• Title/Summary/Keyword: WOM effect

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The Effects of Information Sources on Trust, WOM Intention, and eWOM Intention in the Restaurant Sector (외식기업의 정보원천이 신뢰, 구전의도, 그리고 온라인 구전의도에 미치는 영향)

  • CHAO, Meiyu;YOU, YenYoo;KIM Eun-Jung
    • The Korean Journal of Franchise Management
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    • v.13 no.3
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    • pp.1-15
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    • 2022
  • Purpose: In the restaurant sector, it has been known that consumers' positive perception of brands influences their positive WOM intention, and information sources play an important role in increasing credibility by enhancing consumer awareness and developing differentiated brands. This study examines the effects of information sources (e.g., advertisement, WOM, SNS) on trust (cognitive and affective) and, WOM and eWOM intention in the restaurant context. In the model, cognitive and affective trust play mediating roles in the relationships between information sources (e.g., advertisement, WOM, SNS) WOM and eWOM intention. Research design, data, and methodology: Research models and hypotheses were developed according to the research direction. The survey questionnaire items were developed and used appropriately according to the contents of this paper based on prior studies. All constructs were measured with multiple items developed and validated in prior studies. A total of 502 responses were collected from an online survey. The research model was evaluated using SmartPLS 4.0. Frequency analysis was performed to understand the demographic characteristics of the survey respondents. The reliability, convergent validity, and discriminant validity were assessed using measurement model analysis. The proposed model was verified using the structural equation model. Results: Advertisement, WOM, and SNS information sources all had a positive effect on affective trust, whereas only WOM had a significant effect on cognitive trust. In addition, affective trust had a positive effect on cognitive trust and eWOM intention but did not affect WOM intention. Finally, cognitive trust was found to have a positive effect on both WOM intention and eWOM intention. Conclusions: This study redefines the concept of where restaurant service companies should focus when providing consumers with information about their products and services. As a result, the conceptual framework of positive word of mouth intention to increase new customer visits to the restaurant brand has been expanded. In addition, this study not only presents an information source management strategy for restaurant brands, but also presents practical implications for resource allocation guidelines for customer management in the restaurant sector.

The Effect of Vividness of Preannounced New Product Information on e-WOM in Internet Community and Intention of Internet Posting (프리어나운싱 된 신제품 정보의 생동감이 인터넷커뮤니티 유저의 e-WOM와 인터넷 포스팅의도에 미치는 영향)

  • Song, Yong-Tae
    • The Journal of the Korea Contents Association
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    • v.11 no.2
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    • pp.312-321
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    • 2011
  • Recently, lots of corporations take effect preannouncing activity before launching new product as communication strategy. Preannouncing information of new product is diffused in internet community which relate to the product. This study notes the effect of external vividness and internal vividness among information characteristics of new product to e-WOM(electronic word-of-mouth). The author aims to identify how to trigger intention of e-WOM on preannounced new products, and external vividness and internal vividness of determinants of e-WOM and intention of internet posting. The main findings are that external vividness and internal vividness positively influence e-WOM in internet community, and the e-WOM positively affects intention of internet posting.

The Moderating Effect of Visual Cues in eWOM on the Relationship between Perceived Risk and Purchase Intention (위험지각과 소비자의 구매의도의 관계에 대한 온라인 구전정보의 시각적 단서의 조절효과)

  • Ahn, Sun Young;Hong, JungHwa
    • Journal of Digital Convergence
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    • v.16 no.11
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    • pp.281-288
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    • 2018
  • The current study examined the moderating effect of visual cues in eWOM on the relationship between perceived risk and purchase intention. Specifically, the study tested the different directions of the moderating effect in positive and negative eWOM. Two studies from a 2 (perceived risk: high vs. low) by 2 (visual cue: presence vs. absence) experimental design were used with online subjects. Findings from study 1 (n=123) supported that visual cues in positive eWOM help to reduce the negative effect of perceived risk on purchase intention. However, study 2 (n=122) showed that visual cues in negative eWOM intensify the negative effect of perceived risk on purchase intention. The findings demonstrated that visual cues in eWOM influence consumers' decision under high risk conditions. We discussed findings of this study how visual cues in positive and negative eWOM can be strategically managed for new online sellers.

