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Consumer power through information, network, and crowd based platforms.IliaPlatonov
Research Work for Wilkes University MBA 520 Marketing Management.
The research paper answers the following questions.
• What are the positive and negative effects that transpire from consumer power?
• What are the three distinct consumer power sources and how do they each influence the Internet consumer base?
• What forms of consumer power will further develop and increase influence and what does the future of Information Based, Network Based and Crowd Based Consumer Power look like?
Keywords: Consumer power, Internet, Social platforms, Communication, Consumer Relationships
This conceptual paper discusses eWoM as a coping response dependent on positive, neutral, or negative experiences made by potential, actual, or former consumers of products, services, and brands. We combine existing lenses and propose an integrative model for unpacking eWoM to examine how different consumption experiences motivate consumers to share eWoM online. The paper further presents an eWoM Attentionscape as an appropriate tool for examining the amount of attention the resulting different types of eWoM receive from brand managers. We discuss how eWoM priorities can differ between public affairs professionals and consumers, and what the implications are for the management of eWoM in the context of public affairs and viral marketing.
Consumer power through information, network, and crowd based platforms.IliaPlatonov
Research Work for Wilkes University MBA 520 Marketing Management.
The research paper answers the following questions.
• What are the positive and negative effects that transpire from consumer power?
• What are the three distinct consumer power sources and how do they each influence the Internet consumer base?
• What forms of consumer power will further develop and increase influence and what does the future of Information Based, Network Based and Crowd Based Consumer Power look like?
Keywords: Consumer power, Internet, Social platforms, Communication, Consumer Relationships
This conceptual paper discusses eWoM as a coping response dependent on positive, neutral, or negative experiences made by potential, actual, or former consumers of products, services, and brands. We combine existing lenses and propose an integrative model for unpacking eWoM to examine how different consumption experiences motivate consumers to share eWoM online. The paper further presents an eWoM Attentionscape as an appropriate tool for examining the amount of attention the resulting different types of eWoM receive from brand managers. We discuss how eWoM priorities can differ between public affairs professionals and consumers, and what the implications are for the management of eWoM in the context of public affairs and viral marketing.
EFFECT OF ELECTRONIC WORD OF MOUTH (eWOM) ON SOCIAL MEDIA (FACEBOOK FANPAGE)W...Vany Hilman Ghifary
Variable eWOM have a significant effect on Purchase Intention on the respondent data OPPO mobile users by 2016. This is indicated by the coefficient of determination variables eWOM by 55.2% with a significance level of 0.0000 (sig <0.05). The implication of this study is that eWOM (electronic word of mouth) may also increase the purchasing intention to OPPO mobile phone products.
The Acceptance of Online Behavioral Advertising: A Study of the Perceptions o...Jeanine Lilke
In order to complete summa cum laude honors I extensively researched online behavioral advertising. I conducted my own research on the perceptions of young adults on this new type of online advertising.
Influence of word of mouth communication towards indonesian online shopper pu...Eka Yuliana
Word-of-mouth (WOM) gives the consumer perceptions to engage in retail online shopping can include both utilitarian and hedonic shopping dimensions. To cater to these consumers, online retailers can create a cognitively and esthetically rich shopping environment, through sophisticated levels of communication, as the personal influence, online community, and also by sharing they experience. Since the effect of Word-of-mouth communications on marketing and has proven to stimulate online consumer’s perceptions, 374 person of House of Taaj Facebook users in all over Indonesia, in which 280 female (75%) and 94 male (25%) has expressed their perceptions toward online purchase intention, and Word-of-mouth. This research presumes that Word-of-mouth from another online consumers, share information and features can influence online shopping intention and entice them to modify or even transform their original shopping predispositions by providing them with attractive and enhanced interactive features and controls of buying. To achieve the research objectives and the test hypotheses, factor analysis, and linear regression are used to analyze the significant level of each variable indicator of this study.
The result of the test may conclude that the Facebook users perceived more intention to search information by online, caused of the effectiveness of time using online community to search information and review the other experience. A more positive online shopping experience led to consumers’ positive perceptions for online purchase intention. Thus, this study may conclude that indicator variable of perception that really influence the Facebook users online purchase intentions are their perception towards the effectiveness of time that they can be used to evaluate, and find information by online, and the best indicator is their online community that can deliver and influence Facebookers online purchase intention.
Ads are no longer unidirectional or one-dimensional but a blend of offline and online techniques designed to directly interact with the community. For many companies, advertising via online platforms such as YouTube and Vimeo has replaced commercials on television altogether. Recently, branded flash mobs have emerged as a popular form of viral advertising. While many branded flash mobs have experienced millions of YouTube views a metric such as view count does not fully indicate the effectiveness of the ad. This netnographic study evaluates viewers’ attitude toward the ad to better understand the effects of branded flash mobs. After examining 2,882 YouTube comments from three virally successful branded flash mob ads, a typology is developed, referred to as the archetype of consumer attitude matrix, to enable academics to formulate research questions regarding branded flash mobs. These archetypes of consumer attitudes to the online ad, in this case branded flash mobs, aid in the assessment of consumer response based on processing (cognitive versus emotive) and stance (supportive versus antagonistic). This typology also serves as a guide to marketing managers in the use of branded flash mobs in their viral campaigns. The article concludes with recommendations for future research.
Impact of Key Purchasing Determinants on Purchase Intention of Hybrid Vehicle...University of Kelaniya
According to Researchers knowledge this is the first research on purchase intentions of Hybrid Vehicles in
Sri Lanka. This research has been done to determine the purchase intention of Hybrid Vehicles in Sri Lanka.
This research article focuses mainly on determining the links between customer’s environmental attitudes,
subjective norms, price perception, preferences, knowledge, perceived risk, intentions as well as expectations
of the customers given to the environment while buying a hybrid vehicle. The research survey questionnaires
were developed to get information for each and every aspect mentioned in the objectives. To go deep in to
the study areas researcher referred secondary data sources such as other research studies that were done in
Tokyo Japan and India. The data for the present work has been collected personally by the researcher as well
as helps has been taken from others in getting structured non- disguised questionnaire filled properly. By
using the snowball sampling, 200 survey questioners were distributed and 150 useable responses were taken
in to this research. All the responses were collected online and taken them to one data base for the purpose
of analyzing. For this study, respondents who were identified as “being in the market” and other potential
respondents who intended to purchase cars in the near future. After the analysis has been done researcher
has identified the impact of predetermined variables over buying intention of Hybrids vehicles in Sri Lanka.
As per the results, researcher has also come up with the managerial implications of the study and
recommendations.
EFFECT OF ELECTRONIC WORD OF MOUTH (eWOM) ON SOCIAL MEDIA (FACEBOOK FANPAGE)W...Vany Hilman Ghifary
Variable eWOM have a significant effect on Purchase Intention on the respondent data OPPO mobile users by 2016. This is indicated by the coefficient of determination variables eWOM by 55.2% with a significance level of 0.0000 (sig <0.05). The implication of this study is that eWOM (electronic word of mouth) may also increase the purchasing intention to OPPO mobile phone products.
