The Impact of Third-Party Information Influence the Dynamics of Online Word-of-Mouth and Retail Sales

2013 ◽  
Author(s):  
Wenqi Zhou ◽  
Wenjing Duan
Keyword(s):  
Word Of Mouth ◽  
Third Party ◽  
Retail Sales ◽  
Online Word Of Mouth ◽  
The Impact

What does it say and who said it? The contingent effects of online word of mouth in China

2016 ◽  
Vol 7 (4) ◽  
pp. 474-490 ◽  
Author(s):  
Biao Luo ◽  
Zheyu Zhang ◽  
Yong Liu ◽  
Weihe Gao
Keyword(s):  
Information Exchange ◽  
Word Of Mouth ◽  
Firm Strategy ◽  
Third Party ◽  
Online Information ◽  
Chinese Consumers ◽  
Content Type ◽  
Online Word Of Mouth ◽  
Initial Attitude ◽  
The Impact

Purpose The purpose of this paper is to examine how consumers respond to online word of mouth (WOM) with different valence (i.e. what does it say) and from different sources (i.e. who said it) in an important emerging economy, China. Design/methodology/approach Theory with experiments. Findings The authors find that Chinese consumers seek confirmatory information and pay greater attention to WOM that agrees with their initial attitude. Consumers with a high (vs low) need for cognition are more likely to rate WOM from far (vs closer) social distance as more impactful on themselves. For public-consumption products, the consumers are influenced more by “who said it” (source) than by “what does it say” (valence). The reverse holds for private consumption. Research limitations/implications The paper could be extended to other online behaviors. It can also be extended to empirical testing using market data. Practical implications Since Chinese consumers tend to focus on online information that is consistent with their initial attitude, it can be more difficult for either the seller or third-party website to utilize online WOM as a persuasive tool in China than in other countries. Firms may also customize their online strategies based on product category. For products that are consumed in private, WOM content is more important than source. If the firm wants to facilitate consumer interaction and influence, greater attention should be paid to make the content easy to access and utilize. Social implications Due to the explosive growth of e-Commerce in China, many global and Chinese firms rushed to set up online communities to facilitate information exchange among consumers. Our findings indicate that the impact of these communities may have been overvalued. Chinese consumers are influenced by online information, but if the majority of the online messages are from anonymous strangers, consumers tend to discount their credibility. Originality/value Our study represents an earlier effort to predict, and test, how online WOM can be associated with the specific cultural and market environments. It provides direct implications for both consumer behavior and firm strategy.

An empirical study on the impact of online word-of-mouth sources on retail sales

2017 ◽  
Vol 45 (1) ◽  
pp. 30-35 ◽  
Author(s):  
Hong Hong ◽  
Di Xu ◽  
Dapeng Xu ◽  
G. Alan Wang ◽  
Weiguo Fan
Keyword(s):  
Word Of Mouth ◽  
Least Square ◽  
Decision Makers ◽  
Purchase Decisions ◽  
Retail Sales ◽  
Content Type ◽  
Online Purchase ◽  
Online Word Of Mouth ◽  
Product Sales ◽  
The Impact

Purpose This study aims to analyze the impact of the source of online word-of-mouth (WOM) on retail sales. Specifically, the authors focus on the relative impact of external and internal WOMs on book sales. Design/methodology/approach An empirical analysis is conducted with a panel data of sales and WOM for 87 books from Dangdang and Douban over a 14-day period based on two generalized least square regression models. Findings Results suggest that both internal WOM and external WOM have significant impact on product sales, and the impact of external WOM is relatively more significant. Social implications WOM, especially the external WOM, plays an important role in consumers’ online purchase decisions. Originality/value This study is helpful for retailers to better understand the factors influencing the sales and thereby forecast the future sales more precisely. Besides, the research conclusion could also enlighten related decision makers to constantly improve technical platforms.

scholarly journals Antecedents to Intention to Engage in the Online Negative Word-of-Mouth Communication

