Word-of-mouth effects on social networks

Abstract

We discuss how the neighbors affect the decision of consumer behavior over diffusion of innovation in this paper. We suggest an agent-based model of diffusion and showed that on an online social network which have both of "scalefree" and "small world" properties. There are different paths by which the informative effect and the normative effect convey information. The informative effect indicates the exploratory action of gaining information, whereas the normative effect indicates the imitation effect that works on how consumers feel and try to keep up other consumers, network externalities, and explanations from society. The traits and the paths of information propagation actually differ. © 2011 Springer-Verlag.