Commerce and Marketing

7 important questions on Commerce and Marketing

What are 3 potential explanations for two socially connected people sharing the same behaviour.

1. Social influence: Where one person’s behaviour can be attributed to the influence of other people in their social network (e.g. friends / colleagues).
2. Social selection: People becoming socially connected because they share particular preferences or characteristics (homophily) related to the behaviour of interest.
3. Contextual factors: such as advertising that two people may have both seen.

Studying influence through a FB application (Aral & Walker, 2010).What are the 2 basic types of viral product design

- Personalized referrals  FB allows you to invite your friends via a personalized referral email to sign up for the application. (Active-personalized design).
- Automatic broadcast notifications  FB automatically alerts your friends that you have started using the application. (Passive-broadcast design).

Studying influence through a FB application (Aral & Walker, 2010). What were the main findings?

Features that require more activity on the part of the user and are more personalized to recipients (Personalized referrals / the active-personalized design) create greater marginal increases in the likelihood of adoption per message, but also generate fewer messages resulting in less total peer adoption in the network.
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What are rating systems?

Social contextual factors such as the views and opinions of the general public are important drivers of individual choice.

What does cumulative advantage mean in regards to a song?

Information about the popularity of a song affected the probability of a participant subsequently downloading the song

What are two stylized facts of cultural markets/pop markets

Succes is very unequal and the markets are very unpredictable, its  hard to predict hits.

What are two recommender systems?

- Collaborative filter-based systems = recommend products that similar customers bought.
- Content-based systems = provide recommendations purely based on attributes of the product.

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