TY - CHAP
T1 - A simulation model using transaction cost economics to analyze the impact of social media on online shopping
AU - Mukherjee, Apratim
AU - Banerjee, Shrabastee
AU - Bandyopadhyay, Somprakash
PY - 2012
Y1 - 2012
N2 - In this paper, we have developed an agent-based simulation model to study the influence of social media on consumers’ inclination towards on-line shopping. Social media includes web-based and mobile based technologies which are used to turn communication into interactive dialogue between organizations, communities, and individuals. Building upon the Transaction Cost Economics theory, the objective of our study is to examine the effect of social media on the “perceived transaction cost” of an individual, which determines his/her inclination to buy online. Transaction cost economics (TCE) theoretically explains why a transaction subject favors a particular form of transaction over others. Since purchasing from online stores can be considered a choice between the internet and traditional stores, it is reasonable to assume that consumers will go with the channel that has the lower transaction cost. Using agent-based models, we have studied the rate of adoption of on-line shopping by consumers and found it to be exponential, not linear.
AB - In this paper, we have developed an agent-based simulation model to study the influence of social media on consumers’ inclination towards on-line shopping. Social media includes web-based and mobile based technologies which are used to turn communication into interactive dialogue between organizations, communities, and individuals. Building upon the Transaction Cost Economics theory, the objective of our study is to examine the effect of social media on the “perceived transaction cost” of an individual, which determines his/her inclination to buy online. Transaction cost economics (TCE) theoretically explains why a transaction subject favors a particular form of transaction over others. Since purchasing from online stores can be considered a choice between the internet and traditional stores, it is reasonable to assume that consumers will go with the channel that has the lower transaction cost. Using agent-based models, we have studied the rate of adoption of on-line shopping by consumers and found it to be exponential, not linear.
U2 - 10.1007/978-3-642-35386-4_4
DO - 10.1007/978-3-642-35386-4_4
M3 - Chapter
SN - 978-3-642-35385-7
T3 - Lecture Notes in Computer Science
SP - 43
EP - 53
BT - Proceedings of the 4th International Conference on Social Informatics (SocInfo 2012)
A2 - Aberer, K.
A2 - Flache, A.
A2 - Jager, W.
A2 - Liu, L.
A2 - Tang, J.
A2 - Guéret, C.
PB - Springer
CY - Heidelberg
ER -