Social Amplification: A Mechanism in the Spread of Brand Usage

Abstract

This paper is concerned with the way in which positive word of mouth (PWOM) about brands spreads their usage. We find that brand users, who have heard positive comments on their brand, offer nearly twice as much PWOM as users who have not heard such comments. We identify a transmission mechanism that underpins the production of PWOM; specifically, that social amplification underlies this effect. While brands are at the core of our investigation, background theory comes from the literature on diffusion and the adoption of new products. We explain the social basis of new product adoption and argue that social amplification works alongside the classic infectious disease model of diffusion and results in further adoptions when the extra WOM reaches non-users. We support this account with evidence using data from studies on branded mobile phones, movies, vacation destinations, hotels, restaurants and fashion stores. It is proposed that recommendation received from others stimulates more PWOM because it provides a script which the receiver of the recommendation can use in subsequent conversations, and we offer empirical support for this proposal.