A Corporate Reputation Propagation Dynamic Model

Abstract

This study analyzes the process of corporate reputation (CR) propagation. We consider that different positions play different roles via social word of mouth (sWOM). In essence, our interest lies in the following question: how does sWOM affect the process of CR propagation? As a benchmark, we develop a dynamic model to reflect the factors and laws influencing corporate reputation propagation. We find that the stability of the system is not what corporations want to see in the propagation of positive CR after analyzing two basic reproduction numbers and conducting a numerical simulation. Another important finding is that stability is what corporations expect in the propagation of negative CR. This study makes the logical analysis of the relationship between CR and consumer loyalty more complete and helps us to clearly understand the overall process of CR propagation. The study provides a new way to analyze the law of CR propagation and can provide a reference for decision-making for corporations.