Consumer -to -consumer interactions in a networked society: Word -of -mouth theory, consumer experiences, and network dynamics.

Abstract

This dissertation engages in a detailed investigation of consumer-to-consumer interactions in a networked society. I begin with the <italic>process</italic> of interactions entailing Word-of-Mouth phenomena. I first critically review the theory of word-of-mouth and propose a new typology and perspective on word-of-mouth along dialogical discourse principles. Next, I examine the <italic> content</italic> of consumer-to-consumer interactions entailing shared texts of consumer experiences. I build a framework for studying consumer experiences that proposes theoretical perspectives to explain the processes of derivation and investment of meaning through and within discourse. As a result, it is shown that standard accounts of the market as a site for exchange have to be supplanted by a new understanding of the market as a forum for discourse. I then examine the <italic>structure</italic> of consumer-to-consumer interactions and develop analytical models and insights of word-of-mouth processes based on decision theoretic considerations. I study the role of consumer networks in the flow of consumer experiences and the evolution of adoption dynamics, using computational experiments. In particular, I compare and contrast small worlds of consumer connectivity with large worlds of largely isolated consumers, as well as constructionist models of community structures obtained by crossing heterogeneity and heterophily distributions, to derive insights into how <italic>network dynamics</italic> affect market evolution. Finally, I discuss the theoretical and managerial implications of consumer-to-consumer interactions, especially for the segmentation-targeting-positioning framework in marketing and the role of consumer communities in co-shaping choice.