• Title/Summary/Keyword: WOM effect

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SNS Effect of the negative event on the Firm Performance: Comparison between Pre and Post SNS media appearance

  • Kim, Sang Yong;Lee, Da Eun
    • Asia Marketing Journal
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    • v.16 no.1
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    • pp.21-33
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    • 2014
  • When the negative event is published, the company tends to go through the negative impact on the firm performance. Especially, with the SNS, the negative event is instantly spread on indefinite region so the impact seems bigger than the period before the SNS media appearance. It seems that everyone considers the SNS media impact on the firm performance quite big. However, there has been no empirical study on the impact comparison on the firm performance between pre and post SNS media occurrence periods. This study tries to empirically compare the impact of the negative event on the firm performance between pre and post SNS media appearance. Our study starts fromthe basic but not verified question; Does really the negative event have more negative impact in the post-SNS-occurrence period than in the pre-SNS-occurrence period? In order to examine the impact of the negative publicity on firm performance in two eras, pre and post SNS media appearance, we used CAR (Cumulative Abnormal Resturns) model. By using this model, we could verify the statistical significance of cumulative abnormal returns in market between before and after the events. For event samples, we focused on food manufacturers and collected the negative events from 1991 to 2003 for pre-SNS occurrence period, and from 2010 to 2013 for post-SNS occurrence period. Based on the listed food companies at KOSPI, we researched Naver News Library (newslibrary.naver.com) and Naver News (news.naver.com) for all the individual negative events published for both periods. Firm returns data were collected from TS 2000 (KOCO Info) and market portfolio data were collected from KRX Exchange. Through our empirical analysis, our finding is interesting to note that the type of events differently influences on the firm performance. With the SNS, the health-related events have influence on the firm performance 'after the event day' whereas the company behavior trust events have influence 'before the event day'. Our findings have implications for management. When a negative event directly related to or threatening customers or their life such as health, it is crucial to fix up the situation right after the event occurs. On the other hand, when a negative event is not publicly available information such as company behavior trust, it is important for marketers to strengthen the firms' trust reputation and control the bad WOM before the event.

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A Study on the Practical Use of UCC Tourism Information (UCC 관광정보의 활용방안 연구)

  • Yang, Sung-Soo;Choi, Byoung-Kil;Hong, Sung-Hwa;Jo, Sung-Jin
    • The Journal of the Korea Contents Association
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    • v.9 no.11
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    • pp.416-423
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    • 2009
  • From marketing perspectives, WOM(Word-of-Mouth) is one of the communication methods for travelers. It can be an instrument of the effect on tourist decision. The growing predominance of internet use has further highlighted the need for understanding of UCC(User-created contents) tourism information such as travel experience and travel recommendation. This paper was to examine usage patterns of UCC tourism information using experimental design and contents analysis. The result indicated that there were qualities of UCC tourism information. That is useful implication to tourism information-related marketers in destination marketing.

Identifying the Dynamic Structure of Mobile Banking Market: The System Dynamics Perspective (모바일 뱅킹 시장의 동태적 구조 분석: 시스템 다이내믹스 관점)

  • Kim, Hyo-Gun;Yun, Sun-Hee;Suh, Hyun-Ju
    • The Journal of Information Systems
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    • v.15 no.4
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    • pp.99-124
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    • 2006
  • The development of IT has made it possible to use various terminal systems for financial transaction and demands for financial survices are getting more and more diversified at the same time. Among others, mobile banking service market based on IC chips has been expanded its service areas and the number of mobile banking users has been increased. The study analyzes and tests the dynamic effects of the inflow of potential customers on mobile banking market condition by using system dynamics methodology to identify the dynamic structure of mobile banking market. The simulation model is designed to track the variation in the number of subscribers of mobile banking servides according to two scenarios, and the results are as follows; First the effect of word of mouth by customers who have used the service already is significant. The satisfactory level of early adopters is reflected in WOM, and as a test result shows, increase in word-of-mouth causes the growth of potential customers' demands for mobile banking service. Second, perceived attractiveness of mobile banking service market is another important construct. Factors such as convenience, mobility, time saving, security, and various services explain the construct perceived attractiveness of the service, and it makes the potential customers adopt the service, causing the increase of demands.

