A dynamic analysis of the effects of word-of-mouth on online brand communities

Abstract

The increase of brand communities is an important aspect that affects the purchase process of online consumers. This research aims to assess the effects of word-of-mouth (WOM) on online brand communities in the food industry in Colombia. The paper presents a simulation model of online consumers' purchase processes which allows us to understand the viral marketing strategy and answers the following question: What is the function of WOM for online brand communities and what role does it play in food consumption? The model shows the change of consumer states and allows the understanding of behavior during the development of the brand, WOM, the viral effects in the market and the analysis of market penetration or the adoption of a complex service structure in closed cycles. The findings from research into these issues can be used as guidelines to determine a suitable marketing policy that could be adopted for agribusiness.