How do electronic word of mouth practices contribute to mobile banking adoption?

Mobile banking (m-banking) is the fastest growing and most cost-effective channel for delivering banking services. Electronic word of mouth (eWOM) plays a crucial role in the success of e-commerce. Therefore, the main purpose of this study is to investigate a comprehensive moderated mediated mechanism for enhancing m-banking adoption behavior through positive eWOM triggers using the elaboration likelihood model (ELM). Argument Quality, valence, consistency and volume were considered eWOM triggers, and the conceptual model also included initial trust in m-banking as a mediator and consumer involvement in m-banking as a moderator. A total of 1153 useable surveys completed by the Indian users of social networking websites were used for analysis. The findings showed that of the triggers, argument quality, valence, and consistency enhance intention to adopt m-banking. These effects were mediated by initial trust in m-banking. The mediation effects of initial trust between valence – Intention varied between high and low consumer involvement in m-banking. These findings make several contributions to the literature on marketing communication, particularly to eWOM research and ELM theory. Practically, this study provides several recommendations to banks about how to use positive eWOM for motivating consumers to adopt m-banking.     

The unrealized value of incentivized eWOM recommendations

While companies have recognized the perceived economic benefits of encouraging and managing electronic word-of-mouth (eWOM), the benefits may be understated. Companies take into account the influence on the audience. But, what about any effects on the person who communicates the eWOM? We explore the impact that incentivized eWOM has on communicator attitude. Using the saying is believing effect as our theoretical foundation, we suggest that providing eWOM induces a change in the communicator’s attitude. By generating and providing a biased recommendation, the communicator will believe the biased recommendation. Furthermore, the communicator is likely to remember the biased recommendation and will use it to update their attitude. We examine how valence of recommendations (negative versus positive) and the number of opportunities to recommend affect the change in attitude. Our findings indicate that providing recommendations changes communicator’s attitude. Implications of the results are discussed.     

Role of electronic word-of-mouth content and valence in influencing online purchase behavior

Electronic word of mouth (eWOM) becomes an important tool for online consumers for evaluating and selecting a product. Extant research has mainly studied how various eWOM characteristics such as valence, volume, and text-based eWOM content affect purchase behavior. This study, for the first time, has explored the role of mixed neutral WOM valence and rich eWOM content on online purchase intention. Initially, the qualitative analysis method was used to conduct in-depth interviews with experts-cum-online shoppers from different fields. Purposive sampling was used to select 14 experts and online shoppers from diverse fields. Inductive analysis was conducted to analyze the interview generated content. It helped in forming various codes and categories in explaining eWOM constructs. Content analysis was also used to analyze the importance of various factors in key constructs (themes) affecting online behavior. The finding from the content analysis confirmed that both mixed neutral eWOM and rich eWOM content positively affects online purchase intention. This study has also explored how insights derived from the content analysis of valence and content can help marketers to develop an online marketing strategy. Research implications and future research directions have been discussed in this paper.     

Information direction, website reputation and eWOM effect: A moderating role of product type

This article examines how the electronic word of mouth (eWOM) information direction (positive vs. negative) and a website's reputation (established vs. unestablished) contribute to the eWOM effect. The article describes a study focusing on the moderating role of the product type (search vs. experience). The results of the experiment show that the eWOM effect is greater for negative eWOM than for positive eWOM, greater for established websites than for unestablished websites, and greater for experience goods than for search goods. The results support the moderating effects of product type on the eWOM information direction-website reputation-eWOM effect relationship. The impact of negative eWOM on the eWOM effect is greater for experience goods than for search goods. Similarly, the impact of website reputation on the eWOM effect is greater for experience goods than for search goods. The findings provide managerial implications for an Internet marketing strategy.     

