Agent-Based Modelling: A New Approach in Viral Marketing Research

The importance of word-of-mouth (WoM) is completely underestimated by many media persons and still being neglected by several researchers. Since word-of-mouth typically cannot be planned or purchased in a strict sense, it is often left aside in media analyses and explanation models. However word-ofmouth is the most important factor in buying decisions across many different branches. The work presented in this chapter is a first attempt to introduce Agent-based Modelling (ABM) into marketing and advertising research in order to gain a deeper understanding for fundamental processes and underlying principles related to viral marketing and the spreading of word-of-mouth. By applying Agent-based Models the spreading of word-of-mouth and viral marketing dynamics can be simulated based on a bottom-up approach. Our simulation results reveal vital implications for viral marketing strategies and word-of-mouth campaigns.