The Acceptance of Online Behavioral Advertising: A Study of the Perceptions o...Jeanine Lilke
In order to complete summa cum laude honors I extensively researched online behavioral advertising. I conducted my own research on the perceptions of young adults on this new type of online advertising.
Influence of word of mouth communication towards indonesian online shopper pu...Eka Yuliana
Word-of-mouth (WOM) gives the consumer perceptions to engage in retail online shopping can include both utilitarian and hedonic shopping dimensions. To cater to these consumers, online retailers can create a cognitively and esthetically rich shopping environment, through sophisticated levels of communication, as the personal influence, online community, and also by sharing they experience. Since the effect of Word-of-mouth communications on marketing and has proven to stimulate online consumer’s perceptions, 374 person of House of Taaj Facebook users in all over Indonesia, in which 280 female (75%) and 94 male (25%) has expressed their perceptions toward online purchase intention, and Word-of-mouth. This research presumes that Word-of-mouth from another online consumers, share information and features can influence online shopping intention and entice them to modify or even transform their original shopping predispositions by providing them with attractive and enhanced interactive features and controls of buying. To achieve the research objectives and the test hypotheses, factor analysis, and linear regression are used to analyze the significant level of each variable indicator of this study.
The result of the test may conclude that the Facebook users perceived more intention to search information by online, caused of the effectiveness of time using online community to search information and review the other experience. A more positive online shopping experience led to consumers’ positive perceptions for online purchase intention. Thus, this study may conclude that indicator variable of perception that really influence the Facebook users online purchase intentions are their perception towards the effectiveness of time that they can be used to evaluate, and find information by online, and the best indicator is their online community that can deliver and influence Facebookers online purchase intention.
Ads are no longer unidirectional or one-dimensional but a blend of offline and online techniques designed to directly interact with the community. For many companies, advertising via online platforms such as YouTube and Vimeo has replaced commercials on television altogether. Recently, branded flash mobs have emerged as a popular form of viral advertising. While many branded flash mobs have experienced millions of YouTube views a metric such as view count does not fully indicate the effectiveness of the ad. This netnographic study evaluates viewers’ attitude toward the ad to better understand the effects of branded flash mobs. After examining 2,882 YouTube comments from three virally successful branded flash mob ads, a typology is developed, referred to as the archetype of consumer attitude matrix, to enable academics to formulate research questions regarding branded flash mobs. These archetypes of consumer attitudes to the online ad, in this case branded flash mobs, aid in the assessment of consumer response based on processing (cognitive versus emotive) and stance (supportive versus antagonistic). This typology also serves as a guide to marketing managers in the use of branded flash mobs in their viral campaigns. The article concludes with recommendations for future research.
Impact of Key Purchasing Determinants on Purchase Intention of Hybrid Vehicle...University of Kelaniya
According to Researchers knowledge this is the first research on purchase intentions of Hybrid Vehicles in
Sri Lanka. This research has been done to determine the purchase intention of Hybrid Vehicles in Sri Lanka.
This research article focuses mainly on determining the links between customer’s environmental attitudes,
subjective norms, price perception, preferences, knowledge, perceived risk, intentions as well as expectations
of the customers given to the environment while buying a hybrid vehicle. The research survey questionnaires
were developed to get information for each and every aspect mentioned in the objectives. To go deep in to
the study areas researcher referred secondary data sources such as other research studies that were done in
Tokyo Japan and India. The data for the present work has been collected personally by the researcher as well
as helps has been taken from others in getting structured non- disguised questionnaire filled properly. By
using the snowball sampling, 200 survey questioners were distributed and 150 useable responses were taken
in to this research. All the responses were collected online and taken them to one data base for the purpose
of analyzing. For this study, respondents who were identified as “being in the market” and other potential
respondents who intended to purchase cars in the near future. After the analysis has been done researcher
has identified the impact of predetermined variables over buying intention of Hybrids vehicles in Sri Lanka.
As per the results, researcher has also come up with the managerial implications of the study and
recommendations.
Current Research Questions in Word of Mouth CommunicationAlexander Rossmann
Word of mouth (WOM) communication, long recognized as a highly influential source of information, has taken on new importance with the proliferation of online WOM. The rise of online forums and communities has dramatically increased the scope of word of mouth marketing, allowing consumers greater access to information from subject matter experts and other key influentials who impact new purchases. Online WOM data have been widely used in the literature to examine topics such as the impact of WOM recommendations and reviews, brand community involvement, and product adoption. For all the valuable contributions made by WOM research, a lot of important questions still remain unexplored. One is delineating the preconditions for user engagement in WOM communication; another is exploring the role of WOM content and WOM context on the efficacy of WOM in general. And there is final area where research is needed, focusing on organizational capabilities firms need in order to foster the impact of WOM communication on purchasing behavior.
Determinants of eWOM Persuasiveness - ALiterature ReviewAJHSSR Journal
ABSTRACT: Electronic word-of-mouth (eWOM) has surpassed conventional marketing tools in influencing
consumers in the Internet era. Thus, eWOM is gaining increasing attention from scholars and practical
marketers in various industries. In this regard, this review paper focuses on factors that determine eWOM
persuasiveness. We applied the systematic review technique to analyze content of 45 related articles. Our
findings show that argument quality and source credibility are two major determinants of eWOM
persuasiveness that have been addressed in a huge number of existing studies. In adition, some other factors
that influence eWOM are found in recent emerging studies include source, consumer expertise and tie strength.
Keywords –eWOM, eWOMcredidibility,eWOMpersuasive, eWOM usefulness
Determinants of eWOM Persuasiveness - ALiterature Review AJHSSR Journal
ABSTRACT: Electronic word-of-mouth (eWOM) has surpassed conventional marketing tools in influencing
consumers in the Internet era. Thus, eWOM is gaining increasing attention from scholars and practical
marketers in various industries. In this regard, this review paper focuses on factors that determine eWOM
persuasiveness. We applied the systematic review technique to analyze content of 45 related articles. Our
findings show that argument quality and source credibility are two major determinants of eWOM
persuasiveness that have been addressed in a huge number of existing studies. In adition, some other factors
that influence eWOM are found in recent emerging studies include source, consumer expertise and tie strength.
Keywords –eWOM, eWOMcredidibility,eWOMpersuasive, eWOM usefulness
EVALUATION OF EFFECTIVE FACTORS ON CUSTOMER DECISION-MAKING PROCESS IN THE ON...ijmpict
The key effect of the development of online shops not only shifted the method businesses work, it also changed the manner costumer's behaviour. The aim of this study is to assess the impact of social identity,
Electronic word-of-mouth (EWOM), perceived risks, and trust and purchase intentions affecting customer
decision\-making process in online shops. A research model is illustrated, using technology acceptance model (TAM) as scientific base, to describe the relations of these variables that affect purchase intention
and finally leading to actual purchase. With the use of structured questionnaires on 655 respondents via
emails, this research examines online shop site namely, digikala. The analysis explains that purchase
intention and purchase behaviour, EWOM and trust in online shops and trust to purchase intention have
positive relations. As well as, perceived risk with trust and purchase intentions have negative relations.
Further,relation between social identity and trust not confirmed.
