Relative persuasiveness of repurchase intentions versus recommendations in online reviews

This paper examines the effects of loyalty expressions (i.e., repurchase intentions vs. recommendations) on review persuasiveness. Specifically, we propose that repurchase intentions have a stronger positive effect on review persuasiveness compared to recommendations because of reviewer credibility. We test the above proposition using both an empirical dataset and multiple experimental studies. In addition, we examine frequency of purchase as a boundary condition for our proposition. Accordingly, we find that for frequent purchases, repurchase intentions (vs. recommendations) increases credibility, which, in turn, augments review persuasiveness. For infrequent purchases, however, we observe that recommendations (vs. repurchase intentions) enhance review persuasiveness, which occurs because of increased credibility. This research offers contributions to theory in the areas of online reviews, loyalty, source credibility, and cue-diagnosticity, as well as to practice regarding how firms should seek to elicit loyalty expressions (i.e., repurchase intentions vs. recommendations) when soliciting reviews.     

Online Shopper Reviews: Ramifications for Promotion and Website Utility

Today's consumers are empowered with online shopper reviews which are mostly written and posted by buyers, customers, users, or visitors at a website. Shopper reviews will become more popular and ubiquitous in e-tailing in the near future. However, the marketing literature is still limited when it comes to knowledge of how shoppers perceive and use online reviews in their purchase decisions. Hence, this study explored shoppers’ predispositions toward positive or negative reviews and examined the impact of consumers’ attitudes and usage patterns on their perceived helpfulness and credibility of online shopper/peer reviews. One interesting finding from our study of 342 online shoppers was that consumers who would pay greater attention to positive reviews gave reviews more credible and usefulness ratings than their counterparts who would focus on the negative reviews.     

Investigating the effect of quality of grammar and mechanics (QGAM) in online reviews: The mediating role of reviewer crediblity

Grammar and mechanics are important components of written communication and provide signals of credibility. Although past research has documented general effects of grammar and mechanics, to date, the influence of quality of grammar and mechanics (QGAM) of online reviews remains largely unexamined. Through the lens of ELM, the present research examines QGAM of a review as a peripheral cue influencing the perceived credibility of a reviewer, finding that reviews with high QGAM have higher perceived credibility and exert a stronger influence on purchase intentions. Meanwhile, reviews with low QGAM are not as credible, influencing purchase intentions less. Product type, review length, and review valence moderate these influences, such that QGAM is more important for reviews of experience goods and reviews of shorter lengths. Further, reviewer credibility fully mediates positive reviews but does not mediate negative reviews. Implications, limitations, and future research directions are discussed.     

Personalized managerial response and negative inconsistent review helpfulness: The mediating effect of perceived response helpfulness

Understanding the effect of managerial response on online review management has attracted the attention of scholars in recent years. However, the effect of personalized managerial response on the negative inconsistent review is a lack of evidence. This study investigates how personalized managerial responses influence negative review helpfulness according to the various levels of review inconsistency and the underlying mechanism behind the effect. We adopted a secondary data analysis based on the TripAdvisor dataset and used an online experiment study to investigate the impact mechanism. Findings reveal that the personalized managerial response positively influences review helpfulness, review inconsistency (negative rating with positive textual sentiment) moderates the effect of personalized managerial response on review helpfulness, and perceived response helpfulness mediates the above relationships. More specifically, personalized managerial response to negative inconsistent reviews has a pronounced effect on consumers’ perception of response helpfulness and their evaluation of review helpfulness. This study improves the current understanding of managerial responses, and provides practical guidance for hoteliers, consumers, and travel websites.     

When does electronic word-of-mouth matter? A study of consumer product reviews

Online consumer product reviews, a form of electronic word-of-mouth (eWOM), have attracted increased attention from researchers. This paper examines the persuasiveness of eWOM. Drawing on regulatory focus theory, the authors propose that the consumption goals that consumers associate with the reviewed product moderate the effect of review valence on persuasiveness. Data from lab experiments and actual online retailers suggest that consumers who evaluate products associated with promotion consumption goals perceive positive reviews to be more persuasive than negative ones (i.e., a positivity bias). Conversely, consumers who evaluate products associated with prevention consumption goals perceive negative reviews to be more persuasive than positive ones (i.e., a negativity bias).     

