Working Papers

Sources of Social Value in Word-of-mouth Programs

Barak Libai, Eitan Muller, and Renana Peres

Jan 1, 2010

Investigates the process by which word-of-mouth-related (i.e., seeding) programs create profitability for new products via customer acquisition and purchase acceleration. Uses an agent-based modeling approach to simulate the penetration process of a new product into a social network.

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