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The Effects of SNS Storytelling Composition Factors on Para-social Interaction, Attitude and WOM Intention: A Case Study of Beauty YouTube (SNS 스토리텔링 구성 요인이 준사회적상호작용과 태도와 구전의도에 미치는 영향: 뷰티 유튜브 사례를 중심으로)

  • Bae, Eun-Ji;Jeon, Min-hee;Shin, Il-Gi
    • The Journal of the Korea Contents Association
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    • v.20 no.1
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    • pp.16-24
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    • 2020
  • The study empirically explored factors influencing How storytelling factors in social networking services, SNS, affect consumer response on the uses and gratification theory. conducted an analysis of 120 university students attending universities in the Seoul metropolitan area using an experiment. The results of this study are as follows: first, The storytelling factors, relevance and veracity have a positive effect on clarity. second, it has been shown that only veracity has a positive effect on parai-social interaction with media figures with emotional attachment. third, para-social interactions have been shown to influence content attitudes and orality sequentially. This study deals with the effect of SNS storytelling on the consumer's part, providing practical implications for enhancing content attitudes and word-of-mouth, by increasing para-social interactions with consumers while identifying the components that should enhance the way SNS is delivered in terms of storytelling.

Effect That Type Gets in Consumer Communication : Product Participation Level and Internet Word-of-mouth -Laying stress on purchase review of product and Internet shopping mall by FCB Model- (제품 관여수준과 인터넷 구전메시지 유형이 소비자 커뮤니케이션에 미치는 영향 -FCB 모델에 따른 제품과 인터넷 쇼핑몰의 구매 댓글을 중심으로-)

  • Chin, Hong-Kun;Lee, Eun-Joo
    • Management & Information Systems Review
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    • v.22
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    • pp.85-115
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    • 2007
  • Following is discovered in this study by some. First, attribute(product/non- product) of that truth that get through experiment of this study is WOM deduced result that have statistical meaning in dependent variable which is public trust only in this study. Specially, information by word of mouth type received High positive response more with non-product information by word of mouth attribute than the product attribute in all experiment products that is parted according to involvement. Consumer's response by involvement level of product can affect for site attitude, public trust, and intention to purchase by second. For example, consumer's site attitude has induced the most positive response, and can confirm positive response of High consumer most in that involvement sensitivity product in that participation reason type product and could confirm response that is the most positive in that involvement reason product even if there is for intention to purchase. Result of this study is grasped that have High mean value relatively in site attitude, product attitude, information by word of mouth effect, public trust, brand attitude, purchase intention etc. generally that product involvement and information by word of mouth attribute are interrelation by third. This can change fairly data processing process according to consumer's Involvement Level, behavior deterministic process, consumer's action with attitude formation process, and involvement for products. High occasion than is low incline more efforts in information retrieval and is discreet result such as study finding of produce.

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Effects of Online Information Characteristics of Food Service Franchise on Enjoyment, Anxiety, and Visit Intention (외식프랜차이즈 기업의 온라인 정보특성이 즐거움, 불안, 방문의도에 미치는 영향)