Making new products go viral and succeed

Why are some new product introductions more viral and successful than others? This research integrates theories of interpersonal communication and consumer learning to explore this question. Analyzing a unique data set of millions of consumer word-of-mouth transmissions (eWOM) on social media regarding 345 new automobile products introduced during 2008–2015, we find that more innovative products generate more eWOM volume but surprisingly less positive sentiment. These effects vary in magnitude across eWOM channels. However, the use of rich-content communication, pre-announcement, and cobranding strengthens (weakens) the positive (negative) effect of product innovativeness on eWOM volume (sentiment). The results further indicate that eWOM sentiment is a stronger predictor of new product success than eWOM volume. Experimental results reveal more insights into how product innovativeness influences eWOM metrics in several product categories and shed light on the role of excitement and perceived risk as mechanisms underlying these effects. The research offers useful implications for firms to design effective viral marketing campaigns to enhance new product success.     

Trust and Commitment in Customer/Service-Provider Relationships:

This study highlights the importance of relationships in the marketing of services. Relationships constructs such as Trust, Affective Commitment, and Continuance Commitment are operationalized in a marketing context and used as dependent variables in an empirical study of differences in how males and females approach relationships with three types of service providers (primary care physicians, automobile mechanics, and hairstylists). The data shows that females seek more trust and commitment within the service provider/customer relationship than males. Also, consumers in general place more trust in and are more committed to their doctor and their hairstylist than to their mechanic.     

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).     

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.     

The effect of organizational justice, perceived organizational support, and perceived supervisor support on marketing employees' level of trust

For more than four decades, research has investigated the relationship between perceptions of organizational justice and employees' work attitudes. This study used two data sets to examine how perceptions of organizational justice influence marketing employees' perceived support and trust. Specifically, this study examines the role of perceived support as a mediator between organizational justice and trust. The results indicate that in Study 1 perceived organizational support (POS) serves as a mediator between procedural justice and organizational trust. Interactional justice is both a direct and indirect predictor of supervisory trust through perceived supervisor support (PSS). Distributive justice is related indirectly to organizational trust through PSS and directly to organizational trust. In contrast to the results in Study 1, distributive justice is an antecedent to both POS and PSS while procedural justice is related directly to organizational trust.     

When should star power and eWOM be responsible for the box office performance? - An empirical study based on signaling theory

Information asymmetry universally exists in the market transactions. In the movie industry, consumers usually have limited access to quality information before they actually watch the movie, which increases the difficulty of purchase decision. Quality signaling is regarded as an effective solution for information asymmetry. Drawing upon the signaling theory, this study identifies the two types of signals, namely internal signals (i.e., actor/actress power and director power) and external signals (i.e., eWOM volume and eWOM valence). We further empirically investigate how the two types of signals influence the box office performance in different time periods of the movie's theatrical running (i.e., opening week and later-run weeks). The moderating effect of the signaling environment (i.e., number of ongoing movies in the same period) on the relationship between the signals and box office performance is also examined. Analyzing the data obtained from 80 Chinese movies, this study finds that all signals except eWOM valence positively influence box office performance. Internal signals are instrumental in enhancing box office performance during the opening week, whereas external signal (only eWOM volume) is more influential in boosting box office performance in the later-run weeks. Our results also reveal that the signaling environment can augment the positive effect of internal signals on box office performance. Based on these findings, both theoretical and managerial implications are discussed for researchers and practitioners in establishing ways to produce, distribute and promote movies.     

The characteristics and business impact of children’s electronic word of mouth in marketing communications

Abstract

Leading digital technology companies have shown a strong interest in enabling children to send electronic word of mouth (eWOM). Recasting children from passive to active participants in marketing communications, this shift expands children’s marketing practices from how companies influence children via traditional marketing communications, to how children influence companies’ marketing practices through eWOM. We apply the value-capacity-vulnerability framework for children’s expressive rights to the context of children’s eWOM. Using a dataset of Amazon customer reviews written by children under the age of 13, we examine the characteristics and business impact of children’s eWOM. We find that the volume and variance of children’s eWOM are smaller than that of adults’. Children’s eWOM increase the overall diversity of opinions. Although receivers perceive children’s eWOM as less helpful, children’s eWOM valence (i.e. average rating) correlates with that of adults’. Children’s eWOM volume has a product-category-dependent association with product sales: positively in children’s product categories, while negatively in general categories. Children’s eWOM valence and variance are positively associated with product sales in both product categories. Receivers are less likely to criticize children’s eWOM compared to that of adults’, suggesting an underlying protective behaviour towards children among eWOM receivers. These results show that children have the capacity to engage in eWOM of social and business value, with receivers typically mindful of children’s vulnerability in social interactions.     

