University of Isfahan New Marketing Research Journal 2228-7744 9 4 2020 02 20 Investigating the Effect of Word of Mouth Advertising on the Growth Rate of the Number of Mobile Game ‎Users in Iran Investigating the Effect of Word of Mouth Advertising on the Growth Rate of the Number of Mobile Game ‎Users in Iran 151 170 24716 10.22108/nmrj.2020.119416.1901 FA Mohammadreza Parsanejad Department of Science and Technology, Faculty of Progress Engineering, Iran University of Science and Technology Mojtaba Khosh Lahjeh Sedgh Progress Engineering faculty of Iranian university of science and technology Tehran Milad Ganjkhani Progress Engineering faculty of Iranian university of science and technology Tehran Journal Article 2019 09 29 The growing demand for computer games, especially mobile games, has encouraged many developers to produce and release a variety of these games. Game developers have attractive ideas for producing a mobile game, and often technically it can be produced in the country, but the main problem is the product delivery and marketing. This paper examines the impact of key decision-making parameters on mobile gaming marketing, such as the investment, quality of word of mouth advertising, satisfaction, loyalty and user preferences, on game installation and profitability. Modeling and simulation were performed using the system dynamics method and the results of sensitivity analysis indicated that the profit and active installation of mobile game is highly sensitive to the initial capital, the view price, the in-app payments and the rate of customer acquisition, and the game’s ad-absorbing rate. It was less sensitive to legal reserve rates and consumer preferences. Also, word of mouth advertising increased the profitability of the game by increasing the game’s installation rate, and the quality by reducing the uninstallation rate. Another interesting result from the modeling was that game developers would not gain more profit if they entered the preferred genre, as other competitors entered the field and the market share was shared among market developers. The growing demand for computer games, especially mobile games, has encouraged many developers to produce and release a variety of these games. Game developers have attractive ideas for producing a mobile game, and often technically it can be produced in the country, but the main problem is the product delivery and marketing. This paper examines the impact of key decision-making parameters on mobile gaming marketing, such as the investment, quality of word of mouth advertising, satisfaction, loyalty and user preferences, on game installation and profitability. Modeling and simulation were performed using the system dynamics method and the results of sensitivity analysis indicated that the profit and active installation of mobile game is highly sensitive to the initial capital, the view price, the in-app payments and the rate of customer acquisition, and the game’s ad-absorbing rate. It was less sensitive to legal reserve rates and consumer preferences. Also, word of mouth advertising increased the profitability of the game by increasing the game’s installation rate, and the quality by reducing the uninstallation rate. Another interesting result from the modeling was that game developers would not gain more profit if they entered the preferred genre, as other competitors entered the field and the market share was shared among market developers. https://nmrj.ui.ac.ir/article_24716_2bc338d01a8d60510e6624e4af86d5aa.pdf