  • Kang, Byoung-Seoung;Woo, Sung-Keun;Lee, Shin-Hwa
    • The Korean Journal of Franchise Management
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    • v.10 no.1
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    • pp.7-17
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    • 2019
  • Purpose - Generally, the consumer's decision-making process for restaurant selection is simple and familiar. However, online information becomes important because the decision-making process of consumers becomes complicated in new restaurants and special situations. Because consumers can search for information online, information retrieval is now possible in selecting new restaurants. In particular, consumers often make decisions based on online information when making restaurant reservations. Research design, data, and methodology - All items were measured based on previous studies. The data were collected from customers who had visited the store by visiting the web page of the food service franchise within the last 3 months for the panel of the online survey institute. The questionnaires were surveyed from July 2 to July 11, 2018 for about 10 days. A mail and a message were sent to 2,000 people, and 310 people were asked to complete the questionnaire. Total of 303 data were used in the questionnaire, excluding 7 insufficient data. Results - The findings of this study are as follows: Consensus, vividness, and neutrality have positive effects on enjoyment. Consensus have positive effect on anxiety, but vividness and neutrality did not have significant effect on anxiety. Also, enjoyment has a positive influence on intention to visit, and anxiety has a negative influence on visit intention. Conclusions - First, franchise companies online advertising in a variety of ways, but they are mixed with other customers' WOM and offered to consumers. In this case, the information provided by the company may be distorted. Therefore, a restaurant franchise company needs to operate an official online channel to provide accurate information to its customers. Second, it is necessary to make contents so that other customers can participate in online channels of food service franchise companies. Third, food service franchise company should produce enough online contents to experience indirectly even if the customer does not visit the store directly. Fourth, food service franchise company needs to prepare a way for many customers to participate in many official contents.

Exploring the Role of Preference Heterogeneity and Causal Attribution in Online Ratings Dynamics

  • Chu, Wujin;Roh, Minjung
    • Asia Marketing Journal
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    • v.15 no.4
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    • pp.61-101
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    • 2014
  • This study investigates when and how disagreements in online customer ratings prompt more favorable product evaluations. Among the three metrics of volume, valence, and variance that feature in the research on online customer ratings, volume and valence have exhibited consistently positive patterns in their effects on product sales or evaluations (e.g., Dellarocas, Zhang, and Awad 2007; Liu 2006). Ratings variance, or the degree of disagreement among reviewers, however, has shown rather mixed results, with some studies reporting positive effects on product sales (e.g., Clement, Proppe, and Rott 2007) while others finding negative effects on product evaluations (e.g., Zhu and Zhang 2010). This study aims to resolve these contradictory findings by introducing preference heterogeneity as a possible moderator and causal attribution as a mediator to account for the moderating effect. The main proposition of this study is that when preference heterogeneity is perceived as high, a disagreement in ratings is attributed more to reviewers' different preferences than to unreliable product quality, which in turn prompts better quality evaluations of a product. Because disagreements mostly result from differences in reviewers' tastes or the low reliability of a product's quality (Mizerski 1982; Sen and Lerman 2007), a greater level of attribution to reviewer tastes can mitigate the negative effect of disagreement on product evaluations. Specifically, if consumers infer that reviewers' heterogeneous preferences result in subjectively different experiences and thereby highly diverse ratings, they would not disregard the overall quality of a product. However, if consumers infer that reviewers' preferences are quite homogeneous and thus the low reliability of the product quality contributes to such disagreements, they would discount the overall product quality. Therefore, consumers would respond more favorably to disagreements in ratings when preference heterogeneity is perceived as high rather than low. This study furthermore extends this prediction to the various levels of average ratings. The heuristicsystematic processing model so far indicates that the engagement in effortful systematic processing occurs only when sufficient motivation is present (Hann et al. 2007; Maheswaran and Chaiken 1991; Martin and Davies 1998). One of the key factors affecting this motivation is the aspiration level of the decision maker. Only under conditions that meet or exceed his aspiration level does he tend to engage in systematic processing (Patzelt and Shepherd 2008; Stephanous and Sage 1987). Therefore, systematic causal attribution processing regarding ratings variance is likely more activated when the average rating is high enough to meet the aspiration level than when it is too low to meet it. Considering that the interaction between ratings variance and preference heterogeneity occurs through the mediation of causal attribution, this greater activation of causal attribution in high versus low average ratings would lead to more pronounced interaction between ratings variance and preference heterogeneity in high versus low average ratings. Overall, this study proposes that the interaction between ratings variance and preference heterogeneity is more pronounced when the average rating is high as compared to when it is low. Two laboratory studies lend support to these predictions. Study 1 reveals that participants exposed to a high-preference heterogeneity book title (i.e., a novel) attributed disagreement in ratings more to reviewers' tastes, and thereby more favorably evaluated books with such ratings, compared to those exposed to a low-preference heterogeneity title (i.e., an English listening practice book). Study 2 then extended these findings to the various levels of average ratings and found that this greater preference for disagreement options under high preference heterogeneity is more pronounced when the average rating is high compared to when it is low. This study makes an important theoretical contribution to the online customer ratings literature by showing that preference heterogeneity serves as a key moderator of the effect of ratings variance on product evaluations and that causal attribution acts as a mediator of this moderation effect. A more comprehensive picture of the interplay among ratings variance, preference heterogeneity, and average ratings is also provided by revealing that the interaction between ratings variance and preference heterogeneity varies as a function of the average rating. In addition, this work provides some significant managerial implications for marketers in terms of how they manage word of mouth. Because a lack of consensus creates some uncertainty and anxiety over the given information, consumers experience a psychological burden regarding their choice of a product when ratings show disagreement. The results of this study offer a way to address this problem. By explicitly clarifying that there are many more differences in tastes among reviewers than expected, marketers can allow consumers to speculate that differing tastes of reviewers rather than an uncertain or poor product quality contribute to such conflicts in ratings. Thus, when fierce disagreements are observed in the WOM arena, marketers are advised to communicate to consumers that diverse, rather than uniform, tastes govern reviews and evaluations of products.

