Bayesian Network Model of Product Information Diffusion and Reasoning of Influence

Information diffusion on social media has become a key strategy in people’s daily interactions. This paper studies consumers’ participation in the product information diffusion, and analyzes the complexity of information diffusion which is affected by many factors. Prior investigations of information diffusion have primarily focused on the composition of diffusion networks with independent factors and the intricacy of the process has not been completely evaluated. The majority of prior investigations have focused on strategies and the moving forces in social media processes and the determination of influential seed nodes, with few evaluations conducted about the factors affecting consumers’ choices in information diffusion. In this study, a Bayesian network model of product information diffusion was created to examine the links between factors and consumer deportment. It revealed how those factors had an impact on each other and on consumer deportment choice. The innovation of the thesis is reflected in the exploration and analysis of the specific communication path of product information diffusion, which provides a better marketing idea and practical method for the development of mobile e-commerce. The research findings can help identify the quantitative relationships between the factors affecting the process of product information diffusion and user behavior.

ADVANCE SELLING IN THE PRESENCE OF PRODUCT DIFFUSION EFFECT

Product diffusion refers to the phenomenon that the later demand is dependent on the early sales. To investigate how a firm＇s advance selling strategy is affected by the effect of product diffusion, we consider a monopolist seller who sells a fashionable product in a market that comprises of myopic and strategic consumers over two periods （i.e., the advance selling season and the regular selling season）. For a linear product diffusion effect we fred that, when the effect of product diffusion is positive, the seller may set an extremely high advance selling price to induce the strategic consumers to purchase in the regular selling season, which is counter-intuitive. Moreover, the optimal procurement quantity for the seller may increase in the negative effect of product diffusion and decrease in the amount of strategic consumers. When we extend our model to consider a concave quadratic product diffusion effect, however, the optimal procurement quantity is concave in the amount of strategic consumers. Numerical studies are further presented to discuss the managerial insights.