Simultaneous Effect between eWOM and Revenues: Korea Movie Industry (온라인 구전과 영화 매출 간 상호영향에 관한 연구: 한국 영화 산업을 중심으로)

  • Bae, Jungho;Shim, Bum Jun;Kim, Byung-Do
    • Asia Marketing Journal
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    • v.12 no.2
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    • pp.1-25
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    • 2010
  • Motion pictures are so typical experience goods that consumers tend to look for more credible information. Hence, movie audiences consider movie viewers' reviews more important than the information provided by the film distributor. Recently many portal sites allow consumers to post their reviews and opinions so that other people check the number of consumer reviews and scores before going to the theater. There are a few previous researches studying the electronic word of mouth(eWOM) effect in the movie industry. They found that the volume of eWOM influenced the revenue of the movie significantly but the valence of eWOM did not affect it much (Liu 2006). The goal of our research is also to investigate the eWOM effects in general. But our research is different from the previous studies in several aspects. First, we study the eWOM effect in Korean movie industry. In other words, we would like to check whether we can generalize the results of the previous research across countries. The similar econometric models are applied to Korean movie data that include 746,282 consumer reviews on 439 movies. Our results show that both the valence(RATING) and the volume(LNMSG) of the eWOM influence weekly movie revenues. This result is different from the previous research findings that the volume only influences the revenue. We conjectured that the difference of self construal between Asian and American culture may explain this difference (Kitayama 1991). Asians including Koreans have more interdependent self construal than American, so that they are easily affected by other people's thought and suggestion. Hence, the valence of the eWOM affects Koreans' choice of the movie. Second, we find the critical defect of the previous eWOM models and, hence, attempt to correct it. The previous eWOM model assumes that the volume of eWOM (LNMSG) is an independent variable affecting the movie revenue (LNREV). However, the revenue can influence the volume of the eWOM. We think that treating the volume of eWOM as an independent variable a priori is too restrictive. In order to remedy this problem, we employed a simultaneous equation in which the movie revenue and the volume of the eWOM can affect each other. That is, our eWOM model assumes that the revenue (LNREV) and the volume of eWOM (LNMSG) have endogenous relationship where they influence each other. The results from this simultaneous equation model showed that the movie revenue and the eWOM volume interact each other. The movie revenue influences the eWOM volume for the entire 8 weeks. The reverse effect is more complex. Both the volume and the valence of eWOM affect the revenue in the first week, but only the volume affect the revenue for the rest of the weeks. In the first week, consumers may be curious about the movie and look for various kinds of information they can trust, so that they use the both the quantity and quality of consumer reviews. But from the second week, the quality of the eWOM only affects the movie revenue, implying that the review ratings are more important than the number of reviews. Third, our results show that the ratings by professional critics (CRATING) had negative effect to the weekly movie revenue (LNREV). Professional critics often give low ratings to the blockbuster movies that do not have much cinematic quality. Experienced audiences who watch the movie for fun do not trust the professionals' ratings and, hence, tend to go for the low-rated movies by them. In summary, applied to the Korean movie ratings data and employing a simultaneous model, our results are different from the previous eWOM studies: 1) Koreans (or Asians) care about the others' evaluation quality more than quantity, 2) The volume of eWOM is not the cause but the result of the revenue, 3) Professional reviews can give the negative effect to the movie revenue.

