• Title/Summary/Keyword: WOM effect

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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 Effect of SNS Advertisement Characteristics on Advertisement Attitude and WOM through Users' Psychological Factors (SNS 광고특성이 이용자의 심리적 요인을 통해 광고태도 및 구전의도에 미치는 영향)

  • Yoon, Jae-Hyun;Kim, Han-Ku
    • The Journal of Information Systems
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    • v.27 no.2
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    • pp.29-52
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    • 2018
  • Purpose As the number of SNS users increases, the importance of SNS advertisement is also increasing. Thus, the purpose of this study is to analyze the effect of factors on effectiveness of SNS advertising, and expand research on users' attitude and behavior intention toward SNS advertising. Design/methodology/approach This study was designed to examine the structural relationships among SNS service attribute, users' cognitive characters, psychological factors, users' attitude and behavior intention toward SNS advertising. Concretely, SNS service attribute was presented as online interactivity, and users' cognitive characters were presented as perceived relevance and perceived intrusiveness. In addition, psychological factors were presented as presence experience and message credibility, users' attitude toward SNS advertising was presented as advertisement attitude and users' behavior intention was presented as WOM. Findings The results showed that online interactivity has a positive effect on presence experience and message credibility, but perceived intrusiveness has a negative effect on presence experience and message credibility. Perceived relevance has a positive effect on presence experience, but does not have significant effect on message credibility. Presence experience and message credibility have positive effects on advertisement attitude and WOM, and advertisement attitude also has a positive effect on WOM. Based on the results from this study, academic and practical implications can be drawn. First, the study extended the scope of research about SNS advertising through focusing on SNS service attribute and SNS users' cognitive characters and identified the relationship between presence experience, message credibility, advertisement attitude and WOM. Second, the results of this research can provide practical guidelines to develop effective advertising strategies for companies which promoting SNS as a marketing tool.

A causal model of the influence of the constituents of Facebook advertisement on the WOM intension: Ad fitness mediation effect (페이스북 광고의 구성요인이 구전의도에 미치는 인과모형: 광고 적절성인식 매개효과)

  • Yu, Seung-Yeob
    • Journal of Digital Convergence
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    • v.17 no.2
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    • pp.81-89
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    • 2019
  • The purpose of this paper was to investigated the effect of the constituents of Facebook advertisement on ad fitness recognition and WOM intension. In addition, we confirmed the mediating effect of ad fitness recognition. For this purpose, data were collected for Facebook 371 users. The research method used factor analysis and covariance structure analysis. The results of this study were as follows: First, the advertising interest characteristics of Facebook ads had a significant effect on ad fitness and word-of-mouth intension. Second, personalized fit informational attributes of Facebook ads had a significant effect on ad fitness and WOM intension. Third, the perceived responsiveness had a significant effect on perceived fitness of advertisement and WOM intention. Fourth, perceived fitness recognition of Facebook advertisement had a significant effect on WOM intension. The results of this study provide consumers with information on what to consider when creating an identity advertisement and effective advertisement as Facebook advertisement.

The Influence of Cultural Orientation on Electronic Word-of-Mouth in Online Communities (온라인커뮤니티에서 문화적 성향이 구전에 미치는 영향)

  • Park, Seongho;Kim, Pansoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.41 no.4
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    • pp.228-237
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    • 2018
  • The importance of eWOM (electronic word-of-mouth) communication through online communities is increasing on a daily basis. This study analyzed how the relationship between eWOM (electronic Word-Of-Mouth) factor and eWOM communication depends on the cultural orientation of users in the online community. The research model was developed based on four cultural orientations of individual affect Social tie and usefulness. The model consists of variables such as social tie and perceived usefulness as predecessors of eWOM, four dimensions of cultural orientation (Horizontal Individualism, Horizontal Collectivism, Vertical Individualism, Vertical Collectivism), and eWOM. The model was tested empirically using the PLS (partial least squares) structure equation model. Survey was conducted for online community users in South Korea. Data was statistically validated whether fits on research model. The study results reveal that Social Tie have a positive effect on Perceived Usefulness. Social Tie and Perceived Usefulness have a positive effect on eWOM. 3 of cultural orientations (HC, VI, VC) have a positive effect on Social Tie. Only one of cultural orientations (HC) have an negative effect on Perceived Usefulness. Especially, horizontal collectivism (HC) shows strong correlation with perceived usefulness, whereas vertical collectivism (VC) shows weak correlation with perceived usefulness andvertical individualism (VI) shows strongly correlation with social tie, whereas horizontal individualism (HI) shows weak correlation with social tie. Based on the study results, customized service strategy could be formulated according to the different vertical styles and various eWOM factors.

A Study on the Impacts of WOM Information Characteristics on WOM Effect (온라인 구전정보의 특성이 구전효과에 미치는 영향에 관한 연구)

  • Choi, Young Min;Bae, Sang-Wook
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.17 no.2
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    • pp.307-314
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    • 2016
  • This study empirically validate the impacts of WOM information characteristics on the WOM effect in accordance with SNS media due to the increased the WOM role under SNS. The key results showed that the more vivid, negative, and objective WOM information was, the more positive impacts on the intention to adopt information. In addition, the intention to adopt information had a positive impact on the re-WOM intention. Second, there was no significant difference between Facebook and Blog groups regarding the impacts of the WOM information characteristics on the WOM effect. This can be inferred from the fact that consumers recognize all SNS media as a single online medium regardless of their characteristics in the process of accepting and spreading information. Based on these results, this research drew the following implications. It conceptualized the information characteristics factors that influence the online information acceptance process and the relationship with WOM effects by focusing on SNS and high-tech products that are rapidly emerging. This study is also significant because it attempted to expand the characteristics of WOM information and WOM effects to Facebook and blogs, which are SNS media, and proposed a future research direction.

