Cutting Through the Online Review Jungle — Investigating Selective eWOM Processing

Consumers frequently rely on online reviews, a prominent form of electronic word-of-mouth (eWOM), before making a purchase decision. However, consumers are usually confronted with hundreds of reviews for a single product or service, as well as rich information cues on online review websites (review texts, helpfulness ratings, author information, etc.). In turn, consumers face more information cues on online review websites than they can or want to process, and are likely to proceed selectively. This paper investigates selective processing of such eWOM information cues. Results of Study 1, an exploratory study using verbal protocols, confirm that consumers display selective eWOM processing patterns and are able to articulate them. Study 2 develops and applies a measurement instrument to capture these patterns. A subsequent cluster analysis on members of a large-scale online panel (N = 2,295) indicates five prominent eWOM processing types, termed “The Efficients”, “The Meticulous”, “The Quality-Evaluators”, “The Cautious Critics”, and “The Swift Pessimists”. Insights of this research can help firms to better understand consumers' eWOM processing and improve the user-friendliness of online review websites.     

The Roles of Modality Richness and Involvement in Shopping Behavior in 3D Virtual Stores

The rapid growth of e-commerce and consumers' increasing use of 3D virtual worlds to make purchases have rendered it important to understand how consumers develop their buying intentions in this novel context. Drawing from literature on modality richness, this study examined the effects of pre-experimental product involvement and the modality of marketing information presentation on consumers' product evaluations, buying intentions, and enjoyment of online shopping. The results of a 2 × 2 between-subjects experiment indicate significant interaction effects between modality richness and prior involvement. Consumers with low involvement are influenced by modality richness, whereas those with high involvement are not, thus confirming the moderating role of prior involvement for shopping behaviors inside 3D virtual environments. Managerial implications of these findings are discussed.     

The effects of marketer- and advocate-initiated online service recovery responses on silent bystanders

Dissatisfied customers increasingly voice their complaints on social media. These negative comments and subsequent responses are an important information source for potential customers. In a consumer-empowered era, these responses not only originate from marketers, but are often articulated by engaged brand advocates. In this study we investigate the effect of both marketers' and advocates' responses to service failures on bystanders' favorable and unfavorable brand-related reactions. Specifically, two scenario-based experiments (n₁ = 731; n₂ = 361) were conducted in which specific webcare response types and sources were systematically manipulated. Results show that companies are particularly effective in enhancing bystander-brand relationships by means of credible and accommodative responses and sometimes even with credible, defensive responses. Most importantly, however, brand advocates can help the company to increase favorable brand-related outcomes with accommodative responses and mitigate unfavorable outcomes with web-specific defensive responses.     

Brothers in blood,yet strangers to global brand purchase: A four-country study of the role of consumer personality

Although personality traits have repeatedly been shown to influence consumer behavior, their impact on willingness to buy global brands has yet to be empirically investigated. Based on a four-country sample (N = 4539) of South East European consumers, we test alternative pathways linking consumer personality traits to global brand purchase intentions. Our findings show that extraversion, neuroticism, conscientiousness and openness to experience impact purchase intentions mediated through consumers' global brand associations, domestic country bias and price sensitivity. Implications of the findings for theory and practice are considered and future research directions identified.     

Building acquaintance brands via Snapchat for the college student market

College students are inseparable from their smartphones, and heavily engaged in Snapchat. This social media app allows low-consequence expression: messages disappear within 10 seconds to 24 hours of their receipt, depending on the content. Because college students seem strongly attracted to Snapchat, the implications for brand managers interested in reaching this target market deserve exploration. Four focus groups of self-described heavy users show that this media app allows college students to enter the virtual Snapchatverse and find a sweet spot of acquaintances. The sweet spot is associated with feelings of relatability, inclusion, and effortlessness and has the potential to produce empowering experiences. The verbal protocols of college students suggest that Snapchat is an ideal social media for developing acquaintance brands: brands that aim to make themselves part of an inclusive, feel-good experience or highly relatable acquaintances.     

