Centrality and community detection: a
co-marketing multilayer network
Andreia Fernandes
Faculty of Economics, University of Porto, Porto, Portugal
Patrícia C.T. Gonçalves
Laboratory of Artificial Intelligence and Decision Support of INESC TEC, Porto, Portugal, and
Pedro Campos and Catarina Delgado
Laboratory of Artificial Intelligence and Decision Support of INESC TEC, Porto, Portugal, and Faculty of Economics, Porto, Portugal
Abstract
Purpose – Based on the data obtained from a questionnaire of 595 people, the authors explore the relative importance of consumers, checking
whether socioeconomic variables influence their centrality, detecting the communities within the network to which they belong, identifying
consumption patterns and checking whether there is any relationship between co-marketing and consumer choices.
Design/methodology/approach – A multilayer network is created from data collected through a consumer survey to identify customers’ choices in
seven different markets. The authors focus the analysis on a smaller kinship and cohabitation network and apply the LART network community
detection algorithm. To verify the association between consumers’ centrality and variables related to their respective socioeconomic profile, the
authors develop an econometric model to measure their impact on consumer’s degree centrality.
Findings – Based on 595 responses analysing individual consumers, the authors find out which consumers invest and which variables influence
consumers’ centrality. Using a smaller sample of 70 consumers for whom they know kinship and cohabitation relationships, the authors detect
communities with the same consumption patterns and verify that this may be an adequate way to establish co-marketing strategies.
Originality/value – Network analysis has become a widely used technique in the extraction of knowledge on consumers. This paper’s main (and novel)
contribution lies in providing a greater understanding on how multilayer networks represent hidden databases with potential knowledge to be
considered in business decisions. Centrality and community detection are crucial measures in network science which enable customers with the highest
potential value to be identified in a network. Customers are increasingly seen as multidimensional, considering their preferences in various markets.
Keywords Centrality, Co-marketing, Community detection, Multilayer networks
Paper type Research paper
1. Introduction
Globalization and the speed at which technology has evolved
have changed the way society lives, communicates and works
(Hand, 2010). As a consequence, the competitiveness between
companies is greater and, in the competition to win customers,
any comparative advantage, however small, makes the difference
between winning and losing a business (Chintagunta et al.,
2016). We live in a new world; the power structure is undergoing
dramatic changes due to the Internet that has brought
connectivity and transparency to our lives (Kotler et al., 2016).
The difficulty in attracting and retaining customers generated in
companies the need to adopt relationship strategies based on
information systems (Huang and Hsueh, 2010). Knowing the
profile and behaviour of a customer represents a competitive
advantage, since it can be a decisive factor for doing business.
The competitiveness of firms may no longer be determined
by their size, country or past advantages. Smaller, younger and
local companies have the opportunity to compete with larger,
more experienced and global companies. A company can be
more competitive by connecting with consumer communities
or cooperative partners, or by competing in a mix of
collaboration and competition (Kotler et al., 2016).
We live in a world interconnected by networks in the most
diverse forms, be they communication networks, transport
networks, or social networks, among others (Hand, 2010). Every
day we are all confronted with countless networks in different
areas, from the simplest tasks to the most complex ones. Very
soon, practically everyone in the world will be interconnected
(Kotler et al., 2016). There are many advantages in the use of
networks by companies for either networks between businesses
(B2B) or between clients (C2C) or both (B2C). Companies such
The current issue and full text archive of this journal is available on
Emerald Insight at: www.emeraldinsight.com/0885-8624.htm
Journal of Business & Industrial Marketing
34/8 (2019) 1749–1762
© Emerald Publishing Limited [ISSN 0885-8624]
[DOI 10.1108/JBIM-11-2017-0266]
The support of ERDF – European Regional Development Fund through the
Operational Programme for Competitiveness and Internationalisation –
COMPETE 2020 Programme and the Portuguese funding agency, FCT –
Fundação para a Ciência e a Tecnologia within project POCI-01-0145-
FEDER-031821 is acknowledged.
Received 5 November 2017
Revised 15 April 2018
30 July 2018
5 November 2018
13 March 2019
28 August 2019
Accepted 30 August 2019
1749