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

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The Mediating Effect of Experiential Value on Customers' Perceived Value of Digital Content: China's Anti-virus Program Market (경험개치대소비자대전자내용적인지개치적중개영향(经验价值对消费者对电子内容的认知价值的中介影响): 중국살독연건시장(中国杀毒软件市场))

  • Jia, Weiwei;Kim, Sae-Bum
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.219-230
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    • 2010
  • Digital content makes big changes to our daily lives while bringing opportunities and challenges for companies. Creative firms integrate pictures, texts, videos, audios, and data by digitalization to develop new products or services and create digital experiences to promote their brands. Most articles on digital content contribute to the basic concept or development of marketing it in literature. Actually, compared with traditional value chains for common products or services, the digital content industry seems to have more potential value. Because quite a bit of digital content is free to the consumer, price is not necessarily perceived as an indicator of the quality or value of information (Rowley 2008). It becomes evident that a current theme in digital content is the issue of "value," and research on customers' perceived value of digital content is a necessity. This article argues that experiential value has an advantage in customers' evaluations of digital content. Two different but related contributions to the understanding of "value" of digital content are made here. First, based on the comparison of digital content with products and services, the article proposes two key characteristics that make experiential strategy available for digital content: intangibility and near-zero reproduction cost. On top of that, based on the discussion of the gap between company's idealized value and customer's perceived value, this article emphasizes that digital content prices and pricing of digital content is different from products and services. As a result of intangibility, prices may not reflect customer value. Moreover, the cost of digital content in the development stage may be very high while reproduction costs shrink dramatically. Moreover, because of the value gap mentioned before, the pricing polices vary for different digital contents. For example, flat price policy is generally used for movies and music (Magiera 2001; Netherby 2002), while for continuous demand, digital content such as online games and anti-virus programs involves a more complicated matter of utility and competitive price levels. Digital content companies have to explore various kinds of strategies to overcome this gap. Rethinking marketing solutions such as advertisements, images, and word-of-mouth and their effect on customers' perceived value becomes essential. China's digital content industry is becoming more and more globalized and drawing special attention from different countries and regions that have respective competitive advantages. The 2008-2009 Annual Report on the Development of China's Digital Content Industry (CCIDConsulting 2009) indicates that, with the driven power of domestic demand and governmental policy support, the country's digital content industry maintained a fast growth of some 30 percent in 2008, obviously indicating the initial stage of industry expansion. In China, anti-virus programs and other software programs which need to be updated use a quarter-based pricing policy. Customers can download a trial version for free and use it for six months or a year. If they want to use it longer, continuous payment is needed. They examine the excellence of the digital content during this trial period and decide whether to pay for continued usage. For China’s music and movie industries, as a result of initial development, experiential strategy has not been much applied, even though firms in other countries find the trial experience and explore important strategies(such as customers listening to music for several seconds for free before downloading it). For the above reasons, anti-virus program may be a representative for digital content industry in China and an exploratory study of the advantage of experiential value in customer's perceived value of digital content is done in the anti-virus market of China. In order to enhance the reliability of the survey data, this study focused on people who were experienced users of anti-virus programs. The empirical results revealed that experiential value has a positive effect on customers' perceived value of digital content. In other words, because digital content is intangible and the reproduction costs are nearly zero, customers' evaluations are based heavily on their experience. Moreover, image and word-of-mouth do not have a positive effect on perceived value, only on experiential value. That is to say, a digital content value chain is different from that of a general product or service. Experiential value has a notable advantage and mediates the effect of image and word-of-mouth on perceived value. The results of this study help provide an understanding of why free digital content downloads exist in developing countries. Customers can perceive the value of digital content only by using and experiencing it. This is also why such governments support the development of digital content. Other developing countries whose digital content business is also in the beginning stage can make use of the suggestions here. Moreover, based on the advantage of experiential strategy, companies should make more of an effort to invest in customers' experience. As a result of the characteristics and value gap of digital content, customers perceive more value in the intangible digital content only by experiencing what they really want. Moreover, because of the near-zero reproduction costs, companies can perhaps use experiential strategy to enhance customer understanding of digital content.