The Effectiveness between Word-of-Mouth (WOM) Marketing and Social Network on...inventionjournals
As Malaysia is aiming to become high-income country by 2020, in today’s direct selling business such as Avon, the practice of positive WOM is becoming more important with the collaboration of Social network on consumer acquirement. This paper is aim to identify the effect of WOM and Social network on AVON consumer purchase intention. After analysing data from market research shows that most women acquires cosmetic products from Avon Company, the representative’s role being extremely important. Most women buy products through the online social network catalogue, 77% of them using the products every day, often buying the personal care products. Overall this study provides a greater knowledge of how does WOM and social network work in a different perceptive to the acquirement of AVON products.
The Effectiveness between Word-of-Mouth (WOM) Marketing and Social Network on...inventionjournals
As Malaysia is aiming to become high-income country by 2020, in today’s direct selling business such as Avon, the practice of positive WOM is becoming more important with the collaboration of Social network on consumer acquirement. This paper is aim to identify the effect of WOM and Social network on AVON consumer purchase intention. After analysing data from market research shows that most women acquires cosmetic products from Avon Company, the representative’s role being extremely important. Most women buy products through the online social network catalogue, 77% of them using the products every day, often buying the personal care products. Overall this study provides a greater knowledge of how does WOM and social network work in a different perceptive to the acquirement of AVON products
A study on Gen y consumer attitude toward social media marketing in TrichyAnup Mohan
This study aims to specify Generation Y consumers’ attitude toward social media marketing. Given this context the questionnaire prepared for gathering data was distributed among 150 students of Jamal Mohamed College,Trichy belonging to age group 18-33 during August 2013.This research paper is based on my M.Phil dissertation.
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Dear student, Cheap Assignment Help, an online tutoring company, provides students with a wide range of online assignment help services for students studying in classes K-12, and College or university. The Expert team of professional online assignment help tutors at Cheap Assignment Help .COM provides a wide range of help with assignments through services such as college assignment help, university assignment help, homework assignment help, email assignment help and online assignment help. Our expert team consists of passionate and professional assignment help tutors, having masters and PhD degrees from the best universities of the world, from different countries like Australia, United Kingdom, United States, Canada, UAE and many more who give the best quality and plagiarism free answers of the assignment help questions submitted by students, on sharp deadline. Cheap Assignment Help .COM tutors are available 24x7 to provide assignment help in diverse fields - Math, Chemistry, Physics, Writing, Thesis, Essay, Accounting, Finance, Data Analysis, Case Studies, Term Papers, and Projects etc. We also provide assistance to the problems in programming languages such as C/C++, Java, Python, Matlab, .Net, Engineering assignment help and Finance assignment help. The expert team of certified online tutors in diverse fields at Cheap Assignment Help .COM available around the clock (24x7) to provide live help to students with their assignment and questions. We have also excelled in providing E-education with latest web technology. The Students can communicate with our online assignment tutors using voice, video and an interactive white board. We help students in solving their problems, assignments, tests and in study plans. You will feel like you are learning from a highly skilled online tutor in person just like in classroom teaching. You can see what the tutor is writing, and at the same time you can ask the questions which arise in your mind. You only need a PC with Internet connection or a Laptop with Wi-Fi Internet access. We provide live online tutoring which can be accessed at anytime and anywhere according to student’s convenience. We have tutors in every subject such as Math, Chemistry, Biology, Physics and English whatever be the school level. Our college and university level tutors provide engineering online tutoring in areas such as Computer Science, Electrical and Electronics engineering, Mechanical engineering and Chemical engineering. Regards http://www.cheapassignmenthelp.com/ http://www.cheapassignmenthelp.co.uk/
Dear student, Cheap Assignment Help, an online tutoring company, provides students with a wide range of online assignment help services for students studying in classes K-12, and College or university. The Expert team of professional online assignment help tutors at Cheap Assignment Help .COM provides a wide range of help with assignments through services such as college assignment help, university assignment help, homework assignment help, email assignment help and online assignment help. Our expert team consists of passionate and professional assignment help tutors, having masters and PhD degrees from the best universities of the world, from different countries like Australia, United Kingdom, United States, Canada, UAE and many more who give the best quality and plagiarism free answers of the assignment help questions submitted by students, on sharp deadline. Cheap Assignment Help .COM tutors are available 24x7 to provide assignment help in diverse fields - Math, Chemistry, Physics, Writing, Thesis, Essay, Accounting, Finance, Data Analysis, Case Studies, Term Papers, and Projects etc. We also provide assistance to the problems in programming languages such as C/C++, Java, Python, Matlab, .Net, Engineering assignment help and Finance assignment help. The expert team of certified online tutors in diverse fields at Cheap Assignment Help .COM available around the clock (24x7) to provide live help to students with their assignment and questions. We have also excelled in providing E-education with latest web technology. The Students can communicate with our online assignment tutors using voice, video and an interactive white board. We help students in solving their problems, assignments, tests and in study plans. You will feel like you are learning from a highly skilled online tutor in person just like in classroom teaching. You can see what the tutor is writing, and at the same time you can ask the questions which arise in your mind. You only need a PC with Internet connection or a Laptop with Wi-Fi Internet access. We provide live online tutoring which can be accessed at anytime and anywhere according to student’s convenience. We have tutors in every subject such as Math, Chemistry, Biology, Physics and English whatever be the school level. Our college and university level tutors provide engineering online tutoring in areas such as Computer Science, Electrical and Electronics engineering, Mechanical engineering and Chemical engineering. Regards http://www.cheapassignmenthelp.com/ http://www.cheapassignmenthelp.co.uk/
Dear student, Cheap Assignment Help, an online tutoring company, provides students with a wide range of online assignment help services for students studying in classes K-12, and College or university. The Expert team of professional online assignment help tutors at Cheap Assignment Help .COM provides a wide range of help with assignments through services such as college assignment help, university assignment help, homework assignment help, email assignment help and online assignment help. Our expert team consists of passionate and professional assignment help tutors, having masters and PhD degrees from the best universities of the world, from different countries like Australia, United Kingdom, United States, Canada, UAE and many more who give the best quality and plagiarism free answers of the assignment help questions submitted by students, on sharp deadline. Cheap Assignment Help .COM tutors are available 24x7 to provide assignment help in diverse fields - Math, Chemistry, Physics, Writing, Thesis, Essay, Accounting, Finance, Data Analysis, Case Studies, Term Papers, and Projects etc. We also provide assistance to the problems in programming languages such as C/C++, Java, Python, Matlab, .Net, Engineering assignment help and Finance assignment help. The expert team of certified online tutors in diverse fields at Cheap Assignment Help .COM available around the clock (24x7) to provide live help to students with their assignment and questions. We have also excelled in providing E-education with latest web technology. The Students can communicate with our online assignment tutors using voice, video and an interactive white board. We help students in solving their problems, assignments, tests and in study plans. You will feel like you are learning from a highly skilled online tutor in person just like in classroom teaching. You can see what the tutor is writing, and at the same time you can ask the questions which arise in your mind. You only need a PC with Internet connection or a Laptop with Wi-Fi Internet access. We provide live online tutoring which can be accessed at anytime and anywhere according to student’s convenience. We have tutors in every subject such as Math, Chemistry, Biology, Physics and English whatever be the school level. Our college and university level tutors provide engineering online tutoring in areas such as Computer Science, Electrical and Electronics engineering, Mechanical engineering and Chemical engineering. Regards http://www.cheapassignmenthelp.com/ http://www.cheapassignmenthelp.co.uk/
