Author: Danila V. Valko, postgraduate of Economics, Finance & Accounting Dept; Mikhail A. Pestunov, Dr. Sc. (Ec.), Prof. of Accounting & Finance Dept.

Abstract: The paper considers the network effect at the example of social networks. The authors characterize consumer activities in social networks as a basis of relationship marketing in e-commerce market. As a result, the article formulates a number of principles of network effect in the context of relationship marketing.

Key words: network effect; relationship marketing; e-commerce market.