• Title/Summary/Keyword: Effect of Word Of Mouth(WOM)

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The Effect of Online WOM of Menu Product Consumers on Product Perception Risk and WOM Effect

  • HEO, Yeong-Wook
    • Journal of Distribution Science
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    • v.18 no.3
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    • pp.77-85
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    • 2020
  • Purpose: This study examined marketing value as online word-of-mouth media in the foodservice industry, and it did research on online word-of-mouth (e-WOM) communication marketing schemes using mass communication in the industry. The study is also intended to investigate the impact of electronic word-of-mouth (e-WOM) information and communication on product awareness risks, benefits, and word-of-mouth (WOM) impacts on restaurant consumers. Research design, data, and methodology: The analysis was conducted on a valid questionnaire of 425 menu product consumers. The survey was conducted for two months in March 2019. The collected data was analyzed using SPSS and hierarchical regression analysis was applied. Results: It did empirical research on the reciprocal casual relations to online and the existing word-of-mouth communication that have to be preceded to understand characteristics of online word-of-mouth communication for the purpose of this study. The result is summarized as follows. First, the online word-of-mouth (e-WOM) effect on product recognition risk shows the statistically significant effect of information sender characteristics, information recipient characteristics, and online word-of-mouth (e-WOM) communication on product recognition risk. Second, the influence of online word-of-mouth (e-WOM) on product risk benefits shows that the information sender characteristics, the information receiver characteristics, and online communications have a statistically significant effect on product risk benefits. Third, online word of mouth risk recognition had a statistically significant effect on word of mouth acceptance. Fourth, online risk benefit had a statistically significant positive effect on word of mouth (WOM) effect. Conclusions: The communication between online word of mouth (e-WOM) sender and recipient had a positive influence on the product evaluation and attitude change in the foodservice industry, and the word-of-mouth (WOM) effect affected financial and non-financial performance. The results mentioned above indicated that the communication between the sender of the information and the receiver of the information had a positive effect on the product evaluation and attitude change of the menu consumer, and the word-of-mouth (WOM) result affected the financial. Therefore, the online word-of-mouth (e-WOM) effect has a positive effect on the word-of-mouth (WOM) effect of menu products when performed simultaneously and positively between the information sender and the information receiver.

A Study on the Factors Affecting Electronic Word-of-Mouth in the Context of Social Media Environment (소셜미디어 환경에서 온라인구전(eWOM)에 영향을 미치는 요인 연구)

  • Noh, Seung Ui;Lee, Ji Eun;Son, Jung Eun;Kim, Hee-Woong
    • Knowledge Management Research
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    • v.14 no.1
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    • pp.1-19
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    • 2013
  • Consumers have collected information and sought advices from other consumer through Internet. They could collect information in virtual space (online) not real world, that is Electronic Word of Mouth (eWOM). This study focused on research the factors on effect in Electronic Word-of-Mouth (eWOM) in the open market which is mediate between individuals and online stores. This is an exploratory study for research on finding factors of effect in eWOM. First of all, 5factors are selected from interview with 31 consumers. Then online surveys are conducted and 5 factors are significantly supported. This study is academically new approach on an exploratory study and it could suggest marketers to strategically manage eWOM.

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A Correlation Analysis between Word-of Mouth Message Sender Credibility and WOM Effect (외식업소에 대한 구전 메시지 발신자 신뢰도와 구전효과의 상관성 분석)

  • Cha, Sung-Mi;Shin, Seo-Young
    • Journal of the Korean Society of Food Culture
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    • v.21 no.5
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    • pp.536-540
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    • 2006
  • The purposes of this study were 1) to analyze the correlation between Word-of-Mouth(WOM) message sender credibility and WOM effect and 2) to analyze the differences of WOM message sender creadibility and WOM effect in off-line and on-line WOM communication. The messages were created as a form of scenario for this study. Respondents were asked to evaluate the message sender credibility and predict WOM behaviors after reading given scenario. The questionnaires were distributed to 200 customers and a total of 175 questionnaires were used for analysis(87.5%). The statistical analysis was conducted using SPSS Win(12.0) for descriptive analysis, paired t-test, factor analysis, correlation analysis. The positive off-line WOM message sender was considered as more credible(p<.001) than on-line WOM message sender. 'Message sender credibility' is correlated with 'attitude formation' in both channels, but 'reliable' factor of 'credibility' variable is not significantly correlated with 'attitude change'.

