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

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A Comparative Study on Attribute Recognition and Word of Mouth Intention of SNS Advertising - Focused on Facebook, Instagram, KaKaoStory and Twitter (SNS 광고의 속성인식과 구전의도 비교연구 - 페이스북, 인스타그램, 카카오스토리, 트위터를 중심으로)

  • Jeong, Chang Jun
    • The Journal of the Convergence on Culture Technology
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    • v.6 no.2
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    • pp.419-428
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    • 2020
  • SNS media is gaining its media share with the benefits of digital technology, such as the convenience of physical access and the entertainment and interactivity of contents, and are becoming a part of users' lives. As media contents consumers move from traditional media to SNS, marketing communication activities are rapidly adapting to leading SNS platforms such as Facebook. This study compares how users perceive four advertisement attributes in each SNS, focusing on Facebook, Instagram, Kakao Story, and Twitter, where the media content creation and consumption systems are relatively similar to each other. The impact on eWOM intention was identified. In addition, we discussed effective SNS operation.

The Effects of One-Sided vs. Two-Sided Review Valence on Electronic Word of Mouth (e-WOM): The Moderating Role of Sponsorship Presence

  • Park, Jihye;Yi, Youjae;Kang, Dawon
    • Asia Marketing Journal
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    • v.21 no.2
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    • pp.1-19
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    • 2019
  • Prior studies on the effects of online consumer reviews have mainly focused on review valence, but little research has investigated how two-sided (both positive and negative) and one-sided (only positive) reviews influence consumers' response to online review. In addition, little attention has been paid to how sponsorship presence (firm-sponsored reviews vs. consumer-voluntary reviews) influences individuals' attitude toward online review. Unlike consumer-voluntary reviews without any monetary incentive, firm-sponsored reviews include messages about brands providing monetary compensation. This study examines whether review valence (two-sidedness vs. one-sidedness) influences attitude toward online review via its influence on review credibility. Further, this study examines whether sponsorship presence affects when review valence influences attitude toward review. Thus, this research investigates the effect of review valence on attitude toward review and the moderating role of sponsorship presence in the relationship between review valence and attitude toward review. The first experiment reveals that attitude toward review is more favorable when the review is two-sided (vs. one-sided). The second study demonstrates that differences between the two-sided and the one-sided review occur only for firm-sponsored reviews, not for consumer-voluntary reviews. The theoretical and practical implications are also discussed.

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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Fairness, Satisfaction, Intention to Repurchase, and Negative WOM in the Process of Service Recovery (서비스 회복과정에서 공정성과 만족, 그리고 재구매 의도와 부정적 구전)

  • Jeong, Yong-Gil
    • The Journal of the Korea Contents Association
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    • v.17 no.6
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    • pp.424-435
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    • 2017
  • Because services are delivered through the behaviors of people, it is very difficult to do the quality control and services failures are often happened. If services failures are not recovered by appropriate methods, customers make the negative word-of-mouth communications and have the negative intention to repurchase. The service recovery paradox demonstrates the importance of service recovery after the service failures. The purpose of this study is to investigate the antecedents of customer satisfaction of service recovery(CS), and its consequences of the CS. Independent variables of CS are distributive justice, procedural justice, and interactional justice, and dependent variables of CS are negative word of mouth communication and intention to repurchase. Data are collected using the scenario method. Research model and hypotheses are tested empirically using the statistical packages such as SPSS and AMOS.

Impact of Relationship Quality and Attribution on Service Recovery Expectation and Word of Mouth (관계 품질과 귀인이 서비스 복구 기대와 구전에 미치는 영향)

  • Yoon, Sungwook;Park, Seongil
    • Journal of Service Research and Studies
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    • v.9 no.4
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    • pp.97-114
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    • 2019
  • The relationship quality and recovery of service failures perceived by consumers play an essential role in affecting the service provider's image and sales in terms of the highly involved service industry. In particular, implementation of successful relationship marketing strategies and effective recovery of service failures provide greater satisfaction for customers expecting customized services and reinforce the relationships between the companies and consumers. Based on these previous studies, this research conducted to find out the causal relationship between the variables influencing service recovery expectations and word of mouth(WOM) by approaching the severity of service failures from the perspective of relationship marketing and attribution theory. For the empirical analysis of this research, we conducted a questionnaire surveys of 360 service users of beauty salons, who have experienced in high-involvement services, and utilized 333 questionnaires for the final analysis. The hypothesis was experimented using the Structural Equation Model(SEM), and the results are as follows. First, we identified that the higher the customer perceived the severity of the service failure, the lower the quality of the relationship. Second, we verified that service users observed service failure as a temporary and uncontrollable factor as they distinguished service quality as higher. Third, the hypothesis that customers recognize service failures as a temporary one has a positive impact on service recovery expectation level is determined through empirical analysis. Forth, it was figured out that the higher the perceived quality of the relationship with the service provider, the higher the service recovery level expected by the consumers. At the same time, the hypothesis that optimism for service recovery expectation affects positive word of mouth has been verified. The results of this study help develop the customer-oriented business model of the service companies. Furthermore, the academic significance in that it suggested a new direction for the research of high-involvement service marketing.

