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

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A Study of the Influence of Online Word-of-Mouth on the Customer Purchase Intention (온라인 구전정보가 소비자 구매의도에 미치는 영향에 대한 실증연구: 제품관여도, 조절초점, 자기효능감의 조절효과를 중심으로)

  • Yoo, Chang Jo;Ahn, Kwang Ho;Park, Sung Whi
    • Asia Marketing Journal
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    • v.13 no.3
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    • pp.209-231
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    • 2011
  • Internet is having strong impact on the consumer's decision making process. Information search has been done actively through internet today. The online reviews can be crucial information cue to evaluate the alternarive products. The online WOM(Word-Of-Mouth) effect depends on the characteristics of information sender, receiver, and WOM. This study is to examine the influence of the online word of mouth on the consumer purchase intention and the moderating role of product involvement, consumer regulatory focus and self-efficacy. Positive customer reviews on the products influence the purchase intention positively and negative customer reviews influence it negatively. Moderating role of involvement in the causal relation between the valence of online reviews and purchase intention is tested. In case of positive WOM, it is predicted that purchase intention for high involvement products is higher than that of low involvement. In case of negative WOM, purchase intention for high involvement product is lower than that of low involvement product. And this study invetigate the moderating role of regulatory focus. In case of positive WOM, it is predicted that promotion focus oriented consumers have higher purchase intention than prevention focus oriented consumers. In case of negative WOM, prediction is that prevention focus oriented consumers have lower purchase intention than promotion focus oriented consumers. Then we examine the moderating role of self efficacy in the causal relation between the valence of online reviews and purchase intention. In case of positive WOM, it is predicted that consumers with low self efficacy have higher purchase intention than consumers with high self efficacy. In case of negative WOM, it is predicted that consumers with low self efficacy have lower purchase intention than consumers with high self efficacy. Emprical results support our prediction and four hypotheses derived from our conceptual framework are all accepted. This study suggest that the level of product involvement, consumer regulatory focus and the level of self-efficacy influence the consumer responses of the valence of online reviews. Therefore marketers need to manage online reviews based on the level of product involvement, regulatory focus orientation and the level of self-efficacy of target consumers.

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A Study on the Influence of Affct Based Trust and Cognition Based Trust on Word-of-Mouth Behaviors -Focusing on Friendship Network and Advice Network- (정서기반신뢰와 인지기반신뢰가 구전행동에 미치는 영향 연구 -친교네트워크와 조언네트워크를 중심으로-)

  • Bae, Se-Ha;Kim, Sang-Hee
    • Management & Information Systems Review
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    • v.32 no.5
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    • pp.193-231
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    • 2013
  • As developed IT, Word-of-Mouth(WOM) used varied terms as buzz marketing and viral marketing, and impressed that importance. Despite introduced new marketing tool on managers and professionals, online word-of-mouth including SNS lack of study on social network what based viral in marketing. In social network, patterns of relationship between individuals influence each other individual behaviors. Therefore this research grouped friendship-network and advice-network by characteristics, studied on trust of information source that antecedents of word-of-mouth in network. This study examined that affect- and cognition based trust affect WOM acceptance as WOM behaviors and examined effect of type of product as moderating variable. Additional this literature studied that WOM acceptance affect WOM recommend. To find the Influence of Trust on Word-of-Mouth Behaviors, a survey has done 206 samples(undergraduate students). The results of this study are as following : First, type of trust different friendship network and advice network. Affect-based trust is outstanding in friendship network than in advice network, while cognition-based trust stands out in advice network than another. Second, affect- and cognition based trust positive affect WOM acceptance. Contrary to expectations, what is preconceived trust in network have a similar effect for WOM acceptance regardless of type of trust. Third, WOM acceptance positive affect WOM recommend. Fourth, affect based trust affect WOM acceptance of hedonic product rather than utilitarian product. Upon especially in friendship network terms, affect-based trust has a more effect on WOM acceptance than cognition-based trust. This study has many implications. First, it is important that trust what have an influence WOM acceptance grouped affect- and cognition based trust. Second, it confirmed that trust is antecedents of positive WOM. Third, it is important that network grouped friendship network and advice-network by trust. Fourth, it gave managerial implications that they have to supply WOM through which network by type of product. We This study classified network and trust based on previous study. Then it examined relations between WOM behaviors. Further research could do enrich various things for example various age group, valence of message, quality of information.

