• Title/Summary/Keyword: Word-Of-Mouth Effect

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Effect of Consumer Confusion on Word of Mouth and Trust Through Anger: Focusing on The Moderation Effect of Consumer's Negative Affectivity and Intolerance of Uncertainty (소비자 혼란이 분노를 통해 구전, 신뢰에 미치는 영향: 소비자의 부정적 감정 성향과 불확실성 인내력 부족의 조절역할을 중심으로)

  • Moon, Sun-Jung;Kang, Bo-Hyeon;Lee, Soo-Hyung
    • Asia Marketing Journal
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    • v.13 no.1
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    • pp.113-141
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    • 2011
  • Companies are competing each other, and as the competitions became higher, consumer's information processing for purchase became more complicated. Consumer confusion problem is getting more serious, but there are still not much considerations on this problem. The purpose of this study is to find out that the consumer confusion can causes consumer's negative emotion(anger). This research studied the mediation effect of negative emotion on the relationship between consumer confusion, which was classified into three categories, and two consequences, word-of-mouth and trust. And also it concentrates on moderating effects of negative affectivity and intolerance of uncertainty in the relationship between consumer confusion and negative emotion. For the empirical study, we carried out a survey targeting consumers who live in the Dae-gu metropolitan area. The specific results of this study are as follows. First, all sub-dimensions of the consumer confusion had a positive effect on anger. Second, anger had a positive effect on word of mouth and on the other hand, anger had a negative effect on trust. Third, negative affectivity had a moderating effects on the links between overload and ambiguity confusion with anger, and intolerance of uncertainty only had a moderating effects on the links between overload confusion and anger.

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The Effect of Failure of Online Food Delivery Service Recovery Strategies on Consumer Attitude and Behavioral Intention: Focusing on Justice Theory (온라인 음식 배달 서비스 회복 전략의 실패가 소비자 태도 및 행동 의도에 미치는 영향: 공정성 이론(Justice Theory)을 중심으로)

  • Jungkun Park;Sangwoo Lee;Hyowon Hyun;Jihwan Yum
    • Journal of Service Research and Studies
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    • v.13 no.2
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    • pp.161-180
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    • 2023
  • This study empirically analyzed the effect of perceived injustice on service recovery measures proposed by online food delivery service (OFDS) companies on consumer disappointment. This study adopted interaction justice, information justice, procedural justice, and distributive justice as sub-variables of justice perception based on the justice theory. In addition, the differences by generation (MZ generation and other generations) were examined in the relationship between negative word-of-mouth behavior and switching intentions due to service recovery failure. An online survey was conducted targeting 250 adult consumers in the U.S for the empirical analysis of this research model. The results of the data analysis demonstrated that negative perceptions about the procedural justice and distributive justice among the service recovery strategies had a positive effect upon the consumer's disappointment. Furthermore, it was confirmed that the consumer's disappointment due to the perceived injustice of the service recovery strategy had a positive effect on the consumer's negative word-of-mouth behavior and switching intentions. The verification results of the moderation effect in the relationship between negative word-of-mouth behavior and switching intention, it was found that the younger the age(MZ generation), the higher the possibility of causing dysfunctional behavior. This study expands the scope of related research by presenting a new perspective on the justice perception in the service recovery process by verifying dysfunctional behavior of consumers caused due to the failure of the service recovery strategy. It is believed that the results of this study will be used as basic data for the establishment of practical strategies for OFDS companies to prevent double defection of their customers.

The Impact of Reputation of Culture & Tourism Oriented Markets on Revisit and WOM Intention in Traditional Markets

  • Park, Jong-Ho;Chung, Lak-Chae
    • Journal of Distribution Science
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    • v.14 no.8
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    • pp.77-86
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    • 2016
  • Purpose - The purpose of this study is to measure the effect of reputation in culture oriented market on revisit intention and word of mouth(WOM) effects for Traditional Market. Research design, data, and methodology - 5 point Likert-scale has been adopted for this study designed based on previous study. Used SPSS ver.23, factor analysis & Cronbach's alpha, correlation, regression test were made. 277 samples were used for analysis. Results - Tourist satisfaction as an element that affects on revisit intention and word of mouth effects for traditional Market. Their goods images and impressions from experience of traveling and purchasing keep in mind and be another place and story to talk others. Culture is an important factor that maintains and regenerates cities and cities should be perceived as cultural places instead of simple physical places. Culture was associated with higher revisit and word of mouse intentions for traditional market. The tourists can select a new places and visit the market if it has a special culture and special food which people can like and enjoy even they do not have regional brand image. Conclusions - Tourist satisfaction of users in traditional markets and their revisit intentions and the results indicated that higher customer satisfaction was associated with higher revisit and word of mouse intentions. Culture factors will be the motive to find out peoples a hometown in heart.