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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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.

Choice Attributes of International Medical Tourism Consumers (국제의료관광 소비자의 선택속성에 관한 연구)

  • Lee, Hee-Seung;Chun, He-Jin;Kim, Kee-Hong
    • International Commerce and Information Review
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    • v.12 no.4
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    • pp.345-362
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    • 2010
  • It is necessary to develop new competitive products under the world economic downturn. The medical tourism industry a good example and it has grown rapidly for last couple of years. This paper aims to investigate socio-demographic proxies of inbound medical tourists in Korea. In particular, the medical tourist behaviors are modeled by considering the factors such as acquisition process of medical tourism information, service level of medical tourism industry and the choice attributes. The results of this study are summarized that: 1) Moot inbound medical tourists are over 40-years old with professional occupation accompanied with families; 2) The information resources are mainly acquired from travel agents and WOM(Word of Mouth) such as friends and relatives; 3) Current problems are lack of various promotion channels and the competitiveness of medical coots; 4) The inbound medical tourists are not homogeneous but vary in different segments. The study suggests that various marketing strategies should be implemented for target market segments to promote Korea as a medical tourism hub.

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The Effects of Luxury Fashion Platforms' Attributes on Consumer eWOM (럭셔리 패션 플랫폼 속성이 온라인 구전의도에 미치는 영향)

  • Kim, Suzy;Hur, Hee Jin;Choo, Ho Jung
    • Journal of the Korean Society of Clothing and Textiles
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    • v.45 no.4
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    • pp.685-702
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    • 2021
  • This study aims to discover how the perceived attributes of luxury fashion platforms affect consumer trust and satisfaction as well as online word-of-mouth intention. Based on a literature review, this study derived four dimensions of perceived attributes: brand assortment size, exclusivity, convenience, and personalization. The paper presents findings from an online survey targeting 359 consumers in their 20s to 30s who had recent experience with luxury fashion platforms. Based on the collected data, a structural model equation analysis was performed using AMOS 22.0 and SPSS 26.0. The findings illustrated that brand assortment size, exclusivity, and personalization had positive effects on consumers' platform trust. In addition, brand assortment size and convenience had a positive impact on satisfaction. Overall, the findings of the study illustrate that perceived attributes of luxury fashion platforms have a significant impact on consumers' platform trust and satisfaction and online word-of-mouth intentions. This study reveals that consumers' trend orientation moderates the effects of consumer attitude and behavioral intention. The academic practice of this study has laid the foundation for understanding mechanisms of marketing strategies by providing the characteristics of platforms in the luxury fashion industry.

Moderating Effects of Online Platform Business Ecosystems between Customer Participation and Psychological Ownership: A Comparison of Kakao and Facebook Ecosystems (고객참여와 심리적 주인의식의 관계에서 온라인 플랫폼 비즈니스 생태계 유형의 조절효과: 카카오와 페이스북 생태계의 비교)

  • Joo, Jaehun;Shin, M. Minsuk
    • The Journal of Information Systems
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    • v.25 no.1
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    • pp.75-104
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    • 2016
  • Purpose The business ecosystem perspective offers a new lens in which to view customers. Customers as the member of business ecosystems influence firms by participating in both the firm level activities and the business ecosystem level activities. For example, customers participate in the business ecosystems by forming interest groups, allowing their voice to be heard the within business ecosystems. Customers can also, turn public opinion around and foster the business ecosystems favorable to firms. On the other hand, as an extreme case of customer participation, customers can engage in community activities to boycott the purchase of products or services from certain firms or business ecosystems. Design/methodology/approach This study views content creation and feedback activities as customer participation in the firm level. On the other hand, word-of-mouth (WOM) and boycott activities are considered as customer participation in the business ecosystem level. This study presents a research model regarding the relationships among customer socialization, customer participation, and psychological ownership. The proposed model is validated through an empirical analysis on online platform business ecosystems. Findings When the two business ecosystems are compared, different results were drawn. In the Facebook ecosystem, boycott and psychological ownership did not have a significant relationship. However, in the Kakao ecosystem, the two had a significant positive relationship. The mediating effect of the business ecosystem type sheds a light on the mission, purpose, vision, and other values associated with the theory of the business on the customer-firm relationship. Further implications for theory and practice were discussed in this study.