Advertisement

A Population Dynamics Approach to Viral Marketing

  • Pedro C. SoutoEmail author
  • Luísa V. Silva
  • Diego Costa Pinto
  • Francisco C. Santos
Conference paper
Part of the Studies in Computational Intelligence book series (SCI, volume 881)

Abstract

The symbiosis of Social Media and viral campaigns has recently become ubiquitous. In many recent phenomena (e.g., the Cambridge Analytica scandal), rumours in viral marketing programs are present without being even noticed by consumers. Yet, the study of population dynamics and its complex patterns of interaction remains largely elusive. Here, we propose an agent-based Marketing referral model to study the impact on firms’ dissemination and profitability of biased behavior in a population of opportunistic individuals. We show that those agents only interested in collecting rewards without any brand recognition are responsible for most of Marketing campaign success and dissemination, for a large range of different cost structures, network characteristics, and number of invites. This effect is further amplified whenever the difference between the cost of using the service and the reward collected after bringing a new customer is higher.

Keywords

Rumour and viral marketing Referral programs Social networks 

References

  1. 1.
    Ahn, Y.Y., Han, S., Kwak, H., Moon, S., Jeong, H.: Analysis of topological characteristics of huge online social networking services. In: Proceedings of the 16th International Conference on World Wide Web, pp. 835–844. ACM (2007)Google Scholar
  2. 2.
    de Arruda, G.F., Rodrigues, F.A., Moreno, Y.: Fundamentals of spreading processes in single and multilayer complex networks. Phys. Rep. 756, 1–59 (2018)MathSciNetCrossRefGoogle Scholar
  3. 3.
    Barabási, A.L., Albert, R.: Emergence of scaling in random networks. Science 286(5439), 509–512 (1999)MathSciNetCrossRefGoogle Scholar
  4. 4.
    Barrat, A., Barthelemy, M., Vespignani, A.: Dynamical Processes on Complex Networks. Cambridge University Press, Cambridge (2008)CrossRefGoogle Scholar
  5. 5.
    Berman, B.: Referral marketing: harnessing the power of your customers. Bus. Horiz. 59(1), 19–28 (2016)CrossRefGoogle Scholar
  6. 6.
    Chen, A.: Growth hacker is the new VP marketing (2018). https://andrewchen.co/how-to-be-a-growth-hacker-an-airbnbcraigslist-case-study
  7. 7.
    Dick, A.S., Basu, K.: Customer loyalty: toward an integrated conceptual framework. J. Acad. Mark. Sci. 22(2), 99–113 (1994)CrossRefGoogle Scholar
  8. 8.
    Ellis, S.: Lean startup marketing: agile product development, business model design, web analytics, and other keys to rapid growth: a step-by-step guide to successful startup marketing. Hyperink Inc. (2012)Google Scholar
  9. 9.
    Ellis, S., Brown, M.: Hacking growth: how today’s fastest-growing companies drive breakout success. Currency (2017)Google Scholar
  10. 10.
    Garretson, J.A., Fisher, D., Burton, S.: Antecedents of private label attitude and national brand promotion attitude: similarities and differences. J. Retail. 78(2), 91–99 (2002) CrossRefGoogle Scholar
  11. 11.
    Goldsmith, R.E., Flynn, L.R., Kim, D.: Status consumption and price sensitivity. J. Mark. Theory Pract. 18(4), 323–338 (2010) CrossRefGoogle Scholar
  12. 12.
    Han, S., Gupta, S., Lehmann, D.R.: Consumer price sensitivity and price thresholds. J. Retail. 77(4), 435–456 (2001)CrossRefGoogle Scholar
  13. 13.
    Işıl Dalaman, A.M.: Overview of growth hacking: the evaluation of implementations on uber. Int. J. Econ. Commer. Manage. 5(6), 60–77 (2017)Google Scholar