The Effect of Online Word-of-mouth on Fashion Involvement and Internet Purchase Behavior (온라인 패션 구전에 따른 패션제품 관여와 인터넷 구매행동)

  • Song, So-Jin;Hwang, Jin-Sook
    • Journal of the Korean Society of Clothing and Textiles
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    • v.31 no.3 s.162
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    • pp.410-419
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    • 2007
  • The purposes of this study were to segment consumers by on-line word of month and to find the differences among the segmented groups in regard to fashion involvement, internet perceived risk, and internet purchase behavior. The subjects of this study were female consumers who were members of online cafe in Korea. The data were collected during October, 2004. The respondents returned the questionnaires through internet and 480 questionnaires were finally used in the data analysis. The statistical analyses used for the study were factor analysis, cluster analysis, t-test, and $X^2-test$. The results showed that word-of·mouth communication on internet(e-WOM) is composed of two factors, word-of-mouth transmission and word-of-mouth acceptance. These two factors were put under cluster analysis and were classified into two groups of the word-of·mouth communication: WOM group and non-WOM group. T-test showed that word-of-mouth communication groups were significantly different in regard to fashion involvement, internet perceived risk, and internet purchase behavior. For example, WOM group was more uncertain of their clothing choices, put more weight on the internal factors of clothing selection, and was a frequent purchaser of internet fashion products. Internet fashion business needs to implement the proper marketing strategies based on the results of the study.

The Effect of Word-of-Mouth on Purchase Intention: A Case Study of Low-Cost Carriers in Indonesia

  • SOELASIH, Yasintha;SUMANI, Sumani
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.4
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    • pp.433-440
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    • 2021
  • This study aims at testing word-of-mouth (WOM) by mediating positive and negative perceptions of purchase intention on low-cost carriers (LCC) flights in Indonesia. One of the communications mixes that airlines can carry out is WOM. WOM is a form of communication between passengers after using a flight. The formation of a positive perception of WOM is expected by airlines. If a positive perception of WOM has formed, a purchase intention will arise. The study population included LCC flight passengers in Indonesia, involving 387 respondents. For indicators and variables, validity and reliability tests were conducted using CFA, CR, and AVE tools. Sampling locations were Soekarno-Hatta and Kualanamu airports. Sample collection was obtained through purposive sampling, and the analytical tool used was structural equation modeling (SEM) with Lisrel. The results showed that WOM influenced purchase intention through positive and negative perceptions of WOM. It can be seen that a positive perception of WOM has a direct effect, while a negative perception of WOM has the opposite effect. In conclusion, the mediation of perceptions influences purchase intention, whether it in the same direction or the opposite ones. To conclude, WOM is an antecedent for it influences purchase intention.

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 Fashion Leadership on Word of Mouth Communications on the Internet (유행선도력에 따른 온라인 구전활동)

  • Shin, Hyun-Kyung;Hwang, Jin-Sook
    • Journal of the Korean Society of Clothing and Textiles
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    • v.34 no.8
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    • pp.1242-1252
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    • 2010
  • This research investigates the effect of fashion leadership on Word of Mouth (WOM) communications on the Internet. This research categorizes consumers into groups by fashion leadership and compares the groups regarding the WOM behavior (degrees of WOM acceptance and delivery as well as the motivations of WOM acceptance and delivery). The subjects of the study were 325 males and females. Major statistical methods used for the study were factor analysis, ANOVA, Scheff$\acute{e}$'s test, and chi-square test. The results categorized consumers into five groups by fashion leadership (dual leaders, fashion innovators, fashion opinion leaders, fashion followers, and fashion laggards). There were significant differences among fashion leadership groups over WOM behavior (acceptance and delivery) and monthly clothing expenditures. Fashion dual leaders had a higher degree of WOM acceptance with motivation of fashion information acquisition and compliance, and they had a higher degree of WOM delivery through motivation of economic compensation, pleasure, and advice. In addition, they had a higher expenditure for clothing products. Fashion innovators had a lower degree of compliance in WOM acceptance. Fashion opinion leaders had a higher degree of WOM delivery through motivation from advice. Fashion followers delivered WOM through motivation of economic compensation and advice. Fashion laggards had a lower degree of WOM acceptance and delivery.