The Effect of College students' Perceived Marketing Communication, Value and Consumption Emotion on Store Loyalty in Discount Store (대학생들이 지각하는 종합슈퍼마켓의 마케팅 커뮤니케이션, 가치, 소비감정이 점포충성도에 미치는 영향)

  • Yang, Hoe-Chang;Ju, Yoon-Hwang
    • Journal of Distribution Science
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    • v.10 no.2
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    • pp.19-28
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    • 2012
  • Rapidly growing sales amount and the number of discount stores caused many side effects and sensitive issues in Korea. Because these severe competition due to more expensive cost just like excessive increase in advertising and location selection, and these caused completely ruined small merchants as well as passed on to the consumer. This Study focused on competitiveness of discount store in Korea to the perspective of college students, as explored the relationships between marketing communication and store loyalty. And, examined for two moderating effect, 1) consumers' value separated by hedonic value and utilitarian value between marketing communication and store loyalty, and 2) consumers' value separated by hedonic value and utilitarian value between marketing communication and consumption emotion. Finally, this study examined for mediating effect of consumption emotion between marketing communication and store loyalty. In order to verify the relationship, moderating and mediating effects, data were collected from 130 college students in Whasung, Gyeonggi Province to test theoretical model and its hypotheses. Findings are as followed : First, analysis showed that factors such as advertisement(β =.221, p<.05), publicity(β =.513, p<.01), sales promotion(β =.234, p<.01), word of mouth(β =.627, p<.01) and physical environment(β =.339, p<.01) for marketing communication in the discount store have statistically significant positive effect on store loyalty. But the result of regression analysis for which factors are more impact in marketing communication between store loyalty showed that word of mouth(β =.53, p<.01) is only statistically significant. Second, publicity(β =-.895, p<.05), the sub-dimension of marketing communication shows only statistically significant negative moderating effect on store loyalty. But, the results of the moderating effect of value between marketing communication and consumption emotion verified that utilitarian value show statistically significant, specifically advertisement(β =.294, p<.01), physical environment(β =.418, p<.01), sales promotion(β =.245, p<.01), word of mouth(β =.414, p<.01) and publicity(β =1.137, p<.05), respectively. And hedonic value show statistically significant, specifically advertisement(β =.286, p<.01), physical environment (β =.418, p<.01), sales promotion(β =.236, p<.01) and word of mouth(β =.420, p<.01), respectively. But publicity(β =.145, p=.119) is not statistically significant. Finally, the results verified mediating effect for consumption emotion between all factors for marketing communication and store loyalty showed that factors such as advertisement, publicity, word of mouth and physical environment for marketing communication except sales promotion were statistically significant fully mediated in advertisement, and partially mediated in publicity, word of mouth and physical environment. This testified that the consumption emotion had the most important factor to enhance store loyalty to the perspective of College students. These results can provide important implications and invaluable tips for planning marketing strategies and gaining access to new potential customers. Implications and future research directions are also discussed.

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Word-of-Mouth Effect for Online Sales of K-Beauty Products: Centered on China SINA Weibo and Meipai (K-Beauty 구전효과가 온라인 매출액에 미치는 영향: 중국 SINA Weibo와 Meipai 중심으로)

