• Title/Summary/Keyword: WOM channel

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Effect of Online Word of Mouth on Product Sales: Focusing on Communication-Channel Characteristics

  • Jeon, Jaihyun;Lim, Taewook;Kim, Byung-Do;Seok, Junhee
    • Asia Marketing Journal
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    • v.21 no.2
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    • pp.73-98
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    • 2019
  • As information and communication technology continue its remarkable development, the exchange of information online becomes as prevalent and frequent as face-to-face communication in daily life. Therefore, the management and application of WOM (word of mouth) practices will become more important than ever to companies. Currently, there are various types of communication channels for online WOM, and each channel has its own unique traits. Most of the previous research studies online WOM by examining the information inside a single communication channel, but this research chooses two different communication channels and analyzes the effects of online WOM with each channel's unique characteristics. More specifically, this research focuses on the expectation that the effects of information from Twitter and blogs on product sales may differ because Twitter and blogs, two different communication channels for online WOM, have their own unique traits. Our particular aim is to perform an in-depth examination on the effects of communication channel's volume and valence on product sales, two important attributes of online WOM. Furthermore, while most of the empirical research focuses on online WOM and analyzes its effect on markets of temporary experience goods, such as movies and books, this research highlights focuses on the automobile market, a durable goods market. The results of our analysis are as follows: First, regarding blogs, a positive valence significantly and positively affects the sales of products, and this result indicates that consumers are influenced more by the emotional aspect of a product presented in a post than by the number of blog posts. Second, regarding Twitter, the volume of online WOM significantly and positively affects sales, an indication that as the number of posts increase, the sales increase. Through this research, we suggest that even those firms that sell durable goods can increase sales through the management and application of online WOM. Moreover, according to the characteristics of communication channels, the effects of online WOM on sales differ. As a practical implication of this research, we suggest that companies can and should create marketing strategies appropriate to their targeted communication channels.

The influence of SNS content quality on users' adoption behavior and WOM (SNS상의 콘텐츠품질이 사용자의 수용태도와 구전활동에 미치는 영향)

  • Lee, Jiwon;Kang, Inwon;Jung, Sungwoon
    • Knowledge Management Research
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    • v.12 no.5
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    • pp.1-10
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    • 2011
  • Forming a network, through Social Network Services (SNS), among a group of people who share the same hobby or interests could increase the information sharing among the members at an exponential rate. Moreover, SNS users' behavior extends beyond the traditional introverted consumption behavior to a proactive behavior by owning or actively sharing product information. For firms, such proactive consumer behavior translates into marketing effects such as the word of mouth (WOM) effect. Therefore, SNSs are accepted not only as a communications channel between firms and consumers but also as marketing channel, suggesting the possibility of a new revenue source. In this context, we will explore into the factors of SNS contents which conserve firms' image and product information, and effects of the factors on consumer attitude and WOM.

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A Correlation Analysis between Word-of Mouth Message Sender Credibility and WOM Effect (외식업소에 대한 구전 메시지 발신자 신뢰도와 구전효과의 상관성 분석)

  • Cha, Sung-Mi;Shin, Seo-Young
    • Journal of the Korean Society of Food Culture
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    • v.21 no.5
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    • pp.536-540
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    • 2006
  • The purposes of this study were 1) to analyze the correlation between Word-of-Mouth(WOM) message sender credibility and WOM effect and 2) to analyze the differences of WOM message sender creadibility and WOM effect in off-line and on-line WOM communication. The messages were created as a form of scenario for this study. Respondents were asked to evaluate the message sender credibility and predict WOM behaviors after reading given scenario. The questionnaires were distributed to 200 customers and a total of 175 questionnaires were used for analysis(87.5%). The statistical analysis was conducted using SPSS Win(12.0) for descriptive analysis, paired t-test, factor analysis, correlation analysis. The positive off-line WOM message sender was considered as more credible(p<.001) than on-line WOM message sender. 'Message sender credibility' is correlated with 'attitude formation' in both channels, but 'reliable' factor of 'credibility' variable is not significantly correlated with 'attitude change'.

