What We Know and Don't Know About Online Word-of-Mouth: A Review and Synthesis of the Literature

Electronic word-of mouth (eWOM) has attracted considerable interest from researchers in the past decade. Although the extant research has helped us to develop a good understanding of a number of the issues pertaining to eWOM, several research and managerial questions remain. Furthermore, no attempt has been made to consolidate and synthesize this stream of research. With consumers' increasing reliance on online retailing and information seeking, as well as the continued growth of social media, the importance of eWOM cannot be overstated. Based on a systematic review of 190 studies, we conduct a multi-dimensional analysis of eWOM communication. We present the key issues in current and emerging literature and propose important questions for future research.     

Consumer Primacy on Campus: A Look at the Perceptions of Navajo and Anglo Consumers

ABSTRACT

A comparison was made between 152 Navajo students and 245 Anglo students regarding their perceptions of the educational product. Based upon focus group outcomes, nine elements were used to represent the educational product in the analyses. The elements were conceptualized using the Marketing Lens Model. Four hypotheses were developed and tested. Significant cultural differences were found for the following elements of the educational product: importance ratings among educational attributes, anticipated preparation after graduation, and satisfaction with the educational product. Results are discussed and managerial implications for university administrators are offered.     

Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility

Developing trust in a company is a significant part of building the company-consumer relationship. Previous studies have sought to identify the positive consequences of trust such as loyalty and repurchase, but the question of what builds trust remains largely unanswered. To answer the question, we developed a model that depicts the relationships among transparency, social responsibility, trust, attitude, word-of-mouth (WOM) intention, and purchase intention. An online survey was conducted with a US nationwide sample of 303 consumers, and the data were analyzed using the structural equation modeling method. The results indicated that consumers’ perceptions of a corporation’s efforts to be transparent in the production and labor conditions and to be socially responsible by giving back to the local community directly affected these consumers’ trust and attitudes toward the corporation, and indirectly affected their intentions to purchase from and spread positive WOM about the corporation. Theoretical and practical implications are discussed.     

Consumer Risk Perceptions and Marketing Strategy: The Case of Genetically Modified Food

New technologies are hitting the marketplace every day. In trying to make sense of these new technologies, consumers perceive a series of risks and benefits of consumption and use those perceptions to form product judgments. One way for managers to mitigate organizational related risk is to understand how consumers perceive consumption‐related risk. To illustrate this point, the case of genetically modified (GM) food is examined and a series of focus groups is conducted in which participants examined different product labels that either framed the technology as a benefit gained or as a risk avoided. The results indicate that consumers do indeed form very different product evaluations based on how the new technology is framed, but these evaluations vary based on the level of the consumers’ preexisting knowledge. This study provides support for the contention that a better understanding of consumer risk perceptions is an important first step in developing marketing strategies for new technology‐oriented products.     

The Completion Rate of IMF Programmes: What We Know,Don’t Know and Need to Know

Although a great deal of attention has been paid to IMF conditionality and to the effects of IMF programmes, relatively little attention has been paid to their completion rate. However, the record is that the clear majority of Fund programmes are uncompleted. Is this a cause for concern and why is it that the completion rate is low? In principle, a number of factors could be at work. Gaining a better understanding of what these are should allow policy reform at the IMF to improve performance. While there are things that we do not know and need to know about programme completion, we know enough to delineate the broad direction that policy should take.     

Consumer Shopping Styles and Online Shopping: An Empirical Study of Indian Consumers

ABSTRACT

The generalizability and applicability of the Consumer Shopping Inventory (CSI) scale on Indian sample in predicting online shopping behavior was examined. CSI scale has been adapted by researchers to validate its applicability in different countries. Results revealed new factors and different segments of consumers were identified by factor analysis. The findings posit that the original U.S. eight-factor model could not be confirmed completely on Indian sample. However, the study found support for five factors: quality-conscious shopper, fashion-conscious shopper, uninterested shopper, impulsive shopper, and brand-conscious shopper. Online shopping behavior was categorized under convenience, information availability, and cost factors. Demographic factors do not influence consumers' decision to shop online. Consumers shopping online frequently and Impulsive shoppers are likely to look at convenience factor of online shopping. Information availability was important for fashion-conscious shoppers, consumers frequently shopping online, and impulsive shoppers. Brand-conscious shoppers and quality-conscious shoppers were not likely to purchase online.     