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A Study on Fashion Brand Online Impression Formation and its WOM Effect According to Online Review Types of Supporters (서포터즈의 온라인 리뷰 유형에 따른 패션 브랜드의 온라인 인상형성과 구전효과에 대한 연구)

  • Chae, Heeju;Park, Suhyun;Ko, Eunju
    • Fashion & Textile Research Journal
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    • v.18 no.1
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    • pp.15-26
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    • 2016
  • Many brands are attempting to use consumers as a part of their marketing strategies, due to the fashion industry's sensitive response to consumers' reaction. In addition, due to the popularity of e-WOM(electronic Word-Of-Mouth), fashion brands are highly sensitive to their supporters' online reviews. Amid this background, the main objectives of this study are as follows: 1) to analyze the effect of online reviews' attributes and valences on forming an impression about a fashion brand; 2) to examine the online re-WOM(word-of-mouth) effect of online reviews by fashion brand supporters on brand attitude; and 3) to measure the moderating effect of fashion involvement in online re-WOM intention. In order to verify the research model and to test the proposed hypotheses, a 2 (utilitarian vs. hedonic review attributes) by 2 (positive vs. negative review valences) model is constructed and gathers 215 respondents. The results demonstrate that consumers form the highest reliable impression based on utilitarian and negative online reviews. However, there is no relationship between the types of online reviews and the formation of a favorable impression. Findings also reveal that the impression formed by online reviews has a positive effect on re-WOM intention, contributing to brand attitude. In addition, the hypothesis about the moderating effect produced by fashion involvement on re-WOM is supported. In conclusion, these results suggest that online reviews by fashion brand supporters have a powerful effect on forming a consumer's impression towards a fashion brand, affecting re-WOM intention and brand attitude.

The effects of eWOM Characteristics on Credibility, eWOM Acceptance and Purchase Intentions (온라인 구전 특성이 신뢰, 구전수용 및 구매의도에 미치는 영향)

  • Lee, Sang-Hyun;Jeong, Yong-Gil
    • The Journal of the Korea Contents Association
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    • v.16 no.9
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    • pp.545-559
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    • 2016
  • Recently consumers to access various Word-Of-Mouth information on online. And eWOM (eWOM : electronic Word-Of-Mouth) information had an important effect on consumer attitude(purchase intention). The purpose of this study is to investigate what the general characteristics of eWOM and the effects of how these factors will affect credibility, eWOM acceptance and purchase intention. In this study, the model contains information characteristics variables(consensus, newness), community characteristics(tie strength, interaction) on eWOM characteristics. This study makes contributions as follows. First, information consensus had not effect on credibility. Second, information newness and community characteristics(tie strength, interaction) had a significant on credibility. Third, credibility is the important factor on eWOM acceptance. Lastly, eWOM acceptance had a considerable influence on purchase intentions.

A Study on the Factors Affecting Electronic Word-of-Mouth in the Context of Social Media Environment (소셜미디어 환경에서 온라인구전(eWOM)에 영향을 미치는 요인 연구)

  • Noh, Seung Ui;Lee, Ji Eun;Son, Jung Eun;Kim, Hee-Woong
    • Knowledge Management Research
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    • v.14 no.1
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    • pp.1-19
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    • 2013
  • Consumers have collected information and sought advices from other consumer through Internet. They could collect information in virtual space (online) not real world, that is Electronic Word of Mouth (eWOM). This study focused on research the factors on effect in Electronic Word-of-Mouth (eWOM) in the open market which is mediate between individuals and online stores. This is an exploratory study for research on finding factors of effect in eWOM. First of all, 5factors are selected from interview with 31 consumers. Then online surveys are conducted and 5 factors are significantly supported. This study is academically new approach on an exploratory study and it could suggest marketers to strategically manage eWOM.

