Tweeting like Elon? Provocative language,new-venture status,and audience engagement on social media

This article theorizes and empirically investigates how status and provocative language influence audience engagement with new-venture posts on social media platforms. Using venture capital funding as a status proxy, we analyzed 369,142 Twitter posts by 268 new ventures. We found that status (1) increases engagement with ventures' tweets, and that it (2) moderates the effect of provocative language on audience engagement so that provocative language has a negative effect for low-status ventures but a positive effect for high-status ventures. Post-hoc analyses provide a basis for pragmatic theorizing and explore the effects of status tiers and subdimensions of provocative language.     

Status reinforcing: Unintended rating bias on online shopping platforms

Online shopping platforms have gradually begun to use hierarchical loyalty programs to distinguish customers. Previous studies have focused mainly on the effect of such programs on loyalty and repurchase behavior, and little is known about how customer statuses in hierarchical loyalty programs affect their online product evaluations. Drawing on social status and social conformity theory, this study investigates the impact of customer status on the valence of online reviews. An instrumental variable is proposed to address the endogeneity issue. The results show that a customer's need for status leads to a negative rating bias when leaving online reviews. At the same time, people encounter social pressure from crowds. The need for social conformity can alleviate such rating bias. This study contributes to the understanding of the effect of social status on post-purchase behavior and provides practical implications for both managers and platforms.     

How online reviews and coupons affect sales and pricing: An empirical study based on e-commerce platform

With rapid economic growth largely fueled by digital technologies, online reviews are among the new wave of technologies that still make a significant contribution to this new digital economy. However, there is scarce academic research in promoting or responding online reviews using reduction coupons with threshold issued by sellers and pricing decisions. We employ a three-stage least squares (3SLS) model to estimate the effects of online reviews and coupons on online product sales and price. We also extend our research using the data of two product categories. Our results mainly include: (1) Negative impact of negative online reviews on sales is moderated by price, and consumers are more tolerant of negative reviews of high-priced products. (2) Consumers' perceived usefulness of online coupons helps promote more sales and weaken the relationship between negative reviews and sales. (3) Positive online reviews weaken the negative relationship between online negative reviews and the price of product. (4) Consumers’ increased perceived usefulness of online coupons will encourage sellers to set a higher price and weaken the negative relationship between negative reviews and the price of product. (5) Compared with the search product, sellers regard negative reviews from the product with experience attributes as less helpful and apply less effective coupon promotion to response to negative reviews. Our study clarifies the interaction between online reviews and online coupons on e-commerce platforms under the operation scenario. We also provide empirical support for accurate promotion and higher sales revenue through reasonable pricing decisions and specified reduction coupons.     

Aggregation of consumer ratings: an application to Yelp.com

Because consumer reviews leverage the wisdom of the crowd, the way in which they are aggregated is a central decision faced by platforms. We explore this “rating aggregation problem” and offer a structural approach to solving it, allowing for (1) reviewers to vary in stringency and accuracy, (2) reviewers to be influenced by existing reviews, and (3) product quality to change over time. Applying this to restaurant reviews from Yelp.com, we construct an adjusted average rating and show that even a simple algorithm can lead to large information efficiency gains relative to the arithmetic average.     

Loyalty program structure and consumers' perceptions of status: Feeling special in a grocery store?

Loyalty programs are business practices increasingly pursued by companies in order to achieve customer loyalty. Recent studies have focused on the relationship between loyalty program structures (i.e., number and size of hierarchical tiers) and status levels (i.e., exclusivity) perceived by members. The current study examines two potential moderators of this relationship between program structure and perceived status. Specifically, the aim of our research was to test whether loyalty program structure affects status perceptions in more and less exclusive industries, and among consumers with more and less positive attitudes toward loyalty programs.An experimental design based on different scenarios was used. Two industries and three loyalty program structures were examined. In the airline industry, which is higher in perceived exclusivity, perceived status in the top tier of the loyalty program increased as the number of customers in the top tier decreased and as the number of tiers increased. Notably, however, loyalty program structure had no effect on perceived status in the supermarket industry, which is lower in perceived exclusivity. Moreover, even in the airline industry, status effects were only observed among respondents with a positive attitude toward loyalty programs. Those with neutral or negative attitudes toward loyalty programs were unaffected by the structure of the loyalty program. Thus, the effect of loyalty program structure on consumers' perceived status varied systematically across industries and across individuals.     

