| Description | Title: Product Scarcity, Social Influence, and the Speed of Diffusion: Brilliance, Blunder, or Serendipity?
ABSTRACT Researchers have shown that product scarcity slows down the diffusion of a new product. Leading practitioners, however, have recommended strategically engineering scarcity to fuel a sense of exclusivity and increasing the product appeal. We focus on understanding the link between the diffusion parameters, product scarcity, and its impact on the speed-of-diffusion. Counterintuitively, we theorize and show, in markets with product scarcity, under certain conditions of social influence of adopters and waiting customers with respect to their w-o-m intensity and reach, it is possible to speed-up diffusion of a new product. Employing a product supply-constrained diffusion model with heterogeneous social influence, we identify theoretical conditions under which a diffusion process can speed-up. Using an Agent-Based framework we estimate the parameters using a genetic algorithm-based approach. We find speed-up of the diffusion process is contingent on a delicate balance between the combination of “social influence ratio”, external influence, and level of scarcity. Depending on whether the speed-up or slowdown was intended or not, a manager’s strategy can be deemed as brilliant, blunder; or serendipitous. We add to the literature by recommending that managers should allocate their marketing spending to platforms to differentiate amplification of influence from waiting customers from that of adopters.
Join Zoom Meeting
https://washington.zoom.us/j/96514396666
Meeting ID: 965 1439 6666
One tap mobile
+12063379723,,96514396666# US (Seattle)
+12532158782,,96514396666# US (Tacoma)
Dial by your location
+1 206 337 9723 US (Seattle)
+1 253 215 8782 US (Tacoma)
+1 720 928 9299 US (Denver)
+1 971 247 1195 US (Portland)
+1 213 338 8477 US (Los Angeles)
+1 346 248 7799 US (Houston)
+1 602 753 0140 US (Phoenix)
+1 669 219 2599 US (San Jose)
+1 669 900 6833 US (San Jose)
+1 312 626 6799 US (Chicago)
+1 470 250 9358 US (Atlanta)
+1 470 381 2552 US (Atlanta)
+1 646 518 9805 US (New York)
+1 646 876 9923 US (New York)
+1 651 372 8299 US (Minnesota)
+1 786 635 1003 US (Miami)
+1 267 831 0333 US (Philadelphia)
+1 301 715 8592 US (Washington DC)
Meeting ID: 965 1439 6666
Find your local number: https://washington.zoom.us/u/acvHVGJlK5
Join by SIP
96514396666@zoomcrc.com
Join by H.323
162.255.37.11 (US West)
162.255.36.11 (US East)
221.122.88.195 (China)
115.114.131.7 (India Mumbai)
115.114.115.7 (India Hyderabad)
213.19.144.110 (Amsterdam Netherlands)
213.244.140.110 (Germany)
103.122.166.55 (Australia Sydney)
103.122.167.55 (Australia Melbourne)
209.9.211.110 (Hong Kong SAR)
149.137.40.110 (Singapore)
64.211.144.160 (Brazil)
69.174.57.160 (Canada Toronto)
65.39.152.160 (Canada Vancouver)
207.226.132.110 (Japan Tokyo)
149.137.24.110 (Japan Osaka)
Meeting ID: 965 1439 6666
|
|---|