Investigating the roles of online buzz for new product diffusion and its cross-country dynamics

This research investigates the roles of online buzz activities in influencing the speed and scope of new product diffusion and also the interactive dynamics of online buzz activities within and across countries. This study applies a diffusion model with two latent adopters and a log linear model to monthly sales and online messages collected from major online communication sites in five different countries. The empirical study evaluates two different roles of online buzz: (1) accelerating the new product diffusion process by influencing imitation tendency; and (2) expanding potential market size. In addition, the empirical study shows the interactive dynamics of online buzz activities within and across countries, and provides some information on what encourages online buzz activities, and how they interact with each other within a country and across countries.

► This study investigates the roles of online buzz on new product diffusion.
► This study considers interaction among online buzz within and across countries.
► A diffusion model is applied to online messages obtained from five countries.
► Online buzz accelerates the speed and scope of product diffusion.
► Online buzz interacts with each other within a country and across countries.