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.     

Factors influencing Generation Y consumers’ perceptions of eWOM credibility: a study of the fast-food industry

eWOM communication is certainly one of the most influential drivers of purchase decisions. However, little knowledge is available on the factors that influence the trustworthiness and credibility of eWOM communication. To address this research gap, the study aimed to assess whether the three independent variables (homophily, authority and interestingness) have a significant positive indirect effect on eWOM credibility, as mediated by source trustworthiness. The context of the study was fast-food retailers. A cross-sectional survey was conducted and the target population included all Generation Y consumers that visited the fast-food market leaders in Gauteng province, the economic hub of South Africa. Lisrel version 8.8 was used to analyse the results obtained from a realised sample of 362 respondents and to compile the structural equation model. The findings of the study support the research hypotheses formulated and offer a theoretical contribution by enhancing knowledge of the relationships between the variables investigated as well as the factors that could influence eWOM credibility. The study also has meaning to fast-food retailers, as the model could be applied to formulate appropriate strategies and influence the online conversations and perceptions of consumers.     

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.     

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 characteristics of source credibility on consumer behaviour: A meta-analysis

The aim of this research is to synthesise findings from existing studies on the characteristics of source credibility of electronic word of mouth (eWOM) communications in a single model by using meta-analysis. Findings from 20 research papers show that source expertise, trustworthiness, and homophily significantly influence perceived eWOM usefulness and credibility, intention to purchase, and information adoption. The results of this study add to existing knowledge of the influence of source characteristics on consumer behaviour, which will advance our understanding of information processing. Marketers can use the findings of this meta-analysis to enhance their marketing activities.     

Electronic Word-of-Mouth in Social Networking Sites: A Cross-Cultural Study of the United States and China

ABSTRACT

Understanding electronic word-of-mouth (eWOM) in social networking sites (SNSs) is crucial as consumers have potential to reach global audiences quickly and easily. This article presents the first cross-cultural study on eWOM in SNSs by examining social relationship variables between the United States and China. Specifically, social capital, tie strength, trust, and interpersonal influence were examined as potential predictors of eWOM communication in the emerging online social channels. The results suggest that national culture plays a significant factor that affects consumers’ engagement in eWOM in SNSs in the two countries. Theoretical and managerial implications for global Internet marketers were presented and discussed.     

How credibility affects eWOM reading: The influences of expertise,trustworthiness, and similarity on utilitarian and social functions

In online information settings, a few people tend to contribute, while the majority of people consume. For this latter group of readers, electronic word of mouth (eWOM) provides information about products or service experiences that rarely are available from manufacturer-controlled sources, which makes this source of information especially helpful. In turn, eWOM influences readers' attitudes, intentions, and behavior. Manufacturers also hope to monitor and positively influence eWOM content, such as by supporting and building brand communities. But eWOM readers might doubt the credibility of information if it is mostly positive, and the usefulness of eWOM information depends on its credibility. This study offers an empirical and theoretical validation of how specific utilitarian and social functions of eWOM affect attitudes toward and intentions to read eWOM. In particular, trustworthiness is the most important credibility dimension; it affects both functions. Perceived expertise also enhances the utilitarian while similarity improves the social function of eWOM.     

The effect of utilitarian and hedonic motivations on mobile shopping outcomes. A cross-cultural analysis

Mobile devices are ubiquitous in the lives of modern consumers, who use them for information-seeking and purchasing activities, fostering the emergence of m-commerce. This trend has been exacerbated by the COVID-19 pandemic, which has boosted m-commerce growth in both developed and developing countries. Hence, there is a need for cross-cultural research concerning the factors affecting behavioural intentions. Drawing upon the hedonic information systems model, we measure the impact of utilitarian factors on satisfaction, repurchase intention, and eWOM through the mediation of enjoyment across two countries characterized by different stages of m-commerce readiness and culture: China and Italy. Findings suggest that the impact of utilitarian factors on satisfaction is stronger among Italian users than Chinese users. On the contrary, for Chinese users, who use their mobile phones as a primary device to shop online, the mediation effect of enjoyment on satisfaction and eWOM is stronger. With this study, we contribute to cross-cultural research in m-commerce and provide guidelines to mobile retailers operating in diverse international markets.     

Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the Internet?

Through Web-based consumer opinion platforms (e.g., epinions.com), the Internet enables customers to share their opinions on, and experiences with, goods and services with a multitude of other consumers; that is, to engage in electronic word-of-mouth (eWOM) communication. Drawing on findings from research on virtual communities and traditional word-of-mouth literature, a typology for motives of consumer online articulation is developed. Using an online sample of some 2,000 consumers, information on the structure and relevance of the motives of consumers’ online articulations is generated. The resulting analysis suggests that consumers’ desire for social interaction, desire for economic incentives, their concern for other consumers, and the potential to enhance their own self-worth are the primary factors leading to eWOM behavior. Further, eWOM providers can be grouped based on what motivates their behavior, suggesting that firms may need to develop different strategies for encouraging eWOM behavior among their users.     

