EBSCO Logo
Connecting you to content on EBSCOhost
Results
Title

Latent Homophily or Social Influence? An Empirical Analysis of Purchase Within a Social Network.

Authors

Liye Ma; Krishnan, Ramayya; Montgomery, Alan L.

Abstract

Consumers who are close to one another in a social network often make similar purchase decisions. This similarity can result from latent homophily or social influence, as well as common exogenous factors. Latent homophily means consumers who are connected to one another are likely to have similar characteristics and product preferences. Social influence refers to the ability of one consumer to directly influence another consumer's decision based upon their communication. We present an empirical study of purchases of caller ring-back tones using data from an Asian mobile network that predicts consumers' purchase timing and choice decisions. We simultaneously measure latent homophily and social influence, while also accounting for exogenous factors. Identification is achieved due to our dynamic, panel data structure and the availability of detailed communication data. We find strong influence effects and latent homophily effects in both the purchase timing and product choice decisions of consumers.

Subjects

PURCHASING; SOCIAL network research; SOCIAL influence; HOMOPHILY theory (Communication); RING tones; CONSUMER preferences

Publication

Management Science, 2015, Vol 61, Issue 2, p454

ISSN

1526-5501

Publication type

Academic Journal

DOI

10.1287/mnsc.2014.1928

EBSCO Connect | Privacy policy | Terms of use | Copyright | Manage my cookies
Journals | Subjects | Sitemap
© 2025 EBSCO Industries, Inc. All rights reserved