The Influences of Restaurant Consumers' Electronic Word-of-Mouth(E-WOM) Information Communication on Product Perception Risk, Benefit and WOM Effect

  • Heo, Yeong-Uk
    • The Journal of Economics, Marketing and Management
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    • v.6 no.4
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    • pp.51-64
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    • 2018
  • Purpose - This study is intended to look into the influences of restaurant consumers' e-WOM information communication on product perception risk, benefit and WOM effect. Research design, data, and Methodology - To achieve this, a survey was empirically carried out to 426 restaurant consumers. Results - The findings are as follows. First, the influence of e-WOM on product perception risk showed that WOM information sender characteristics, WOM information recipient characteristics and online community had a statistically significant positive influence on product perception risk. Second, the influence of e-WOM on product risk benefit showed that WOM information sender characteristics, WOM information recipient characteristics and online communication had a statistically significant positive influence on product risk benefit. Third, WOM risk perception had a statistically significant positive influence on WOM acceptance. Fourth, WOM risk benefit had a statistically significant positive influence on WOM effect. Conclusions - As for the above-mentioned findings, the communication between e-WOM sender and recipient had a positive influence on the product evaluation and attitude change in the restaurant industry, and the WOM effect had an influence on the financial performance and non-financial performance. The communication attaches importance to a direct using and tasting experience due to the nature of restaurant industry when it is simultaneously performed as a positive mechanism between sender and recipient through each channel of these factors. But the e-WOM culture can lead to the WOM effect when both sender and recipient share the persuasive communicability in reality that diversifies communication methods, having a positive influence on the management performance.

Effects of SNS Characteristics on SNS Engagement and Consumer Brand Engagement

  • CHO, Byung-Kwan;SHIN, Hyang-Sook
    • The Korean Journal of Franchise Management
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    • v.11 no.2
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    • pp.23-39
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    • 2020
  • Purpose: Social Network Sites(SNS) have been grown up as a public communication channel consumer frequently participate in. Most of food service brands are utilizing social media for advertising recently. As a result of SNS marketing, food service brands anticipate positive outputs from SNS engagement and consumer brand engagement so that we need to verify structural relationship among SNS characteristics, SNS engagement and consumer brand engagement. Research design, data, and methodology: This study identifies that SNS characteristics have effects on SNS engagement and examines relationship between SNS engagement and behavioral engagement. We conceptualize SNS characteristics as information quality, hedonic level and interaction. Furthermore, SNS engagement is composed of SNS participation, positive word of mouth(WOM). In order to verify the purposes of this research, research model and hypotheses were developed. All constructs were measured with multiple items developed and tested in the previous studies. Sample data were collected from 433 online survey panels and analyzed by using SmartPLS 3.2.9. Result: The findings of this research are as follows. First, information quality is positively related with SNS participation. Hedonic level and interaction have impacts on SNS participation and positive WOM respectively. Second, SNS participation has positive effects on positive WOM. Third, both SNS participation and WOM influence behavioral engagement respectively. Conclusions: The implications demonstrate that SNS characteristics such as information quality and hedonic level and interaction exert effects for consumer to participate in SNS brand page. Meanwhile, hedonic level and interaction influence on positive WOM but information quality doesn't. SNS participation and positive WOM affect consumer to engage in specific brand behaviorally as well. Therefore, food service brand marketer is required to manage SNS information quality and hedonic level and interaction among members to encourage SNS participation and positive WOM. As SNS participation and positive WOM increases behavioral engagement of consumer, marketer needs to incentivize SNS participation and look after situation of positive WOM and respond swiftly.

A Study on the Effects of Online Word-of-Mouth on Game Consumers Based on Sentimental Analysis (감성분석 기반의 게임 소비자 온라인 구전효과 연구)

  • Jung, Keun-Woong;Kim, Jong Uk
    • Journal of Digital Convergence
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    • v.16 no.3
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    • pp.145-156
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    • 2018
  • Unlike the past, when distributors distributed games through retail stores, they are now selling digital content, which is based on online distribution channels. This study analyzes the effects of eWOM (electronic Word of Mouth) on sales volume of game sold on Steam, an online digital content distribution channel. Recently, data mining techniques based on Big Data have been studied. In this study, emotion index of eWOM is derived by emotional analysis which is a text mining technique that can analyze the emotion of each review among factors of eWOM. Emotional analysis utilizes Naive Bayes and SVM classifier and calculates the emotion index through the SVM classifier with high accuracy. Regression analysis is performed on the dependent variable, sales variation, using the emotion index, the number of reviews of each game, the size of eWOM, and the user score of each game, which is a rating of eWOM. Regression analysis revealed that the size of the independent variable eWOM and the emotion index of the eWOM were influential on the dependent variable, sales variation. This study suggests the factors of eWOM that affect the sales volume when Korean game companies enter overseas markets based on steam.

