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Notes
Introduction: Why Things Catch On
Sixty
percent
are
gone:
www.econ.ucsb.edu/~tedb/Courses/Ec1F07/restaurantsfail.pdf
.
“It was like eating gold”:
Taken from Barclay Prime’s Yelp page,
http://www.yelp.com/biz/barclay-prime-philadelphia
.
Most restaurants bomb:
Shane, Scott (2008), “Startup Failure Rates—The
REAL
numbers,”
Small
Business
Trends,
April
28,
http://smallbiztrends.com/2008/04/startup-failure-rates.html
.
People share more than 16,000 words:
See Mehl, Matthais R., Simine
Vazire, Nairan Ramirez-Esparza, Richard B. Slatcher, and James W.
Pennebaker (2007), “Are Women Really More Talkative Than Men?”
Science 317, 82.
100 million conversations about brands:
see Keller, Ed, and Barak Libai
(2009), “A Holistic Approach to the Measurement of WOM,”
presentation at ESOMAR Worldwide Media Measurement Conference,
Stockholm (May 4–6).
We try websites our neighbors recommend:
see Trusov, Michael, Randolph
E. Bucklin, and Koen Pauwels (2009), “Effects of Word-of-Mouth Versus
Traditional Marketing: Findings from an Internet Social Networking
Site,” Journal of Marketing 73 (September), 90–102.
Word of mouth is the primary factor:
Bughin, Jacques, Jonathan Doogan,
and Ole Jørgen Vetvik (2010), “A New Way to Measure Word-of-Mouth
Marketing,” McKinsey Quarterly (white paper).
Goel, Watts, and Goldstein 2012:
“The Structure of Online Diffusion
Networks,” Proceedings of the 13th ACM Conference on Electronic
Commerce (EC ’12).
$200 increase in restaurant sales:
see Godes, David, and Dina Mayzlin
(2009), “Firm-Created Word-of-Mouth Communication: Evidence from a
Field Study,” Marketing Science 28, no. 4, 721–39.
twenty more books sold:
Chevalier, Judith, and Dina Mayzlin (2006), “The
Effect of Word of Mouth on Sales: Online Book Reviews,” Journal of
Marketing Research 43, no. 3, 345–54.
Doctors are more likely:
Iyengar, Raghuram, Christophe Van den Bulte, and
Thomas W. Valente (2011), “Opinion Leadership and Social Contagion in
New Product Diffusion,” Marketing Science 30, no. 2, 195–212.
People are more likely:
Christakis, Nicholas A., and James Fowler (2009),
Connected: The Surprising Power of Our Social Networks and How They
Shape Our Lives (New York: Little, Brown and Company).
while traditional advertising is still useful:
Stephen, Andrew, and Jeff Galak
(2012), “The Effects of Traditional and Social Earned Media on Sales: A
Study of a Microlending Marketplace,” Journal of Marketing Research
(forthcoming); Trusov, Bucklin, and Pauwels, “Effects of Word-of-Mouth
Versus Traditional Marketing.”
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