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Dynamic Interactive Relationships among Advertising Cost and Customer Types of Social Network Game (소셜네트워크게임에서 광고비와 고객 유형 변수간 동적 상호관계)

  • Lee, Hee-Tae
    • Journal of Distribution Science
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    • v.14 no.4
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    • pp.47-53
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    • 2016
  • Purpose - The objective of this study is to investigate the dynamic relationships among Advertising Cost (AD), Newly Registered Users(NRU), and Buying Users(BU) of Social Network Game(SNG). SNG is getting pervasive mainly due to the rapid growth of mobile game and Social Network Service(SNS). It would be helpful for marketing researchers interested in SNG and related practitioners to understand the changes in AD, NRU, and BU with time as well as the effects on one another in mutual and dynamic way. Research Design, Data, and Methodology - Necessary data were collected from Social Network Game(SNG) company. AD, NRU, and BU are endogenous variables, but new event such as launching (event) and holidays(holiday) are exogenous dummy variables. Vector Auto regression (VAR) model is generally used to examine and capture the dynamic relationships among endogenous variables. VAR model can easily capture dynamic and endogenous relationships among time-series variables. Vector Auto regression with Exogenous variables(VARX) is a model in which exogenous variables are added to VAR. To investigate this study, VARX is applied. Result - By estimating the VARX model, the author finds that the past periods' NRU affect negatively and significantly the present AD, and past periods' BU have a positive and significant impact on the increase of AD. In addition, the author shows that the past periods' AD and BU have a positive and significant effect on the increase of NRU, and the past periods' AD affect positively and significantly BU. While the impact of AD on NRU happens after 3 or 4 days (carryover effect), that of AD on BU comes about within just 1 or 2 days (immediate effect). The effect of BU on NRU can be considered as word of mouth (WOM effect). Therefore, SNG companies can obtain not only the growth of revenue but also the increase of NRU by increasing BU. Through those results, the author can also find that there are significant interactions between endogenous variables. Conclusion - This study intends to investigate endogenous and dynamic relationships between AD, NRU, and BU. They also give managerial implications to practitioners for SNS and SNG firms. Through this study, it is found that there exist significant interactions and dynamic relationships between those three endogenous variables. The results of this study can have meaningful implications for practitioners and researchers of SNG. This research is unique in that it deals with "actual" field data and intend to find "actual" relationships among variables unlike other related existing studies which intend to investigate psychological factors affecting the intention of game usage and the intention of purchasing game items. This study is also meaningful by showing that the increase of BU can be a good strategy for "killing birds with one stone" (i.e., revenue growth and NRU increase). Although there are some limitations related with future research topics, this research contributes to the current research on SNG marketing in the above mentioned ways.

