Document Type

Article

Publication Date

8-4-2011

Abstract

We examine how firms can create word-of-mouth peer influence and social contagion by designing viral features into their products and marketing campaigns. To econometrically identify the effectiveness of different viral features in creating social contagion, we designed and conducted a randomized field experiment involving the 1.4 million friends of 9,687 experimental users on Facebook.com. We find that viral features generate econometrically identifiable peer influence and social contagion effects. More surprisingly, we find that passive-broadcast viral features generate a 246% increase in peer influence and social contagion, whereas adding active-personalized viral features generate only an additional 98% increase. Although active-personalized viral messages are more effective in encouraging adoption per message and are correlated with more user engagement and sustained product use, passive-broadcast messaging is used more often, generating more total peer adoption in the network. Our work provides a model for how randomized trials can identify peer influence in social networks.

Comments

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Management Science, volume 58, issue 9, in 2011 following peer review. This article may not exactly replicate the final published version. The definitive publisher-authenticated version is available online at https://doi.org/10.1287/mnsc.1110.1421

An earlier version of this paper was also presented at the 31st International Conference on Information Systems in 2010. https://aisel.aisnet.org/icis2010_submissions/44

Peer Reviewed

1

Copyright

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