Advertising and Quality-Dependent Word of Mouth in a Contagion Sales Model

In the literature on marketing models, the assumption of mixed word-of-mouth has been limited to the Bass diffusion model. Yet explicit leveraging of the originating factors of such assumption is lacking. Apart from that example, mixed word-of-mouth has been disregarded in contagion sales models. This paper bridges the gap by suggesting a sales model where both positive and negative word-of-mouth affect the attraction rate of new customers, along with advertising. Link to the article

EL OUARDIGHI, F., FEICHTINGER, G., GRASS, D., HARTL, R.F. and KORT, P.M. (2016). Advertising and Quality-Dependent Word of Mouth in a Contagion Sales Model. Journal of Optimization Theory and Applications, 170(1), pp. 323-342.

Keywords : #Sales, #Word, #of, #mouth, #Advertising-effort, #Conformance-quality