The Impact of Digital Word-of-Mouth Communication on Consumer Decision-Making Processes

2018 ◽  
pp. 176-198
Author(s):  
Sabyasachi Dasgupta ◽  
Reema Kothari
Keyword(s):  
Decision Making ◽  
Social Networking ◽  
Social Networking Sites ◽  
Word Of Mouth ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Decision Making Processes ◽  
Fashion Apparel ◽  
Word Of Mouth Communication ◽  
The Impact

This chapter throws light on the impact of digital word-of-mouth on consumer decision making process. The background review for this study elaborates on the growing popularity of social networking sites among users and the necessity for a brand to connect to its existing as well as prospective customers via fashion bloggers and not just through brand owned pages and posts or online ads. Users trust and rely on these fashion bloggers and influencers for their day-to-day intake latest trends, upcoming styles, new brands, and new product offerings. The aim of this research is to find out which is most popular online platform for browsing fashion apparel content and to what extent does digital word-of-mouth impact consumer decision making.

The impact of photographs on the online marketing for tourism: The case of Japanese-style inns

2020 ◽  
Vol 26 (3) ◽  
pp. 354-364 ◽  
Author(s):  
Takamitsu Jimura ◽  
Timothy J Lee
Keyword(s):  
Decision Making ◽  
Social Networking ◽  
Word Of Mouth ◽  
Online Marketing ◽  
Travel Agents ◽  
Social Networking Websites ◽  
Photo Sharing ◽  
Decision Making Processes ◽  
The Impact

This article examines the impact of the use of photographs in online marketing for tourism through a case study based on Japanese-style inns. Nowadays, most Japanese-style inns present photographs of what they think are their key appealing elements on their own social networking and/or video/photo-sharing websites, while guests upload their photographs and write comments on travel or social networking websites and/or on the websites of e-travel agents. Through the medium of ‘netnography’, this research has identified that the photographs presented online by Japanese-style inns can affect decision-making processes of guests and/or expectations in both a positive and a negative way, and e-word of mouth can work together with the photographs to influence prospective guests.

Influence of aggregated ratings on purchase decisions: an event-related potential study

2018 ◽  
Vol 52 (1/2) ◽  
pp. 147-158 ◽  
Author(s):  
Yongchao Shen ◽  
Wei Shan ◽  
Jing Luan
Keyword(s):  
Decision Making ◽  
Online Shopping ◽  
Event Related Potential ◽  
Behavioral Data ◽  
Consumer Decision Making ◽  
Neural Basis ◽  
Consumer Decision ◽  
Content Type ◽  
Decision Making Processes ◽  
The Impact

Purpose In an online shopping environment, individual reviews and aggregated ratings are important anchors for consumers’ purchasing decisions. However, few studies have considered the influence of aggregated ratings on consumer decision-making, especially at the neural level. This study aims to bridge this gap by investigating the consumer decision-making mechanism based on aggregated ratings to uncover the underlying neural basis and psychological processing. Design/methodology/approach An event-related potential experiment was designed to acquire consumers’ electrophysiological records and behavioral data during their decision-making processes based on aggregated ratings. The authors speculate that during this process, review valence categorization (RVC) processing occurs, which is indicated by late positive potential (LPP) components. Findings Results show that LPP components were elicited successfully, and perceptual review valence can modulate its amplitudes (one-star [negative] and five-star [positive] ratings evoke larger LPP amplitudes than three-star [neutral] ratings). The electroencephalogram data indicate that consumer decision-making processes based on aggregated ratings include an RVC process, and behavioral data show that easier review valence perception makes the purchase decision-making easier. Originality/value This study enriches the extant literature on the impact of aggregated ratings on consumer decision-making. It helps understand how aggregated ratings affect consumers’ online shopping decisions, having significant management implications. Moreover, it shows that LPP components can be potentially used by researchers and companies to evaluate and analyze consumer emotion and categorization processing, serving as an important objective physiological indicator of consumer behavior.

How Digital Word-of-Mouth Affects Consumer Decision Making: Evidence from Doctor Appointment Booking

2020 ◽  
Author(s):  
Aishwarya Deep Shukla ◽  
Guodong (Gordon) Gao ◽  
Ritu Agarwal
Keyword(s):  
Decision Making ◽  
Word Of Mouth ◽  
Three Dimensions ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Consideration Set ◽  
Clickstream Data ◽  
Set Size ◽  
Online Word Of Mouth ◽  
Decision Making Processes

We use detailed clickstream data on online word-of-mouth (WOM) to uncover mechanisms underlying its influence on consumer decision making. A feature launch on a major doctor appointment booking platform allows us to examine the effects of online WOM on three dimensions of a consumer’s choice process: the consideration set size, the time taken to consider alternatives (web session duration), and the geographic dispersion of the choices considered. Results indicate that the effects of WOM on decision-making processes are not monotonic but rather are contingent on the abundance of WOM (number of rated doctors) in a market. When the abundance of WOM is high, the introduction of WOM makes patients consider fewer doctors, browse for a shorter duration, and focus on doctors that are geographically more proximate. In contrast, when the abundance of WOM is low, the introduction of WOM makes patients consider more doctors, browse for longer duration, and consider doctors that are geographically more dispersed. We also find that WOM can lead to a cannibalization effect: when ratings are published, the highly rated doctors reap the benefits (in the form of increased demand) at the expense of unrated doctors. Our study contributes to the extant literature on online WOM by providing new insights into how WOM influences consumer decision making and by examining this question at a more granular level than prior work. This paper was accepted by Anandhi Bharadwaj, information systems.

