New Product Diffusion: The Role of Sentiment Content

Abstract

The current study is focusing on diffusion and adoption of new digital artifacts. The goal is to explore the social role of user-generated content (UGC) during the diffusion process of digital products in the context of online social networks. Data collection is conducted on 154 new digital products during a two-year timeframe. Results of the study provide a deeper insight into the influence of textual UGC sentiment on new product diffusion and how such a web system (i.e.: online social networks) can help to enable a process of value co-creation. The overall finding shows that Volume of Post and UGC Sentiment have a dynamic impact on Diffusion (Adoption Rate) of digital products. The study sheds light on the crowding power and the long-tail effect in online social networks. Findings also offer valuable implications for organizations to set up their strategic vision in terms of digital marketing, customer relationship management, and information dissemination.