How managerial responses to online reviews affect customer satisfaction: An empirical study based on additional reviews

This study investigates the internality of managerial responses (MRs) to online reviews on the responded customers' (i.e., customers who have posted an initial review and then being responded by the company through an MR) satisfaction. By utilizing the data of additional reviews (ARs), an innovative social media module for customers to express follow-up opinions that complement their initial reviews, we examine the impact of MR treatment on the customers' AR valence. We leverage the insight that the observability of MR at the time of the responded customer posts an AR is a crucial condition to the impact of the MR, and thus regard the observability of MR as an exogenous treatment for model identification. Fixed effects models with extensive control variables are proposed to estimate the MR treatment effects. The results show that MRs have significant positive impacts on customers' satisfaction in ARs. Further explorations show that the positive impacts are mainly due to the positive effects of MRs on nonpositive initial reviews (MR-Ns), suggesting that MR-Ns are an effective management tool for customer complaints. Moreover, this study identifies MR delay as a boundary condition for the internality of MRs because MR delay negatively moderates the positive impacts of MRs. Therefore, companies should promptly respond to customers' negative opinions in their reviews. This study is among the very first to clearly identify the internality of MRs on the responded customers’ satisfaction. We show that the existing results on the externality of MRs are not directly applicable to the internality of MRs, highlighting the novelty of this study. The obtained new insights provide practical guidelines for companies to adjust their intervention strategies on e-commerce platforms.     

时间间隔何时能够提高在线评论的有用性感知——基于归因理论的视角

文章从归因理论的视角出发,探索了购买与评论间的时间间隔与产品类型（物质性产品Vs体验性产品）如何相互作用以影响评论的有用性感知。通过将产品分为物质性产品和体验性产品,文章运用实验检验了时间间隔对不同产品类型的评论影响作用产生的不同作用。结果表明,对于体验型产品来说,时间间隔近（Vs远）可以提高评论的有用性感知;而对于物质型产品来说,时间间隔近（Vs远）可以降低评论的有用性感知。除此之外,实验结果也证实归因倾向中介于时间间隔与评论有用性感知。但是时间间隔对评论有用性的影响还会受到评论效价的调节,时间间隔只会改变正面评论的有用性感知,但是并不能显著影响负面评论。研究结论有助于深入理解阅读者对在线评论的有用性判断的反应,并为在线零售商提供了一个更好利用和维护在线产品评论提高新的视角。     

The more the better? Exploring the effects of reviewer social networks on online reviews

ABSTRACT

Conventional wisdom suggests that firms leverage key influencers (e.g. individuals with high centrality) in online communities to stimulate buzz. Using a large panel dataset including 1,569,264 online Yelp reviews and the ego-network of 366,715 individual reviewers over a nine-year period, this study examines the effects of number of ties and network density on the volume and valence of online reviews. In contrast with the general belief that key influencers always generate positive buzz, the findings show that they can adversely affect future review valence. Specifically, reviewers with many connections on Yelp can reduce the positivity of reviews of the same business in the next period. This finding has implications for marketing practice in online community management and social media intervention.     

“Don't pretend to be my friend!” When an informal brand communication style backfires on social media

Social media are now essential platforms for marketing communications, and the volume of consumer-brand interactions on these platforms is exploding. Even so, it remains unclear how brands should communicate with consumers to foster relationships and, in particular, to gain their trust. A fundamental decision in this regard is the choice of a communication style, specifically, whether an informal or a formal style should be used in social media communications. In this paper, we investigate how adopting an informal (vs. formal) communication style affects brand trust and demonstrate that using an informal style can either have a positive or negative effect on brand trust, depending on whether consumers are familiar with the brand or not. We further show that these effects occur because consumers expect brands to behave according to social norms, such that the use of an informal style is perceived to be appropriate for familiar brands and inappropriate for unfamiliar ones.     

Positive affect and decision frame in negotiation

This study examined decision frame (“gain” vs. “loss”) and negotiator affect (positive vs. control) in a simulated bilateral negotiation where negotiators dealt with a programmed opponent and made offers and counteroffers on three issues that differed in value. Direct comparisons between the gain and loss frame conditions, in the control-affect condition, revealed a replication of the standard frame effect: a loss frame produced fewer concessions than a gain frame. However, an interaction effect indicated that the frame effect reversed in the positive affect condition: under positive affect, a loss frame produced greater concessions than a gain frame. In addition, the data indicated a replication of earlier work showing that positive affect can lead to more integrative agreements in negotiation. The results suggest that positive affect can influence location of a reference point in evaluating prospective outcomes; one implication is that prospect theory can be useful for understanding the effects of affect in bilateral negotiation.     