  • Liu, Meina;Lim, Gyoo Gun
    • Journal of Intelligence and Information Systems
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    • v.25 no.1
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    • pp.197-218
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    • 2019
  • In addition to economic growth and national income increase, China is also experiencing rapid growth in consumption of cosmetics. About 67% of the total trade volume of Chinese cosmetics is made by e-commerce and especially K-Beauty products, which are Korean cosmetics are very popular. According to previous studies, 80% of consumer goods such as cosmetics are affected by the word of mouth information, searching the product information before purchase. Mostly, consumers acquire information related to cosmetics through comments made by other consumers on SNS such as SINA Weibo and Wechat, and recently they also use information about beauty related video channels. Most of the previous online word-of-mouth researches were mainly focused on media itself such as Facebook, Twitter, and blogs. However, the informational characteristics and the expression forms are also diverse. Typical types are text, picture, and video. This study focused on these types. We analyze the unstructured data of SINA Weibo, the SNS representative platform of China, and Meipai, the video platform, and analyze the impact of K-Beauty brand sales by dividing online word-of-mouth information with quantity and direction information. We analyzed about 330,000 data from Meipai, and 110,000 data from SINA Weibo and analyzed the basic properties of cosmetics. As a result of analysis, the amount of online word-of-mouth information has a positive effect on the sales of cosmetics irrespective of the type of media. However, the online videos showed higher impacts than the pictures and texts. Therefore, it is more effective for companies to carry out advertising and promotional activities in parallel with the existing SNS as well as video related information. It is understood that it is important to generate the frequency of exposure irrespective of media type. The positiveness of the video media was significant but the positiveness of the picture and text media was not significant. Due to the nature of information types, the amount of information in video media is more than that in text-oriented media, and video-related channels are emerging all over the world. In particular, China has made a number of video platforms in recent years and has enjoyed popularity among teenagers and thirties. As a result, existing SNS users are being dispersed to video media. We also analyzed the effect of online type of information on the online cosmetics sales by dividing the product type of cosmetics into basic cosmetics and color cosmetics. As a result, basic cosmetics had a positive effect on the sales according to the number of online videos and it was affected by the negative information of the videos. In the case of basic cosmetics, effects or characteristics do not appear immediately like color cosmetics, so information such as changes after use is often transmitted over a period of time. Therefore, it is important for companies to move more quickly to issues generated from video media. Color cosmetics are largely influenced by negative oral statements and sensitive to picture and text-oriented media. Information such as picture and text has the advantage and disadvantage that the process of making it can be made easier than video. Therefore, complaints and opinions are generally expressed in SNS quickly and immediately. Finally, we analyzed how product diversity affects sales according to online word of mouth information type. As a result of the analysis, it can be confirmed that when a variety of products are introduced in a video channel, they have a positive effect on online cosmetics sales. The significance of this study in the theoretical aspect is that, as in the previous studies, online sales have basically proved that K-Beauty cosmetics are also influenced by word-of-mouth. However this study focused on media types and both media have a positive impact on sales, as in previous studies, but it has been proven that video is more informative and influencing than text, depending on media abundance. In addition, according to the existing research on information direction, it is said that the negative influence has more influence, but in the basic study, the correlation is not significant, but the effect of negation in the case of color cosmetics is large. In the case of temporal fashion products such as color cosmetics, fast oral effect is influenced. In practical terms, it is expected that it will be helpful to use advertising strategies on the sales and advertising strategy of K-Beauty cosmetics in China by distinguishing basic and color cosmetics. In addition, it can be said that it recognized the importance of a video advertising strategy such as YouTube and one-person media. The results of this study can be used as basic data for analyzing the big data in understanding the Chinese cosmetics market and establishing appropriate strategies and marketing utilization of related companies.

The Effects of Perceived Relational Benefits on Repurchase Intention and Word of Mouth Intention in the Social Commerce Marketplace: Mediating Effect of Satisfaction and Difference in Market Mavenism (소셜커머스 시장에서 지각된 관계혜택이 재구매의도와 구전의도에 미치는 영향: 만족의 매개효과 및 시장 전문성 차이)

  • Sung, Heewon;Kim, Eun Young
    • Journal of Fashion Business
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    • v.21 no.2
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    • pp.30-44
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    • 2017
  • The purposes of this study were to (a) identify dimensions of relational benefits in the social commerce market, (b) predict the effects of relational benefits on satisfaction, repurchase intention, and word of mouth (WOM) intention, (c) examine the mediating effects of satisfaction, and (d) compare the differences in the effects of relational benefits on satisfaction, repurchase intention, and WOM intention between the two groups of market mavenism. For collecting data, a self-administered questionnaire was undertaken by an online research agency. A total of 490 usable responses were obtained from consumers who have used social commerce sites. The sample included a slightly higher number of females (50.8%) than males and age was ranged from 20 years to 40 years. An exploratory factor analysis generated four factors of relational benefits such as confidence, convenience, special treatment, and information. Multiple regression models showed that confidence, convenience, and special treatment benefits were significant predictors of satisfaction and repurchase intention; the confidence and convenience benefits were significant for WOM intention. Satisfaction significantly mediated the relationship between relational benefits and repurchase intention, and the relationship between relational benefits and WOM intention. The group with high level of market mavenism more highly perceived the relational benefits than the other groups. Confidence benefit had a significant effect on repurchase intention regardless of the level of market mavenism, while convenience benefit had a significant effect on repurchase intention in the non-market maven group. This study discussed the managerial implications for customer relationship management in the social commerce marketplace.

The Impact of Influential's Betweenness Centrality on the WOM Effect under the Online Social Networking Service Environment (온라인 소셜 네트워크 서비스 환경에서 유력자의 매개 중심성이 구전 효과에 미치는 영향)

  • Park, Ji Hye;Suh, Bomil
    • Journal of Information Technology Applications and Management
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    • v.20 no.2
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    • pp.127-146
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    • 2013
  • The online social networking services (SNS) have been growing as the means of communication. In this study, we investigated word-of-mouth (WOM) effect under the SNS environment and evaluated the impact of message sender's influence on the WOM effect. Especially, this study focused on the betweenness centrality calculated through the social network analysis (SNA) of SNS network information, and proposed it as the measure of WOM message sender's influence, SNA may provide more accurate and objective measures than subjective self-reporting survey method. Fifty-one Facebook users responded to each of their four Facebook friends, who had been selected based on their betweenness centrality, Statistical analyses were performed using the responses and the betweenness centralities of the Facebook friends. The results showed that the direction (positive vs, negative) of a WOM message in SNS had an impact on the attitude of the message receiver toward the product. Moreover, the betweenness centrality of the message sender as well as his/her opinion leadership had a moderating effect on the WOM effect. Opinion leadership is a measure that has been frequently used for indicating the influence of WOM message sender in the previous studies. Considering the result that the betweenness centrality of the message sender was Significantly correlated to his/her opinion leadership, the betweenness centrality can be used for indicating the influence of WOM message sender.

