Economic Value of Product & Digital Network Using Regression and Social Network Analysis

Economic value analysis is the process of quantifying financial impact of any goods or services provided by an organization. With the advent in online product reviews and recommendation system's digital network, it becomes quintessential for organizations to be able to measure and analyze the impact of its product & digital network's impact on sales. For this research, we scraped data from an extremely popular social networking site with books, music, and other media available for rating, reviewing, and purchasing. The primary project objective of this study was to analyze Economic Value of Online Product Reviews and Digital Network by investigating how books reviews and recommendations affect sales. In this paper, we demonstrate how we could compare the impact of recommendation system and product reviews on resulting sales using regression and correlation analysis. We also propose a new recommender system which could provide 3X increment in sales compared to existing recommendation system. We not only provide step by step approach but also the results from our study and a comparison of sales uplift based on existing model and our new proposed model created using graph theory & network theory from Social network analysis