An empirical study on the impact of online word-of-mouth sources on retail sales

2017 ◽  
Vol 45 (1) ◽  
pp. 30-35 ◽  
Author(s):  
Hong Hong ◽  
Di Xu ◽  
Dapeng Xu ◽  
G. Alan Wang ◽  
Weiguo Fan
Keyword(s):  
Word Of Mouth ◽  
Least Square ◽  
Decision Makers ◽  
Purchase Decisions ◽  
Retail Sales ◽  
Content Type ◽  
Online Purchase ◽  
Online Word Of Mouth ◽  
Product Sales ◽  
The Impact

Purpose This study aims to analyze the impact of the source of online word-of-mouth (WOM) on retail sales. Specifically, the authors focus on the relative impact of external and internal WOMs on book sales. Design/methodology/approach An empirical analysis is conducted with a panel data of sales and WOM for 87 books from Dangdang and Douban over a 14-day period based on two generalized least square regression models. Findings Results suggest that both internal WOM and external WOM have significant impact on product sales, and the impact of external WOM is relatively more significant. Social implications WOM, especially the external WOM, plays an important role in consumers’ online purchase decisions. Originality/value This study is helpful for retailers to better understand the factors influencing the sales and thereby forecast the future sales more precisely. Besides, the research conclusion could also enlighten related decision makers to constantly improve technical platforms.

The interactive impact of online word-of-mouth and review helpfulness on box office revenue

2018 ◽  
Vol 56 (4) ◽  
pp. 849-866 ◽  
Author(s):  
Sangjae Lee ◽  
Joon Yeon Choeh
Keyword(s):  
Word Of Mouth ◽  
Content Type ◽  
Factors Affecting ◽  
Box Office ◽  
Online Word Of Mouth ◽  
Final Sample ◽  
Online User Reviews ◽  
Review Helpfulness ◽  
Product Sales ◽  
The Impact

Purpose While a number of studies examined the eWOM (online word-of-mouth) factors affecting box office, the studies on the impact of review helpfulness on box office are lacking. The purpose of this paper is to fill the void in previous studies and further extend prior work regarding eWOM and box office. In order to explain the interaction effect of helpfulness with other variables on product sales, this study posits that review characteristics such as number of reviews, review rating, review length interact with review helpfulness to have an influence on box office. Further, as the studies that have examined whether eWOM factors are significant in box office performances for the international markets other than US are lacking, this study is targeting Korean markets to validate the effect of eWOM on box office. Design/methodology/approach This study used publicly available data from www.naver.com to build a sample of online review data concerning box office. The final sample of the study included 2090 movies. Findings The results indicated that in cases when the review is helpful, the number of reviews and review length are more greatly influencing box office. Review rating, review extremity, and helpfulness for reviewer are important determinants for review helpfulness. Practical implications Managers can concentrate on the review rating and review extremity of online customer reviews in the design of online sites for movies. The design of user review systems can follow the direction that promotes more helpfulness for online user reviews based on an enhanced understanding of what drives helpfulness voting. Originality/value Given that previous studies on the effect of review helpfulness on box office are lacking, it contributes to eWOM literature by investigating the impact of review helpfulness on box office revenue.

The impact of PHTPS on trip quality, trip value, satisfaction and word of mouth

2019 ◽  
Vol 11 (6) ◽  
pp. 1517-1538
Author(s):  
Mohamed Battour ◽  
Muhammad Khalilur Rahman ◽  
Md. Sohel Rana
Keyword(s):  
Design Methodology ◽  
Word Of Mouth ◽  
Partial Least Square ◽  
Theory And Practice ◽  
Least Square ◽  
Tourism Destination ◽  
Content Type ◽  
Four Dimensions ◽  
The Impact

Purpose The study aims to determine the impact of non-Muslim tourists’ perception of halal tourism products and services (PHTPS) on trip quality, trip value, satisfaction and word of mouth (WOM) towards halal tourism destination. Design/methodology/approach A total of 375 non-Muslim tourists were surveyed in Malaysia using partial least square technique. Findings The findings showed that PHTPS has a significant impact on all four dimensions. The strongest relationship was found between PHTPS and trip quality, followed by PHTPS–WOM, PHTPS–satisfaction and PHTPS–trip value. Originality/value This study provides new insights into the theory and practice of non-Muslim tourists’ PHTPS and WOM towards halal tourism destination. The findings are valuable to tourism operators, managers and marketers with the understanding and responsibility to develop halal tourism products and services from non-Muslim tourists’ insights.