How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing

In cause-related marketing (CM), companies promise a donation to a cause every time a consumer makes a purchase. We analyze the impact of the size of this donation on brand choice (tactical success) and brand image (strategic success). Our results reveal different effects of donation size on these success measures. For brand choice, the effect of donation size is moderated by a financial trade-off for consumers, whereas the effect on brand image is moderated by donation framing. Specifically, we show that donation size has a positive effect on brand choice if consumers face no financial trade-off; i.e., if they do not have to choose between triggering a donation or saving money. The effect is negative if a trade-off exists such that higher donations come at higher costs. Brand image is enhanced by larger donations if the framing is nonmonetary (e.g., the campaign promises the provision of vaccinations), whereas donation size has a negative effect if donation framing is monetary (e.g., the campaign states the Euro amount). If campaigns use a combination of both frames, the effect of donation size on brand image has an inverted U shape. Our results suggest that CM enhances tactical and strategic success only if firms select the right donation size, taking into account donation framing and financial trade-offs.     

User Reviews Variance,Critic Reviews Variance,and Product Sales: An Exploration of Customer Breadth and Depth Effects

Online user reviews constitute a new element of the marketing communication mix that can significantly affect product sales. A general consensus holds that positive user reviews valence benefits product sales, yet the effect of variance is less intuitive and current findings are mixed. We propose that user reviews variance actually constitutes a double-edged sword that can either hurt or help product sales, depending on the variance of critic reviews and other quality signals. Three complementary studies in multiple industries (movies, digital cameras, and books) with multiple methods (secondary data analysis and behavioral experiment) reveal three key insights in this setting. First, after recognizing a high variance in user reviews, many potential buyers may simply exclude the focal product from their consideration sets for fear that it does not match their needs and preferences, which is termed the customer breadth effect. Second, high user reviews variance, in combination with high critic reviews variance, can elicit a sense of uniqueness and thus enhance purchase intentions of some consumers, which is termed the customer depth effect. Third, quality signals (e.g., product cost and product extension) can strengthen the positive customer depth effect. The overall effects of user reviews variance, therefore, can be negative, insignificant, or even positive. These findings have important theoretical and managerial implications.     

Health‐care product advertising: The influences of message framing and perceived product characteristics

Message framing readily lends itself to marketing communication and advertising persuasion strategies. However, past research yields contradictory and inconsistent predictions as to whether positive or negative frames are more persuasive. This study examines the most appropriate message framing to present to consumers in print advertisements for health care products. Two experimental studies are conducted to investigate the moderating effects of product functions: perceived innovativeness and perceived risk on the processing of framed advertising messages. Findings of Study 1 indicate that messages for familiar products should be framed differently depending on perceived product functions (prevention vs. detection), but gain‐framed messages are more persuasive for both new prevention and detection products. Results of Study 2 suggest that a mixed‐framed message (combining gain and loss) could enhance message effectiveness only when subjects have prior experience. Similar to the role of product function, product perceived risk is found to moderate the framing effects on message effectiveness. © 2007 Wiley Periodicals, Inc.     

Development of methodology for classification of user experience (UX) in online customer review

In e-commerce, customer feedback has become an essential source of insight into a product or service's user experience (UX). The study of UX helps to integrate customers' potential needs into the product's design. Because customer reviews in e-commerce are not structured and categorized, it is necessary to analyze UX based on customer opinions systematically. This study tries to structure UX in a product's positive/negative context through a neural network-based self-organizing map (SOM). As a result of analyzing 10,482 reviews on wireless earbuds in BestBuy, an electronic product e-commerce platform, it was confirmed that it is a suitable method for categorizing user experiences between reviews and deriving important factors. In particular, the difference in core UX elements by positive/negative context of the product was verified based on the star rating. The results of this study are expected to contribute to product improvement and business improvement that reflect customer needs by companies or designers who design products for end-users.     