An Empirical Analysis of Doppelgänger Brand Image Effects: Focused on the Internet Community (도플갱어 브랜드 이미지 효과에 대한 실증적 분석: 인터넷 커뮤니티를 중심으로)

  • Cho, Hyuk Jun;Kim, Sung Guen;Kang, Ju Young
    • The Journal of Information Systems
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    • v.26 no.1
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    • pp.21-51
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    • 2017
  • Recently there have been an increasing number of companies suffering a negative brand image in the major media. Thompson et al. (2006) defined this as "$Doppelg{\ddot{a}}nger$ Brand Image." The images mentioned above have been created and propagated on Internet communities, which are one of the major paths of online spreading. This study will empirically analyze the effect of each $Doppelg{\ddot{a}}nger$ brand image on the customer's brand attitude, using a text-mining method focusing on "A company"'s case. This study will also cover the change in customer brand attitudes related to the company's correspondence in a situation in which the $Doppelg{\ddot{a}}nger$ brand image exists. In addition, the study will determine the presence of a priming effect after the spread of the $Doppelg{\ddot{a}}nger$ brand image. To that end, we collected 974 comments from 94,889 posts and A's official blogs related to A from B community, the largest automobile community site in Korea. Through this investigation, we obtained the following results. First, there was a significant difference in the ratio of negative sentiment of internet community before and after $Doppelg{\ddot{a}}nger$ brand image. Second, with regard to the topic modeling, the ratio of articles including negative topics increased and the other article ratio decreased over time. Finally, we found that there is a priming effect about negative brand image of "A company."

Cultural Tunneling Effect: Conceptual adoption & Application in movie industry

  • Roh, Seungkook
    • Asia Marketing Journal
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    • v.16 no.3
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    • pp.77-100
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    • 2014
  • Many researchers have analyzed the relationship between the financial success patterns of a motion picture and many other factors, such as the production cost, marketing, stars, awards, reviews, genre, and rating. Through these studies, many researchers and investors concluded that big budgets to make a blockbuster movie can serve as an insurance policy to meet their ROI; thus the box office is dominated by blockbuster movies. High-budget blockbuster movies are more likely to receive attention because these movies are more recognizable given their high expenses for production and casting. Therefore, audiences choose blockbusters in an effort to reduce the searching cost and to mitigate the possibility of a regrettable choice. This behavior of consumers, in turn, causes distributors to allocate screens for blockbusters, resulting in "concentration of blockbuster consumption." As such, low-budget films cannot easily become popular due to the lack of distribution. Indeed, low-budget films released on a small number of screens often end up becoming dismal failures. However, there are exceptional examples which are contrary to the general idea in the movie industry that a big budget and showings on a large number of screens can guarantee the success of a movie. Although researchers have attempted to analyze the performances of movies with small budgets, such movies are likely to be regarded as outliers and then be entirely discarded, as they are far from the 'three-sigma' range, especially given that previous research methodologies could not explain the financial success of such unique examples. This study attempts to explain the financial success at the box office of low-budget movies by applying the concept of the tunnel effect in quantum mechanics, as the phenomenon found in the movie industry is similar to a particle's movement in quantum physics. The tunneling effect is a phenomenon by which a particle without enough energy to pass over a potential barrier tunnels through it. Adopting the analogy, this study draws a tunneling probability function and cultural constant to forecast other outliers using the Schrödinger equation. Moreover, the study finds that word-of-mouth creates in the movie industry this phenomenon of finding outliers.

A Study on the Effect of Satisfaction and Re-watch Intention of Visitor in On-line Price Discounts and Musical Fame in the Convergence Industry of Service Management (서비스경영의 융복합 산업에서 온라인 가격할인과 뮤지컬 명성이 관람객의 만족 및 재관람 의도에 미치는 영향에 관한 연구)

  • Yim, Ki-Heung;Quan, Zhi-Xuan
    • Journal of Digital Convergence
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    • v.13 no.10
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    • pp.157-163
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    • 2015
  • This study seeks to investigate the effect of a musical's reputation and online discounts on the consumer's willingness to re-watch a musical in the convergence industry. of service management As a resut, First, this study verified the moderating effect of on-line price discount. Second, on-line price discount was found to have an impact on reputation of a musical and consumer satisfaction. Third, consumer satisfaction was found to have a positive impact on word-of-mouth intention. Accordingly, it would also be imperative to provide information via on-line communities on a consistent basis so that viewers could create viral marketing. Also, those customers having received differentiated benefits would have a higher degree of satisfaction. Eventually, these customers will create positive viral marketing effect.