2013 ◽  
Vol 15 (2) ◽  
pp. 113 ◽  
Author(s):  
Dien Mardhiyah ◽  
Basu Swastha Dharmmesta ◽  
B. M. Purwanto
Keyword(s):  
Word Of Mouth ◽  
Negative Word ◽  
Third Party ◽  
Medical Services ◽  
Online Media ◽  
Online Environment ◽  
Self Confidence ◽  
Online Word Of Mouth ◽  
Word Of Mouth Communication ◽  
The Impact

Complaints delivered directly to a firm will not be a problem if they can be handled properly, while the ones that are not disclosed directly to the firm but to a third party or even warnings to others not to use particular products or services, will be negative word-of-mouth communication. It can damage the image of the firm and be very detrimental. The purpose of this study was to analyze the antecedents of intention to engage in negative online word-of-mouth communication that includes dissatisfaction, service importance, success of complaint, complaint benefit, self confidence, altruism, retaliatory intention, and complaint cost. Medical services were selected considering the impact caused by the negligence of the service provider possibly giving rise to negative word-of-mouth communication. The online environment has been considered because of the developments in technology which provide opportunities for consumers to communicate with ach other. In addition, the dissemination of information through online media can spread incredibly widely and rapidly. The samples in this study comprised consumers of medical services who had disappointing experiences in using those services either directly or indirectly. A total of 123 questionnaires were analyzed with multiple regression analysis to test the research hypothesis. The results showed that the factors influencing the intentions behind negative online word-of-mouth communication were success of complaint, altruism, retaliatory intention, and complaint cost.                      

The Fateful First Consumer Review

2021 ◽  
Author(s):  
Sungsik Park ◽  
Woochoel Shin ◽  
Jinhong Xie
Keyword(s):  
Empirical Evidence ◽  
Word Of Mouth ◽  
Consumer Review ◽  
Online Word Of Mouth ◽  
The Impact

This paper presents theory and empirical evidence on the impact of the first consumer review on the evolution of online word of mouth and the fate of the product.

scholarly journals The Impact of South Korea Golf Resort Social Network Services Advertising and Online Word of Mouth on Consumer Brand Value

2020 ◽  
Vol 12 (11) ◽  
pp. 4339 ◽  
Author(s):  
Taesoo Cho ◽  
Taeyoung Cho ◽  
Guosong Zhao ◽  
Hao Zhang
Keyword(s):  
Social Network ◽  
South Korea ◽  
Word Of Mouth ◽  
Low Cost ◽  
Network Services ◽  
Online Word Of Mouth ◽  
Consumer Experiences ◽  
Social Network Services ◽  
The Impact ◽  
Positive Effect

Today, social network services (SNS) advertising is frequently utilized by enterprises to communicate with consumers as it provides the best marketing effect using low-cost media. Since the value of SNS is increasing, managers need to look for more effective methods of utilizing the existing SNS channels. This study aims to provide suggestions for attracting customers and gaining an advantage amid the stiff competition among similar golf courses. To achieve the goal of this study, a questionnaire-based survey was conducted at six golf resorts in South Korea where SNS advertising has been used to enhance consumer experiences. The study found that SNS advertising and online word of mouth regarding golf resorts have a positive effect on emotive, social, and price values. Moreover, SNS advertising for golf resorts had a positive effect on the quality function value, while online word of mouth had no effect.

scholarly journals A Study on the Impact of Online Word-of-Mouth for Airlines on Customer Behavior

2017 ◽  
Vol 11 (1) ◽  
pp. 81-89
Author(s):  
Yong-Sook Kim ◽  
Jin-Woo Park
Keyword(s):  
Behavioral Intention ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Online Communication ◽  
Customer Behavior ◽  
Communication Strategy ◽  
Equation Modeling ◽  
Online Word Of Mouth ◽  
The Impact ◽  
Academic Implications

Introduction:This study analyzes the impact of online word-of-mouth for airlines on the behavioral intention of airline customers through information acceptance and satisfaction.Methods:A survey is carried out with customers who use airline social media and websites. A total of 270 questionnaires is analyzedviastructural equation modeling.Results:The results indicate that online word-of-mouth has a significant impact on acceptance and satisfaction, and satisfaction has a significant impact on behavioral intention.Conclusion:This research has practical implications in that it can provide the basic data necessary to establish an efficient online communication strategy for airline online word-of-mouth. It also has academic implications in that it examines the impact of airline online word-of-mouth on customer behavior.

