New Product Diffusion Over A Social Network: The Case Of The iPhone

In this paper the author study the diffusion of the iPhone over a period of several months after its launch. In particular, the author is interested in how adoption and diffusion processes are influenced by interactions between individuals. In other words, the author is interested in studying how the social networks of consumers influence consumption decisions. The iPhone is arguably a prime case of pre-launch marketing "Buzz" by its manufacturer and the mobile phone companies offering the iPhone with the goal to stimulate consumers to talk about the product and take it up. The iPhone is also a highly conspicuous product and it can therefore be expected that consumer's influence each other in the adoption of this handset.