The Effect of Review Attributes on Brand Attitude, Purchase Decision and e-WOM Intention in Online Shopping Mall (온라인 쇼핑몰에서의 리뷰 속성이 브랜드 태도, 구매결정 및 온라인 구전의도에 미치는 영향)

  • Zhang, Han;Kim, Joon-Sung
    • Journal of Digital Convergence
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    • v.19 no.7
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    • pp.113-127
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    • 2021
  • This study classifies review attributes into ratings, number of comments and image information in online shopping mall to verify their impact on brand attitude and purchase decision and e-WOM intention. Use SPSS 23.0 for frequency analysis, factor analysis and regression analysis. The results showed that review attributes have a positive effect on brand attitudes, purchase decision and e-WOM intention, but the number of comments has not affect on purchase decision. Brand attitude has a positive effect on purchase decision and e-WOM intention. Brand attitude has media effect in the relationship between ratings, image information and purchase decision, and in the relationship between review attributes and e-WOM intention. As these results, consumers don't always like to have a lot of comments. and should allow to focus on high ratings and photo reviews as much as possible when writing reviews.

A Study on the Effect of Service Recovery through Mediating Customer Forgiveness on Customer Behavior Intention of Online Shopping Mall - Based On the SOR Model (온라인 쇼핑몰에서 서비스회복 방식이 고객용서를 매개로 고객 행동의도에 미치는 영향 - SOR 모델을 기반으로)

  • Wang, Jing;Kim, Youn Sung
    • Journal of Korean Society for Quality Management
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    • v.47 no.3
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    • pp.615-630
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    • 2019
  • Purpose: Based on the theory of "Stimulus-Organism-Response" (S-O-R), this thesis takes customer forgiveness as a medium variable to explore the impact of merchant service remedy on customer behavior intention in the context of online shopping service failure. This thesis divides the merchant service remedy into two dimensions: spiritual recovery and material recovery, and reveals the influence difference of different merchant service remedy methods on customer behavior intention and the mediating role of customer forgiveness. Methods : 325 questionnaires were distributed and 307 valid questionnaires were collected for data analysis. The relationship between potential variables is proposed by using Structural Equations Modeling. Results : The two dimensions of service recovery have significant positive impact on customer forgiveness, and physical recovery has greater impact on customer forgiveness. In the influence of physical recovery on customer behavior intention, customer forgiveness is a partial mediating effect. However, in the influence of spiritual recovery on customer behavior intention, customer forgiveness is a complete mediating effect. Conclusion : In case of service faults, merchants should take the initiative to provide appropriate physical recovery and provide spiritual recovery sincerely and patiently. Only in this way can they regain good impression in the hearts of consumers and promote them to improve the quality of service recovery, so as to increase their willingness to repurchase Intention and positive word of mouth.

Effect of On/off-line Acquaintance's Recommendation Message on Product Attitude and Purchase Intention (온·오프라인 지인의 추천메시지가 제품태도와 구매의도에 미치는 영향)

  • Lee, Jung-Woo;Kim, Mi Young
    • Journal of the Korean Society of Clothing and Textiles
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    • v.40 no.6
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    • pp.1010-1024
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    • 2016
  • This study identifies the influence of on/off-line acquaintances' recommendation messages on fashion product attitude and purchase intention on the online purchase of fashion products in two-sided word of mouth situations as well as compares the difference in influence according to bond-base with equidistance. This study was conducted for one month on university students in their 20s who were believed to be active in smartphone use. Out of the collected 174 copies of the questionnaire, 162 copies were used for analysis. The questionnaire was classified into online and offline recommendation messages of an acquaintance. We present two-sided fashion product reviews made similar to the type found in an actual shopping mall web-site. As for analysis, confirmatory factory analysis, structural equation modeling, and multi-group analysis were conducted using AMOS 19.0. The analysis results are as follows. First, on/off-line acquaintances' recommendation messages had significant influences on product attitude in the situation where two-sided reviews on fashion products were presented; however, those messages did not influence purchase intention. Recommendation messages positively increased product attitude and enhanced purchase intention if acquaintances' recommendation messages were mediated between on/off-line acquaintances' recommendation messages and purchase intention. Consequently, a mediating effect on product attitude was revealed. Second, there was no difference between online acquaintances and offline acquaintances in terms of the influence of acquaintances' recommendation messages on product attitude and purchase intention, in the situation where two-sided reviews were presented on online fashion products. Therefore, no control effect according to the type of acquaintance was confirmed.

