The Role of Spatial Proximity in the Adoption of a Digital Product

Barrot, Christian; Rangaswamy, Arvind; Albers, Sönke; Shaikh, Nazrul I.

doi:10.2139/ssrn.1092893

Cited by 15 publications

(21 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Although we may observe an opportunity for communication between two people and a correlation in their behavior, our ability to infer that person A's behavior had been affected by an interaction with B is not straightforward. What may be perceived as social effect can actually echo similarities in customers' preferences and tastes that reflect their intrinsic tendency to behave similarly, or a common response to a similar external ''shock,'' such as a promotion (Barrot et al 2008;Manski 2000). The solutions to such problems often require rich data and advanced statistical analysis (Hartmann et al 2008).…”

Section: Statistical Models and The Challenges Of C2c Identificationmentioning

confidence: 99%

Customer-to-Customer Interactions: Broadening the Scope of Word of Mouth Research

Libai

Bolton

Bügel³

et al. 2010

Journal of Service Research

487

346

View full text Add to dashboard Cite

The increasing emphasis on understanding the antecedents and consequences of customer-to-customer (C2C) interactions is one of the essential developments of customer management in recent years. This interest is driven much by new online environments that enable customers to be connected in numerous new ways and also supply researchers' access to rich C2C data. These developments present an opportunity and a challenge for firms and researchers who need to identify the aspects of C2C research on which to focus, as well as develop research methods that take advantage of these new data. The aim here is to take a broad view of C2C interactions and their effects and to highlight areas of significant research interest in this domain. The authors look at four main areas: the different dimensions of C2C interactions; social system issues related to individuals and to online communities; C2C context issues including product, channel, relational and market characteristics; and the identification, modeling, and assessment of business outcomes of C2C interactions.

show abstract

Section: Statistical Models and The Challenges Of C2c Identificationmentioning

confidence: 99%

Customer-to-Customer Interactions: Broadening the Scope of Word of Mouth Research

Libai

Bolton

Bügel³

et al. 2010

Journal of Service Research

487

346

View full text Add to dashboard Cite

show abstract

“…Measures of social contagion due to geographic proximity are developed on the premise that people who live closer to each other observe and interact with each other and thus, can influence each other's behavior and attitudes. Geographic proximity is the most basic source of homophily that connects people (McPherson, Smith‐Lovin, & Cook, 2001), and the distance between any two people serves as a proxy for both the degree of influence on each other (Strang & Tuma, 1993) and the extent of informational transfer between them (Barrot, Rangaswamy, Albers, & Shaikh, 2008). Geographic proximity is also an important factor that influences the closeness of a relationship between two people as determined by the multiplexity and frequency of contact between them (McPherson et al, 2001).…”

Section: Modeling Geographic Proximity Effectsmentioning

confidence: 99%

The Impact of Geographic Proximity on What to Buy, How to Buy, and Where to Buy: Evidence from High-Tech Durable Goods Market*

Janakiraman¹,

Niraj²

2011

Decision Sciences

View full text Add to dashboard Cite

Social contagion effects due to geographical proximity refer to the social effects wherein the behavior of an individual varies with the behavior of other individuals who are geographically close. Although the influence of such effects on consumer choices has been established in several contexts, much of the extant studies have focused on its effect on consumers' decision of whether to buy a new product or adopt a new innovation. There has been no systematic examination of the influence of geographic proximity on other aspects of consumers' product buying process such as what to buy (i.e., brand choice), how to buy (i.e., the channel), and where to buy (i.e., retailers). Such effects can matter significantly in high-technology and durable goods markets and therefore, it is critical to understand the scope of these on consumers' choice of retailers and channel as well. Drawing on literatures from word of mouth effects, ecommerce, and consumers' perception of risk in their purchase process, we develop a set of hypotheses on the effect of geographic proximity on consumers' choices of what to buy, how to buy, and where to buy. Leveraging a microlevel dataset of purchases of personal computers, we develop brand-, retailer-, and channel-related measures of proximity effects at the individual consumer level and estimate a joint disaggregate model of the three choices that make up a product purchase process to test these hypotheses. Our results indicate a significant contagion effect on each of the three choices. Furthermore, we find evidence of a greater effect of geographic proximity on inexperienced consumers-those who are new to the product category. Our results thus help develop a holistic understanding of the influence of social contagion effects on consumers' decision making. * We thank the anonymous reviewers and the seminar participants at the following conferences for their comments and suggestions:

show abstract

“…If that is the case, as ICTs develop and lower internationalization costs further, we may expect the significance of distancedependent explanations of internationalization to diminish in the future. However, studies in other seemingly ''frictionless'' environments such as equity trading and information system adoption showed the importance of distance (Barrot et al 2008) and the continuing relevance of distance-dependent internationalization models (Beugelsdijk and Frijns 2010). The second goal is, therefore, to determine the applicability of either distance-dependent or distance-invariant explanations of internationalization to a new domain where they have not been explored: SNS.…”

Section: Introductionmentioning

confidence: 99%

A Cost-Based Explanation of Gradual, Regional Internationalization of Multinationals on Social Networking Sites

Pogrebnyakov

2016

Manag Int Rev

View full text Add to dashboard Cite

This paper examines firm internationalization on social networking sites (SNS). It systematically examines costs faced by an internationalizing firm and how firms react to these costs according to ''distance-dependent'' (gradual and regional) and ''distance-invariant'' (born-global) explanations of internationalization. Data on 5827 country pages of 240 multinational firms on Facebook, the most popular SNS today, is used. Creating a foreign country-specific Facebook page is considered the SNS equivalent of opening a physical subsidiary in that country. The data show that multinationals exhibit internationalization behavior described by distance-dependent explanations, rather than the distance-invariant view, despite seemingly lower internationalization costs. Specifically, firms start internationalizing to institutionally closer countries, and gradually expand to more institutionally distant countries. They also tend to internationalize within their home region. The results point to the relevance of distance-dependent explanations of internationalization even in a seemingly low-friction environment of SNS, and the importance of explicitly accounting for internationalization costs in studies of cross-border expansion.

show abstract

The Role of Spatial Proximity in the Adoption of a Digital Product

Cited by 15 publications

References 0 publications

Customer-to-Customer Interactions: Broadening the Scope of Word of Mouth Research

Customer-to-Customer Interactions: Broadening the Scope of Word of Mouth Research

The Impact of Geographic Proximity on What to Buy, How to Buy, and Where to Buy: Evidence from High-Tech Durable Goods Market*

A Cost-Based Explanation of Gradual, Regional Internationalization of Multinationals on Social Networking Sites

Contact Info

Product

Resources

About