Can Online Word-of-Mouth Communication Reveal True Product Quality? Experimental Insights, Econometric Results, and Analytical Modeling

Author(s):  
Nan Hu ◽  
Paul A. Pavlou ◽  
Jie (Jennifer) Zhang
2020 ◽  
Vol 18 (1) ◽  
pp. 99-115
Author(s):  
Minoo Ashoori ◽  
Eric Schmidbauer ◽  
Axel Stock

AbstractIn some markets consumers seek exclusive consumption experiences, yet in these markets businesses sometimes market their goods widely and at low prices during an introduction period. We use a two-period game-theoretic model to provide a signaling explanation for this phenomenon. In our model, exclusivity-seeking consumers must infer product quality from its price and level of exclusivity in the initial stage. After purchase consumers communicate the true learned quality through word-of-mouth (WOM) so that the entire market becomes informed, including a group of new consumers whose size depends on the number of introductory purchasers and the strength of WOM. We show that a high-quality seller signals by marketing widely when the desire for exclusivity is intermediate and WOM is strong.


2014 ◽  
Vol 2014 (1) ◽  
pp. 15681 ◽  
Author(s):  
Frank Nagle ◽  
Christoph Riedl

2020 ◽  
pp. 1
Author(s):  
Putu Mertayasa ◽  
I Gusti Ayu Ketut Giantari

The purpose of this study was to explain the effect of product quality and brand image on IndiHome customer satisfaction in Denpasar City, and to explain the effect of product quality, brand image and customer satisfaction on IndiHome customers' word of mouth communication in Denpasar City. The population in this study were all IndiHome customers in Denpasar City. The sampling technique used is purposive sampling method. The number of samples used in this study were 100 respondents. The data analysis technique used in this study is path analysis. The results showed that product quality and brand image had a positive and significant effect on IndiHome customer satisfaction in Denpasar City, and product quality, brand image and customer satisfaction had a positive and significant effect on IndiHome customers' word of mouth communication in Denpasar City.


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