Structural Properties of Social Network and Diffusion of Product WOM: A Sociocultural Approach (사회적 네트워크 구조특성과 제품구전의 확산: 사회문화적 접근)

  • Yoon, Sung-Joon;Han, Hee-Eun
    • Journal of Distribution Research
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    • v.16 no.1
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    • pp.141-177
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    • 2011
  • I. Research Objectives: Most of the previous studies on diffusion have concentrated on efficacy of WOM communication with the use of variables at individual level (Iacobucci 1996; Midgley et al. 1992). However, there is a paucity of studies which investigated network's structural properties as antecedents of WOM from the perspective of consumers' sociocultural propensities. Against this research backbone, this study attempted to link the network's structural properties and consumer' WOM behavior on cross-national basis. The major research objective of this study was to examine the relationship between network properties and WOM by comparing Korean and Chinese consumers. Specific objectives of this research are threefold; firstly, it sought to examine whether network properties (i.e., tie strength, centrality, range) affect WOM (WOM intention and quality of WOM). Secondly, it aimed to explore the moderating effects of cutural orientation (uncertainty avoidance and individuality) on the relationship between network properties and WOM. Thirdly, it substantiates the role of innovativeness as antecedents to both network properties and WOM. II. Research Hypotheses: Based on the above research objectives, the study put forth the following research hypotheses to validate. ${\cdot}$ H 1-1 : The Strength of tie between two counterparts within network will positively influence WOM effectivenes ${\cdot}$ H 1-2 : The network centrality will positively influence the WOM effectiveness ${\cdot}$ H 1-3 : The network range will positively influence the WOM effectiveness ${\cdot}$ H 2-1 : The consumer's uncertainty avoidance tendency will moderate the relationship between network properties and WOM effectiveness ${\cdot}$ H 2-2 : The consumer's individualism tendency will moderate the relationship between network properties and WOM effectiveness ${\cdot}$ H 3-1 : The consumer's innovativeness will positively influence the social network properties ${\cdot}$ H 3-2 : The consumer's innovativeness will positively influence WOM effectiveness III. Methodology: Through a pilot study and back-translation, two versions of questionnaire were prepared, one in Korean and the other in Chinese. The chinese data were collected from the chinese students enrolled in language schools in Suwon city in Korea, while Korean data were collected from students taking classes in a major university in Seoul. A total of 277 questionnaire were used for analysis of Korean data and 212 for Chinese data. The reason why Chinese students living in Korea rather than in China were selected was based on two factors: one was to neutralize the differences (ie, retail channel availability) that may arise from living in separate countries and the second was to minimize the difference in communication venues such as internet accessibility and cell phone usability. SPSS 12.0 and AMOS 7.0 were used for analysis. IV. Results: Prior to hypothesis verification, mean differences between the two countries in terms of major constructs were performed with the following result; As for network properties (tie strength, centrality and range), Koreans showed higher scores in all three constructs. For cultural orientation traits, Koreans scored higher only on uncertainty avoidance trait than Chinese. As a result of verifying the first research objective, confirming the relationship between network properties and WOM effectiveness, on Korean side, tie strength(Beta=.116; t=1.785) and centrality (Beta=.499; t=6.776) significantly influenced on WOM intention, and similar finding was obtained for Chinese side, with tie strength (Beta=.246; t=3.544) and centrality (Beta=.247; t=3.538) being significant. However, with regard to WOM argument quality, Korean data yielded only centrality (Beta=.82; t=7.600) having a significant impact on WOM, whereas China showed both tie strength(Beat=.142; t=2.052) and centrality(Beta=.348; t=5.031) being influential. To answer for the second research objective addressing the moderating role of cultural orientation, moderated regression anaylsis was performed and the result showed that uncertainty avoidance moderated between network range and WOM intention for both Korea and China, But for Korea, the uncertainty avoidance moderated between tie strength and WOM quality, while for China it moderated between network range and WOM intention. And innovativeness moderated between tie strength and WOM intention for Korea but it moderated between network range and WOM intention for China. As a result of analysing for third research objective, we found that for Korea, innovativeness positively influenced centrality only (Beta=.546; t=10.808), while for China it influenced both tie strength (Beta=.203; t=2.998) and centrality(Beta=.518; t=8.782). But for both countries alike, the innovativeness influenced positively on WOM (WOM intention and WOM quality). V. Implications: The study yields the two practical implications. Firstly, the result suggests that companies targeting multinational customers need to identify segments which are susceptible to the positive WOM and WOM information based on individual traits such as uncertainty avoidance and individualism and based on that, develop marketing communication strategy. Secondly, the companies need to divide the market on Roger's five innovation stages and based on this information, enforce marketing strategy which utilizes social networking tools such as public media and WOM. For instance, innovator and early adopters, if provided with new product information, will be able to capitalize upon the network advantages and thus add informational value to network operations using SNS or corporate blog.

