• Title/Summary/Keyword: online WOM(word of mouth)

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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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Effects of Shopping Flow in Experiential Fashion Stores on Brand Advocacy - Multi-mediating Effects of Emotional Response, Experimental Shopping Value, and Store Attachment - (체험형 패션 매장에서의 쇼핑몰입이 브랜드 옹호행동에 미치는 영향 - 감정반응과 경험적 쇼핑가치 및 점포애착의 순차적 다중매개 효과 검증 -)

  • Choi, Mi Young;Kim, Woo Bin
    • Fashion & Textile Research Journal
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    • v.24 no.4
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    • pp.431-442
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    • 2022
  • Despite the rapid reorganization of the center of consumption online, the fashion industry is still strengthening brand marketing using offline stores. This study investigates the psychological mechanisms of shopping flow by three mediators that influence the e-word of mouth(e-WOM) as a marketing performance variable in recent marketing. Data collection was conducted online for 241 women in their 20s and 30s. The significance of multi-mediated pathways was verified using Process 3.5 Model 6. The results for multiple mediation paths are as follows. First, the direct effect of shopping flow on brand advocacy was not significant. Second, analysis of the significance of the indirect effect via simple mediation found that the path mediated by shopping value in the path from the shopping flow to brand advocacy was significant. Third, analysis of the indirect effect by double mediation revealed all three double mediating effects of shopping flow on brand advocacy were significant(emotional response and shopping value, emotional response and store attachment, shopping value and store attachment). Fourth, analysis of the significance of the indirect effect by sequential multiple mediation established the indirect effect leading to emotional response, shopping value, and store attachment was significant. These results indicate that the operation of an experiential fashion store is not just a means for sales, but a communication tool that improves and promotes the brand advocacy by providing brand experience in a store.

The Viral Effect of Online Social Network on New Products Promotion: Investigating Information Diffusion on Twitter (신제품 프로모션에 대한 온라인 소셜네트워크의 구전효과 분석 : 트위터의 정보전달과정을 중심으로)

  • Kim, Hyung-Jin;Son, In-Soo;Lee, Dong-Won
    • Journal of Intelligence and Information Systems
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    • v.18 no.2
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    • pp.107-130
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    • 2012
  • In Twitter, a user can post a message below 140 characters on his/her account, and can also repost a message of other users who the user follows. The message posted by the user in turn can be seen and reposted by other users who follow the user, which is called Re-tweet (RT). While some messages spread widely, other messages have relatively less or no RT. What factors cause these quantity variances of RT originated from original messages? How can the messages become influential in online social networks? As an effort to answer the above questions, we focused on information vividness, message characteristics, and originator characteristics. In perspective of managerial implication, we expect that the findings of this paper will provide corporations with helpful insight on the Word-of-Mouth (WOM) effect for efficient and effective advertisements and communications when they send a message of new products or services through Social Network Services. In perspective of academic implication, we identify the effect of contents of a message on WOM, which has been dealt with by few social network researches.

An Empirical Analysis of Doppelgänger Brand Image Effects: Focused on the Internet Community (도플갱어 브랜드 이미지 효과에 대한 실증적 분석: 인터넷 커뮤니티를 중심으로)

  • Cho, Hyuk Jun;Kim, Sung Guen;Kang, Ju Young
    • The Journal of Information Systems
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    • v.26 no.1
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    • pp.21-51
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    • 2017
  • Recently there have been an increasing number of companies suffering a negative brand image in the major media. Thompson et al. (2006) defined this as "$Doppelg{\ddot{a}}nger$ Brand Image." The images mentioned above have been created and propagated on Internet communities, which are one of the major paths of online spreading. This study will empirically analyze the effect of each $Doppelg{\ddot{a}}nger$ brand image on the customer's brand attitude, using a text-mining method focusing on "A company"'s case. This study will also cover the change in customer brand attitudes related to the company's correspondence in a situation in which the $Doppelg{\ddot{a}}nger$ brand image exists. In addition, the study will determine the presence of a priming effect after the spread of the $Doppelg{\ddot{a}}nger$ brand image. To that end, we collected 974 comments from 94,889 posts and A's official blogs related to A from B community, the largest automobile community site in Korea. Through this investigation, we obtained the following results. First, there was a significant difference in the ratio of negative sentiment of internet community before and after $Doppelg{\ddot{a}}nger$ brand image. Second, with regard to the topic modeling, the ratio of articles including negative topics increased and the other article ratio decreased over time. Finally, we found that there is a priming effect about negative brand image of "A company."

Building a Korean Sentiment Lexicon Using Collective Intelligence (집단지성을 이용한 한글 감성어 사전 구축)

  • An, Jungkook;Kim, Hee-Woong
    • Journal of Intelligence and Information Systems
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    • v.21 no.2
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    • pp.49-67
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    • 2015
  • Recently, emerging the notion of big data and social media has led us to enter data's big bang. Social networking services are widely used by people around the world, and they have become a part of major communication tools for all ages. Over the last decade, as online social networking sites become increasingly popular, companies tend to focus on advanced social media analysis for their marketing strategies. In addition to social media analysis, companies are mainly concerned about propagating of negative opinions on social networking sites such as Facebook and Twitter, as well as e-commerce sites. The effect of online word of mouth (WOM) such as product rating, product review, and product recommendations is very influential, and negative opinions have significant impact on product sales. This trend has increased researchers' attention to a natural language processing, such as a sentiment analysis. A sentiment analysis, also refers to as an opinion mining, is a process of identifying the polarity of subjective information and has been applied to various research and practical fields. However, there are obstacles lies when Korean language (Hangul) is used in a natural language processing because it is an agglutinative language with rich morphology pose problems. Therefore, there is a lack of Korean natural language processing resources such as a sentiment lexicon, and this has resulted in significant limitations for researchers and practitioners who are considering sentiment analysis. Our study builds a Korean sentiment lexicon with collective intelligence, and provides API (Application Programming Interface) service to open and share a sentiment lexicon data with the public (www.openhangul.com). For the pre-processing, we have created a Korean lexicon database with over 517,178 words and classified them into sentiment and non-sentiment words. In order to classify them, we first identified stop words which often quite likely to play a negative role in sentiment analysis and excluded them from our sentiment scoring. In general, sentiment words are nouns, adjectives, verbs, adverbs as they have sentimental expressions such as positive, neutral, and negative. On the other hands, non-sentiment words are interjection, determiner, numeral, postposition, etc. as they generally have no sentimental expressions. To build a reliable sentiment lexicon, we have adopted a concept of collective intelligence as a model for crowdsourcing. In addition, a concept of folksonomy has been implemented in the process of taxonomy to help collective intelligence. In order to make up for an inherent weakness of folksonomy, we have adopted a majority rule by building a voting system. Participants, as voters were offered three voting options to choose from positivity, negativity, and neutrality, and the voting have been conducted on one of the largest social networking sites for college students in Korea. More than 35,000 votes have been made by college students in Korea, and we keep this voting system open by maintaining the project as a perpetual study. Besides, any change in the sentiment score of words can be an important observation because it enables us to keep track of temporal changes in Korean language as a natural language. Lastly, our study offers a RESTful, JSON based API service through a web platform to make easier support for users such as researchers, companies, and developers. Finally, our study makes important contributions to both research and practice. In terms of research, our Korean sentiment lexicon plays an important role as a resource for Korean natural language processing. In terms of practice, practitioners such as managers and marketers can implement sentiment analysis effectively by using Korean sentiment lexicon we built. Moreover, our study sheds new light on the value of folksonomy by combining collective intelligence, and we also expect to give a new direction and a new start to the development of Korean natural language processing.