Susceptibility and influence in social media word-of-mouth
Ward, Michael R.
- Publisher: Mannheim: Zentrum für Europäische Wirtschaftsforschung (ZEW)
D85 | Social Networks | M31 | L14 | Word-of-Mouth | Adoption | Word-of-Mouth,Peer Effects,Adoption,Social Networks,Video Games | Peer Effects | 300 Sozialwissenschaften, Soziologie, Anthropologie | Video Games
Peer influence through word-of-mouth (WOM) plays an important role in many
information systems but identification of causal effects is challenging. We identify causal WOM
effects in the empirical setting of game adoption in a social network for gamers by exploiting
differences in individuals’ networks. Friends of friends do not directly influence a focal user, so
we use their characteristics to instrument for behavior of the focal user’s friends. We go beyond
demonstrating a large and highly significant WOM effect and also assess moderating factors of
the strength of the effect on the sender and receiver side. We find that users with the most
influence on others tend to be better gamers, have larger social networks, but spend less time
playing. Interestingly, these are also the users who are least susceptible to WOM effects.