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).     

In eWOM We Trust

Electronic word-of-mouth (eWOM) is an important factor in marketing communication. As more people use eWOM to assist them in making purchase decisions, the process by which they evaluate the credibility of these online recommendations becomes increasingly relevant. Although previous studies have recognized that credibility is one of the most important antecedents of eWOM adoption, little is known about the drivers of this credibility. Thus, this paper examines factors that influence the perceived credibility of consumer online recommendations. Drawing on dual process theory and source models, hypotheses were derived and tested with structural equation modeling on a basis of 643 consumers. Generally, the paper provides evidence that expertise, trustworthiness, and aggregate rating are the most significant factors of the perceived eWOM credibility. The study also demonstrates that involvement could moderate these relationships.     

The 2010 FIFA World Cup and South Africa: A study of longer-term effects and moderators of country reputation

Word-of-mouth (WOM) communication has long been an important source of information influencing consumer attitudes and purchase behaviour. Despite this, relatively little attention has been directed at important questions regarding how WOM is measured. This paper focuses on two measurement issues: who to measure (the giver or receiver) and when to measure (immediately after the message is received or over time). Based on information processing and related theories, three hypotheses were developed and tested. Using a survey approach, respondents' WOM communications were matched to a receiver and the evaluation of the communication was assessed for both groups. It was found that the giver and receiver of a WOM communication did not evaluate the message in the same way, even at the time of transmission. In addition, the evaluation by the receiver was unstable over time. As time passed the evaluation regressed towards the scale mean. Implications for research and management practice are discussed.     

‘Retweet for a Chance to…’: an analysis of what triggers consumers to engage in seeded eWOM on Twitter

Twitter provides an important channel for brands to seed electronic word of mouth (eWOM) by followers retweeting brand messages, but prior research has not established a theoretical framework for how brands can maximise eWOM. This study presents and tests a theoretical model incorporating interactive, textual and visual tweet features to predict eWOM, using tweets by leading brands from three industries. Industry was found to be an important moderator of the effect of tweet features; after controlling for the reach and frequency of tweets, hashtags, retweet requests and photos were consistently associated with a higher retweet rate across industries, but the effect of URL links, non-initial mentions and video varied across industries, in some cases decreasing the retweet rate. Implications for research and practice 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 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.     

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.     

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.     

Altruistic eWOM marketing: More than an alternative to monetary incentives

As a form of word of mouth, online reviews are used to reduce uncertainty about service quality and direct consumer attitudes and behavior. As a consequence of the high persuasiveness and the broad accessibility of electronic word of mouth (eWOM), companies are very interested to proactively managing this form of customer-to-customer communication. Compared with traditional advertising provides, eWOM marketing is a more credible and low-cost alternative. So far marketers have commonly used monetary incentives to influence customer-to-customer communication. However, this form also includes potential negative consequences such as credibility loss through consumer skepticism and crowding-out effects. This study analyzed two new incentive programs for increasing recommendation likelihood that considered the activation of an altruistic form of motivation to overcome these drawbacks. Therefore, an experiment was designed with three experimental groups (incentive programs) vs. a control group (no incentive). Finally, the results are discussed while taking into account the advantages and drawbacks of the particular incentive program to deduce practical implications.     

Community crosstalk: an exploratory analysis of destination and festival eWOM on Twitter

Abstract

Research suggests that festivals can promote a destination via online word-of-mouth (eWOM) on social media, even though the nature of this effect is not yet fully understood. Using a combination of Social Network Analysis and text analysis (qualitative and quantitative), this article examines eWOM at a tourism destination (Bournemouth) when a festival (Bournemouth Air Show 2013) is staged. The Communities of Interest of eWOM interactions on Twitter were captured and analysed to understand the structure and content of eWOM. Findings indicate that key users are usually already prominent individuals and that festivals act as both a direct generator as well as an online animator of eWOM. Finally, network size, span and scope may be useful indicators when comparing eWOM networks.     

From digital media influencers to celebrity endorsers: attributions drive endorser effectiveness

We propose that attributions about an endorser truly liking, using, or desiring a promoted product mediate the relationship between source and message factors and persuasion via endorsement. In this paper, we integrate the persuasion literature into a framework for examining endorser effectiveness via focus factors (e.g., involvement, cognitive load) that determine whether a consumer thinks carefully or superficially about a message, and lead consumers to rely on different source and message elements (e.g., source attractiveness, argument strength). These elements then influence attributional processing. Correspondent inferences about an endorser can lead to enhanced advertisement and brand attitudes, and spur either fleeting identification with the endorsement or more enduring internalization (Kelman, The Public Opinion Quarterly 25:57–78, 1961) of the endorser’s message as a consumer’s own. Implications of our framework and research directions are discussed.