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Activity Number: 101
Type: Topic Contributed
Date/Time: Monday, August 7, 2006 : 8:30 AM to 10:20 AM
Sponsor: Section on Bayesian Statistical Science
Abstract - #307628
Title: Network-Based Marketing
Author(s): Shawndra Hill*+ and Chris Volinsky and Foster Provost
Companies: New York University and AT&T Labs-Research and New York University
Address: Leonard N. Stern School of Business, New York, NY, 10012,
Keywords: social networks ; dynamic networks ; marketing
Abstract:

We investigate the hypothesis that those consumers who have communicated with a customer of a particular service have increased likelihood of adopting the service. We survey the diverse literature on such "viral marketing," providing a categorization of the specific research questions asked, the data analyzed, and the statistical methods used. We highlight a striking gap in the literature: No prior study has had both of the key types of data necessary to provide direct support for the hypothesis---data on communications between consumers and data on product adoption. We suggest a type of service for which both types of data are available: telecommunications services. Then, for a particular telecommunication service, we show support for the hypothesis.

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