Sample manuscript (1) http://www.cheapassignmenthelp.com/ Assignment Help
Dear student, Cheap Assignment Help, an online tutoring company, provides students with a wide range of online assignment help services for students studying in classes K-12, and College or university. The Expert team of professional online assignment help tutors at Cheap Assignment Help .COM provides a wide range of help with assignments through services such as college assignment help, university assignment help, homework assignment help, email assignment help and online assignment help. Our expert team consists of passionate and professional assignment help tutors, having masters and PhD degrees from the best universities of the world, from different countries like Australia, United Kingdom, United States, Canada, UAE and many more who give the best quality and plagiarism free answers of the assignment help questions submitted by students, on sharp deadline. Cheap Assignment Help .COM tutors are available 24x7 to provide assignment help in diverse fields - Math, Chemistry, Physics, Writing, Thesis, Essay, Accounting, Finance, Data Analysis, Case Studies, Term Papers, and Projects etc. We also provide assistance to the problems in programming languages such as C/C++, Java, Python, Matlab, .Net, Engineering assignment help and Finance assignment help. The expert team of certified online tutors in diverse fields at Cheap Assignment Help .COM available around the clock (24x7) to provide live help to students with their assignment and questions. We have also excelled in providing E-education with latest web technology. The Students can communicate with our online assignment tutors using voice, video and an interactive white board. We help students in solving their problems, assignments, tests and in study plans. You will feel like you are learning from a highly skilled online tutor in person just like in classroom teaching. You can see what the tutor is writing, and at the same time you can ask the questions which arise in your mind. You only need a PC with Internet connection or a Laptop with Wi-Fi Internet access. We provide live online tutoring which can be accessed at anytime and anywhere according to student’s convenience. We have tutors in every subject such as Math, Chemistry, Biology, Physics and English whatever be the school level. Our college and university level tutors provide engineering online tutoring in areas such as Computer Science, Electrical and Electronics engineering, Mechanical engineering and Chemical engineering. Regards http://www.cheapassignmenthelp.com/ http://www.cheapassignmenthelp.co.uk/
Research and analysis project http://www.cheapassignmenthelp.co.uk/Assignment Help
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Chapter 6.thinking.learning http://www.cheapassignmenthelp.co.uk/Assignment Help
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Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Overview of the fundamental roles in Hydropower generation and the components involved in wider Electrical Engineering.
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Buying new cosmetic products is difficult. It can even be scary for those who have sensitive skin and are prone to skin trouble. The information needed to alleviate this problem is on the back of each product, but it's thought to interpret those ingredient lists unless you have a background in chemistry.
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The automated cosmetic shop management system should deal with the automation of general workflow and administration process of the shop. The main processes of the system focus on customer's request where the system is able to search the most appropriate products and deliver it to the customers. It should help the employees to quickly identify the list of cosmetic product that have reached the minimum quantity and also keep a track of expired date for each cosmetic product. It should help the employees to find the rack number in which the product is placed.It is also Faster and more efficient way.
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Online Grocery Store is an e-commerce website, which retails various grocery products. This project allows viewing various products available enables registered users to purchase desired products instantly using Paytm, UPI payment processor (Instant Pay) and also can place order by using Cash on Delivery (Pay Later) option. This project provides an easy access to Administrators and Managers to view orders placed using Pay Later and Instant Pay options.
In order to develop an e-commerce website, a number of Technologies must be studied and understood. These include multi-tiered architecture, server and client-side scripting techniques, implementation technologies, programming language (such as PHP, HTML, CSS, JavaScript) and MySQL relational databases. This is a project with the objective to develop a basic website where a consumer is provided with a shopping cart website and also to know about the technologies used to develop such a website.
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We have compiled the most important slides from each speaker's presentation. This year’s compilation, available for free, captures the key insights and contributions shared during the DfMAy 2024 conference.
2. social media channels. Research has shown that unfavorable mes-
sages posted on these online outlets can negatively influence con-
sumers' attitudes and behaviors (Bickart & Schindler, 2001;
Chevalier & Mayzlin, 2006; Davis & Khazanchi, 2008; Doh &
Hwang, 2009; Liu, 2006; Park & Lee, 2009; Reichheld, 2003).
On the flip side, other case studies have shown that prompt
responses to e-NWOM crises can stimulate advocacy and
contribute to regaining trust and satisfaction from customers (e.g.,
the Customer Bill of Rights by JetBlue or the Pizza Turnaround by
Domino's). Online feedback mechanisms serve as an effective and
cost-efficient way for companies to rebuild their online reputation
during such crises. By actively searching for consumers' complaints
and providing a remedy for a cause of dissatisfaction, firms can
prevent the subsequent spread of e-NWOM or even turn negative
sentiments to positive ones, as shown in recent literature on
webcare (Lee & Song, 2010; van Noort & Willemsen, 2011).
This paper concerns the power of e-NWOM and analyzes the
effect of e-NWOM on purchase decisions. At the same time, it pays
attention to the moderating role of the relationship between con-
sumers and firms when e-NWOM exerts influence on consumers.
This study makes three substantive contributions by addressing
limitations of previous research on e-NWOM. First, most studies on
e-NWOM have focused on the effect of reception to e-NWOM, not
the expression of it (Verhagen et al., 2013). Recognizing the dearth
of research on the influence of e-WOM messages on their senders,
this study examines the effects of e-NWOM on its senders and re-
ceivers separately. In addition, we identify possible moderators of
e-NWOM effects, both of which are driven from the perception
about or the reaction of the given firm that creates the e-NWOM
incident. We include these moderators in two separate studies.
Second, despite the availability of WOM data, few organizations can
link it to individual customers' purchases or vice versa, so it is
challenging for them to establish a direct link between e-NWOM
behavior and purchase behavior. For example, researchers can
easily access e-WOM data on Facebook or Twitter, but have no way
of linking these data with purchase transaction data. Retailers and
service providers have extensive records on customer purchases,
but cannot easily match them to social media data. In Study 1, we
use a single-source dataset that combines e-NWOM data from a
real company's online community with actual purchase data of the
same customers who engaged in e-NWOM activities. This unique
observational dataset allows us to estimate the financial impact of
e-NWOM empirically on the customer level. Third, there are only a
few studies that test the effects of webcare in response to e-NWOM.
The question of how e-NWOM posters and viewers might react
differently to company's corrective action has not been thoroughly
investigated. In Study 2, we conduct an experiment to test the effect
of company apology to e-NWOM senders and receivers using a
similar negative incident of Study 1 (i.e., a policy change) in a
different industry context.
In the following sections, we review the previous research on e-
NWOM, focusing on online complaining behavior and suggest a
conceptual model that explains the effects of e-NWOM on its
senders and receivers. In addition to the differential effects on
senders and receivers, we include two moderators of e-NWOM ef-
fects. Next, we present our two studies, empirical findings, and their
respective conclusions. Finally, we summarize contributions and
limitations of our study, followed by suggestions for future research.
