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Network Models: Triggering Marketing Network Effects With AI
Abstract
This literature review examines AI's incorporation into marketing and its enhancement of network effects, where product or service value increases with user engagement. It highlights AI's role in revolutionizing marketing through data analysis, machine learning, and predictive modeling, enabling personalized consumer experiences and boosting user satisfaction. While network effects are crucial across sectors, their application in digital marketing, especially via social media, online marketplaces, and digital services, is significantly enriched by AI. The review identifies a literature gap regarding AI and network effects in marketing and aims to explore AI's impact on these effects, consumer behavior, market dynamics, and strategic marketing implications. The objective is to provide an in-depth understanding, identify gaps, and propose future research pathways. Ultimately, it underscores AI's transformative potential, suggesting a new marketing paradigm where efforts' value exponentially grows with user base expansion.
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