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Viral-Marketing - A Large Scale FIeld Experiment by Ashu Rajdor

Viral-Marketing - A Large Scale FIeld Experiment by Ashu Rajdor

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Published by Ashu Rajdor
A Large Scale FIeld Experiment by Ashu Rajdor explains Viral Marketing concepts.
A Large Scale FIeld Experiment by Ashu Rajdor explains Viral Marketing concepts.

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Categories:Types, Research
Published by: Ashu Rajdor on Nov 25, 2012
Copyright:Attribution Non-commercial

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12/04/2012

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Viral Marketing: A Large-scale Field Experiment
ByOlivier Toubia*Andrew T. Stephen**AndAliza FreudAugust 28, 2009Draft – Please do not cite without permission
This paper has benefited from the comments of the participants in the BRITE conference on onlinecommunities at Columbia Business School. We wish to thank Oded Netzer and Avi Goldfarb for theiruseful suggestions.
* David W. Zalaznick Associate Professor of Business at Columbia University, Uris 522 ,Columbia Business School 3022 Broadway, New York, United States of America Phone: +1(212) 854 8243 ; Email:ot2107@columbia.edu ** Assistant Professor of Marketing at INSEAD, Boulevard de Constance, 77305 Fontainebleau,France Ph: (33) 01 60 72 26 42
Email:andrew.stephen@insead.edu *** Founder and CEO, SheSpeaks Inc.Email:aliza@shespeaks.com A working paper in the INSEAD Working Paper Series is intended as a means whereby a facultyresearcher's thoughts and findings may be communicated to interested readers. The paper should beconsidered preliminary in nature and may require revision.Printed at INSEAD, Fontainebleau, France. Kindly do not reproduce or circulate without permission.
 
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Viral Marketing: a Large-Scale Field Experiment
 
Abstract
We report the results of a large-scale field experiment performed in the context of thenational launch of a new cosmetic product. The manufacturer launched this new productusing three promotional tools in parallel: full-page advertisements in fashion magazines,free standing inserts (FSI) in Sunday newspapers, and a viral marketing campaign. Each promotional tool featured an identical discount coupon for the new product, but withdifferent redemption codes across promotional tools. Our data enable us to address thefollowing research questions: (1) How does the effectiveness of viral marketing compareto that of traditional media? (2) What is the relation between online and offline socialinteractions in viral marketing campaigns? And (3) what characterizes the most activemembers in a viral marketing campaign? We find that (1) viral marketing compares veryfavorably to print advertising and FSI, based on the partial but objective measure of coupon redemption rate; (2) although viral marketing campaigns involve a strong onlinecomponent, most social interactions happen offline and offline social interactions do notsubstitute online social interactions; (3) a set of simple measures of members’ socialcharacteristics may be used to predict word-of-mouth transmission and identify the mostactive members in a campaign.

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