2. Literature review
2.1. E-WOM, valence, and online public complaining behavior
E-WOM is defined as “any positive or negative statement made
by potential, actual, or former customers about a product or
company, which is made available to a multitude of people and
institutions via the Internet” (Hennig-Thurau, Gwinner, Walsh, &
Gremler, 2004, p. 39). E-WOM is distinguished from traditional
WOM in that it is (1) mediated in the form of reading or writing, (2)
presented in public forums for other consumers or companies to
observe, and (3) electronically stored and can be searched for future
use (Andreassen & Streukens, 2009).
Previous research on e-WOM has found that it influences brand
awareness (Davis & Khazanchi, 2008), brand attitude (Doh &
Hwang, 2009), purchase intention (Bickart & Schindler, 2001;
Park & Lee, 2009), product sales (Chevalier & Mayzlin, 2006;
Davis & Khazanchi, 2008; Liu, 2006), as well as revenue growth
(Reichheld, 2003). Depending on its valence, WOM can affect
customer loyalty or firm revenues either negatively or positively
(Dellarocas, Awad, & Zhang, 2004; East, Hammond, & Lomax, 2008;
Liu, 2006). For instance, positive WOM (PWOM) enhances expected
quality and brand attitude, and leads to recommendation for
product purchases, whereas NWOM elicits product denigration,
rumor, private complaining, and ultimately diminishes purchase
intentions and sales (Chevalier & Mayzlin, 2006; Huang & Chen,
2006; Mizerski, 1982). Literature also suggests that the impact of
NWOM on decreasing sales is greater than the impact of PWOM on
increasing sales (Mittal, Ross, & Baldasare, 1998; Park & Lee, 2009).
Another stream of research that draws special attention to
NWOM is consumer complaint behavior (CCB). Supplementing
Hirschman's (1970) classic CCB model of exit (e.g., switching
brands), voice (e.g., making a complaint to the seller), and loyalty
(e.g., continuing to purchase from a dissatisfying seller), recent
studies incorporate NWOM as a new type of CCB (Goetzinger, 2007;
Singh, 1990). They also distinguish between CCB that occurs in a
private setting where customers tell others about unsatisfactory
experiences (e.g., traditional NWOM), and a public setting where
customers express NWOM to broader audiences (e.g., e-NWOM). In
particular, studies have shown that online public complaining
behavior has an aggravating effect on firm performance (Gregoire,
Tripp, Legoux, 2009; Lee Song, 2010).
Scholars have emphasized the need to categorize those who
exhibit complaint behaviors (Singh, 1990) or their response styles
(Schoefer Diamantopoulos, 2009) to better handle complaint
situations. In an online context, Lee and Song (2010) classify con-
sumers who display online complaint behaviors into complainers,
repliers, and observers. Despite a vast number of studies on ob-
servers, little research has examined how making online com-
plaints affects the attitudes or behaviors of complainers (i.e.,
customers who create e-NWOM messages). Verhagen et al. (2013)
point out the dearth of “sender-oriented” studies in e-WOM
research. This study extends this line of research by separating the
effects of e-NWOM on senders (i.e., e-NWOM posters) and receivers
(i.e., e-NWOM viewers). We also suggest two potential moderators
of e-NWOM effects that are relevant to relationship management
prior to or during the e-NWOM incident. Fig. 1 provides our con-
ceptual framework that explains the effect of e-NWOM posting and
viewing behavior as well as moderators identified in previous
research, which we elaborate in the following sections.
2.2. Differentiating the effect of posting and viewing e-NWOM:
Posting e-NWOM
According to social sharing of emotion theory (Rime, 2009),
humans have a natural tendency to share emotional experiences
with others. The social environment in which humans live moti-
vates them to express emotions to people around them in order to
seek help and support, vent, bond, or get validation. The same
tendency can be observed in the context of negative consumption
experiences. Research on consumption emotions has shown that
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521512
3. negative emotions triggered by unsatisfactory consumption expe-
riences increase the likelihood to produce e-NWOM (Ladhari, 2007;
Maute Dubes, 1999; Riegner, 2007; S€oderlund Rosengren,
2007). Consumers engage in expressing NWOM for various rea-
sons, including: (1) preventing others from experiencing the same
problem that they had encountered, (2) seeking advice on how to
solve their problems, (3) venting their anger through NWOM as a
way of reducing cognitive dissonance, or (4) retaliating against the
offering company (Hennig-Thurau et al., 2004; Sundaram, Mitra,
Webster, 1998).
The question then arises as to what happens to those who share
their negative experience publicly on the Internet. Regarding the
effect of posting, we draw from cognitive dissonance theory
(Festinger, 1957). Cognitive dissonance occurs when people are
confronted with inconsistent attitudes or beliefs. The negative
intrapersonal state thereby motivates them to reduce the aversive
psychological state. Existing customers may experience cognitive
dissonance when companies fail to provide a product or a service
that meets their expectations, or when they see concerns sur-
rounding the general business conduct of firms (Andreassen
Streukens, 2009). One way to reduce such dissonance is to openly
deliberate a negative experience and announce how they might
behave in response to companies' failings. However, publicly
revealing their negative feelings can bring about two opposite con-
sequences. As presented in Fig. 1, we identify two competing theo-
retical explanations e self-prophecy and catharsis through venting e
that may impact customers' subsequent purchase behavior.
The self-prophecy approach (Sherman, 1980; Spangenberg
Giese, 1997) posits that engaging in pre-behavioral cognitive
work of stating a sequence of behavioral intentions leads people to
become committed to what they had stated. Thus, after customers
elaborate on their negative feelings and thoughts about a company
by posting e-NWOM, their negative attitudes and opinions serve as
a cognitive frame for their future purchases from the company
(Nyer Gopinath, 2005). Prior studies provide additional support
that creating a message results in a deeper understanding and long-
term recollection of the subject matter (Chi, De Leeuw, Chiu,
Lavancher, 1994; Nekmat, 2012), which reinforces the pre-
existing attitudes of the message creator (Prislin et al., 2011). The
same conclusion has been reported about revenge (del Río-Lanza,
Vazquez-Casielles, Díaz-Martín, 2009). Customers who create
e-NWOM go through a process of self-prophecy by elaborating
their unsatisfying experience with a company and thereby
strengthening their negative attitudes and opinions, which de-
creases their future purchases from the given company, as sug-
gested using a minus sign in Fig. 1.
On the contrary, the venting approach provides a competing
explanation of the posting effect in that it focuses on the power of
emotional release through venting (Barclay Skarlicki, 2009;
Blodgett, Hill, Tax, 1997; Hennig-Thurau et al., 2004). Creating
messages in a stressful situation has been shown to reduce the
intense emotion of the message creator in various contexts
(Pennebaker, 1997). Barclay and Skarlicki (2009) show that venting
about workplace injustice reduces intentions to retaliate and in-
creases the levels of psychological well-being and personal reso-
lution. Nyer and Gopinath (2005) find that the emotional release
from complaining behavior reduces customer dissatisfaction. Those
in favor of venting maintain that expressing e-NWOM alleviates the
negative reactions of those who share their unsatisfying experience
with a company because of the catharsis that the venting behavior
provides (Berger, 2014). The expected positive impact of venting is
suggested using a plus sign in Fig. 1.
