The Effect of Online Word of Mouth on New Product Diffusion—In The Case of American Movies

• Main Authors: Kuo-Cheng Chang, 章國正
• Other Authors: Ching-I Chen
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/38453187759340389444

碩士 === 國立暨南國際大學 === 國際企業學系 === 97 === Firms can develop, produce and promote their products in different countries due to the free trade and the internationalization, and the key to keep firms growing is to develop new products continuously in the market. Besides, consumers can search the information of new products which they are interested on the internet, and also attain the word of mouth through internet. Therefore, the effect of online word of mouth in the arena of new products diffusion is important for company. Only a few studies have discussed the effect between online word of mouth and new products diffusion. Hence, this study collected the online word of mouth about movies from the different movies web sites, for example the IMDB Web site of America and the Atmovies Web site of Taiwan, and classified them into two categories, the online word of mouth from the home country and the host country, to see how them influence the diffusion patterns of American movies. In order to discuss the interference effect of online word of mouth, a regression with interactive variances is set. The main investigation concerns how new products diffusion are influenced by online word of mouth; therefore, we get the coefficients of new products diffusion by bass diffusion model at first, then an regression and a truncated regression model are used to analyze the effect of online word of mouth on the coefficient of innovation, imitation and penetration potential. Also, this paper discussed how the box-office of American movies are influenced by online word of mouth. The results of this analysis of the new products diffusion influenced by online word of mouth from the home country and the host country can help firms understand how online word of mouth accelerate the innovation coefficient p, imitation coefficient q and the box-office in the diffusion process, and clearly show firms to create an effective marketing strategy.