The Effects of Consumer Preference and Peer Influence on Trial of an Experience Good

Abstract

This research examines the interaction effect of two dimensions of preference on social contagion: preference similarity between a consumer (i.e., who seeks recommendation) and a peer (i.e., who potentially provides recommendation) and the fit of an experience good with the consumer's preference. For empirical analyses, the authors collected rich information from Last.fm, a music social networking website, including individual users’ music play histories, friendship information, social tags (i.e., user-generated keywords associated with artists and songs), and new song profiles. The results show that consumers’ trial of a song that fits less with their preference is influenced more by peers with similar preferences. By contrast, consumers’ trial of a song that fits more with their preference is influenced more by peers with dissimilar preferences. This research enriches the understanding of the nuanced role of preference in social contagion and offers managerial implications to better leverage social dynamics.