Fig. 1. Conceptual framework.
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521 513
4. 2.3. The moderating effect of company usefulness on posting e-
NWOM
The aforementioned effects of posting e-NWOM can be
moderated by the nature of the relationship between the firm and
the poster (Chiou, Hsu, Hsieh, 2013; Gregoire et al., 2009). Ac-
cording to Aggarwal (2004), there are two types of relationships
between brands and their consumers, which have their respective
norms of behavior: First, exchange relationships are based on the
assumption that those who provide benefits to the other party
expect to receive something in return. On the contrary, in
communal relationships the motivation is altruistic. People provide
benefits because they care for the other party, not because they
expect something in return. We expect that posters who have an
existing relationship with a firm and perceive the firm as useful are
more likely to engage in e-NWOM posting behavior because they
see the value of maintaining the relationship with the brand and
want to help the company (Hennig-Thurau et al., 2004; Sundaram
et al., 1998; Verhagen et al., 2013). Given that those who are vocal
about a brand already have a higher level of brand commitment
(Kim, Sung, Kang, 2014), consumers who participate in a firm's
online community maintain a communal relationship with the
firm. When an e-NWOM crisis happens, they post about their
negative experience to make the firm aware of an issue so that it
can handle it promptly and properly.
In this vein, Verhagen et al. (2013) test the moderating effect of
company usefulness on intentions to switch and repatronage. They
hypothesize a positive interaction effect between posting e-NWOM
and company usefulness on intention to repatronage and a negative
interaction effect on intention to switch to a competing brand. They
fail to detect a significant effect of company usefulness presumably
due to the context of their study where the high levels of empow-
erment towards the company and social connection among forum
members do not allow a customer with a desire to help the company
to speak out and post information that may seem empathetic to the
firm. In addition, we argue that the operationalization of company
usefulness in the study may not be suitable to measure the level of
company usefulness. In their study, company usefulness is oper-
ationalized as the extent to which consumers agree that their
messages contribute to the development, improvement, effective-
ness, and operation of the company. This captures the intention to
help the company, but does not indicate whether consumers see the
company and their relationship as useful.
In this study, we define company usefulness as the extent to
which consumers perceive a company's product or service provides
value to them. Instead of measuring intentions to help the company
as an indicator of company usefulness, we operationalize it as
whether a consumer had an opportunity to assess the value of the
company. If such an opportunity motivates a consumer to cogni-
tively process the benefits of the firm, this will result in a positive
moderating effect on e-NWOM posters, which is proposed using a
plus sign in Fig. 1. Study 1 tests the moderating role of company
usefulness by using a real company's community website where
visitors are existing customers of the company. Thus, customers
who maintain a good relationship with the company and desire to
help it can post e-NWOM without the fear of going against the
community norm. In other words, if a customer posts NWOM and
experience the value of a product or a service and perceive its
usefulness after he or she posts, we expect that his or her subse-
quent purchases will increase.
H1. Company usefulness has a positive moderating effect on the
relationship between posting e-NWOM and subsequent purchases
because it amplifies a positive effect of venting and buffers a
negative effect of self-prophecy.
2.4. Differentiating the effect of posting and viewing e-NWOM:
Viewing e-NWOM
As mentioned earlier, Lee and Song (2010) classify consumers
who engage in online complaint behavior into complainers, re-
pliers, and observers. Observers, who only read other consumers'
negative posts, evaluate the given brand by perusing negative in-
formation on the site where complaints are posted. They are less
likely to take any action until they recognize that there is an issue
relevant to them. Attribution theory provides an explanatory
framework for these recipients of e-NWOM messages. According to
this theory, causal analysis is inevitable in an individual's need to
understand social events and decide which actions to take (Keller,
2007). In our context, viewers (i.e., observers) are motivated to
process e-NWOM messages in order to make judgments about the
causes that trigger the creation of e-NWOM by other consumers.
Depending on how they attribute the causedwhether it is the
company, the poster, or other circumstancesdsuch attributions
influence subsequent actions they take toward the company.
Laczniak, DeCarlo, and Ramaswami (2001) specified three types
of information that consumers use to make causal attributions: (1)
consensus (i.e., the extent to which other consumers agree with the
negative views of the poster), (2) distinctiveness (i.e., whether the
negative information is associated with a particular brand or with
other brands), (3) consistency (i.e., the extent to which a poster is
stable in his position across time and situations). Consumers blame
the company when the information they receive is high on all three
dimensions, and the communicator when the dimensions are low,
concluding that the problem is unique to the complainer.
Both Study 1 and 2 examine NWOM engendered due to firm
policy changes that influence all the existing customers. The con-
texts in both studies present the case in which all three dimensions
of attribution are considered high. It is high consensus because the
policy change impacts all customers of the company, which elicit
similar negative reactions on the community site. It is high
distinctiveness since the website is exclusively for customers of the
given brand. It is high consistency because the tone of the posts was
uniformly negative for those who posted multiple times. In sum, we
expect consumers to attribute the cause of e-NWOM to the com-
pany and blame its decision to change the company policy. We also
expect high consensus and consistency conditions to create a sense
of social norm (Lee, Park, Han, 2008). Thus, viewers will conform
to the social norm of the community site and form negative atti-
tudes toward the firm, which will negatively affect future purchase
decisions (Duan, Gu, Whinston, 2008). Accordingly, we present a
minus sign in Fig. 1 and formally propose the following hypothesis.
H2. An e-NWOM viewer decreases his or her subsequent pur-
chases after he or she reads e-NWOM in high levels of consensus,
distinctiveness, and consistency.
3. Study 1
3.1. Data collection
The data for Study 1 come from a large coalition loyalty program
that maintained an online community forum. Members earn points
for purchases at sponsors in different product categories including
groceries, gas, pharmacy, and credit card. They can then use the
points to redeem a variety of rewards such as gift cards,
merchandise, and travel. In November 2011, the program
announced a policy changedearned points would expire after five
yearsdthat affected all members and triggered them to post or
read NWOM on their community site and other social media sites.
For this study, the company provided point accrual and redemption
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521514
5. records of 76 posters who created 116 total messages, 681 viewers,
and a control group of 10,000 customers who neither posted nor
viewed. When members make a purchase at a sponsor location and
earn points, the loyalty program receives a payment from the
sponsor. Thus, point accumulation is directly related to the loyalty
program's revenues. The policy change is an exogenous shock that
prompts customers to post or view messages on the online forum,
and the resulting data offer a unique opportunity to measure the
effect of both posting and viewing NWOM on actual purchase be-
haviors. The study period is 15 weeks. The four weeks prior to the
policy change announcement establish existing purchase charac-
teristics prior to posting or viewing. The 11 weeks after the
announcement are used to evaluate the behaviors after posting or
viewing, relative to control customers who neither posted nor
viewed.
3.2. Variables
Our independent variables are posting and viewing e-NWOM.
Posters are defined as those who posted at least once during the 11-
week period after the announcement. Viewers are those who read
any of the messages at least once during the 11-week period. The
moderating variable, company usefulness, is whether a member
experienced the brand value after posting or viewing. We oper-
ationalize company usefulness with a binary variable that indicates
whether a member redeemed a reward after the policy change.