The Influences of Internet WOM(word Of Mouth) Information Valence and Contents to WOM Effects - Focus on Cell Phon Purchasing for Student via Online WOM - (온라인 구전의 정보방향과 평가내용이 구전효과에 미치는 영향 - 대학생의 휴대폰 구매 관련 온라인 구전을 중심으로 -)

  • Kim, Chang-Ho
    • International Commerce and Information Review
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    • v.8 no.4
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    • pp.23-41
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    • 2006
  • The present paper aims to examine the Influences of on line word of mouth(WOM) information valence and information contents to the information searcher. Specially, to examine the interaction effect it's two variables. For that purpose, we categorize WOM information valence into two subcategories; positive and negative, and WOM content into two subcategories; objective evaluation and subjective evaluation. We conducted experimentation design 2*2 and subjects are asked to their attitude and purchase intention after they are exposed each of four different types of WOM information. The result can be summarized as follow; First, the negative WOM has stronger effect on consumer's attitude and purchase intention than positive. Second, factual WOM has stronger effect on consumer's attitude and purchase intention than subject. Finally, when consumer face negative WOM, subjective WOM has more effect on consumer's attitude and purchase intention than factual. On the contrary, when consumer face positive WOM, factual WOM has more effect on consumer's attitude and purchase intention than subject. In conclusion, the korean Foreign Trade Act and other relative acts should be revised, and both educational services and health services should be contained within the definition of "the international trade" for the governmental benefits of supporting the services exportation.

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A Study on the Information Cascades Effects of the Offline WOM and Online Review (오프라인 구전과 온라인 리뷰간의 정보 캐스케이드 영향 분석)

  • Kim, Jin-Hwa;Bae, Jae-Kwon;Jeon, Han-Cheol
    • The Journal of Society for e-Business Studies
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    • v.15 no.1
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    • pp.39-60
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    • 2010
  • It becomes common thing that many customers buy the goods through the online shopping mall as internet grows very fast. The information cascades that happen when a person imitates the other's acts also it occurs in online. Many people buy the goods referring on other people's purchasing experiences and such cases are spreading more and more. Through numerous existing researches, the researches in association with this issue have been studied on the information cascades effect on offline or online separately. The research of comparing the information cascades effects from the offline word of mouth (WOM) and the online review has not studied yet. On that reason this study shows that the online review induces the information cascades. We also compared the effects with information cascades effects from traditional offline word of mouth. In result of this study, the following points have been concluded. Firstly, we examined that information cascades was occurred through both the online review and offline word of mouth. Secondly, the information cascades effect through the online review is greater than through the offline words of mouth. It means the company has to understand the importance of the online review and manage it. Thirdly, the information cascades effects are occurred differently in accordance with the goods brands. Therefore a company has to know whether its products is superior to the competitor's one or not.

The Effect of Purchase Reviews on the Trust, Satisfaction, Commitment, and Repurchase Intention of Consumer in Internet Shopping Malls (인터넷 쇼핑몰의 패션 상품 구매후기가 소비자의 신뢰, 만족, 몰입 및 재구매의도에 미치는 영향)

  • Hong, Byung-Sook;Lee, Eun-Jin;Cho, Mi-Ae
    • Journal of the Korean Society of Clothing and Textiles
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    • v.33 no.11
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    • pp.1817-1827
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    • 2009
  • This study analyzes how the purchase reviews of fashion merchandise influence consumer trust, satisfaction, commitment, word-of-mouth intention, and repurchase intention in internet shopping malls. The survey was conducted from October $15^{th}$ to December $5^{th}$ in 2008, and 368 responses were used in the data analysis. The statistical analysis methods were frequency analysis, factor analysis, reliability analysis, and multiple regression analysis. The results show that the purchase reviews factors of fashion merchandise in internet shopping malls were amusement, assentation, overstatement, genuineness, and usefulness. The assentation, genuineness, and usefulness of purchase reviews have an effect on consumer trust and satisfaction. The amusement, overstatement, and usefulness of purchase reviews have an effect on the emotional commitment of consumers, while the amusement, assentation, overstatement, genuineness, and usefulness of purchase reviews influence the reasonable commitment of consumers. Consumer trust and commitment effect word-of-mouth intention and repurchase intention in internet shopping malls.