + ∆‫ݐ‬ሻ = ܲ௡ሺ‫ݐ‬ሻሺ1 − ߙ∆‫ݐ‬ሻሺ1 − ߤ∆‫ݐ‬ሻ + ܲ௡ାଵሺ‫ݐ‬ሻߤ∆‫ݐ‬ + ܲ௡ିଵሺ‫ݐ‬ሻߙ∆‫ݐ‬ (10) ܲ଴ሺ‫ݐ‬ + ∆‫ݐ‬ሻ − ܲ଴ሺ‫ݐ‬ሻ ∆‫ݐ‬ = −ߙܲ௡ሺ‫ݐ‬ሻ − ߤܲ௡ሺ‫ݐ‬ሻ + ߙܲ௡ିଵሺ‫ݐ‬ሻ + ߤܲ௡ାଵሺ‫ݐ‬ሻ For the stable condition,
  • 6. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 6 lim ∆௧→଴ ቊ ܲ௡ሺ‫ݐ‬ + ∆‫ݐ‬ሻ − ܲ௡ሺ‫ݐ‬ሻ ∆‫ݐ‬ ቋ = ݀ ݀‫ݐ‬ ሼܲ௡ሺ‫ݐ‬ሻሽ = 0 So, eq. (11) becomes ܲ௡ିଵሺ‫ݐ‬ሻߙ∆‫ݐ‬ − ሺߙ + ߤሻܲ௡ሺ‫ݐ‬ሻ + ߤܲ௡ାଵሺ‫ݐ‬ሻ = 0 (12) Consider that there is no customer at time ሺ‫ݐ‬ + ∆‫ݐ‬ሻ in the market, then, ܲ଴ሺ‫ݐ‬ + ∆‫ݐ‬ሻ = ܲ଴ሺ‫ݐ‬ሻሺ1 − ߙ∆‫ݐ‬ሻ + ܲଵሺ‫ݐ‬ሻߤ∆‫ݐ‬ ௉೙ሺ௧ା∆௧ሻି௉೙ሺ௧ሻ ∆௧ = −ܲ଴ሺ‫ݐ‬ሻߙ + ܲଵሺ‫ݐ‬ሻߤ (13) LHS of eq. (12) becomes lim ∆௧→଴ ቊ ܲ௡ሺ‫ݐ‬ + ∆‫ݐ‬ሻ − ܲ௡ሺ‫ݐ‬ሻ ∆‫ݐ‬ ቋ = ݀ ݀‫ݐ‬ ሼܲ଴ሺ‫ݐ‬ሻሽ = 0 Eq. (13) can be mentioned as ܲଵሺ‫ݐ‬ሻ = ൫ߙ ߤൗ ൯ܲ଴ሺ‫ݐ‬ሻ (14) For ݊௧௛ values, the eq. (14) can be refurbished as ∑ ܲ௜ሺ‫ݐ‬ሻ௡ ௜ୀ଴ = ቄ൫ߙ ߤൗ ൯ ଴ + ൫ߙ ߤൗ ൯ ଵ + ൫ߙ ߤൗ ൯ ଶ +. … … … … . . +൫ߙ ߤൗ ൯ ௡ ቅ ܲ଴ሺ‫ݐ‬ሻ (15) Based on the limiting condition, when݊ → ∞, and,ߙ ߤൗ < 1, LHS of eq. (15) becomes 1 and RHS of eq. (15) becomes ൤ ଵ ൫ଵିఈ ఓൗ ൯ ൨ ܲ଴ሺ‫ݐ‬ሻ Rewriting eq. (16) 1 = ൤ ଵ ൫ଵିఈ ఓൗ ൯ ൨ ܲ଴ሺ‫ݐ‬ሻ (16) Eq. (16) can be rewritten as ܲ௡ሺ‫ݐ‬ሻ = ൫ߙ ߤൗ ൯ ௡ ൫1 − ߙ ߤൗ ൯ (17) Thus, based on eq. (17), the probability for the presence of "݊" customers using blogs at any time "‫"ݐ‬ can be computed, provided the values of ߙ and ߤ are known. The equation for defining the average number of customers using blogs for purchasing can be depicted as,
  • 7. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 7 ‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ = ෍ ݊ܲ௡ሺ‫ݐ‬ሻ ே ௡→ஶ = ෍ ൫ߙ ߤൗ ൯ ௡ ൫1 − ߙ ߤൗ ൯ ே ௡→ஶ = ൫1 − ߙ ߤൗ ൯ ෍ ൫ߙ ߤൗ ൯ ௡ ே ௡→ஶ = ൫1 − ߙ ߤൗ ൯ ቄ1. ൫ߙ ߤൗ ൯ ଵ + 2. ൫ߙ ߤൗ ൯ ଶ + 3. ൫ߙ ߤൗ ൯ ଷ +. … … … … . . +݊. ൫ߙ ߤൗ ൯ ௡ ቅ ‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ = ൫ఈ ఓൗ ൯ ൫ଵିఈ ఓൗ ൯ (18) Based on eq. (18), the average waiting time for customer reads the blog is ‫ݐܹ݅ܽ݃ݒܣ‬ሺ‫ݐ‬ሻ = ଵ ఓ ቀ ∅ ଵି∅ ቁ, where ∅ = ߙ ߤൗ (19) 3. Outcomes and Analysis As indicated in Section 2, the section portrays the outcomes of the mathematical formulasdeveloped. The number of users in the blogs are taken into contemplation from 3 different marketing blogs expending DataMarket, which is an open data portal that consents to access and explore thousands of publicly available datasets. Table 1 depicts ߙ andߤ, based on which ‫ݐݏݑܥ݃ݒܣ‬ሺ௡ሻ is calculated. Table1 also outlines the number of users using blogs, in terms of percentage. Α Μ NUMBER OF CUSTOMERS IN THE MARKET (ONLINE CUSTOMERS) PERCENTAGE OF CUSTOMERS DUE TO BLOGGING EFFECT 66 100 7.33 11.11% 82 120 12.33 15.04% 99 140 19 19.19% 122 160 12.33 10.11% 131 180 89 67.94% 139 200 19 13.67% 144 220 21 14.58% 167 240 7.57 4.53% 181 260 20.67 11.42% 195 280 30.11 15.44% 212 300 26.27 12.39% Table 1: Calculation of AvgCust(n)