Ethical Decision-Making by Consumers: The Roles of Product Harm and Consumer Vulnerability

The primary purpose of this study was to examine the effects of perceptions of product harm and consumer vulnerability on ethical evaluations of target marketing strategies. We first established whether subjects are able to accurately judge the harmfulness of a product through labeling alone, and whether they could differentiate consumers who were more or less vulnerable. The results suggest that without the presence of a prime, subjects who depended on implicit memory or guess were able to detect differences in “sin” and “non-sin” products and consumer vulnerability, but were far less likely to be able to distinguish among high and low levels of product harm and consumer vulnerability. The inability to accurately identify high and low levels of product harm and consumer vulnerability impacted their perceptions of the ethicality of target marketing strategies, such that only four out of 18 target marketing strategies were judged as unethical. Thus, our findings contradict previous research that found subjects judged many more of the integrated strategies as unethical [Smith and Cooper-Martin, J Market 61(1997) 1]. Our results suggest that assessing ethical evaluations of strategies varying in product harm, and consumer vulnerability may only be relevant if consumers can accurately identify product harm.     

Opinions on Consumer Issues: A Review of Recent Studies of Executives and Consumers

How do consumers and marketers differ in their views on consumer issues? Have these differences changed over time? In an attempt to answer these questions, this paper compares findings from five major attitudinal studies conducted between 1971 and 1977, which examined the attitudes of the two groups. This analysis focuses on five key issue areas: product quality, advertising, consumer information, perceptions of corporate attitudes and government regulation. Consumers and business executives were found to have wide differences of opinion in all the studies examined. The differences were particularly sharp on perceptions of corporate attitudes and on the need for more government regulation.     

Consumer Ethics: A Cross-Cultural Study of the Ethical Beliefs of Turkish and American Consumers

The ethical climate in Turkey is beset by ethical problems. Bribery, environmental pollution, tax frauds, deceptive advertising, production of unsafe products, and the ethical violations that involved politicians and business professionals are just a few examples. The purpose of this study is to compare and contrast the ethical beliefs of American and Turkish consumers using the Ethical Position Questionnaire (EPQ) of Forsyth (1980), the Machiavellianism scale, and the Consumer Ethical Practices of Muncy and Vitell questionnaire (MVQ). A sample of 376 subjects that consists of American consumers (n = 188) and Turkish consumers (n = 199) was used to compare the ethical beliefs and practices of the two samples. The MANOVA results for the two nationality groups found that five out of six criterion variables differed between the two groups. The implications of this study are intended to assist marketers to develop strategies that suit a particular market and lessen their risk of entry. Mohammed Y.A. Rawwas is Professor of Marketing at the University of Northern Iowa. He also taught as a Visiting Professor at a range of universities in Japan, France, Austria, Russia, China, Hong Kong, Trinidad and Tobago. His areas of research include ethical and social issues in marketing, cross-cultural studies, marketing education, and supply chain management. He has published extensively across these areas including works in Journal of Business Research, International Marketing Review, Journal of Consumer Ethics, and Journal of Marketing Education, among others.Ziad Swaidan is Assistant Professor of Marketing at the University of Houston-Victoria. He received his Ph.D. from the University of Mississippi. His research has appeared in several journals, including the Journal of Business Ethics, and International Business Review, among others. Mine Oyman is Assistant Professor of Marketing at Anadolu University in Turkey. Her areas of research include consumer ethics, cross-cultural studies, and marketing education. She has presented previous works at a range of international and local conferences.     

Internet Seals of Approval: Effects on Online Privacy Policies and Consumer Perceptions

The use of Internet seal of approval programs has been touted as an alternative to potential legislation concerning consumer-related online privacy practices. Questions have been raised, however, regarding the effectiveness of such programs with respect to maintaining privacy standards and aiding online consumers. The authors examine these issues in a series of three studies, the first of which is an exploratory application of Federal Trade Commission privacy standards to various online privacy policies in an effort to determine the ability of seal of approval program participation to act as a valid cue to a firm's stated privacy practices. The second and third studies are experiments designed to ascertain how online firm participation in Internet seal of approval programs affects consumers. Implications for consumer policy are discussed.     

Consumer Risk Response and Consumer Protection: An Economic Analysis of Seat Belt Usage

A utility analysis of decisions involving risk indicated that risk averse consumers would undertake a risk reduction strategy as long as the change in expected loss was equal to or greater than the costs of the strategy. Cost-benefit analysis of seat belt usage was conducted to test this hypothesis. The results indicated that drivers of all size classes would gain from using seat belts in the case of low user costs while the drivers of subcompacts and compacts would gain in the case of higher user costs. However, less than one-fifth of drivers wear seat belts. These results raise questions concerning the effectiveness of the informed buyer approach in areas of risk or uncertainty.     