  14. 14.
    Jeong, J., Moon, S.: Invite your friends and get rewards: dynamics of incentivized friend invitation in kakaotalk mobile games. In: Proceedings of the Second ACM Conference on Online Social Networks, pp. 151–160. ACM (2014)Google Scholar
  15. 15.
    Jiang, Y., Kassem, R., York, G., Junge, M., Durrett, R.: Sir epidemics on evolving graphs. arXiv preprint arXiv:1901.06568 (2019)
  16. 16.
    Marx, K., Levitzky, S.L.: Das Kapital: A Critique of Political Economy. H. Regnery, Washington (1965)Google Scholar
  17. 17.
    Moll, J., Zahn, R., de Oliveira-Souza, R., Krueger, F., Grafman, J.: The neural basis of human moral cognition. Nat. Rev. Neurosci. 6(10), 799 (2005)CrossRefGoogle Scholar
  18. 18.
    Pastor-Satorras, R., Castellano, C., Van Mieghem, P., Vespignani, A.: Epidemic processes in complex networks. Rev. Mod. Phys. 87(3), 925 (2015)MathSciNetCrossRefGoogle Scholar
  19. 19.
    Ramirez, E., Goldsmith, R.E.: Some antecedents of price sensitivity. J. Mark. Theory Pract. 17(3), 199–214 (2009)CrossRefGoogle Scholar
  20. 20.
    Reingen, P.H., Kernan, J.B.: Analysis of referral networks in marketing: methods and illustration. J. Mark. Res. 23(4), 370–378 (1986)CrossRefGoogle Scholar
  21. 21.
    Research, N.M.: Global trust in advertising: winning strategies for an evolving media landscape (2015). https://www.nielsen.com/content/dam/nielsenglobal/se/docs/Global%20Trust%20in%20Advertising%20Report%20September%202015.pdf
  22. 22.
    Roberts, L.: Method of referral marketing. US Patent App. 12/414,411, 16 July 2009Google Scholar
  23. 23.
    Santos, F.P., Pacheco, J.M., Paiva, A., Santos, F.C.: Multiplayer ultimatum games and collective fairness in networked communities. In: Artificial Life Conference Proceedings, pp. 286–287. MIT Press (2018)Google Scholar
  24. 24.
    Santos, F.P., Pacheco, J.M., Paiva, A., Santos, F.C.: Evolution of collective fairness in hybrid populations of humans and agents. In: Proceedings of the AAAI Conference on Artificial Intelligence, vol. 33, pp. 6146–6153 (2019)CrossRefGoogle Scholar
  25. 25.
    Smith, A.: An Inquiry Into the Nature and Causes of the Wealth of Nations. T. Nelson and Sons, Nashville (1887)Google Scholar
  26. 26.
    Trusov, M., Bucklin, R.E., Pauwels, K.: Effects of word-of-mouth versus traditional marketing: findings from an internet social networking site. J. Mark. 73(5), 90–102 (2009)CrossRefGoogle Scholar
  27. 27.
    Van Den Bulte, C., Bayer, E., Skiera, B., Schmitt, P.: How customer referral programs turn social capital into economic capital. J. Mark. Res. 55(1), 132–146 (2018)CrossRefGoogle Scholar
  28. 28.
    Van Den Bulte, C., Bayer, E., Skiera, B., Schmitt, P.: How customer referral programs turn social capital into economic capital. J. Mark. Res. 55(1), 32–132 (2018)Google Scholar
  29. 29.
    Yi, Y., Jeon, H.: Effects of loyalty programs on value perception, program loyalty, and brand loyalty. J. Acad. Mark. Sci. 31(3), 229–240 (2003)CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Pedro C. Souto
    • 1
    • 3
    • 4
    Email author
  • Luísa V. Silva
    • 2
  • Diego Costa Pinto
    • 2
  • Francisco C. Santos
    • 1
    • 4
  1. 1.INESC-ID and Instituto Superior TécnicoUniversidade de LisboaLisbonPortugal
  2. 2.NOVA Information Management SchoolUniversidade Nova de LisboaLisbonPortugal
  3. 3.NOVA School of Business and EconomicsUniversidade Nova de LisboaLisbonPortugal
  4. 4.ATP-GroupIST-TagusparkPorto SalvoPortugal

Personalised recommendations