Do Likes indeed have a positive effect for product ratings of customers? This study sheds light on this important question in todays online consuming industry and specifies the circumstances under which Likes could only have a positive effect. The study indeed shows that Likes more likely have - interestingly - a negative effect, especially if combined with test seal like "Stiftung Warentest"

1. Social ratings as the new currency of
marketeers?
– A comparison of influences from Likes
and test seals on product ratings –
C. Bosau, L. Pöppel & U. Rieger

2. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Practical background:
§ Online purchases are steadily increasing
§ However, the purchase experience in online settings is different to
offline settings
Purpose of the study
2
§ Rating information becomes more important since personal testing is
not possible
Theoretical background:
§ Customers like to buy “socially proofed“ products
Ø In new, unclear and ambigous (buying) situations people like to
follow others due to informational as well as normative social
influence (Stürmer & Siem, 2013; Mente & Sieg, 2013)
§ Several market research studies show the high influence of social
media on online purchases (e.g. Schengber, 2011).
§ Online ratings (e.g. stars) seem to have an influence on purchase
decisions (Chevalier & Mayzlin, 2006).

3. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Research questions
§ Are customers influenced by ratings of social media,
i.e. “Likes”?
§ Is this influence higher than the influence of test seals
like “Stiftung Warentest“?
§ Is there a difference between Convenience- und
Shopping-Goods?
Study goals
3

4. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Study-Design
IV1
Seal „Stiftung
Warentest“
(objective
rating)
IV2
Social rating
(subjective
rating)
DV
product rating
Moderator
product type
(Convenience-
vs. Shopping-
Goods)
4
Moderator
§ FB-Account
§ product need

5. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Operationalisation
5
IV1
Seal „Stiftung
Warentest“
(objective rating)
Test seal of „Stiftung Warentest“ with:
• „sehr gut“
• „ausreichend“
IV2
Social rating
(subjective rating)
Number of likes:
• low (5-10 Likes)
• medium (ca. 500 Likes)
• high (ca. 5000 Likes)
DV
product rating
Scale of 3 items (α
=
.841
-­‐
α
=
.919
depending
on
product)
• Quality rating: „Dieses Produkt besitzt eine gute Qualität“
• Purchasing intention: „Ich könnte mir gut vorstellen, dieses Produkt zu kaufen“
• Customer recommendation: „Ich würde dieses Produkt meinen Bekannten
weiterempfehlen“
Moderator
product type
(Convenience- vs.
Shopping-Goods)
Two products for each category:
• SG: Laptop, TV
• CG: water, cholocate

6. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Experimental design
S#$ung
Warentest
(IV
1)
nega&ve posi&ve
Number
of
Likes
(IV
2)
Low N = 176 N = 204
Medium N = 196 N = 207
High N = 180 N = 207
6
Repeated measurement:
§ 4 different products (within the same category of the experimental design)
Method:
• online questionnaire in 2014
• N = 1170, drawn via a panel-database by MW Research
• age: mean = 48,1y, SD = 23,8y
• male = 47,7%, female = 52,3%
• representative for German population (regarding age, gender, country)

7. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Stimulus material
7

8. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Stimulus material
8

9. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
ü Small/medium effect of „Stiftung Warentest“:
F(1)=45.43, p < .00, η2 = .04
- NO effect of von FB-Likes:
F(2)=.97, p = .38, η2 = .002
- NO interaction:
F(2)=.24, p = .79, η2 = .000
Results: Total sample
9
3,38
3,38
3,26
2,97
2,92
2,89
2,6
2,8
3
3,2
3,4
3,6
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
SW
posi&ve
SW
nega&ve
Product rating TV:
3,21
3,39
3,25
2,72
2,69
2,65
2,4
2,6
2,8
3
3,2
3,4
3,6
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
SW
posi&ve
SW
nega&ve
ü medium effect of „Stiftung Warentest“:
F(1)=87.49, p < .00, η2 = .07
- NO effect of von FB-Likes:
F(2)=.77, p = .46, η2 = .001
- NO interaction:
F(2)=.81, p = .45, η2 = .001
Product rating Laptop:
Also
controlled
for:
age,
gender,
income
&
rela&onship
status

10. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
ü Small/medium effect of „Stiftung Warentest“:
F(1)=65.19, p < .00, η2 = .05
- NO effect of von FB-Likes:
F(2)=.96, p = .38, η2 = .002
ü Small marginal interaction:
F(2)=2.37, p <.10, η2 = .004
Results: Total sample
10
2,86
2,94
2,9
2,45
2,15
2,37
2
2,2
2,4
2,6
2,8
3
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
SW
posi&ve
SW
nega&ve
Product rating water:
2,8
2,96
2,91
2,51
2,24
2,27
2
2,2
2,4
2,6
2,8
3
3,2
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
SW
posi&ve
SW
nega&ve
ü Small/medium effect of „Stiftung Warentest“:
F(1)=63.71, p < .00, η2 = .05
- NO effect of von FB-Likes:
F(2)=.34, p = .71, η2 = .001
ü Small interaction:
F(2)=3.56, p < .05, η2 = .006
Product rating chocolate:
Controlled
for:
age,
gender,
income
&
rela&onship
status

11. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Conclusion: Total sample
11
Ø The test seal of „Stiftung Warentest“ does have a clear
positive effect on the product rating
Ø Likes have no effect on the product rating at all
Ø There is no difference between shopping and convenience
goods

12. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Results: only people with product need
ü Medium effect of „Stiftung Warentest“:
F(1)=24.28, p < .00, η2 = .07
- NO effect of von FB-Likes:
F(2)=1.98, p = .14, η2 = .012
ü Small interaction:
F(2)=3.36, p < .05, η2 = .020
12
3,55
3,64
3,61
3,4
2,81
2,88
2,6
2,8
3
3,2
3,4
3,6
3,8
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
SW
posi&ve
SW
nega&ve
Product rating TV:
3,28
3,57
3,63
2,99
2,77
2,73
2,6
2,8
3
3,2
3,4
3,6
3,8
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
SW
posi&ve
SW
nega&ve
ü Medium effect of „Stiftung Warentest“:
F(1)=29.13, p < .00, η2 = .08
- NO effect of von FB-Likes:
F(2)=.04, p = .96, η2 = .000
ü Small interaction:
F(2)=2.42, p < .10, η2 = .014
Product rating Laptop:

13. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency? 13
Ø The test seal of „Stiftung Warentest“ does have a clear positive effect on
the product rating
Ø For people with a definite product need, the effect of Likes depends on the
test seal rating
v More Likes combined with a negative test rating do have a
counterproductive effect
à the product rating of shopping goods gets even worse
Conclusion: only people with product need

14. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
ü Small interaction:
F(2)=3.27, p < .05, η2 = .012
- NO effect of Likes
- NO effect of FB-Account
Results: Comparison FB-account (total sample)
- only for negative test seal „Stiftung Warentest“ -
14
3,15
2,94
2,84
2,68
2,89
2,97
2,6
2,8
3
3,2
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
FB-­‐Account
yes
FB-­‐Account
no
Product rating TV:
2,83
2,77
2,63
2,52
2,6
2,68
2,4
2,6
2,8
3
FB-­‐Likes
low
FB-­‐Likes
medium
FB-­‐Likes
high
FB-­‐Account
yes
FB-­‐Account
no
Product rating laptop:
ü Tendency of interaction, NO sign. effect:
F(2)=1.11, p = .33, η2 = .004
- NO effect of Likes
- NO effect of FB-Account
Likes do buffer the effect of a negative test seal a bit, but only for non-
Facebook-User. For Facebook-Users, more Likes make it even worse.

15. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
Conclusion: comparison FB-account
15
Ø Likes do buffer the effect of a negative test seal a bit, but only
for non-Facebook-User.
Ø For Facebook-Users, more Likes make it even worse.
Ø By the way:
NO interaction effects for a positive test seal
à a positive rating of „Stiftung Warentest“ works,
regardless of Likes and FB-membership
NO effects for convenience goods (water, chocolate)

16. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
§ The rating of “Stiftung Warentest” does generally have a
significant effect
Conclusion: Effect of “Stiftung Warentest”
16
§ A positive rating leads to a better product rating and
a higher purchasing intention
§ A negative rating leads to a noticeable lower
product rating and a smaller purchasing intention

17. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
§ The effect of Likes depends on a facebook membership, i.e.
whether customers can maybe understand the meaning of Likes
§ However: This effect can only be found, if …
u the product has a negative objective rating
and
u the product is a shopping-good
Conclusion: Effect of Likes - 1
17
§ For Facebook-Non-Users Likes buffer the negative,
objective rating.
§ For Facebook-Users having many Likes is
incomprehensible and probably creates dissonance.

18. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency?
§ Additionally, an effect of Likes can better be found for people
with an actual product need:
u Only if people plan to buy a specific product a clear effect
of Likes can be found
18
§ Likes could – maybe – have a positive impact – for
shopping goods –, if there is an objective positive rating
too
§ Likes have a more negative impact – for shopping goods
–, if they are combined with an objective negative rating
Conclusion: Effect of Likes - 2

19. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency? 19
• Chevalier, J. A. & Mayzlin, D. (2006). The Effect of Word of Mouth on Sales: Online Book Reviews. Journal of
Marketing Research, 3(43), pp. 345 - 354.
• Mente, T. & Sieg, M. (2013). Kundennutzen: die Basis für den Verkauf - So verwandeln Sie Leistungen in messbaren
Mehrwert. Wiesbaden: Springer Gabler .
• Schengber, R. (2011). Social Media Einfluss auf das Kaufverhalten im Internet - Eine Studie. Münster: DASF GmbH.
• Stürmer, S. & Siem, B. (2013). Sozialpsychologie der Gruppe. München: Ernst Reinhardt Verlag.
Literature

20. GOR 2015Bosau, Pöppel & Rieger: social ratings = new currency? 20
Thank you very much for your
attention!
Contact details:
Rheinische Fachhochschule Köln
Prof. Dr. Christian Bosau, Dipl.-Psych. & Master of HRM & IR
Schaevenstraße 1a/b
50676 Köln
Tel.: +49 221 20302-0
e-mail: christian.bosau@rfh-koeln.de
Slideshare: cbosau
Twitter: cribocologne