Web Perception and Young Consumers: An Empirical Investigation of Factors Influencing Perceptions of Online Companies

ABSTRACT

The purpose of this study is to identify and empirically test factors important to building a positive Web perception among young consumers. Factors that affect Web perception are divided into Web design, vendor, and product/service groups. Based on regression analysis we found that Web design and product/service characteristics play the most important roles in developing a positive Web perception among young consumers. More specifically, online vendors must provide a vast selection of products that are of high quality, and their sites must be fast, easy to navigate, contain relevant information, and allow ease of ordering.     

An Examination of Sales Promotion Programs in Hong Kong: What the Retailers Offer and What the Consumers Prefer

This study gives an insight into the retailer's capability of managing sales promotion by examining the sales promotion programs offered by Hong Kong cosmetic and toiletry retailers and the consumers’ preferences. The results indicate that instant-reward programs are popular among retailers and preferred by consumers. The results also show that the preferences for sales promotion programs are dependent upon consumers’ demographic and sociocultural characteristics. Implications for advertisers designing and communicating sales promotions are offered.     

Ambiguity and Exaggeration in Price Promotion: Perceptions of the Elder and Nonelder Consumer

This paper examines the effects of plausible as well as implausible or exaggerated tensile discounts on consumer discounting behavior, price perceptions, and behavioral intentions. The effects are compared across two consumer segments, elder and nonelder, for a product and a service. Findings indicate that age of the consumer had a significant interaction with discount level for consumer discounting behavior regarding the product offer. While consumers were skeptical of implausible discounts, the effects of implausible and high-plausible discounts on price perceptions were higher than that of low-plausible discounts. In addition, there were no significant differences between the implausible and high-plausible discount levels for price perceptions or behavioral intentions. The results provide implications for public policy makers.     

What Men and Women Really Want: Differences in Gender-Based Evaluations of Service Recovery Efforts

Under increasing domestic and global pressures, the survival of small agri-businesses in developing countries such as Sri Lanka is being challenged because of their poor strategic focus and weak coordination along the supply chain. The quality, efficiency, and versatility of production, processing, distribution, and marketing systems play a significant role in the competitiveness of agri-businesses. Improved competitiveness requires closer coordination along the supply chain so as to decrease transaction costs and create opportunities for differentiation. In Sri Lanka, the government has a greater role to play in developing an enabling environment for the chains to which small agri-businesses belong.     

The Importance of Being Earnest or Committed: Attribute Importance and Consumer Evaluations of the Live Arts Experience

This study examines the importance of five service attributes (employees, show time, facility access, ancillary quality, and visual aesthetics) used by attendees when evaluating the service quality of their experience at performing arts events. The importance of service attributes were considered by patrons' commitment level and demographic characteristics. Study data was obtained from the performing arts center associated with a mid‐sized university located in the mid‐west. The sample was drawn from patrons at five unique performances that took place on different days of the week and times over a two‐month period. A total of 457 audience members participated in the study. Importance of service attributes did vary by commitment characteristics, as did behavioral intentions. As the level of commitment with the organization increased, the more likely they were to recommend, attend in the future, subscribe to, and donate time or financial resources to the performing arts organization.     

The Ethiopian Immigrant Business Enclave in the United States: Perceptions of Residents,Consumers, and Entrepreneurs

This study investigates the Ethiopian immigrant urban business enclave and its infrastructure, aesthetics, and quality of life. These immigrants are revitalizing urban areas, and examining the perceptual differences among stakeholders in these neighborhoods is salient. Economic development literature suggests that stakeholders share a common vision in order for revitalization efforts to be successful. Surveys were administered in an urban area to statistically test hypotheses that stakeholder groups have different perceptions. The analysis of variance technique (ANOVA) was used to analyze the data. Results indicate that stakeholders differ in their perceptions of the business climate and quality of life.     

Nutrition Ad Claims and Disclosures: Interaction and Mediation Effects for Consumer Evaluations of the Brand and the Ad

The effects of ad disclosure information on evaluations of the brand, the advertisement, and purchase intentions are postulated to vary across different ad claim types. In addition, consumers' product health perceptions are hypothesized to mediate the effects of the disclosure information and ad claim type on brand and ad-related evaluations. Results from a between subjects' experiment show that the health perception measure mediates the effect of the disclosure on brand and ad evaluations, but the interaction between the ad claim type and the disclosure is not mediated by the inclusion in the model of consumers' product health perceptions.