Study on Influence and Diffusion of Word-of-Mouth in Online Fashion Community Network (온라인 패션커뮤니티 네트워크에서의 구전 영향력과 확산력에 관한 연구)

  • Song, Kieun;Lee, Duk Hee
    • Journal of the Korean Society of Costume
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    • v.65 no.6
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    • pp.25-35
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    • 2015
  • The purpose of this study is to investigate the characteristics of members and communities that have significant influence in the online fashion community through their word-of-mouth activities. In order to identify the influence and the diffusion of word-of-mouth in fashion community, the study selected one online fashion community. Then, the study sorted the online posts and comments made on fashion information and put them into the matrix form to perform social network analysis. The result of the analysis is as follows: First, the fashion community network used in the study has many active members that relay information very quickly. Average time for information diffusion is very short, taking only one or two days in most cases. Second, the influence of word-of-mouth is led by key information produced from only a few members. The number of influential members account for less than 20% of the total number of community members, which indicate high level of degree centrality. The diffusion of word-of-mouth is led by even fewer members, which represent high level of betweenness centrality, compared to the case of degree centrality. Third, component characteristic shares similar information with about 70% of all members being linked to maximize information influence and diffusion. Fourth, a node with high degree centrality and betweenness centrality shares similar interests, presenting strain effect to particular information. Specially, members with high betweenness centrality show similar interests with members of high degree centrality. The members with high betweenness centrality also help expansion of related information by actively commenting on posts. The result of this research emphasizes the necessity of creation and management of network to efficiently convey fashion information by identifying key members with high level of information influence and diffusion to enhance the outcome of online word-of-mouth.

A Survey on Ancient Literature Records on Woohwangchungsim-won and its potential clincial application (우황청심원의 고문헌기록 및 실험적 연구결과 분석을 통한 임상응용 확대의 필요성 고찰)

  • Oh, Young-Taeck;Oh, Hyeon-Muk;Kim, Seo-Woo;Kim, Won-Yong;Son, Chang-Gue;Cho, Jung-Hyo
    • Journal of Haehwa Medicine
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    • v.26 no.1
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    • pp.1-10
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    • 2017
  • Objectives: The aim of this study is (1) to investigate the historic changes and pharmacological efficacies of Woohwangchungsim-won and (2) to discuss the necessities for Woohwangchungsim-won's clinical applications. Methods: This study was performed through (1) investigating the ancient literature records related with Woohwangchungsim-won and analyzing Woohwangchungsim-won's composition, dosage and indications, (2) searching articles about Woohwangchungsim-won on 10 major Korean web and 3 major foreign web article search engines and analyzing Woohwangchungsim-won's pharmacological efficacies and indications. Results: Woohwangchungsim-wom has been used for cerebrovascular diseases such as stroke and palpitation. Also, there are some ancient literature records of Woohwangchungsim-won's clinical applications in neuropsychiatric disorders such as depression and bipolar disorder. In addition, there have been a number of experimental studies which demonstrate Woohwangchungsim-won's neuroprotective effect on cerebral cortex and hippocampus injury. So, it is possible to infer that Woohwangchungsim-won can be used for the treatments of neuropsychiatric disorders associated with neuronal cell death in cerebral cortex and hippocampus. But there have been no or less experimental studies which demonstrate the pharmacological efficacy of Woohwangchungsim-won on such disease. Conclusion: It is necessary that further experimental studies which demonstrate Woohwangchungsim-won's pharmacological efficacy on neuropsychiatric disorders should be done and Woohwangchungsim-won's clinical applications should be expanded on the basis of those related experimental results.

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