Structural Equivalence and Cohesion Can Explain Bandwagon and Snob Effect

Abstract

Existing studies have shown that highly conspicuous brands are strongly impacted by word of mouth. Bandwagon and snob effects are opposite; however, existing studies have not shown the conditions under which these opposite effects occur. If we assume that they work simultaneously, they would negate each other and become meaningless. Thus, this paper surveys brand-name goods sold in duty free shops and personal networks constituting friends and acquaintances. Results of this social network analysis reveal that people owning many of the same items have no relation with cohesion but have a relation with structural equivalence (SE). In other words, considering the characteristics of a consumer network, (a) the snob effect operates under conditions of cohesion while (b) the bandwagon effect operates under conditions of SE. [ABSTRACT FROM AUTHOR]