A study on the effect of importance of information and communication technology service in fashion stores on behavior intention (패션 매장의 정보통신기술(ICT) 서비스 중요도가 행동 의도에 미치는 영향 연구)

  • Kim, Min-kyung;Yu, Ji-hun
    • The Research Journal of the Costume Culture
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    • v.29 no.6
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    • pp.922-931
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    • 2021
  • Recent developments in information and communication technologies (ICT) can be applied in stores, and the number of fashion stores that have introduced and utilized ICT are increasing. By applying a literature review and empirical research, the types of ICT service factors of fashion stores were identified and categorized. The effect of their importance on consumer behavioral intentions was analyzed. Next, using factor analysis on the ICT service factors, five factors were identified and named as follows: smart space services, smart payment services, virtual image services, product information services, and smart access services. The importance of these factors was then analyzed. The importance of each factor and detailed questions was rated above average. After examining the effect of ICT service on behavior intention, issues such as purchase intention, revisit intention, and word of mouth intention were found to have significant influence. This study is meaningful in that it derives the importance factors of ICT services that can be used in fashion stores in a situation where retail techniques become important and expand, and provides marketing strategies related to consumer behavior according to detailed factors. With retail tech becoming more important and expanding, it is necessary to provide various services that consumers value by utilizing ICT in fashion stores. Considering the results of this study, ICT technology and services of various fashion stores can be effectively utilized and retail tech utilization performance can be improved.

A Study of Interactive WOM Marketing Effect of Digital Media (디지털 미디어의 상호작용 WOM 마케팅 효과에 관한 연구)

  • Ahn, Kyung-Whan;Kwak, Bong-Chul
    • Journal of the Korea Society of Computer and Information
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    • v.12 no.2 s.46
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    • pp.197-207
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    • 2007
  • This thesis suggested that the 'customized' marketing would be a new strategy in terms of a marketing in the digital media age under the circumstances where a form of marketing was evolving in accordance with the convergence of digital media. Because of the media environment due to an 'individualization', the strategy would meet an individual demand of a consumer in a rapidly changing environment. The best marketing to capture a 'customer's heart' is not a brand that first entered the market, but the one that is first settled in a customer's heart. If a differentiated interactive marketing strategy is equipped, it is possible to capture a completely new market space ad create a profit over several years. In the aspect of an effect of a digital marketing, first, a concept relating to an interaction between a consumer and a producer is important. Secondly, the important one is an empathy marketing which is an emotional marketing through a brand image beyond a product. Thirdly, the author studied an orally transmitted marketing effect through digital media.

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A Study on the Influence of the Recovery Methods of Information Service Failure on Online User Justice and Satisfaction (정보서비스 실패에 대한 회복 방법이 온라인 이용자의 공정성과 만족도에 미치는 영향에 관한 연구)

  • Kim, Young-Gon
    • Journal of the Korean Society for information Management
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    • v.30 no.2
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    • pp.35-59
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    • 2013
  • The aim of this study is to investigate the role of information service failure severity within existing framework of service recovery justice research and analyse the effects of the attribution of service recoveries on recovered user satisfaction and revisit. For empirical analysis, A total of 452 valid questionnaires were used to analyse the data gathered from university students who experienced the information service failures of university library. Some findings of the research are as follows: First, service failure severity has negative effect on service recovery justice. Second, procedural and interactional recovery justice has positive effect on recovered user satisfaction. Third, service recovery justice has significant influence on procedural and interactional justice. Finally, recovered user satisfaction has positive effect on user revisit and mouth of word.