Consumer Fear of Online Identity Theft: Scale Development and Validation

One unwelcome side effect accompanying the rise of e-commerce concerns the increase in cyber-crime, which in turn contributes to consumer fear of online identity theft (FOIT). This research details the development and validation of a FOIT scale that measures individual differences in consumers' proneness to feel negative emotions in relation to shopping online, specifically, the fear that others may illicitly use their identifying details. Based on literature insights, findings from qualitative interviews (n = 43), and three quantitative studies in Germany (n = 345, n = 539, n = 1,150) conducted in various online contexts, the authors propose a two-dimensional FOIT scale. Comprehensive validation procedures which involve relating FOIT to antecedents and consequences suggest the usefulness of the FOIT scale. Suggestions for future research and managerial implications are discussed.     

How do Chinese employees react to psychological contract violation?

Psychological contract violation (PCV) is employee negative emotions aroused by employers not delivering their promises. Past studies have used Social Exchange Theory to explain the effects of PCV on employee responses specified in the EVLN (i.e., Exit, Voice, Loyalty and Neglect) model. The present study argues that Activation Theory may also be applied to explain employee responses to PCV for Chinese employees due to the specific role of emotions in Chinese culture. Both theories receive some supports in a Chinese employee sample (n = 439). Results and implications are discussed.     

The Impact of Online and Offline Information Sources on Automobile Choice Behavior

The Internet has significantly impacted the information search behavior of consumers. Many consumers regularly consult Internet sources for information on product categories, brands, manufacturers, and retailers, particularly when making a purchase decision about major durable goods. Automobiles are one example of such goods. The Internet has become a major source for information on automobile brands, attributes, and dealers. While much research has been done on the impact of the Internet on automobile information search behavior and search costs, there is limited work on the relationship between Internet use and the ultimate automobile choice. This type of relationship may have interesting managerial implications for both manufacturers of automobiles and firms that provide information on automobiles. This paper attempts to address this gap. It examines whether Internet use is associated with different choice patterns for automobiles. Using discrete choice analysis on automobile choice data, we explore whether there will be differences in the salience of specific information types for online versus offline consumers. We find that Internet users rely more on ratings while non-Internet users rely more on recommendations when making automobile choices. Our findings have several useful managerial implications for information provision, both online and offline.     

Values associated with luxury brand consumption and the role of gender

We investigate the role of gender in the perceptions of and motives for luxury brand consumption. Based on the social structural theory of gender, we propose that differences in men's and women's luxury values result from asymmetries in social status. We conduct three studies with samples of frequent luxury brand buyers. Study 1 (N = 512) generates main values associated with luxury brand consumption. Study 2 (N = 640) identifies a four-factor model of luxury brand values, including refinement, heritage, exclusivity, and elitism, and shows that women give more importance to refinement, while men give more importance to exclusivity and elitism. Study 3 (N = 1024) demonstrates that public self-consciousness has a stronger positive influence on refinement for women rather than men. In contrast, consumer need for uniqueness and status consumption exert respectively a stronger positive influence on exclusivity and elitism for men rather than women.     

Consumer product search and purchase behaviour using various retail channels: the role of perceived retail usefulness

The purpose of this study was to examine the influences of consumers' perceptions of retail usefulness for product information search and their previous purchase satisfaction on their frequencies of product information search and product purchase behaviours for apparel products. These relationships were investigated in five retail settings – Internet shopping, catalogue shopping, television shopping, local retail shopping, and non‐local retail shopping. One hundred seventy‐six students in a US Midwestern university provided usable responses. The results of causal model analyses showed that the proposed model fits the data well for all five retail channels. Consumers who perceived a certain retail channel more useful for product information search searched for product information more frequently via that retail channel, and purchased products more often via that retail channel. Consumers who were more satisfied with apparel purchases from a retail channel purchased the products more frequently via that retail channel. Theoretical and managerial implications are discussed.     

Business corruption in Ukraine: A way to get things done?

