In chapter 19, we were introduced to the diffusion of innovation theory. This theory, explains the process of accepting new ideologies and technologies. In other words, this theory examines how “new behaviors, practices, and opinions spread from person to person through social networks, influencing the adoption of new ideas.” The article, Senior Tech helps baby boomers come of digital age, elaborates on new inventions that satisfy baby boomers current health needs. As today’s boomer population approaches retirement, the market for technologies that monitor health is expected to grow.
When it comes to technological shifts, millennials are know to be early adopters while baby boomers are more likely to be laggards. These generational gaps are often fueled by attitudes towards technological changes. To marketers, when promoting their product this becomes an obstacle. In this scenario, the diffusion of innovation theory helps to understand the underlying theories on these generational gaps. As we learned, individuals in a network are usually influenced by their neighbors’ decisions which spreads across the network’s links.Networks based on direct-benefit effects have the following characteristics: you have certain social network neighbors and the benefits of adopting a new behavior increase as more of your neighbors adopt it. An example, the article gives that showcases direct-benefit effects is the adoption the RealPad made by AARP and Intel, which aims to make it easier to initiate video calls with families and friends. This adoption not only helps users but also strengthens the community.
In Chapter 15, we are introduced to the concept of pay-per-click. Pay-per-click is an advertising model used by advertisers to direct traffic on ads. In this model, advertisers pay a publisher for each ad clicked. The goal for using this model is to increase awareness for an advertisement. Because of this advertisers are willing to pay high prices for pay-per-click ads. For instance, in the book Networks, Crowds, and Markets, it states that for subjects like “loan consolidation” and “mortgage refinancing” the pay-per-click rate can often reach $50 or more.
The article, How different demographics ‘really feel about ads, elaborates on the proper uses of this model. According to eZanga, a digital marketing firm specialized in pay-per-click states that 75% of these ads are clicked unintentionally. To solve this problem Michelle Brammer, director of marketing at eZanga.com advises marketers to be more aware of user experience. According to Brammer, due to the evolution of ad formats it is extremely important for companies to know their audience and give them what they want to see. Demographics can help narrow down possible ways to attract these markets.
Secondly, Brammer recommends advertisers to carefully review the placement of their ads. In class, we learned that the auction procedure is used to determine the price for ad placement. In a basic set-up for a search engine auction, there are a certain number of advertising slots to be sold to a population of potential advertisers. Each slot holds a click through rate, which higher slots generally get higher click through rate.
Game theory is defined as an analysis of a situation where the outcome of a person’s decision not only depends on their choices, but also on the choices of other people they interact with. In today’s modern society, game theory is applied in numerous diverse situations. For example, in the article published by Carnegie Mellon University elaborates on a new book written by author Kevin Zollman and his co-author Paul Raeburn. Both authors claim that the concept of game theory can be applied toward parenting. They explain that parents can use the science of game theory as a “strategic way of thinking to keep peace with their kids.” Each chapter contains different case studies that address “development stages, starting at age 5 and counting through the teens”. Many of these case studies illustrate game theory concepts like the Prisoner’s Dilemma and behavioral economics.
When using the strategy of game theory, kids can learn to establish their own fair agreements. For instance, during the ages 7 or 8 “children’s sense of fairness solidifies.” In other words, kids tend to grasp the concept of “he got more than me” sooner than “I got more than him.” This “concept of fairness lies” at the root of many disagreements between siblings, particularly when it involves materialistic items. For example, “two kids might want to be first to try out a new video game.” In using strategies like a coin toss or the game of rock, paper, scissor, and one runs the risk that the older child might take advantage of their younger siblings. In situations, like this Game theorists recommend to use the strategy of auctions, “to fairly divide a first time” of a situation. When using the auction system, kids are “expected to announce how much they will be willing to “pay” for an item or experience. ” A suggested form of payment would involve different forms of chores. Overall, according to this article game theory empowers children to take ownership for their own decisions.
In today’s modern society, networks are everywhere. Examples of networks include financial systems, global communication systems, and social networks. The behaviors and the dynamics of networks are often complex because of numerous influencing factors. Various forms of studies such as Social Sciences and Economics are use to interpret these complex theories. In the article, “Does the secret to social networking lie in the remote jungle?” illustrates a modern day study that uses network mapping to combat a social problem. In this project, researchers use the concept of the graph theory, to study behavior change amongst rural communities in Honduras.
One of the challenges, these rural communities face is a high infant mortality rate. This study funded by the Gates foundation consist of over one hundred researchers whose task is to map out the communities’ social networks using advance computer software. In class, we learned that a network is defined as collection of objects that are connected by links. In this study, these links are determined by the strengths of ones relationship in the community. The goal of this project is to find and target the most active and influential person in their town, who would help communicate effective health messages. The idea is that once this influential person adopts the introduced infant-care regimen, it would help reshape the villages cultural norms, which would lead towards the acceptance of these new concepts by the residents of the village. Due to limited sources, techniques like this can help towards combating humanitarian crises and change the lives for those living in undeveloped communities around the world.