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Influence of Information Source Characteristics of SNS on eWOM Acceptance of CSR Information and Attitudes to the Company (SNS 정보원 특성이 온라인 CSR 구전수용과 기업태도에 미치는 영향)

  • Song, Hyijae;Lee, Yuri;Kim, Ha Youn
    • Journal of the Korean Society of Clothing and Textiles
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    • v.41 no.5
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    • pp.809-824
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    • 2017
  • Interest in and use of social media as a communication channel are consistently evolving; in addition therefore, corporate social responsibility (CSR) activities have been often conducted on online channels such as social media due to the advantages offered by the rapid spread of information. Consumers can be persuaded differently and their cognition can be influenced depending on who delivers what message. This study examines the influence of information source characteristics on eWOM acceptance of CSR messages and attitudes toward a company. This study compares cases: when a company sends their CSR message versus when an individual (i.e., consumer's acquaintance) sends the company's CSR message. A total of 320 respondents were presented with online stimuli and responded to the questionnaire to identify this phenomenon. Vegan fashion (which refers to products made from raw materials without animal cruelty) was used as stimuli in this study because it is a representative example of CSR activities. As a result, when consumers are exposed to CSR messages online, perceived expertise, trustworthiness and attractiveness of information source affect consumer's electronic word-of-mouth (eWOM) acceptance and attitude toward a company. However, only trustworthiness influences eWOM acceptance in cases of a corporation information source. This study confirms the differences in eWOM acceptance and in attitudes to the company depending on to whom the messages were sent and with what content.

Does Online Social Network Contribute to WOM Effect on Product Sales? (온라인 소셜네트워크의 제품판매 관련 구전효과에 대한 기여도 분석)

  • Lee, Ju-Yoon;Son, In-Soo;Lee, Dong-Won
    • Journal of Intelligence and Information Systems
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    • v.18 no.2
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    • pp.85-105
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    • 2012
  • In recent years, IT advancement has brought out the new Internet communication environment such as online social network services, where people are connected in global network without temporal and spatial limitation. The popular use of online social network helps people share their experience and preference for specific products and services, thus holding large potential to significantly affect firms' business performance through Word-of-Mouth (WOM). This study examines the role of online social network in raising WOM effect on the movie industry by comparing with the similar role of Internet portal, another major online communication channel. Analyzing 109 movies and data from both Twitter and Naver movie, we found that significant WOM effect exists simultaneously in both Twitter and Naver movie. However, we also found that different figures of online viral effects exist depending on the popularity of movies. In the hit movie group, before the movie release, the WOM effect occurs only in Twitter while the WOM effect arises in both Twitter and Naver movie at the same time after the movie release. In the less-popular (or niche) movie group, the WOM effect occurs in both Twitter and Naver movie only before the movie release. Our findings not only deepen theoretical insights into different roles of the two online communication channels in provoking the WOM effect on entertainment products but also provide practitioners with incentive to utilize SNS as strategic marketing platform to enhance their brand reputations.

An Exploratory Study on the Effects of Psychological Distance and Message Type on Word-of-Mouth in Firm's Facebook (회사 페이스북 메시지의 심리적 거리와 메시지 유형이 구전에 미치는 영향에 대한 탐색적 연구)

  • Lee, Seongwon
    • The Journal of Information Systems
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    • v.29 no.2
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    • pp.71-94
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    • 2020
  • Purpose With the development of Social Network Service(SNS) and mobile devices, many companies have been using the Facebook as a Word-of-Mouth(WOM) channel. This study examines the effects of psychological distance and message type on WOM using the Facebook's real messages. And the moderating effect of the message type on the relationship between psychological distance and WOM was also analyzed. Design/methodology/approach A content analysis was used as a research method. A total 7,483 messages were collected from 50 companies' Facebook Fanpage (based on the ranking of socialbakers.com) and content analysis was conducted using human coding. As the influencing variables, the message type and psychological distance and the number of 'Likes', 'Share', and 'Comment' were used as the dependent variable. The R3.4.4 was used to perform descriptive statistics, cross-tab analysis, and analysis of variance(ANOVA). Findings First, a larger proportion of Facebook messages have close psychological distance for all message types(information, advertisement, event, and customer relationship). Second, 'Like' and 'Comment' number were significantly higher in messages of close psychological distance. Third, the effects of psychological distance on 'Like', 'Share', and 'Comment' number were different according to message type. However, 'advertisement' message type had significantly more numbers for all WOMs('Like', 'Share', and 'Comment') in messages with close psychological distance.