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Identifying the Actual Impact of Online Social Interactions on Demand

  • Dong Soo Kim
    • Asia Marketing Journal
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    • v.26 no.1
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    • pp.23-30
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    • 2024
  • Firms often engage in manipulating online reviews as a promotional activity to influence consumers' evaluation on their products. With the prevalence of the promotional activities, consumers may notice and discount the reviews generated by the promotional activities. Discounting the firm-generating reviews may cause systematic measurement errors in the valence variable and lead to a negative bias when estimating the effect of consumers' organic reviews on demand. To correct the bias, this study proposes including product-specific bias-correction terms representing the proportion of extreme reviews in analysis. For illustration, the proposed method is applied to a demand model for data of movies released in South Korea. The results confirm a negative bias in the estimate of the valence sensitivity of demand. The negative bias potentially leads to an underestimation of the magnitude of the contagion effect through social interactions, a key component of evaluating the value of a satisfied consumer.

Simultaneous Effect between eWOM and Revenues: Korea Movie Industry (온라인 구전과 영화 매출 간 상호영향에 관한 연구: 한국 영화 산업을 중심으로)

  • Bae, Jungho;Shim, Bum Jun;Kim, Byung-Do
    • Asia Marketing Journal
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    • v.12 no.2
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    • pp.1-25
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    • 2010
  • Motion pictures are so typical experience goods that consumers tend to look for more credible information. Hence, movie audiences consider movie viewers' reviews more important than the information provided by the film distributor. Recently many portal sites allow consumers to post their reviews and opinions so that other people check the number of consumer reviews and scores before going to the theater. There are a few previous researches studying the electronic word of mouth(eWOM) effect in the movie industry. They found that the volume of eWOM influenced the revenue of the movie significantly but the valence of eWOM did not affect it much (Liu 2006). The goal of our research is also to investigate the eWOM effects in general. But our research is different from the previous studies in several aspects. First, we study the eWOM effect in Korean movie industry. In other words, we would like to check whether we can generalize the results of the previous research across countries. The similar econometric models are applied to Korean movie data that include 746,282 consumer reviews on 439 movies. Our results show that both the valence(RATING) and the volume(LNMSG) of the eWOM influence weekly movie revenues. This result is different from the previous research findings that the volume only influences the revenue. We conjectured that the difference of self construal between Asian and American culture may explain this difference (Kitayama 1991). Asians including Koreans have more interdependent self construal than American, so that they are easily affected by other people's thought and suggestion. Hence, the valence of the eWOM affects Koreans' choice of the movie. Second, we find the critical defect of the previous eWOM models and, hence, attempt to correct it. The previous eWOM model assumes that the volume of eWOM (LNMSG) is an independent variable affecting the movie revenue (LNREV). However, the revenue can influence the volume of the eWOM. We think that treating the volume of eWOM as an independent variable a priori is too restrictive. In order to remedy this problem, we employed a simultaneous equation in which the movie revenue and the volume of the eWOM can affect each other. That is, our eWOM model assumes that the revenue (LNREV) and the volume of eWOM (LNMSG) have endogenous relationship where they influence each other. The results from this simultaneous equation model showed that the movie revenue and the eWOM volume interact each other. The movie revenue influences the eWOM volume for the entire 8 weeks. The reverse effect is more complex. Both the volume and the valence of eWOM affect the revenue in the first week, but only the volume affect the revenue for the rest of the weeks. In the first week, consumers may be curious about the movie and look for various kinds of information they can trust, so that they use the both the quantity and quality of consumer reviews. But from the second week, the quality of the eWOM only affects the movie revenue, implying that the review ratings are more important than the number of reviews. Third, our results show that the ratings by professional critics (CRATING) had negative effect to the weekly movie revenue (LNREV). Professional critics often give low ratings to the blockbuster movies that do not have much cinematic quality. Experienced audiences who watch the movie for fun do not trust the professionals' ratings and, hence, tend to go for the low-rated movies by them. In summary, applied to the Korean movie ratings data and employing a simultaneous model, our results are different from the previous eWOM studies: 1) Koreans (or Asians) care about the others' evaluation quality more than quantity, 2) The volume of eWOM is not the cause but the result of the revenue, 3) Professional reviews can give the negative effect to the movie revenue.

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The Impacts of Volume and Valence of eWOM on Purchase Intention for Movies: Mediation of Review Credibility (온라인 구전의 양과 방향성이 영화 관람의도에 미치는 영향: 리뷰 신뢰성의 매개효과)

  • Han, Seungji;Kim, Joongin
    • The Journal of the Korea Contents Association
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    • v.21 no.7
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    • pp.93-104
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    • 2021
  • Most of the existing studies on the volume and valence of the eWOM (electronic word of mouth) about movies and box-office revenues were conducted using online actual data (secondary data) at Yahoo Movies, IMDB.com, Naver Movies, etc. However, it is difficult to grasp psychological variables from online actual data. Therefore, existing studies using online actual data could not identify the causal relationship among volume, valence and psychological variables. This study fills this gap in the literature. This study aims to examine the direct and indirect effects (i.e. mediating effect) of the volume and valence of online reviews about movies on purchase intention through review credibility as a mediator. We conducted a survey on the South Korean consumers and a structural equation modeling. The outcomes show that the total effects of both volume and valence are significant. In addition, volume has an indirect effect only (i.e. full mediating effect) on purchase intention through review credibility, but valence has both direct and indirect effects (i.e. partial mediating effect) on purchase intention through review credibility. The theoretical and practical implications for these results are presented.