Mobile Phone Purchases and the Consumer Decision-Making Process

2015 ◽  
pp. 303-333
Author(s):  
Jialin Hardwick ◽  
Lauriane Delarue ◽  
Barry Ardley ◽  
Nick Taylor
Keyword(s):  
Decision Making ◽  
Social Networking ◽  
Mobile Phone ◽  
Social Networking Sites ◽  
Online Advertising ◽  
Decision Making Process ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Innovative Products ◽  
Facebook Advertising

Facebook has been one of the popular Social Networking Sites (SNS) in recent years. With an increasing number of consumer groups using SNS, an understanding of consumer attitudes and behaviour towards its advertising becomes useful for businesses, in particular for those mobile phone companies that encounter consumer tastes in favouring technologically innovative products. Furthermore, greater attention needs to be paid to the function of online advertising in influencing the purchasing process. The study in this chapter contributes to our understanding of consumer behaviour towards SNS advertising. The differing behavioural segments identified show that Facebook advertising impacts the pre-purchase stages of the consumer decision-making process in mobile phone purchasing. Furthermore, the findings show that whilst social networking amongst peers is recognized as a key determinant of online engagement formal networking enabled by technical mechanisms on Facebook can be another key reason for using the site.

Rising Power of Today's Brands

2021 ◽  
pp. 66-90
Author(s):  
Orhan Duman
Keyword(s):  
Social Networking ◽  
Social Networking Sites ◽  
Word Of Mouth ◽  
Communication Channels ◽  
Competitive Environment ◽  
Reference Groups ◽  
Impact Power ◽  
Word Of Mouth Communication ◽  
Rising Power ◽  
The Impact

Today, businesses use communication channels, which is usually done to create brand value on consumers and to support the sale of the brand. However, it is controversial whether these efforts find the expected response in consumers. On the consumer side, there are word-of-mouth communication channels, which have become an electronic WOM (eWOM) concept after the spread of internet and social networking sites. Consumers are seeking information about products/brands and taking into account the impact and approval of certain reference groups such as market mavens. Market mavens have become much more effective in the digital environment and has reached an impact power that both affects and directs consumers via eWOM. As confidence and commitment to market mavens developed, interest in the products/brands they offered increased. Today's brands that realize the importance of market mavens will be able to survive and stand out in a competitive environment. Such brands can benefit from this marketing advantage by generating messages and content that can be viral for market mavens through eWOM.

Consumer style inventory and intent to social shop online for apparel using social networking sites

2014 ◽  
Vol 18 (3) ◽  
pp. 301-320 ◽  
Author(s):  
Ju-Young M. Kang ◽  
Kim K.P. Johnson ◽  
Juanjuan Wu
Keyword(s):  
Decision Making ◽  
Social Networking ◽  
Social Networking Sites ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Social Shopping ◽  
Decision Making Styles ◽  
Opinion Seeking ◽  
Fashion Consciousness

Purpose – The purpose of this paper are to examine: first, whether the consumer style inventory (CSI) consumer decision-making styles were related to opinion seeking using electronic word of mouth (eWOM) in social networking sites (SNSs) and attitudes toward online social shopping using SNSs; and second, whether opinion seeking in SNSs and attitudes mediated the links between decision-making styles and intent to social shop online for apparel using SNSs. Design/methodology/approach – The conceptual foundation was based on Engel, Kollat, and Blackwell's model. In total, 304 college students who are SNS users provided usable responses. Structural equation modeling was employed to test the proposed model and research hypotheses. Findings – Among the CSI consumer decision-making styles, novelty/fashion consciousness decision-making style was the most important antecedent of opinion seeking using eWOM. The brand consciousness decision-making style was the most important antecedent of favorable attitudes. Novelty/fashion consciousness, brand consciousness, and price consciousness decision-making styles had indirect effects on intent to social shop online for apparel using SNS, mediated by both opinion seeking and favorable attitudes. Originality/value – This study contributes to further theoretical understanding of the types of consumers that are drawn to eWOM and their online social shopping behaviors for apparel using SNSs. By identifying individual consumer characteristics, this study can provide retailers with an initial profile of consumers who shop apparel using SNSs. Retailers can use this information to further develop the design of their social shopping sites using SNSs to meet the needs of their customers.

scholarly journals An Extended Model of Behavioural Process in Consumer Decision Making

2016 ◽  
Vol 8 (4) ◽  
pp. 87 ◽  
Author(s):  
Nagasimha Balakrishna Kanagal
Keyword(s):  
Decision Making ◽  
Consumer Products ◽  
Extended Model ◽  
Response Model ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Stimulus Response ◽  
Economic Decision Making ◽  
Buying Behaviour ◽  
The Impact

<p>The stimulus response model of consumer behaviour is useful to understand the buying behaviour of individual consumers in the context of individuals buying consumer products. An extended stimulus-response model of behavioural processes in consumer decision making is proposed that serves to integrate the influences and interlinkages of buyer psychology, various buyer characteristics, and the impact of the buyer decision process on consumer decision making. The model proposes that the behavioural process of consumer decision making be as a result of the interaction of three aspects of individual buyer behaviour: communication sensitivity; enculturated individuality; and rational / economic decision making. The paper addresses the flip side of the consumer decision making process in terms of the five stages of decision making from need recognition to post-purchase satisfaction. An aggregate level framework of behavioural process in consumer decision making has been provided, that could lead to a richer analysis of micro level factors and relationships influencing consumer decision behaviour.</p>

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