Electronic word-of-mouth (eWOM) generation in new media platforms: The role of regulatory focus and collective dissonance

In this research, we examine the role of two motivational forces associated with creation of electronic word-of-mouth (eWOM): regulatory focus and collective dissonance. Our studies show that generation of eWOM is enhanced by regulatory fit, while traditional WOM is dominated by the negativity effect. In study 1A, we show that prevention-focused consumers produce stronger intentions to post eWOM when they undergo a negative compared to a positive service experience. In study 1B, we find that promotion-focused consumers are more likely to post eWOM in reaction to a positive service experience when one's self-construal is independent. The final study shows that due to collective dissonance, consumers have greater intentions to create eWOM when their experiences are inconsistent with others' postings. We discuss the implications of these results for the development and management of eWOM communication in virtual communities.     

Factors predicting attitude toward disclosing personal data online

To test a theoretical model, this study explores the effect of anxiety, trust, personality, and perceived benefits on the disclosure of personal information online. An online survey conducted among participants in the United States (n = 248, age range: 20–82 years) examined attitudes toward disclosing personal data online. Specifically, the study researches the impact of anxiety disclosing personal data, trust (both in the Internet and in institutions), the Big Five personality traits, and four sets of perceived shopping benefits (opportunity, bargain, purchase, and expected privacy benefits) in e-commerce disclosure and their role as antecedents for adoption and use of e-commerce. The study aligns with existing trust literature and corroborates other findings on how perceived purchase benefits impact individuals’ attitudes toward disclosing personal data online. The data suggest that both trust in the Internet and trust in institutions positively influence attitude toward disclosing personal data online. Perceived purchase benefits were also significant positive predictors for attitude toward disclosing personal data online. Furthermore, personality dimensions can affect attitude toward disclosing: the more neurotic a person is, the more negative their attitude is about disclosing personal data online. The study underscores that consumers have a responsibility to educate themselves about online disclosure and marketing practices, and about how to protect their online privacy. Most importantly, fostering trust, reducing anxiety, and promoting benefits are essential to the future of e-commerce. Implications for theory, consumers, marketing practice, and public policy are also discussed.     

Trust transfer from manufacturer to private label brand: The moderating role of grocery store format

Guided by the theory of trust transfer, the present study sheds new insights on the role of trust in manufacturer brand on trust in private label brand (PLB), perceived risk and willingness to buy (WTB). The moderating role of grocery store format between trust in manufacturer brand, trust in PLB and WTB is also examined. The empirical data were collected by means of a written survey instrument from consumers. The hypotheses were analyzed with maximum-likelihood estimation. The results revealed the positive influence of perceived manufacturer brand quality on trust in manufacturer brand and trust in PLB. The positive linkage between trust in manufacturer brand and trust in PLB is also supported. The negative influence of trust in manufacturer brand and trust in PLB on perceived risk was revealed and the positive impact of trust in manufacturer brand and trust in PLB on WTB was also confirmed. The findings provide support for the negative link between perceived risk and WTB. Additionally, perceived risk partially mediates the relationships between trust in manufacturer brand, trust in PLB and WTB. Furthermore, store format moderates the impact of trust in manufacturer brand and trust in PLB on WTB. Theoretical and managerial implications are presented based of the research findings.     

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.     