Members accumulate points with the goal of redeeming them for
various rewards. Thus, redemption reminds them of the usefulness
of the company. Our dependent variable is point accumulation,
which is proportional to the revenues received from the sponsors
where customers earn points. We aggregate point transactions to
the weekly level because point accrual is somewhat periodic on a
weekly cycle, with two of the major sponsor categories being gro-
cery and gas.
3.3. Propensity score model
Before testing our hypotheses with regressions models, we
address the possibility of selection bias, where posters or viewers
are different than controls prior to the announcement. Such dif-
ferences could affect members' forum participation as well as their
subsequent purchase behaviors. To reduce the possibility of such
confounding, we employ a propensity score model (Rosenbaum
Rubin, 1983; Rubin, 1997) to identify matched controls. Matching
is done by first estimating the probability Pi that member i self-
selects into the treatment group (posting or viewing) using only
on information that was available prior to the announcement, and
then by finding control-group members with similar values of Pi.
We use the following covariates in the model: vector mi records the
points accrued in bank services, grocery, pharmacy, retail, or other
categories, vector ri records points used to redeem gift and cash
certificates, goods, or other categories of rewards, and ni is the
number of sponsors the customer purchased from. To obtain each
customer's propensity score we use a binary logistic regression:
ln
Pi
1ÀPi
¼ l0 þl1lnðmi þ1Þ þl2lnðri þ1Þþl3lnðni þ1Þþεi;
(1)
The logarithmic transformation is used because the predictors
may be skewed to the right with outliers. After obtaining the pro-
pensity scores, we employ 5:1 matching with the nearest neighbor
algorithm to select a group of control customers that resembles the
posters/viewers before the announcement. After matching, we
verify that covariate balance is improved by comparing
quantileequantile plots of all predictor variables before and after
matching. The propensity score distributions are more similar with
those of the matched control groups than the full control sample.
Final sample consists of 76 posters, 681 viewers, and 3784 matched
controls.
After finding matches, we estimate a regression model to test
the hypotheses:
lnðyit þ 1Þ ¼ða0 þ a0Þ þ b1xit þ b2vit þ b3wit þ b4xit  wit
þ b5vit  wit þ b6qi þ b7ki þ b8 lnðst þ 1Þ
þ b9 lnðmi þ 1Þ þ b10 lnðri þ 1Þ þ b11ðni þ 1Þ
þ b12 bpi þ eit;
(2)
where yit is the points accrued by customer i from purchases made in
week t, which is directly related to the company's revenue from the
issuing sponsor. Values of t ranging from one to four represent the
weeks prior to the announcement of the policy change, and five to
fifteen for the weeks after the announcement. Binary variables vit
and xit indicate whether customer i viewed or posted during or after
week t, respectively. We control for the main effect of redeeming
rewards after the policy change announcement (wit). We also
include interaction effects between posting and redeeming rewards
after the policy change (xit  wit), and viewing and redeeming re-
wards after the policy change (vit  wit). To test H1, we observe the
direction and magnitude of the coefficient for the interaction be-
tween posting and experiencing the brand benefit, i.e., b4. To test H2,
we observe the sign and magnitude of b2. We account for customer
heterogeneity by including covariates measuring the preexisting
characteristics used in the propensity score model. To account for
any remaining unobserved heterogeneity, we include the random
intercept (ai). We also control for the fixed effects of whether a
subject is a poster or viewer, denoted by qi and ki, respectively, to
account for a priori heterogeneity amongst posters, viewers, and
control customers. Lastly, to account for seasonality, we include the
weekly average st of accrued points from all 10,000 control cus-
tomers who have neither posted nor viewed the online forum.
3.4. Results of Study 1
First, we estimate the propensity score model, which predicts the
likelihoodthatamemberposted orviewede-NWOMmessagesonthe
forum. The estimates suggest that posting is associated with accruing
morepoints fromfood(bb ¼ 0.06,p.05),retail(bb ¼ 0.19,p.001),and
other (bb ¼ 0.41, p .001) categories in the pre-announcement period.
They are also more likely to redeem rewards (bb ¼ 0.07, p .05). The
results suggest that forum visitors are more engaged with the firm to
beginwith.Thisfindingalsoconfirmsthatmatchinge-NWOMposters
and viewers with a control group that exhibits similar a priori be-
haviors is necessary to reduce selection bias.
The regression specified in Equation (2) quantifies the effect of
our main independent variables, as shown in Table 1. We test H1 by
observing the coefficient estimate of the interaction between
posting and redeeming. The regression estimate of the interaction
is positive and significant on subsequent spending (bb ¼ 0.31,
p .05), supporting H1. The interaction effect is illustrated in Fig. 2.
The estimate for viewing behavior is negative and significant,
suggesting that viewing e-NWOM decreases subsequent spending
by 12% (p .001). Thus, H2 is supported.
3.5. Discussion of Study 1
Our first hypothesis tests whether the effect of posting e-NWOM
is moderated by company usefulness (i.e., redemption behavior).
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521 515
6. We found a positive interaction between posting e-NWOM and
point redemption. Our analysis shows that spending level is
increased by 37% (e0.314
¼ 1.37) for those who posted e-NWOM and
also experienced the benefit of the company through point
redemption. The finding suggests that for e-NWOM posters, it is
important that they are given an opportunity to recognize the
usefulness of the company by experiencing the brand value
through redemption after posting e-NWOM.
Our second hypothesis tests the effect of viewing e-NWOM
messages high on consensus, distinctiveness, and consistency. We
found that viewers decrease their spending level after reading e-
NWOM messages. The finding is consistent with previous research
that showed a negative influence of e-NWOM on its readers. Upon
reading uniformly negative posts, viewers are more likely to attri-
bute the e-NWOM incident to be the company, which is likely to
create negative attitudes toward the firm and reduce their subse-
quent spending.
While posting and viewing e-NWOM have different effects on
future behaviors, it seems that there is a single company response
that could address both and create a situation where both cus-
tomers and the company benefit. Since point redemption reminds
posters of the brand's usefulness, to mitigate negative effects
brought forth by the policy change, the company could have offered
a promotion/incentive to encourage redemption. Moreover, since
redemption increases future point accumulation, it is possible that
revenues due to the change in future point accumulation will
exceed the cost of the promotion and the reward, which would
create a net positive change in customer value from the firm's point
of view, and increase the value consumers derive from their rela-
tionship with the firm. This is an example of value fusion (Lariviere
et al., 2013), where both parties derive value.
For viewers, it is important that the company provides further
information and shows concern for the complaints of other cus-
tomers. Such interventions show how attentive the company is to
customer feedback (Allsop, Bassett, Hoskins, 2007). Since the
company did not make any efforts to respond to customers'
complaints posted on its community website or social media
channels, we posit that the company missed an opportunity to
address the frustration openly on the community forum. A public
notice of the promotion/incentive mentioned above would have
been viewed by all, and could have allayed the effects of the e-
NWOM by establishing the perception that the company cares
about its customers' anger and makes an effort to provide value to
them. Such a company intervention could have also motivated
posters to adjust their position on the e-NWOM incident and write
a more positive message, which would lower the levels of
consensus and consistency of e-NWOM messages and ultimately
change the attribution among viewers. To examine the issue of
Table 1
Model estimates e effects of viewing, posting, and reward redemption.