Corruption at the firm level is a very complex issue better understood within its cultural, national, and historical contexts. Using Ukrainian firms as an example via two data sets from 2013 (n = 625) and 2015 (n = 120), we describe two types of corruption: (1) the abuse of power by individuals or groups for private gain, and (2) abuse of power by CEOs and general managers not for their own private gain, but for the gain of other individuals or groups. The latter abuse of power—either within or beyond the existing rules, laws, and norms—is often the only way to get things done in Ukraine. On the other hand, corruption might also be used to hinder business activities. This ambivalent function is the main challenge in mitigating corruption.     

Timing customer reactivation initiatives

Firms operating in non-contractual settings apply customer reactivation initiatives such as email messages to stimulate customers who have become inactive temporarily or permanently to resume their transaction activities. Thus, firms need to know which customers are inactive, and when a customer becomes inactive. Existing approaches struggle to distinguish active from inactive customers and do not provide time-scale estimates of when to send reactivation mails. To address these shortcomings, we develop an approach to target and time the sending of reactivation mails. Building on control chart methods, we introduce a gamma–gamma control chart, modelling the average customer interpurchase time and the variation therein to determine activity boundaries. Crossing these boundaries signals a potential change in a customer’s purchasing activity, providing a signal to initiate customer reactivation. A field experiment in the greetings and gifts industry, supported by several additional analyses, illustrates the improved performance of our approach when it comes to signaling customer activity against a wide range of competing models. The improved performance of our method occurs particularly in settings where customers vary strongly in purchase and inactivity patterns.     

A cross-national analysis of perceptions of corporate governance principles

Increased trade between developed and emerging economies has led to a gradual convergence of policies related to corporate governance as multinational firms attempt to standardize best practices worldwide. Due in part to this movement organizations such as the OECD and World Bank have contributed to the streamlining of acceptable protocol for publicly traded firms around the globe. In 1999 the OECD Principles of Corporate Governance were endorsed by OECD ministers in an attempt to influence policymakers by setting global governance standards. Yet the extent to which perceptions of these principles vary between OECD members and non-members is unclear. Obtaining a greater understanding of how individuals from diverse nations perceive these principles is important to managers as they maneuver through the complex world of international business. In this study we employ relational demography theory to develop and test a survey instrument in the Kingdom of Saudi Arabia and in the United States to assess perceptions of OECD principles. Results from a survey of 284 managers (Saudi Arabia n = 168, USA n = 116) suggest that regardless of culture perceptions of shareholder rights are positively related to beliefs about the integrity of the national legal and regulatory framework. Also, differences between the Saudi and U.S. samples on perceptions of shareholder participation, disclosure and the role of the audit function are identified. Managerial implications and future research directions are also discussed.     

Examining Biased Assimilation of Brand-related Online Reviews

This paper examines the impact of pre-existing brand attitudes on consumer processing of electronic word-of-mouth (eWOM). This topic is particularly important for brands that simultaneously possess strongly pronounced proponents as well as opponents. Two experimental studies using univalent (study 1, N = 538) and mixed (study 2, N = 262) sets of online reviews find indications for biased assimilation effects of eWOM processing. Consumers perceive positive (negative) arguments in online reviews as more (less) persuasive when having a positive (negative) attitude towards the brand. Perceived persuasiveness in turn influences behavioral intentions and acts as a mediator on the relationship between attitude and behavioral intentions. We examine two moderators of this effect. When priming individuals to focus on other consumers (vs. a self-focus prime), the biased assimilation effect is weaker (study 3a, N = 131). In contrast, we show that biased assimilation becomes stronger under conditions of high (vs. low) cognitive impairment (study 3b, N = 124). Our findings contribute to the literature on the relationship between eWOM and brands and advance our understanding of potential outcomes of brand polarization.     