Extending Our Understanding of eWOM Impact: The Role of Source Credibility and Message Relevance

Using qualitative data from consumers who have previously purchased online and who read online product reviews, this work expands current thinking on determinants of the impact of electronic word-of-mouth (eWOM) communications on consumer decision making. Specifically, beyond source credibility, findings suggest that consumers also assess how similar the source of eWOM is to them in terms of personality and product usage. In addition to source credibility, the notion of message relevance is introduced as the second first-order factor of eWOM impact. In turn, the underlying dimensions of source credibility (expertise and trustworthiness) and message relevance (persona similarity and usage similarity) constitute four second-order determinants of eWOM impact; providing a comprehensive view of the determinants of eWOM impact. Additionally, a conceptual framework depicting the sequential and cumulative effect of the four assessment dimensions along with possible gender differences in the processes used to assess eWOM credibility and message relevance are discussed.     

Delight the experts,but never dissatisfy your customers! A multi-category study on the effects of online review source on intention to buy a new product

Online reviews are a pervasive form of electronic word-of-mouth (eWOM) that potentially accelerate—or slow down—the diffusion of recently launched services in the marketplace. While empirical research largely supports the effects of online reviews on attitudinal and behavioral outcomes, less is known about the impact the source of the review—i.e., if it comes from a peer consumer or an expert—has on the recipient. Two experiments that combine reviewer- (expert, consumer), service type- (mobile package, restaurant, car repair), consumer- (level of general innovativeness), and review-related (positive, negative) characteristics reveal a challenging interaction between the review’s source and its valence: while—compared to an established baseline—a positive expert review seems more effective in increasing the recipient's intention to purchase than a review by a peer consumer, a negative consumer review lowers the recipient's intentions to a larger extent than a negative expert review. We further find effects of the consumer's innovativeness and the service category across the experiments. Our research contributes to the topical and increasing body of empirical research on the effects of involved characteristics within online reviews across several product types.     

The CEO endorser and message source credibility: an empirical investigation of antecedents and consequences

This article investigates the antecedents and consequences of source credibility within the context of the relatively new but growing phenomenon of Chief Executive Officer (CEO) endorsers. The study results indicate that source credibility is a central determinant of a CEO endorsers' ability to effect desired outcome states. Results also indicate that the effect of message source credibility on purchase intentions, though strong, is not direct because beliefs about critical product attributes mediate the effect of a message source's credibility on behavioural intentions. The results of the study also indicate that models of source credibility derived from the celebrity endorser literature do not generalize to the CEO endorser context. Specifically, the attractiveness and expertise of the message source had no significant impact on receivers' perceptions of credibility.     

Time heals many wounds – explaining the immediate and delayed effects of message sidedness

This study investigates the immediate and delayed effects of advertising messages including both positive and negative information. A two-sided message has a negative effect on message attitudes due to two mediating variables with trade-off effects: valence and balance. These two variables are also responsible for the alignment of the effect of sidedness on message attitudes and purchase intentions over time: the negative effects of two-sided messages are neutralized over time because negative information is reevaluated, improving the valence of the message. The results explain the negative effects of message sidedness that have been found in prior research and they show that a two-sided message in advertising is not necessarily inferior to a one-sided message despite unfavorable short-term effects.     

Why are there cross-national differences in response to comparative advertising?: some mediators

This study conducted a lab experiment in the US and South Korea to test cross-national differences in response to comparative versus non-comparative Facebook advertising messages. Consistent with prior research, this study found that comparative ads resulted in more positive attitudinal responses among Americans, whereas non-comparative ads resulted in more positive attitudinal responses among Koreans. Results of multiple mediation tests showed that Americans showed more positive responses to a comparative ad message because the message was perceived to be more assertive than a non-comparative ad message, whereas Koreans showed more negative responses to a comparative ad message because the message was perceived to be less considerate than a comparative ad message. This study has important theoretical implications by testing multiple mediators for comparative ad effects; and also has practical implications for cultural adaptation marketing strategies.     