Exploring the Role of Preference Heterogeneity and Causal Attribution in Online Ratings Dynamics

  • Chu, Wujin;Roh, Minjung
    • Asia Marketing Journal
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    • v.15 no.4
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    • pp.61-101
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    • 2014
  • This study investigates when and how disagreements in online customer ratings prompt more favorable product evaluations. Among the three metrics of volume, valence, and variance that feature in the research on online customer ratings, volume and valence have exhibited consistently positive patterns in their effects on product sales or evaluations (e.g., Dellarocas, Zhang, and Awad 2007; Liu 2006). Ratings variance, or the degree of disagreement among reviewers, however, has shown rather mixed results, with some studies reporting positive effects on product sales (e.g., Clement, Proppe, and Rott 2007) while others finding negative effects on product evaluations (e.g., Zhu and Zhang 2010). This study aims to resolve these contradictory findings by introducing preference heterogeneity as a possible moderator and causal attribution as a mediator to account for the moderating effect. The main proposition of this study is that when preference heterogeneity is perceived as high, a disagreement in ratings is attributed more to reviewers' different preferences than to unreliable product quality, which in turn prompts better quality evaluations of a product. Because disagreements mostly result from differences in reviewers' tastes or the low reliability of a product's quality (Mizerski 1982; Sen and Lerman 2007), a greater level of attribution to reviewer tastes can mitigate the negative effect of disagreement on product evaluations. Specifically, if consumers infer that reviewers' heterogeneous preferences result in subjectively different experiences and thereby highly diverse ratings, they would not disregard the overall quality of a product. However, if consumers infer that reviewers' preferences are quite homogeneous and thus the low reliability of the product quality contributes to such disagreements, they would discount the overall product quality. Therefore, consumers would respond more favorably to disagreements in ratings when preference heterogeneity is perceived as high rather than low. This study furthermore extends this prediction to the various levels of average ratings. The heuristicsystematic processing model so far indicates that the engagement in effortful systematic processing occurs only when sufficient motivation is present (Hann et al. 2007; Maheswaran and Chaiken 1991; Martin and Davies 1998). One of the key factors affecting this motivation is the aspiration level of the decision maker. Only under conditions that meet or exceed his aspiration level does he tend to engage in systematic processing (Patzelt and Shepherd 2008; Stephanous and Sage 1987). Therefore, systematic causal attribution processing regarding ratings variance is likely more activated when the average rating is high enough to meet the aspiration level than when it is too low to meet it. Considering that the interaction between ratings variance and preference heterogeneity occurs through the mediation of causal attribution, this greater activation of causal attribution in high versus low average ratings would lead to more pronounced interaction between ratings variance and preference heterogeneity in high versus low average ratings. Overall, this study proposes that the interaction between ratings variance and preference heterogeneity is more pronounced when the average rating is high as compared to when it is low. Two laboratory studies lend support to these predictions. Study 1 reveals that participants exposed to a high-preference heterogeneity book title (i.e., a novel) attributed disagreement in ratings more to reviewers' tastes, and thereby more favorably evaluated books with such ratings, compared to those exposed to a low-preference heterogeneity title (i.e., an English listening practice book). Study 2 then extended these findings to the various levels of average ratings and found that this greater preference for disagreement options under high preference heterogeneity is more pronounced when the average rating is high compared to when it is low. This study makes an important theoretical contribution to the online customer ratings literature by showing that preference heterogeneity serves as a key moderator of the effect of ratings variance on product evaluations and that causal attribution acts as a mediator of this moderation effect. A more comprehensive picture of the interplay among ratings variance, preference heterogeneity, and average ratings is also provided by revealing that the interaction between ratings variance and preference heterogeneity varies as a function of the average rating. In addition, this work provides some significant managerial implications for marketers in terms of how they manage word of mouth. Because a lack of consensus creates some uncertainty and anxiety over the given information, consumers experience a psychological burden regarding their choice of a product when ratings show disagreement. The results of this study offer a way to address this problem. By explicitly clarifying that there are many more differences in tastes among reviewers than expected, marketers can allow consumers to speculate that differing tastes of reviewers rather than an uncertain or poor product quality contribute to such conflicts in ratings. Thus, when fierce disagreements are observed in the WOM arena, marketers are advised to communicate to consumers that diverse, rather than uniform, tastes govern reviews and evaluations of products.

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