Can you hear me now? Engendering passion and preparedness perceptions with vocal expressions in crowdfunding pitches

The voice is often the only continuous channel of expression in pitch videos. We isolate the influence of entrepreneurs' vocal expressions on funding by examining how valence (positivity/negativity) and arousal (activation) shape funders' perceptions of passion and preparedness. We show that an entrepreneur's high-arousal vocal expressions, whether positive or negative, increase perceptions of their passion. Entrepreneurs are perceived as more prepared when the valence and arousal of their vocal expressions are congruent. We test our hypotheses in the context of rewards-based crowdfunding, using both an experiment and a speech affect analysis of real-world crowdfunding pitches.     

The effects of eWOM volume and valence on product sales – an empirical examination of the movie industry

The present research examines how quantitative and qualitative aspects – volume and valence – of eWOM on various social media platforms in the movie industry, along with other forms of marketing communications (e.g. advertising expenditure), predict box office and DVD sales for pre- and post-periods of movie releases. The analysis of aggregated big data from multiple sources – 65,665,859 social media postings from blogs, forums, news, and Twitter, Nielsen’s ad expenditure data, and Rotten Tomatoes ratings for 170 movies—revealed that the explanatory power of the model for box office revenue and DVD sales mostly comes from the volume, rather than valence, of eWOM.     

eWOM across channels: comparing the impact of self-enhancement,positivity bias and vengeance on Facebook and Twitter

Abstract

When sharing personal details, versus talking about others, consumers tend to accentuate the positive experiences they have with brands in order to self-enhance amongst friends. Consumers also take vengeance on brands in public venues. Turning to social network sites (SNSs), it is unclear which is dominant. Here historical Facebook and Twitter eWOM (n = 47,907) is analyzed for a static group of 783 active US consumers. Self-enhancement is found on both SNSs. The majority of eWOM is positive Vengeance was rare, occurring only in 10.3% of all eWOM. eWOM appears to mirror a consumer's non-eWOM sentiment valence across SNSs. In this cross-platform comparison we suggest that SNS affordances alter eWOM creation Facebook has privacy expectations and limits direct brand interactions. Twitter is a public platform with less privacy expectations and a larger customer service component. Here eWOM is more prevalent on Twitter but contrary to our expectations is more positive.     

Electronic word-of-mouth (eWOM) on WeChat: examining the influence of sense of belonging,need for self-enhancement,and consumer engagement on Chinese travellers’ eWOM

‘Friends’ circles’ on WeChat have helped make eWOM more easily accessible and influential than ever. Drawing from the social identity theory, literature on consumer engagement and eWOM, this study presents the first research that examines the influence of two personality traits, sense of belonging and need for self-enhancement, on consumer engagement and in turn leads to eWOM intention. The results suggest that the need for self-enhancement positively influences Chinese travellers’ engagement with WeChat. In addition, a partial positive relationship between consumer engagement and eWOM intention was identified: only dedication towards WeChat is directly related to travellers’ intention to engage in eWOM on WeChat. Dedication was found to mediate the influence of need for self-enhancement on eWOM intentions. Sense of belonging, however, does not have a significant impact on consumer engagement. These mixed results demonstrate changing cultural values of contemporary Chinese society. Theoretical and practical implications are discussed.     

The relationship between Internet addiction and negative eWOM

Customers prevalently use social media (SM) to post their experiences and to review others’ experiences. This study investigated how Internet addiction (IA) influenced customers’ word-of-mouth behaviors on SM after a service failure, focusing on both young and older customers. Two experiments were conducted. The first study was conducted with young customers and second experiment with older customers. Results suggest that the group of young customers had significantly higher levels of IA, compared to older customers. The analysis identified that IA and functional/technical service failure partially influenced four negative types of electronic word-of-mouth (eWOM) (i.e. Badmouthing, Tattling, Spite, and Feeding the Vultures). Both young and older customers tended to show more negative eWOM types for technical service failures. For the functional service failures, IA was the main predictor of negative eWOM for both young and older customers.