The impact of message appeal and message source on Gen Y consumers' attitudes and purchase intentions toward American Apparel

A 3 × 2 experimental design was used to examine the impact of message appeal (fair labor, sex, or a combination of fair labor and sex) and message source (company advertisements or third-party publicity) upon Gen Y consumers' (N = 258) intent to patronize the retailer, American Apparel. Results supported models of hierarchical effects of advertising on patronage intention as well as the inclusion of external variables in the theory of reasoned action. Findings revealed that Gen Y consumers' attitudes toward ad, attitudes toward brand, and purchase intentions toward American Apparel varied by exposure to message appeal in advertisements viewed. Participants' evaluations of source credibility, attitudes toward brand, and purchase intentions toward American Apparel were influenced by message source. Additionally, purchase intentions toward American Apparel were directly predicted by attitudes toward American Apparel and indirectly by perceptions of source credibility. Theoretical and managerial implications are discussed.     

User-generated product reviews on the internet: the drivers and outcomes of the perceived usefulness of product reviews

This study examines how people cope with the user-generated product reviews (UGPRs) found on various websites where anonymous web users post and share their personal product usage experiences. Based on information processing model of communication, we postulate that there are source, message, media, and receiver factors to influence individuals' psychological processing of the UGPR messages, and its subsequent behavioral outcomes. A survey was administered by a professional market research firm to 262 randomly selected US residents from 18 to 55 years old. Consistent with the predictions, the results of the structural equation modeling analysis showed that the perceived source expertise, message objectivity, website credibility, and receiver–source similarity had positive and direct impacts on the perceptions of UGPR usefulness, which, in turn, positively influenced individuals' willingness to share product reviews with others. A series of causal model invariance tests also confirmed that the findings were statistically invariant across different subgroups divided by such factors as product categories, websites, subjective product class knowledge, past UGPR experience, and the susceptibility to informational influence.     

When comparative valence frame affects brand extension evaluations: the moderating role of parent-extension fit

This research examines how comparative valence frame influences brand extension acceptance when parent-extension fit matters. The results of this research show that a positive comparison-framed ad message elicits more favourable extension evaluations and greater purchase intentions than a negative comparison-framed ad message under the similar extension condition, while both positive and negative comparison-framed ad messages contribute equally to brand extension evaluations and purchase intentions under the dissimilar extension condition. The findings also suggest that perceived extension risk serves as a critical mediator that underlies the interactive impact of comparative valence frame and parent-extension fit on brand extension evaluations. Theoretical and practical implications for advertising message strategies in brand extensions are discussed.     

The Impact of Interactive Corporate Social Responsibility Communication on Corporate Reputation

Companies increasingly communicate about corporate social responsibility (CSR) through interactive online media. We examine whether using such media is beneficial to a company’s reputation. We conducted an online experiment to examine the impacts of interactivity in CSR messages on corporate reputation and word-of-mouth intentions. Our findings suggest that an increase in perceived interactivity leads to higher message credibility and stronger feelings of identification with the company, which also boost corporate reputation and word-of-mouth. This result implies that using interactive channels to communicate about CSR can improve corporate reputation. Our results also show that the detrimental impacts of negative user evaluations on corporate reputation are much higher than the favorable impacts of positive evaluations. This finding suggests that, despite the effectiveness of interactive communication channels, firms need to carefully monitor these channels.     

How reviewers’ use of profanity affects perceived usefulness of online reviews

This research explores the effects of profanity on perceptions of online reviews’ usefulness. Based on the prior research that described asymmetric attribution effects, we predict that when consumers see profanity in an online review, their reactions differ depending on the valence of the review. Specifically, when profanity is used in a negative review, it should reduce review usefulness because of decreased perceived reviewer objectivity. Among positive reviews, profanity increases review usefulness through greater perceived reviewer credibility. Through analysis of Yelp data, we show that the effect of profanity on usefulness depends on review valence. Experimentally, we demonstrate the opposing mediating effects of perceived objectivity and credibility on the usefulness of the review.     

