The Dynamics of Word-of-Mouth Marketing: An Agent-Based Modeling Approach to Message Credibility and Consumer Engagement

Word-of-mouth (WOM) marketing is a critical factor in the dissemination of information and adoption of products in social networks. This paper investigates the impact of two important factors message credibility and consumer engagement on WOM adoption dynamics using agent-based modeling (ABM). This study proposes a simple qualitative model to investigate how these factors influence adoption rates through both broadcast communication and peer-to-peer influence by simulating interactions on a spatially clustered network. The findings show that increased message credibility significantly boosts adoption, achieving a balance between broadcast and social mechanisms. Also, consumer engagement primarily affects the adoption mechanism, shifting the effect from passive broadcasting to dynamic peer-to-peer interactions with an increase in the level of engagement. Most critically, the interaction of high credibility and high engagement gives rise to a synergy effect, thereby resulting in the fastest diffusion and highest adoption rates. This paper points out the emergent, self-organizing characteristics of WOM dynamics and hence is relevant to researchers, marketers, and social engineers in the design of effective campaigns. By focusing on credible messaging and fostering consumer involvement, strategies can be optimized for both wide reach and fast adoption. Future work could further enhance the understanding of WOM diffusion by exploring dynamic networks, heterogeneous agent behaviors, and multichannel communication.