Experiential Engagement and Active vs. Passive Behavior in Mobile Location-based Social Networks: The Moderating Role of Privacy

The study aims to understand how social media and mobile change customer experiences and influence the online active behavior. We explore how leveraging differently on experiences that the users live online helps to increase experiential engagement and mitigate the negative influence of privacy concern on the active use of location-based social networking applications. We conceptualize experiential engagement as a second-order construct that is manifested in two first-order “experience” constructs (Personal Engagement and Social Interactive Engagement). We theorize that our engagement constructs are causally related to consumer active and passive use of a mobile location-based social network and we test (n = 379) the moderating role of privacy concern on this relation in EU and the US. Findings show that Personal Engagement plays an important role influencing active usage when users are more concerned with privacy issues. Social Interactive Engagement shows a significant effect on passive usage meaning that the more people experience a deep sense of community the more they are interested in reading other comments or collecting information. Managerial implications are discussed.     

The role of the Internet on free-riding: An exploratory study of the wallpaper industry

This study discusses the role of the Internet on possible free-riding activities for product categories where retail services are a critical part of the completed consumer purchase transaction. The study investigates free-riding in terms of consumer pre-purchase activities during the information search stage (how they process shopping information) and actual purchase decisions with a literature review. The study's empirical findings indicate that full-service retailers’ beliefs about online consumers’ choice of purchase outlet are predominantly influenced by online retailer prices rather than availability of a variety of products (place) on the Internet. This, in turn, indicates the possibility of strong free-riding opportunities in the sample wallpaper market. The study, in this context, proposes strategies and policies to eliminate many of the destructive effects of the opportunities for free-riding provided by the Internet for long-lasting channel and market effectiveness and efficiency.     

Channels for search and purchase: Does mobile Internet matter?

Recent industry reports indicate that consumers own four digital devices on an average, and switching devices during shopping is the “new normal.” The addition of mobile Internet as a new channel of search and purchase has spurred the adoption of the digital medium, and easy accessibility of the Internet on multiple devices is influencing shopping patterns. A consumer may prefer some channels for search and others for purchase or use a combination of channels to search and purchase simultaneously. As a new channel, it is unclear 1) whether mobile Internet offers greater search or purchase benefits and 2) what type of products are more suitable for mobile Internet search and purchase. In this study, we develop a framework that describes the factors that drive the use of mobile Internet in a multi-channel environment. We test the framework using survey data from a sample of U.S consumers. The main findings from our study indicate that 1) the choice of channel combinations that include mobile relative to other channel combinations increases with an increase in perceived search convenience of mobile channel. 2) in the digital channel, mobile and desktop differ in their utility along search dimensions. The probability of choosing channel combinations that include mobile increases due to search convenience whereas desktop is attractive due to perceived gains of price comparison search; and 3) mobile Internet search increases for consumers searching for utilitarian products. The insights from this study deepen our understanding of how digital media is used in the search-purchase process and have important managerial implications.     

Heterogeneity in the Effects of Online Persuasion

Average effects of influence strategies on consumers' attitudes and behaviors have been studied extensively. Less is known about the relative size of individual differences in these effects, despite recognition of their importance in social psychology. Two experiments use repeated exposures to influence strategies to identify the effects of each social influence strategy for individual participants. Study 1 provides evidence of large variation in the effects of influence strategies, such that for many participants the estimated effect of using an influence strategy is negative, even though the effect of that strategy is significantly positive on average. Study 2 replicates these findings over three sessions, each a week apart. The observed variation in responses to influence strategies cannot be attributed to transient intra-individual variation (e.g., strategy × mood interactions). Meta-judgmental measures of personality constructs (e.g., need for cognition) explain only a small portion of the observed variance, suggesting the importance of directly modeling heterogeneity in responses to influence attempts. These results are important for interactive marketeers since they indicate that different influence strategies substantially differ in their effects on individual consumers and should thus be adapted to individuals.     

How does governmental versus private venture capital backing affect a firm's efficiency? Evidence from Belgium

We investigate the implications of venture capital (VC) investor type (government or private) on the operating efficiency of a sample of 515 Belgian portfolio firms up to 3 years after the investment. We find that the government VC-backed firms display significant reductions in productivity. No significant differences in efficiency are found in firms backed by private VC compared with their non-VC-backed peers. Finally, significant reductions in efficiency exist in targets of government VC compared to their non-VC-backed peers.