scholarly journals The Impact of Social Relationships on Online Word-of-Mouth and Knowledge Sharing in Social Network Sites

2016 ◽  
Vol 6 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Sherein Hamed Abou-Warda
Keyword(s):  
Knowledge Sharing ◽  
Social Relationships ◽  
Social Networking Sites ◽  
Social Relationship ◽  
Word Of Mouth ◽  
Partial Least Square ◽  
Least Square ◽  
Male Students ◽  
Online Word Of Mouth ◽  
The Impact

This study provides insight into how social relationships perspective influence on online Word-of-Mouth and knowledge sharing on social networking sites (SNSs). By using the sample from 385 Egyptian college students - who spend more time on SNSs, this study investigates the relationship among the use of SNSs, users' social Relationships, online Word-of-Mouth, and knowledge sharing. Partial Least Square (PLS) was utilized to examine the hypotheses through a questionnaire designed on the Likert seven-point scale. The results indicated that the intensity of usage of SNSs is a positively related with social relationship factors which has a positive effect on online WOM; in addition, online WOM has positively significant influence on knowledge sharing. The results also indicated that male students are found to have more social relationship than female counterparts do. Male students feel more strongly about knowledge sharing when they perceive that online WOM communication is good.

The impact of electronic word of mouth (e-WOM) on the online purchase intention of consumers in the Islamic countries – a case of (UAE)

2019 ◽  
Vol 10 (3) ◽  
pp. 759-767 ◽  
Author(s):  
Mohammed T. Nuseir
Keyword(s):  
United Arab Emirates ◽  
Word Of Mouth ◽  
Brand Image ◽  
Purchase Intentions ◽  
Research Approach ◽  
Electronic Word Of Mouth ◽  
Content Type ◽  
Online Purchase ◽  
Islamic Countries ◽  
The Impact

Purpose The purpose of this paper is to contribute to the marketing literature regarding Islamic countries, in particular the United Arab Emirates (UAE), by assessing the impact of electronic word of mouth (e-WOM) on brand image and on the online purchase intentions of consumers. Design/methodology/approach Using a descriptive research approach, this study used quantitative data to assess how the online purchase intentions of consumers in the UAE are influenced by e-WOM and brand image. Findings E-WOM has a significant impact on online purchase intentions and brand image among consumers. Brand image significantly influences the online purchase intentions of consumers. Research limitations/implications The conclusions may not be generalizable because not all areas of the UAE were represented in this study. In future studies, a larger and more inclusive sample would help to overcome this limitation. Practical implications This study will help marketers to understand the power of e-WOM, an important marketing tool, and to use resources more strategically to attract new customers. Originality/value E-WOM is the most commonly used and most effective medium of sharing opinions and reviews pertaining to various products and services in the market. Understanding how it influences the purchase intentions of consumers is imperative and has strong implications for marketers.

What does it say and who said it? The contingent effects of online word of mouth in China

2016 ◽  
Vol 7 (4) ◽  
pp. 474-490 ◽  
Author(s):  
Biao Luo ◽  
Zheyu Zhang ◽  
Yong Liu ◽  
Weihe Gao
Keyword(s):  
Information Exchange ◽  
Word Of Mouth ◽  
Firm Strategy ◽  
Third Party ◽  
Online Information ◽  
Chinese Consumers ◽  
Content Type ◽  
Online Word Of Mouth ◽  
Initial Attitude ◽  
The Impact

