The Impact of Online Recommendations and Consumer Feedback on Sales

Quality uncertainty and high search costs for identifying relevant information from an ocean of information may prevent customers from making purchases. Recognizing potential negative impacts of this search cost for quality information and relevant information, firms began to invest in creating a virtual community that enables consumers to share their opinions and experiences to reduce quality uncertainty, and in developing recom- mendation systems that help customers identify goods in which they might have an interest. However, not much is known regarding the effectiveness of these efforts. In this paper, we empirically investigate the impacts of recommendations and consumer feedbacks on sales based on data gathered from Amazon.com. Our results indicate that more recommendations indeed improve sales at Amazon.com; however, consumer ratings are not found to be related to sales. On the other hand, number of consumer reviews is positively associated with sales. We also find that recommendations work better for less-popular books than for more-popular books. This is consistent with the search cost argument: a consumer’s search cost for less-popular books may be higher, and thus they may rely more on recommendations to locate a product of interest

eWOM: the effects of online consumer reviews on purchasing decision of electronic goods

Internet has become the primary source of information for a large number of consumers and it has dramatically changed the consumer behaviour. One of the main changes in modern consumer behaviour has been the transition from a passive to an active and informed consumer. Internet enables customers to share their opinions on, and experiences with, goods and services with a multitude of other consumers. Online consumer reviews are used by prospective buyers of related products who are interested in obtaining more information from people who have purchased and used a product of interest. Word-of-mouth (WOM) is one of the most important information sources when a consumer is making a purchase decision. The arrival and expansion of the Internet has extended consumers' options for gathering product information by including other consumers' comments, posted on the Internet, and has provided consumers opportunities to offer their own consumption-related advice by engaging in electronic word-of-mouth (eWOM). eWOM can be defined as all informal communications directed at consumers through Internet-based technology related to the usage or characteristics of particular goods and services, or their sellers. The aim of this study is to assess the impact of, one type of electronic word-of-mouth (eWOM), the online consumer review, on purchasing decision of electronic products. This empirical study also focuses on the relationship between reviews and purchasing behaviour. An instrument was prepared to measure the proposed constructs, with questionnaire items taken from prior studies but adapted to fit the context of e-commerce. The survey was applied to academicians in Turkey through internet. The data was analyzed using the SPSS package. The results show that consumer reviews have a causal impact on consumer purchasing behaviour and they have an effect on choosing the products by consumer. Finally, the results and their implications are discussed

Word of Mouth, the Importance of Reviews and Ratings in Tourism Marketing

The Internet and social media have given place to what is commonly known as the democratization of content and this phenomenon is changing the way that consumers and companies interact. Business strategies are shifting from influencing consumers directly and induce sales to mediating the influence that Internet users have on each other. A consumer review is “a mixture of fact and opinion, impression and sentiment, found and unfound tidbits, experiences, and even rumor” (Blackshaw & Nazarro, 2006). Consumers' comments are seen as honest and transparent, but it is their subjective perception what shapes the behavior of other potential consumers. With the emergence of the Internet, tourists search for information and reviews of destinations, hotels or services. Several studies have highlighted the great influence of online reputation through reviews and ratings and how it affects purchasing decisions by others (Schuckert, Liu, & Law, 2015). These reviews are seen as unbiased and trustworthy, and considered to reduce uncertainty and perceived risks (Gretzel & Yoo, 2008; Park & Nicolau, 2015). Before choosing a destination, tourists are likely to spend a significant amount of time searching for information including reviews of other tourists posted on the Internet. The average traveler browses 38 websites prior to purchasing vacation packages (Schaal, 2013), which may include tourism forums, online reviews in booking sites and other generic social media websites such as Facebook and Twitter.Peer reviewedFinal Accepted Versio

Evaluating whether a change in organisational structure would improve its competitive advantage

The purpose of this research is to study and analyse the internal and external structure of Ultimate Clean ltd, where I do work. We have put concentration on background of the company in the starting. This information is followed by aim and scope of research, which shows that what is the research question and what is scope of our research. After that Literature review is elaborated under five main subheadings. These subheading gives us deep information about the literature of organisation structure, competitive advantage. After that, Organisational context with internal and external analyse of the company is given which highlight the strengths, weaknesses, threats and opportunities of the company. Some external factors like political, economic, social and legal, are also discussed in this report. Then some information is given for method of research that why we use it, where and when it is used. Some limitations are also discussed in this report of method. After this, result section comes. In this section, we discussed deeply about the answers of customers, employees and employer. We prepare a discussion of the result and conclude it wisely. In the end, some recommendations are also given to improve organisational structure of Ultimate Clean ltd. We suggest a new structure for the organisation to develop within company to have a good competitive advantage in market place. A big list of references is also given in the end of this report

On the motivating impact of price and online recommendations at the point of online purchase

This is the post-print version of the Article. The official published version can be accessed from the link below - Copyright @ 2011 ElsevierDo online recommendations have the same motivating impact as price at the point of online purchase? The results (n = 268) of an conjoint study show that: (1) when the price is low or high relatively to market price, it has the strongest impact (positive and negative) on the likelihood of an online purchase of an mp3 player, (2) when the price is average to market price, online recommendation and price are equal in their impact at the point of online purchase, and, (3) the relative impact from price increases when online shopping frequencies increases. The implications these results give are that online retailers should be aware that online recommendations are not as influential as a good offer when consumers purchase electronics online. However, other customer recommendations have a stronger impact on novice online shoppers than towards those consumers that shop more frequently online

Recommendation, collaboration and social search

This chapter considers the social component of interactive information retrieval: what is the role of other people in searching and browsing? For simplicity we begin by considering situations without computers. After all, you can interactively retrieve information without a computer; you just have to interact with someone or something else. Such an analysis can then help us think about the new forms of collaborative interactions that extend our conceptions of information search, made possible by the growth of networked ubiquitous computing technology. Information searching and browsing have often been conceptualized as a solitary activity, however they always have a social component. We may talk about 'the' searcher or 'the' user of a database or information resource. Our focus may be on individual uses and our research may look at individual users. Our experiments may be designed to observe the behaviors of individual subjects. Our models and theories derived from our empirical analyses may focus substantially or exclusively on an individual's evolving goals, thoughts, beliefs, emotions and actions. Nevertheless there are always social aspects of information seeking and use present, both implicitly and explicitly. We start by summarizing some of the history of information access with an emphasis on social and collaborative interactions. Then we look at the nature of recommendations, social search and interfaces to support collaboration between information seekers. Following this we consider how the design of interactive information systems is influenced by their social elements

Hotel guests encouraged to shoot their own trustworthy videos

Bruce Grant-Braham looks at the latest hospitality information technology application