  • 8. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 8 Table 2 illustrates the average time each blogger takes to read the blog content. As revealed in Table 2, the reader reads apiece blog in array of 1 to 10 seconds. The result does not delineates the benevolent of blogs read by the reader and is centered in data collection of 3 dissimilar blogs using DataMarket. α Μ WAITING TIME TO READ THE BLOG (IN SECONDS) 66 100 0.073 82 120 0.103 99 140 0.136 122 160 0.077 131 180 0.494 139 200 0.095 144 220 0.095 167 240 0.032 181 260 0.079 195 280 0.108 212 300 0.088 Table 2: Calculation of AvgWait(t) 4. Concluding Remarks The study conducted used the model of CBB proposed by (Solomon, M. &Rabolt, N., 2009). The study evaluates how the information given in blogs by varied sources are taken seriously by the consumers. The outcomes cited in two tables, specifies that the part of blogs on CBB is relatively significant, though the duration of reviews reading by the consumer is quite short. The paper does not suffice any cause for short extent of review reading, but it is well assumed that the spell does not have any much alteration on final buying verdicts. The study aims to be further augment the research on part of blogs on post buying behavior, though, it is witnessed that the consumer go back to the blog after purchase to leave their annotations about the product purchased, its influence on CBB is still unknown. References [1] (Alasilta, A., 2009). “Blogituleetöihin”. Keuruu: OtavanKirjapainoOy. (Google Translation) [2] (Chui and Manyika, 2011). “Big data: The next frontier for innovation, competition, and productivity”, McKinsey Global Institute. [3] (Evans, D. 2010). “Social Media Marketing. The next generation of business engagement”. Indiana: Wiley Publishing, Inc. [4] (Kermack,W.O. & McKendrick,A.G.), “A Contribution to the Mathematical Theory of Epidemics”, Proceedings of the Royal Society, A Mathematical, Physical and Engineering Sciences, (http://rspa.royalsocietypublishing.org/content/115/772/700.full.pdf+html [5] (Kotler, P., 2000). “Principles of marketing”. Ninth edition. Essex: Prentice Hall.
  • 9. International Journal of Business Information Systems Strategies (IJBISS) Volume 3, Number 2, May 2014 9 [6] (Sergio Zyman,2000),“The end of Marketing as we know it”, HarperBusiness. [7] (Solomon, M. & Rabolt, N., 2009). “Consumer Behavior in Fashion”, New Jersey, Prentice Hall. [8] (Srivastava, Riktesh, 2012), “Analysis Of Job Scheduling Algorithm For An E-Business Model In A Cloud Computing Environment Via GI/G/3/N/K Queuing Model”, International Journal of Advancements in Technology, pp. 215-229, Vol. 3 No. 4. [9] (2013-Mobile-Social-Lead-Shift-Traditional-Media-Digital, 2013),http://www.emarketer.com/Article/2013-Mobile-Social-Lead-Shift-Traditional-Media- Digital/1009677 [10](44-ways-to-use-a-blog-as-a-small-business-owner,2010),http://blogforprofit.com/business- blogging/44-ways-to-use-a-blog-as-a-small-business-owner/