Purpose The purpose of this paper is to examine how consumers respond to online word of mouth (WOM) with different valence (i.e. what does it say) and from different sources (i.e. who said it) in an important emerging economy, China. Design/methodology/approach Theory with experiments. Findings The authors find that Chinese consumers seek confirmatory information and pay greater attention to WOM that agrees with their initial attitude. Consumers with a high (vs low) need for cognition are more likely to rate WOM from far (vs closer) social distance as more impactful on themselves. For public-consumption products, the consumers are influenced more by “who said it” (source) than by “what does it say” (valence). The reverse holds for private consumption. Research limitations/implications The paper could be extended to other online behaviors. It can also be extended to empirical testing using market data. Practical implications Since Chinese consumers tend to focus on online information that is consistent with their initial attitude, it can be more difficult for either the seller or third-party website to utilize online WOM as a persuasive tool in China than in other countries. Firms may also customize their online strategies based on product category. For products that are consumed in private, WOM content is more important than source. If the firm wants to facilitate consumer interaction and influence, greater attention should be paid to make the content easy to access and utilize. Social implications Due to the explosive growth of e-Commerce in China, many global and Chinese firms rushed to set up online communities to facilitate information exchange among consumers. Our findings indicate that the impact of these communities may have been overvalued. Chinese consumers are influenced by online information, but if the majority of the online messages are from anonymous strangers, consumers tend to discount their credibility. Originality/value Our study represents an earlier effort to predict, and test, how online WOM can be associated with the specific cultural and market environments. It provides direct implications for both consumer behavior and firm strategy.

scholarly journals Be a part of it: promoting WOM, eWOM, and content creation through customer identification

2020 ◽  
Vol 24 (1) ◽  
pp. 55-72 ◽  
Author(s):  
Jaime Romero ◽  
Daniel Ruiz-Equihua
Keyword(s):  
Word Of Mouth ◽  
Least Squares Method ◽  
Content Type ◽  
Content Creation ◽  
Online Word Of Mouth ◽  
Community Identification ◽  
Customer Identification ◽  
Using Data ◽  
Partial Least Squares Method ◽  
The Impact

Purpose Customer identification leads to behaviors that are beneficial for firms. This paper aims to analyze the effect of firm identification and community identification on content creation, which indirectly may affect offline word of mouth and online word of mouth. Design/methodology/approach This paper proposes a research model that is tested using data from 491 users of online travel agencies. To do so, partial least squares method is used. Findings The results show a positive relationship between firm identification and community identification. Moreover, both variables exert a positive effect on content creation. Furthermore, content creation positively influences offline and online word of mouth. This influence is moderated by self-enhancement in the case of online word of mouth. Practical implications Firm managers must enhance customer identification, as it can turn in behaviors that are beneficial for the company. Moreover, firms that own online communities must apply segmentation strategies based on identification and self-enhancement to encourage positive behaviors from customers. Originality/value This research tests the relationship between firm identification and community identification. Additionally, this study jointly analyzes the impact of these variables on several beneficial behaviors.

The impact of word of mouth on service purchase decisions

2015 ◽  
Vol 25 (5) ◽  
pp. 636-656 ◽  
Author(s):  
Peter A. Voyer ◽  
Chatura Ranaweera
Keyword(s):  
Perceived Risk ◽  
Word Of Mouth ◽  
Psychosocial Risk ◽  
Equation Modeling ◽  
Purchase Decision ◽  
Tie Strength ◽  
Unique Contribution ◽  
Purchase Decisions ◽  
Content Type ◽  
The Impact

Purpose – Primarily, the purpose of this paper is to investigate the interaction and direct effects of tie strength between sender and receiver of word of mouth (WOM) and the receiver’s service purchase decision involvement on WOM influence. A secondary aim is to investigate how a distinctive conceptualization of perceived risk, consisting of two types (outcome risk and psychosocial risk), affects service purchase decision involvement. A conceptual model incorporating these constructs and associated hypotheses is developed and tested. Design/methodology/approach – In a survey of actual service consumers, respondents were asked to recall a recent instance where they had received service purchase information via WOM, and relate their responses to this instance. Established scales were used to measure the constructs. The hypothesized model was tested using structural equation modeling. Findings – Principally, findings demonstrate a strong interaction effect between service purchase decision involvement and tie strength. Also, results highlight the complexity of the perceived risk construct, suggesting that it is appropriately modeled as two types: outcome risk, and psychosocial risk. Research limitations/implications – This research has contributed to the service marketing literature by testing a model that predicts WOM influence. Evidence confirmed that the effect of service purchase decision involvement on WOM influence is moderated by tie strength. Additionally, a conceptualization of two different types of risk associated with purchase decisions was suggested, together with empirical confirmation of their hypothesized antecedent effects on service purchase decision involvement. Findings have special implications for the literatures of persuasion, social and interpersonal influence, as well as consumer behavior in general. Practical implications – To harness the power of WOM, managers should understand who their target audience is and how consumers are related to each other (tie strength) and to the service purchase decision (service purchase decision involvement). Recommendations are made with specific illustrations of how firms can leverage tie strength under conditions of low service purchase decision involvement to enhance WOM influence. Originality/value – The formidable power of WOM wields substantial influence on consumers, particularly within a service (vs goods) purchase context, typically characterized by higher perceived risk and lower search qualities. The significant interaction between tie strength and service purchase decision involvement is a unique contribution to the service WOM literature.