scholarly journals Online Word-of-Mouth Communication in a Collectivist Society

2021 ◽  
Author(s):  
◽  
Lin Yang
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Word Of Mouth ◽  
Social Acceptance ◽  
Second Phase ◽  
Measurement Instruments ◽  
Two Phase ◽  
Holistic View ◽  
Online Word Of Mouth ◽  
The Impact

<p>Word-of-mouth (WOM) is perceived by consumers as a highly credible source of information, and online channels for WOM have become increasingly popular among consumers. Although the impact of online word-of-mouth (OWOM) on consumers‘ purchase decisions has been researched, it remains unclear why information about products, brands or organisations is generated online and what influences its initiation from the sender‘s perspective. This research explores the antecedents of customer OWOM and examines the relationships between key antecedent variables and customer OWOM engagement in a Chinese context.  A conceptual model was developed based on the literature and information obtained through one-to-one in-depth interviews. Customer perceived value, satisfaction, loyalty and affective commitment were incorporated as key antecedent constructs of customer OWOM.  The research used a two-phase research design. The first phase was a qualitative exploration of the customer‘s OWOM experience. These findings were used to gain an understanding of customers‘ OWOM initiation, provide confirmation of the model, and refine the measurement thereof. The second phase used a quantitative online survey to validate the measurement instruments and test the model. The data for the study were collected from OWOM initiators in China over a period of one and a half months. A sample of 574 respondents was obtained. Hypotheses were tested using structural equation modelling and multiple regression analysis.  Findings from the research suggest that an emphasis on creating an affective bond with the brand and organisation is the key to customers‘ engagement of WOM on the Internet. The study also indicates that customer perceived QEP (quality, emotional and price) value is a less immediate but critical antecedent. In addition, the customer perceived social value of a product or service is found to significantly impact OWOM. In China, where the collectivist view predominates, customers conform to social standards and withhold negative comments in their OWOM activities in order to maintain social acceptance and inclusion, and to make favourable impressions. They also engage in OWOM to gain and enhance face, which is a social need in China‘s status driven society.  This research contributes to a growing body of research on customers‘ OWOM behaviour by developing and empirically testing the customer OWOM model. It provides a more holistic view of post-purchase OWOM by simultaneously investigating a set of key antecedents for OWOM in a single framework. The research also widens the geographic and culture scope of OWOM research by undertaking the study in China. By using a mixed method, incorporating both qualitative and quantitative approaches, the research offers a balance among objectivity, detailed description and the predictability of the study. Furthermore, the research provides marketing practitioners with a better understanding of the behaviour of Chinese OWOM initiators, and offers directions to improve their marketing communication strategies.</p>

scholarly journals The Impact of Social Relationships on Online Word-of-Mouth and Knowledge Sharing in Social Network Sites

2016 ◽  
Vol 6 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Sherein Hamed Abou-Warda
Keyword(s):  
Knowledge Sharing ◽  
Social Relationships ◽  
Social Networking Sites ◽  
Social Relationship ◽  
Word Of Mouth ◽  
Partial Least Square ◽  
Least Square ◽  
Male Students ◽  
Online Word Of Mouth ◽  
The Impact

This study provides insight into how social relationships perspective influence on online Word-of-Mouth and knowledge sharing on social networking sites (SNSs). By using the sample from 385 Egyptian college students - who spend more time on SNSs, this study investigates the relationship among the use of SNSs, users' social Relationships, online Word-of-Mouth, and knowledge sharing. Partial Least Square (PLS) was utilized to examine the hypotheses through a questionnaire designed on the Likert seven-point scale. The results indicated that the intensity of usage of SNSs is a positively related with social relationship factors which has a positive effect on online WOM; in addition, online WOM has positively significant influence on knowledge sharing. The results also indicated that male students are found to have more social relationship than female counterparts do. Male students feel more strongly about knowledge sharing when they perceive that online WOM communication is good.

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