In God we hope,in ads we believe: the influence of religion on hope,perceived ad credibility,and purchase behavior

This research proposes and demonstrates that religiosity positively affects consumers’ hope for advertised benefits, leading to greater perceived advertisement credibility and, consequently, a greater likelihood of purchasing the advertised products. A multiple-step mediation analysis revealed that both hope for advertised benefits and perceived ad credibility play pivotal roles in explicating the effect of religiosity, whether measured (study 1) or manipulated (study 2), on purchase intentions of advertised products. The authors also investigated the interactive effect between religiosity and perceived product materialism on the observed effects (study 3). The effect of religiosity on hope for advertised benefits, perceived ad credibility, and purchase intentions was moderated by perceived product materialism, such that the positive effects of religiosity on hope, perceived ad credibility, and purchase intentions were observed only for non-materialistic (vs. materialistic) products. Theoretical and managerial implications are discussed.     

The informational value of multi-attribute online consumer reviews: A text mining approach

In the digital age, customers use online reviews to minimize the risks associated with purchasing a product. Major online retailers help customers choose the right product by exposing reviews that received many “helpful” votes at the top of the review section. Given that reviews that have received the maximum helpfulness votes are considered more important in purchase decisions, understanding determinants of helpfulness votes offers clear benefits to online retailers and review platforms. This study focuses on the effect of review informativeness, which is measured by the number of attributes discussed in a review, and its interplay of review valence on customers' perception of review helpfulness. We applied a word-level bigram analysis to derive product attributes from review text and examined the influence of the number of attributes on the review's helpfulness votes. More importantly, we also suggested the moderating role of review valence. Estimation results of the Zero-inflated Poisson models on 21,125 reviews across 14 wireless earbuds indicated that as more attributes are discussed in a review, the more the review can earn helpfulness votes from customers. Furthermore, the positive association between the number of attributes and helpfulness was enhanced among negative reviews. This study contributes to customers' information processing literature and offers guidelines to online retailers in designing a better decision support system.     

Consequences of consumer regret with online shopping

Negative online reviews can significantly hurt future sales. After impulsive decisions, consumers may feel regret and write negative online reviews. Two studies are conducted to understand the origin and consequences of negative reviews according to the review content and the responsibility for the mistake in the decision. The first study analyses the influence on the review creation of regret with the process and the outcome through structural equation modelling. For the second study, a 2 × 2 experimental design was conducted. This study analyses how different content in the review (regret with the process vs. regret with the outcome) and guilt of the error (the consumer vs. the seller) affects the perceived persuasiveness, usefulness and credibility of the information, and the intention to follow the advice. The results show that for generating negative reviews, it is the regret with the process coupled with the presence of regret with the outcome which ultimately leads to the intention to write negative reviews. However, the results of the second study show that reviews that criticize the outcome are more damaging than those that criticize the process. Furthermore, reviews that show regret in which the buyer is responsible affect readers more through the greater persuasion they generate.     

When transparency pays off: Enticing sceptical consumers with two-sided advertising

It has been generally assumed that higher levels of scepticism towards advertising invariably lead to higher resistance to advertising appeals. The main purpose of the present research was to examine whether highly sceptical consumers' resistance can be overcome by appeals associated with higher credibility. We tested our hypotheses using message sidedness as an advertising variable that has been associated with higher (two-sided) versus lower (one-sided) credibility. In three experimental studies, we examined more versus less sceptical consumers' responses to two- versus one-sided appeals. We found that two-sided messages are more effective in increasing purchase intentions, through enhanced credibility, but only for consumers who are more sceptical of advertising. Less sceptical consumers trust both messages equally and their purchase intentions are not affected by the type of message. Importantly, we also showed that highly sceptical consumers trust two-sided appeals as much as their less sceptical counterparts. The study contributes to the literature on advertising and persuasion knowledge by showing that advertising scepticism does not elicit a single response tendency, as originally conceptualized. Rather, advertising scepticism is more consistent with the underpinnings of the Persuasion Knowledge Model, in that higher knowledge about persuasion tactics aids consumers to better cope with, and not invariably resist persuasion attempts. We conclude that transparency pays off because it may entice a more sceptical audience and, at the same time, it does not harm less sceptical consumers' trust and purchase intentions.