FH-Prof. Mag. Andreas Zehetner, Degree program Global Sales and Marketing, Upper Austria University of Applied Sciences, School of Management, Wehrgrabengasse 1-3, 4400 Steyr, Austria, e-mail: andreas.zehetner@fh-steyr.at
Research PaperVol 12, Issue 3 2017 Marketing Science and Inspirations Journal Paper

The hidden impact of word-of-mouth: A system dynamics approach

The method of System Dynamics is applied to study the impact of word-of mouth on sales over time. Five simulations (or experiments) are run under different assumptions. The outcomes show a significant leverage effect of WOM: Depending on Customer Involvement, Product Life Cycle and Customer Satisfaction, the market development of a New-Product-Introduction varies between 11.0 and 59.3 percent…

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