Research On The Diffusion Of High-tech Product In Social Network

With the rapid development of social networks,e-commerce and smartphone,consumers increasingly rely on interaction with other consumers in social networks to obtain product information,and the impact of social networks on product diffusion is becoming more and more obvious.The difference of the location in the network structure,influence and strength of relationships between consumers can affect product diffusion in social networks.The existing research results about the high-tech product diffusion less consider such difference,the influence of price and advertising and consumer repeat purchase behavior.The research about product diffusion when consumers randomly interact under weak ties is also relatively rare.Therefore,considering the influence of price and advertising,difference of influence,difference of relationship strength and consumer repeat purchase,this paper studies the high-tech product diffusion in consumer social network and the formation and the structure characteristic of product adoption network under weak ties.Considering the influence of price and advertising and dynamic market potential,this paper studies a single high-tech product diffusion in consumer social network.The results show that when without considering the influence of price and advertising,the probability that potential consumers adopt the product affected by the adopters should be higher than a threshold,which could make the single high-tech product persistently diffuse in the network.The threshold depends on the properties of consumer social networks and the dynamics of market potential.When considering the influence of penetration pricing and advertising,the single high-tech product could persistently diffuse in the network if there exist innovators.When considering the influence of skimming pricing and advertising,if the product price satisfies some constraint conditions,the product can persistently diffuse in the network whose degree distribution follows the power law distribution.The conditions are related to the dynamic market potential and unrelated to the properties of the network.Considering the difference of consumer's influence and dynamic market potential,the results of a single high-tech product diffusion in consumer social network show that when consumers adopt the product only affected by internal word-of-mouth,the linear combination of probability that potential consumers adopt the product affected by the adopters should be higher than a threshold,which could make the single high-tech product persistently diffuse in the network.The threshold depends on the network structure of the consumer social network,the conversion ratio of adopters with high and low influence and the dynamics of market potential.The simulation results demonstrate that the higher the conversion ratio of adopters with high influence and the average degree of the network,the faster the speed of the product diffusion,and the shorter the time required for the product diffusing to reach the steady state.Considering the difference of relationship strength between consumers and dynamic market potential,the results of a single high-tech product diffusion in consumer social network show that when consumers adopt the product only affected by internal word-of-mouth,the probability that potential consumers adopt the product affected by the adopters should be higher than a threshold,which could make the single high-tech product persistently diffuse in the network.The threshold depends on the properties of consumer social networks,the relationship strength between consumers and the dynamics of market potential.The simulation also finds that when the relationship strength is a non-negative convex function of the node degree,the stronger the relationship strength and the higher the average degree of the network,the faster the speed of product diffusion in the network,and the shorter the time required for the product diffusing to reach the steady state.Considering the consumer repeat purchase behavior and fixed market potential,the results of two competing high-tech products diffusion in consumer social network show that when without considering the influence of advertising,if there exists only one product in the market,the probability that potential consumers adopt the product affected by the adopters should be higher than a threshold,which could make the single product persistently diffuse in the network.The threshold depends on the properties of consumer social networks and the proportion of repeat purchase.If the two products coexist in the market,there exists a unique positive equilibrium state where the two competing products coexist and persistently diffuse in consumer social networks.When considering the influence of advertising,there exists at least one positive equilibrium state where the two products coexist and persistently diffuse in consumer social networks.Considering the consumer's random interaction behavior and fixed market potential,the results of a single high-tech product diffusion show that the information level of adopter's commentary and the consumer surplus of potential consumer significantly influence the formation of product adoption network under weak ties,and the network has scale-free property and small-world property.The clustering coefficient of the product adoption network gradually decreases and tends to be stable as the network size increases.The average path length increases with the increase of the network size and tends to be stable.