Determinants of Credibility of Electronic Word-of-Mouth (eWOM) in WeChat-based Social Commerce: Applying the Heuristic-Systematic Model (중국의 웨이신(WeChat) 기반 소셜커머스에서 온라인 구전 신뢰성의 결정요인: 휴리스틱-체계적 모델(HSM)의 적용)

  • Qu, Min;Choi, Su-Jeong
    • The Journal of Information Systems
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    • v.26 no.4
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    • pp.107-135
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    • 2017
  • Purpose Along with the growth of smart phones and social networking service (SNS), social commerce continues to expand. Although online reviews have become an important source of the information that consumers use to make purchasing decisions, theoretical development and empirical testing in this area are still limited. Thus, there is a need to develop further understanding about the influence of electronic word-of-mouth (eWOM). Drawing upon the heuristic - systematic model (HSM) which is one of the dual-process theories, this study develops a research model that explains key factors influencing consumers' eWOM credibility. Furthermore, this study verifies that consumer's eWOM credibility is a key determinant of eWOM and purchase intentions. Design/methodology/approach The proposed model is empirically tested with 493 users who have experience in WeChat-based social commerce. The structural equation model (SEM) analysis is used to evaluate the research model and hypotheses. Findings The major findings are as follows. First, argument quality of eWOM (a systematic factor) has a positive effect on eWOM credibility. Second, source credibility and recommendation consistency of eWOM (heuristic factors) are positively associated with eWOM credibility. Finally, purchase and eWOM intentions greatly depend on eWOM credibility. These results confirm the effectiveness of HSM in explaining eWOM mechanisms in SNS-based social commerce. The details of findings and implications are presented.

The Moderating Effect of Characteristics of Message and SNS on the Relationship between the Direction of WOM and Consumer Attitude (구전정보방향성과 소비자태도와의 관계에 대한 메시지특성과 SNS특성의 조절효과)

  • Kim, Sung-Soo;Ahn, Tony Donghui
    • Journal of Digital Convergence
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    • v.14 no.6
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    • pp.177-186
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    • 2016
  • This study aims to explore the effect of characteristics of eWOM(Word-of-mouth) on consumer attitude in SNS(Social Network Service). The characteristics of WOM were classified into characteristics of message (polarity, verifiability, consensus) and characteristics of SNS (social presence, interaction). Data of 554 samples were collected from the university students of SNS users. The key results showed that the polarity of the WOM has a strong positive effect on consumer's attitude, and the degree of verifiability and consensus has a moderating effect on the polarity-attitude relationship. On the contrary, characteristics of SNS such as social presence and interaction have a direct effect on consumer attitude and have no significant moderating effect on the polarity-attitude relationship. This study provides an academic enhancement in the research of the relationship between the characteristics of WOM and consumer's attitude in the SNS environment. Practical implications are also drawn from these findings.

Investigating the Role of Memorable Tourism Experience towards Revisit Intention and Electronic Word of Mouth: A Study on Beach Tourists

  • Van Vien VU;Van Hao HOANG;Lan Huong VU
    • Journal of Distribution Science
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    • v.22 no.2
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    • pp.83-93
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    • 2024
  • Purpose: Although many studies have addressed destination marketing concepts, the relationship between beach tourists' memorable tourism experience (MTE), revisit intention and electronic word of mouth (eWOM) remains unknown. To address this issue, the authors established a model to investigate the effects of MTE's dimensions on revisit intention and eWOM. Research design, data and methodology: Drawing on 581 questionnaires from domestic beach tourists in Vietnam, a quantitative study approach was administered to empirically analyze a partial least squares path model in PLS-SEM. Results: The findings revealed that four dimensions of MTE including hedonism, local culture, meaningfulness and involvement have positive influence on beach tourists' revisit intention. Besides, meaningfulness and knowledge directly affect eWOM. It is worth noting that beach tourists' revisit intention significantly and directly influence their eWOM. The findings also confirm the indirect effects of hedonism, local culture, meaningfulness and involvement on eWOM through the mediating role of revisit intention. Conclusions: This study will be important to determine beach tourists' behavior through each dimension of MTE. This study also emphasizes on the direct effect of beach tourists' revisit intention on eWOM, as well as confirms its mediating role in the relation between MTE and eWOM. The findings will assist policymakers and destination marketers with strategies and effective future actions.

The Effect of the Service Quality, WOM(aternote), and Ruputation of On-line Shopping-Mall on the Trust and Loyalty (온라인 쇼핑몰에서의 서비스품질과 구전, 명성이 쇼핑몰 신뢰도와 충성도에 미치는 영향)

  • Suh, Hyun-Suk;Heu, Ju-Hee;Na, Youn-Kue
    • Fashion & Textile Research Journal
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    • v.10 no.5
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    • pp.607-617
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    • 2008
  • This research investigated the factors that effect on the trust and loyalty in on-line shopping mall and analyzed a structural relationship of these variables. The variables are service quality, information quality of on-line WOM(afternote), reputation of on-line shopping mall. The Instrument dimensions of service quality are tangibles, responsiveness, assurance, diversity goods and price fairness. The Instrument dimensions of information quality of on-line WOM(afternote) are usefulness, abundance, accuracy and specialty. The Instrument dimensions of reputation of on-line shopping mall are cognizance and comment. The results by LISREL are as follows : There are 7 factors that effects on trust and loyalty. These are tangibles, responsiveness, assurance and price fairness of instrument dimensions of service quality, usefulness, specialty of instrument dimensions of information quality of on-line WOM, cognizance of the Instrument dimensions of reputation of on-line shopping mall. Specially, there are significant point that usefulness and specialty of afternote which can contact easily in on-line shopping mall effect on the trust and loyalty in on-line shopping mall.

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.