Proprietary information and the cost of bank debt

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
HyunJun Na
Keyword(s):  
Least Square ◽  
Bank Loan ◽  
Content Type ◽  
Loan Contracts ◽  
Proprietary Information ◽  
Banking Deregulation ◽  
Interstate Banking ◽  
Innovative Firms ◽  
Bank Loan Contracts ◽  
The Impact

PurposeThis study explores how the firm’s proprietary information has an impact on the bank loan contracts. It explains the propensity of using the competitive bid option (CBO) in the syndicate loans to solicit the best bid for innovative firms and how it changes based on industry competition and the degree of innovations. This research also examines how the interstate banking deregulation (Interstate Banking and Branching Efficiency Act) in 1994 affected the private loan contracts for innovative borrowers.Design/methodology/approachThe study uses various econometric analyses. First, it uses the propensity score matching analysis to see the impact of patents on pricing terms. Second, it uses the two-stage least square (2SLS) analysis by implementing the litigation and non-NYSE variables. Finally, it studies the impact of the policy change of the Interstate Banking and Branching Efficiency Act of 1994 on the bank loan contracts.FindingsFirms with more proprietary information pays more annual facility fees but less other fees. The patents are the primary determinants of the usage of CBO in the syndicate loans to solicit the best bid. While innovative firms can have better contract conditions by the CBO, firms with more proprietary information will less likely to use the CBO option to minimize the leakage of private information and the severe monitoring from the banks. Finally, more proprietary information lowered the loan spread for firms dependent on the external capital after the interstate banking deregulation.Originality/valueThe findings of this research will help senior executives with responsibility for financing their innovative projects. In addition, these findings should prove helpful for the lawmakers to boost economies.

Impact of word-of-mouth, job attributes and relationship strength on employer attractiveness

2019 ◽  
Vol 42 (6) ◽  
pp. 721-739 ◽  
Author(s):  
Faiz Ahamad
Keyword(s):  
Social Media ◽  
Word Of Mouth ◽  
Information Source ◽  
Differential Impact ◽  
Content Type ◽  
Job Attributes ◽  
Relationship Strength ◽  
Job Information ◽  
Employer Attractiveness ◽  
The Impact

Purpose Job information through word-of-mouth (WOM) has a crucial impact on employer attractiveness. The phenomenal rise of social media offers alternate WOM platforms for sharing job information, which is quite different from traditional face-to-face WOM. The purpose of this paper is to examine the differential impact of traditional word-of-mouth (t-WOM) and social media word-of-mouth (s-WOM) on employer attractiveness along with the difference in the job attributes and relationship strength with the information source. Design/methodology/approach A 2 × 2 × 2 experiment was conducted to examine the impact of information source (t-WOM and s-WOM), job attributes (tangible and intangible) and relationship strength (strong and weak), on employer attractiveness. Source expertise and source trust were treated as the control variable. Findings The result shows the differential impact of t-WOM and s-WOM on employer attractiveness. Moreover, t-WOM from strong relation source found to have a high impact on employer attractiveness than s-WOM. No significant difference due to job attributes was found. Research limitations/implications Use of only positive WOM and not the negative one, student as the subjects, etc. Practical implications The present study suggests using t-WOM and s-WOM to attract talented job seekers. Originality/value This is the first study to analyze the differential impact of t-WOM and s-WOM on employer attractiveness.

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