Archipelago's move towards exchange status: An analysis of Archipelago trading in NYSE and NASDAQ stocks

Archipelago began reporting trades and quotes to the Pacific Stock Exchange in 2002 for NYSE-listed securities and in 2003 for NASDAQ-listed securities. These events mark the time that Archipelago began migrating stocks from its ECN platform to the exchange platform, thereby becoming a stand-alone exchange. We examine the impact of becoming a stand-alone exchange on execution quality and market share of Archipelago to gain insight into its ability to compete for order flow in NYSE and NASDAQ stocks. We find that the change has a positive effect on Archipelago's execution quality for NYSE stocks, while it has a negative effect for NASDAQ stocks. A possible explanation is that Archipelago lost the large pool of liquidity that SuperMontage provided when it became a stand-alone exchange, and that loss may offset any gain associated with having exchange status. Overall, exchange status helped Archipelago slowly make headway in the NYSE-listed securities arena.     

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.     

How differences in eWOM platforms impact consumers’ perceptions and decision-making

ABSTRACT

This article aims to examine the effects of different features of various eWOM (electronic word-of-mouth) platforms on consumers’ perceived credibility of eWOM regarding the product-related risks. Based on the stimuli–organism–response (S–O–R) theory, this study establishes a model to explore the relationships among eWOM platforms, tie strength, social cues, and perceived eWOM credibility. A mixed design of 2 (eWOM platforms) × 2 (product-related risks) conditions experiment and a survey method is applied to verify the model. The results show that tie strength between eWOM publishers and recipients positively influences the perceived eWOM credibility. The volume of social cues in eWOM platforms positively influences the perceived credibility of a female, while the opposite is true for a male. Both tie strength and volume of social cues in social media are greater than those in e-commerce websites. For products with low risks, eWOM in e-commerce websites is perceived to be more credible. Findings implicate that interactive functions should be added to the product comment area to enhance communications between the reviewers and potential consumers. Findings also encourage the cooperation between e-commerce websites and social media and suggest that managers should develop proper strategies in different situations.     

Psychological antecedents and risk on attitudes toward e-customization

Consumers can experience relatively low prices with the dramatic diffusion of online shopping even with customized products, which are commonly more expensive than regular products, due to unique functions of customized product order processes in online environments. This paper investigates how two psychological antecedents, (1) need for uniqueness and (2) status aspiration, can influence consumers' attitude with regard to forming procedures toward e-customized products and how perceived risk, another psychological factor, on purchasing e-customized products plays a role of moderating factor. A self-administered online survey of 321 Japanese consumers is conducted to examine a proposed conceptual model with Structural Equation Modeling (SEM). The analysis using results indicates that the need for uniqueness directly impacts on attitude toward e-customized products while it mediates the effect of status aspiration. A multi-group analysis to test a moderating effect of the perceived risk on purchasing e-customized products highlights the significant effects of psychological factors. The result also provides potential guidelines to e-tailors on possibility of segmenting markets as well as promoting their customized products using these psychological criteria of their target consumers.     

Experiential goods with network externalities effects: An empirical study of online rating system

This paper uses online users' reviews and sales information from May 2003 to March 2007 to study a new experiential product: online video game (or virtual world). The results suggest that, first of all, for a hedonic product such as an online video game, the availability of online review system could not fully transform experience attributes into search attributes. The empirical study confirms that negative word-of-mouth has more significant impact than positive reviews. The study empirically verifies that the existence of direct network externalities (i.e. a product's value increases when more consumers join the network) is crucial for a hedonic product. The size of the user base signals the quality of the game, and works like a search attribute for potential users. A large user base will reduce the negative impact from unfavorable reviews.     

“If you loved our product”: Do conditional review requests harm retailer loyalty?

Online retailers frequently solicit reviews from customers who have recently purchased their products or services. This research examines how consumers react to conditional requests—wherein a retailer explicitly asks them to consider their experience but to only leave a review if this experience was favorable—versus more neutral unconditional requests. The provision of conditional requests is widespread, presumably because retailers believe that such requests will yield more positive reviews. Irrespective of whether these potential benefits materialize, the present research demonstrates that the consequences of conditional requests on customer loyalty (i.e., retailer engagement and repeat purchase behavior) are uniformly negative and surprisingly expansive. Six experiments with over 3,000 participants reveal that customers who receive conditional (vs. unconditional) requests are subsequently less loyal to the retailer, whom they perceive as manipulative and untrustworthy. This research also shows that easily implementable message modifications can attenuate (although not necessarily eliminate) the adverse effects of conditional requests on customer loyalty. Substantively, this work highlights how the messaging used in a review request affects customers’ inferences as well as their later judgments and behaviors. Managerially, the findings should exhort online retailers to exercise caution before sending conditional review requests given the risk of reputational harm.