The Antecedents of Negative e-WOM and Their Effects on Purchasing Intention of Energy Drinks: An Empirical Study in Indonesia

  • HERSETYAWATI, Endwien;ARIEF, M.;FURINTO, Asnan;SAROSO, Hardijanto
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.7
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    • pp.341-348
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    • 2021
  • The aim of this study is to fill gaps in emerging empirical evidence and negative electronic word of mouth (NeWOM) in repurchase intention (RI) moderated by the roles of social network sites (SNS) and company mitigation response (CMR). This type of research is descriptive. The sample used in this study is online consumers who buy energy drinks, based on the questionnaire obtained by 145 respondents. Based on the results of testing the estimation of the structural equation model, it was found that the negative variable brand experience sharing had no significant effect on NeWOM; the negative variable electronic reviews had a significant effect on the electronic word of mouth variable, the negative variable electronic reviews had a significant effect on the negative electronic variable word of mouth, the variable intensity of the use of social networking sites can strengthen the direction of the causal influence between the negative variables sharing brand experiences on negative electronic words of mouth. The variable social networking sites usage intensity can strengthen the direction of the effect of causality between negative electronic review variables on negative electronic word of mouth, the negative brand experience sharing variable does not have a significant effect on the repurchase intention variable.

A Study on the Effects of Consumer Lifestyle(VALS) on Small Enterprises' Consumers WOM (소상인 점포 이용 소비자의 라이프스타일(VALS)이 구전 효과에 미치는 영향에 관한 연구)

  • Choi, Shin-Hea;Kim, Young-Ki;Kim, Seung-Hee
    • Journal of Distribution Science
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    • v.15 no.12
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    • pp.61-72
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    • 2017
  • Purpose - Despite that the importance of small enterprises' performance in the community has been magnified, no study has been conducted yet on the performance based on consumers directly faced by small enterprises. Accordingly, this study aims to investigate the relationship between the life styles of consumers who use small enterprises' stores by type and the word of mouth(WOM) effects, which are concrete behaviors of consumers. Research design, data, and methodology - The VALS classification system was utilized to classify the types of life styles of consumers who use small enterprises' stores. The consumers were divided into a total of four types. This study was intended to investigate the effects of the types of consumers on the word of mouth(WOM) effects of consumers who use small enterprises' stores along with the effects of consumers' perception of economic situations on their word of mouth(WOM) effects after using small enterprises' stores. Results - The results of the study indicated that among the types of consumers who use small enterprises' stores, the group that pursues faith and the group that pursues knowledge had positive (+) effects on favorable word of mouth(WOM) effects. However, the group that pursues trends and the group that pursues action were shown to have no effect and positive or negative perceptions of economic situations were shown to have no effects of the word of mouth(WOM) effects of users of small enterprises' stores. Conclusions - In this study, as a measure to create small enterprises' performance, word of mouth(WOM) effects on small enterprises' stores according to consumers' consumption behaviors were examined focusing on consumers. Through the study results, the groups of consumers who use small enterprises' stores by type that provide favorable word of mouth(WOM) effects were derived. And This Study aims to investigate the relationship between the four type life styles of consumer who use small enterprises' stores and the word of mouth(WOM) effect. Accordingly This study is significant in that it derived a measure to create small enterprises' performance centering on consumers and that it presented a cornerstone for the establishment of small enterprises at the government level.

Analyzing the Effect of Electronic Word of Mouth on Low Involvement Products

  • Youngeui Kim;Hyun Sil Moon;Jae Kyeong Kim
    • Asia pacific journal of information systems
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    • v.27 no.3
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    • pp.139-155
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    • 2017
  • As social media are increasingly being used as a marketing platform, electronic word-of-mouth (eWOM) has also become popular in both research and business areas. However, although many studies have examined the effect of eWOM, the products investigated in most of these studies, such as films or books, are not likely to be consumed daily. Therefore, in this study, we analyze the effect of eWOM on low involvement products, which are inexpensive and enough for everyday spending. Given that low involvement products have unique characteristics such as low price, we conduct an experiment using a real sales dataset related to soft drinks. We also analyze the effect of eWOM in two social media platforms. We find that eWOM influences the sales of low involvement products, but such influence is dependent on the characteristic of the social media platform. Based on these results, we suggest that marketers and retailers selling low involvement products must consider eWOM, such as reviews, and differentiate their strategies based on their focused social media platform.