THE EWOM IMPACT ON SALES DISTRIBUTIONS IN MARKETS WITH DIFFERENT PRODUCT EVALUATION STANDARDS

This study investigates the impact of electronic Word-of-Mouth (eWOM) on sales distributions in various markets. The product information in eWOM helps customers to reveal their demands more clearly, thereby leading to the change of sales distributions in online markets. For the research, we categorize the markets based on the similarity level of product evaluation standards. If products in a market have similar evaluation standards, the product information given through eWOM will be applicable to most customers. If products in the market have different evaluation standards, then the information will not be applicable to other customers. Therefore, when product information is delivered through eWOM, in a market having similar product evaluation standards, it will enhance the sales concentration of high-ranking products by reinforcing the objective rankings among the products. In contrast, in a market with different evaluation standards, product information will loosen the sales concentration of the high-ranking products because it helps customers to purchase the product corresponding to their inherently different tastes for the products. These predictions are formulated into three hypotheses and validated with the data collected from Amazon.com. We plotted the cumulative distribution functions of eWOM, which represents the total popularity, and statistically compared them using the Wilcoxon Signed Rank test to show the different eWOM ratio possessed by the high-ranking products. All the test results showed the adequate level of significance; thus the three hypotheses are supported

The effect of online consumer reviews on new product sales : a study of amazon.com

In recent years, online word-of-mouth (WOM) communication in the form of online consumer reviews has become a major information source for consumers planning to purchase a new product. With the help of online reviews, consumers can access diverse opinions from others who have bought or used the new products before making their purchase decisions. This study compares the impact of online reviews on the sales of two types of new products (experience vs. search products) over time, in terms of the volume and valence of online consumer reviews. Using the data collected from Amazon.com over a period of nine months, we find that the volume of online consumer reviews has a greater effect on the new product sales in the late stage of product life cycle (PLC) than in the early stage of PLC. Moreover, the effect of valence of online consumer reviews is greater than that of volume of online consumer reviews. Online negative consumer reviews affect new product sales more than online positive consumer review, but not in a negative way. The results also indicate that the volume and valence of online consumer reviews have greater impact on experience products than search products. The findings suggest that online consumer reviews provide a meaningful decision aid to consumers planning to purchase new products and that online WOM gains momentum over time and significantly affects the sales of new products beyond the initial period. Practitioners need to pay greater attention to online WOM, devise suitable marketing strategies, and promote consumer advocacy to generate positive reviews when they launch new products. They may also incorporate the valuable consumer feedback in the development of new products

A Teacher in the Living Room? Educational Media for Babies, Toddlers, and Preschoolers

Examines available research, and arguments by proponents and critics, of electronic educational media use by young children. Examines educational claims in marketing and provides recommendations for developing research and product standards

Conceptualizing the Electronic Word-of-Mouth Process: What We Know and Need to Know About eWOM Creation, Exposure, and Evaluation

Electronic word of mouth (eWOM) is a prevalent consumer practice that has undeniable effects on the company bottom line, yet it remains an over-labeled and under-theorized concept. Thus, marketers could benefit from a practical, science-based roadmap to maximize its business value. Building on the consumer motivation–opportunity–ability framework, this study conceptualizes three distinct stages in the eWOM process: eWOM creation, eWOM exposure, and eWOM evaluation. For each stage, we adopt a dual lens—from the perspective of the consumer (who sends and receives eWOM) and that of the marketer (who amplifies and manages eWOM for business results)—to synthesize key research insights and propose a research agenda based on a multidisciplinary systematic review of 1050 academic publications on eWOM published between 1996 and 2019. We conclude with a discussion of the future of eWOM research and practice

What Drives the Helpfulness of Online Product Reviews? From Stars to Facts and Emotions

For consumers, online product reviews have become an important source for product-related information. Furthermore, they represent a beneficial addition to online retailers’ websites. Due to the increasing amount of available product reviews, identifying the most helpful product reviews represents an important task in order to reduce information overload. Therefore, the factors influencing review helpfulness have to be identified. Thus, in order to explain Review helpfulness, we build upon and extend review diagnosticity theory with concepts from marketing research and propose a research model that includes product quality, review sentiment and review uncertainty. Based on a sample of amazon.com product reviews, we evaluate our research model and find that statements about product quality positively influence review helpfulness. Furthermore, we identify that sentiment as well as uncertainty expressed in product reviews have an impact on review helpfulness. Finally, we confirm that the product category has a moderating effect on these relationships