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The Effect E-Wom Website Attractiveness E-Trust and Innovation on Purchase Decision Online Sales

  • SOLIKHAH, Efa Wakhidatus;FATMAWATI, Indah;WIDOWATI, Retno;SUYANTO, M
    • Journal of Distribution Science
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    • v.20 no.11
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    • pp.61-69
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    • 2022
  • Purpose: Technological developments make the business competition even tighter. Digitalization makes it easier for business people in their efforts to encourage the formation of consumer buying behavior because of the availability of effective and efficient means of delivering information to be used to make purchasing decisions. The purpose of this study was to determine the effect of E-Wom and Website Attractiveness on E-Trust and Purchase Decision of online sales on Instagram with innovation acting as a moderating variable. Research design, data and methodology: This research sample is 170 Instagram users who have made online purchases from the local fashion brand. This research is quantitative explanative with data collection using questionnaires and analysis techniques using the Structural Equation Modeling (SEM) approach using AMOS. Results: The results showed that E-wom had a significant positive effect on Purchase decisions. Web Attractiveness has no significant effect on Purchase Decision. Ewom has a significant positive effect on E-trust. Web Attractiveness has a significant positive effect on E-trust. E-Trust has no significant effect on purchase decisions. Conclusions: Innovation can moderate the effect of E-trust on Purchase decisions. Purchase Decisions can be influenced by E-wom and E-trust, but not Web Attractiveness.

An Empirical Study on WOM Effects in On-line : A Comparative Study on Market Maven and Early Adopter (온라인 구전정보효과에 관한 연구 : Market Maven과 Early Adopter의 비교연구)

  • Lee, Eun-Jae;Shim, Wan-Seop
    • International Commerce and Information Review
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    • v.10 no.4
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    • pp.63-79
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    • 2008
  • Present paper aims to examine the effect relation among component factors of WOM effects in on-line. Specially, to examine the comparative study on market maven and early adopter. For that purpose, we categorize WOM effect into two subcategories; knowledge improvement, Image improvement, purchase intention. And as the of study, chose student a college. Through these methods, we were able to obtain participation of 96 people from student a college. Using 68 responses(19 responses removed). we derived statistics by means of Win SPSS Version 12.0 statistics program package. The result can be summarized as follow; First, market maven has stronger WOM Effects in On-line on consumer's knowledge improvement, and Image improvement, purchase intention than early adopter. Second, the market maven has stronger effect on early adopter. Finally, we discuss the results of analysis and suggest research limitation and future and future study.

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A Study on the Effects of Word-of-Mouth's Marketing Factors and Medical-Care Service Purchase (의료서비스 구매시 구전마케팅 영향요인에 관한 연구)

  • Ho, Choi
    • Korea Journal of Hospital Management
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    • v.15 no.4
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    • pp.143-164
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    • 2010
  • Although word-of-mouth (WOM) has been regarded as one of the very important topics in consumer research, its effects on other aspects of consumer behavior have been scarcely investigated in the context of health-care service industry. The WOM literature also suggests that it is essential for medical care service organizations in fierce competition to adopt WOM communication as a competitive weapon so as to be able to stay ahead of competition. The goal of this research was set to empirically study various relationships between antecedent variables, WOM acceptance, and purchase of medical care services. Specifically, drawing on the WOM literature, eight antecedents to WOM acceptance were selected first. Based on the relevant literature, seven sets of hypotheses on the relationships among antecedents to WOM, WOM acceptance, purchase intention and purchase of medical services were developed. Data were collected via an on-line survey. A total of 571 out of 600 responses turned out to be usable. The major findings of this study can be summarized as follows: First, 6 out of 8 antecedent variables to WOM acceptance were found to be positively affect WOM acceptance. However, the effects of (1) "newness of technology" pertaining to medical care service characteristics and (2) "involvement in health", one of receiver characteristics, were found to be insignificant. Second, most moderating effects on the relationship between purchase and purchase intention of medical care services were found to be insignificant with one exception. That is, elapse of time was found to be a marginally significant moderator on the relationship between purchase and purchase intention of medical care services. Third, it was found that the higher the WOM acceptance, the higher the purchase intention of medical care services. Finally, the effect of WOM acceptance was found to be particularly strong when WOM contents were perceived as useful and positive. Overall, it seems essential for hospitals to actively adopt WOM communication as a competitive marketing tool if they plan to improve their business performance. In this respect, the current study may serve to improve the business performance of hospitals by way of providing theoretical and empirical evidence on the effects of WOM communication variables on WOM acceptance and medical care service purchase.

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