Model
Independent variable Points accumulated (logged)
Intercept À1.204 (0.128)***
Treatment variables
Posting À0.227 (0.105)*
Redeeming following policy change 0.137 (0.03)***
Posting  redeeming following policy change 0.314 (0.160)*
Viewing À0.116 (0.034)***
Viewing  redeeming following policy change À0.041 (0.058)
Fixed effects
Is a poster 0.137 (0.092)
Is a viewer 0.074 (0.029)**
Behaviors before policy change
ln(Bank Points Accumulated þ 1) 0.145 (0.008)***
ln(Food Points Accumulated þ 1) 0.289 (0.006)***
ln(Retail Points Accumulated þ 1) 0.080 (0.0103)***
ln(Gas Points Accumulated þ 1) 0.249 (0.008)***
ln(Other/Misc. Points Accumulated þ 1) 0.094 (0.015)***
ln(Number of Sponsors Purchased From þ 1) 0.084 (0.039)*
ln(Points Used to Redeem Travel þ 1) 0.044 (0.018)**
ln(Points Used to Redeem Cash/Certificates þ 1) 0.041 (0.007)***
ln(Points Used to Redeem Goods/Other þ 1) 0.045 (0.008)***
Other control variables
Seasonality 0.490 (0.037)***
Propensity Score 0.406 (0.295)
Random Intercept Covariance 0.217 (0.466)
Note. Standard errors are presented in parentheses. *
p .05, **
p .01, ***
p .001.
-0.2-0.10.00.10.2
Posting
EstimatedMarginalMeans
No Yes
Redeeming
Yes
No
Fig. 2. Interaction effect between posting and redeeming (study 1).
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521516
7. company intervention further, Study 2 tests the effect of an apology
on e-NWOM posters and viewers using a randomized controlled
experiment.
4. Study 2
4.1. The moderating effect of company apology
Two questions emerge from the findings of Study 1: (1) Will we
see the differential effects of posting and viewing in another in-
dustry? (2) How would have the results changed if the company
had responded to NWOM on the community forum to remind its
customers of its value and offer an apology? In Fig. 1, we identified
company compensation as the second possible moderator of the
effects of e-NWOM behavior. Study 2 addresses the aforementioned
questions.
A growing body of literature has shown that when a company
handles complaints properly, its reputation is not damaged, and it
can even potentially benefit by regaining customer satisfaction and
loyalty (Buttle Burton, 2002; Lee Song, 2010; Willemsen,
Neijens, Bronner, 2013). Previous research has not, however,
investigated the differential effect of webcare on NWOM viewers
and posters. We expect that in the presence of the company's
webcare effort, viewers observing the dialog between complainers
and the company will consider the firm's effort to offer a response
as credible and beneficial (Breitsohl, Khammash, Griffiths, 2010).
We also expect that a public apology on a company's community
website will create the perception that the company is sincere and
respects the communal relationship with its customers, which, in
turn, will increase future purchases for both viewers and posters
(Gregoire et al., 2009).
H3. A company apology has a positive moderating effect on the
relationship between posting e-NWOM and behavioral intentions,
i.e., the apology will make posters less likely to conduct negative
behaviors, such as quitting.
H4. A company apology has a positive moderating effect on the
relationship between viewing e-NWOM and behavioral intentions,
i.e., the apology will make viewers less likely to conduct negative
behaviors, such as quitting.
4.2. Participants and design
To test our predictions, we conducted an experiment with a 2
(viewer vs. poster) Â 2 (apology vs. no apology) þ 1 (control group)
between-subject design. The experiment was conducted among
graduate students (n ¼ 127, 74.8% female, Mage ¼ 25.09,
SDage ¼ 6.12) at an urban private university in the United States.
Participants represented 16 countries with the majority coming
from the U.S. (33.9%) and China (44.9%). Students were not
compensated for their participation.
4.3. Procedure
Participants were emailed a request to take part in an online
study. At the beginning of the experiment, they were asked to give
informed consent. Next, they were exposed to a policy change
scenario. After reading the scenario, participants were randomly
assigned to one of the three conditions: control (n ¼ 29), viewer
(n ¼ 51), and poster (n ¼ 47). Participants in the control condition
were asked to complete the survey. Respondents in the viewer and
poster conditions were asked to read or post comments about the
policy change. Next, they were randomly exposed to either the
apology condition (nviewer ¼ 24, nposter ¼ 22), in which they were
asked to read the company apology or not shown the apology
(nviewer ¼ 27, nposter ¼ 25). Finally, all participants were debriefed
and thanked for their participation. To make sure that the partici-
pants read the scenario and reviews, a timer was used. On average,
participants were exposed to the scenario for about 53 s
(Mdn ¼ 30.28, M ¼ 53.09, SD ¼ 86.46), to the reviews for about
298 s (Mdn ¼ 82.93, M ¼ 297.88, SD ¼ 1298.33), and to the apology
for 440 s (Mdn ¼ 49.18, M ¼ 440.45, SD ¼ 2057.29). Participants in
different conditions did not differ with respect to the time spent
reading the scenario, F2,124 ¼ 0.543, p ¼ .582 (review condition),
t125 ¼ 0.985, p ¼ .327 (apology condition). Also, the two apology
conditions did not differ with respect to the time spent on reading
the reviews, t49 ¼ À1.120, p ¼ .268. Finally, viewers and posters
exposed to the apology condition did not differ in the time spent on
reading the apology, t44 ¼ 1.206, p ¼ .234.
4.4. Stimulus materials
In all conditions the scenario read as follows: “Imagine that you
received an e-mail from your current mobile service provider,
American Telecom, stating that your plan conditions were going to
change. You have a limit of 500MB of data per month. The previous
policy was to slow down Internet speeds after exceeding the limit,
but not charge anything. The email informed you that in the future
you will pay a penalty of $15 if you exceed the data limit, and $1/MB
that you use beyond 500MB.” After reading the scenario, partici-
pants in the viewer condition were requested to imagine that they
visited the company's community site and discovered other cus-
tomers' NWOM. Participants in the poster condition were asked to
write a comment on the community site expressing their thoughts
and feelings.
Participants in the viewer condition were then exposed to four
negative reviews about American Telecom (Appendix A, hereafter
called “A.T.”). To increase external validity, the posts were collected
from real review sites and modified to reflect the context of Study 2.
As with Study 1, the NWOM condition in Study 2 was of high
consensus, distinctiveness, and consistency. Next, depending on
the apology condition, participants were either asked to read a post
from a company apologizing for the situation (Appendix B) or to
complete the survey. The post was based on companies' real re-
actions to negative reviews and contained an apology and an
explanation of steps the company is going to introduce to minimize
the risk of overages. To be consistent with the context of Study 1,
which tests for company usefulness, the apology condition also
included a paragraph that explains the benefits that A.T. provides to
its customers.
4.5. Measures
To make sure that our policy change scenario generated a
negative e-WOM incident, we asked respondents to answer three
questions measuring their level of anger and regret based on
Tykocinski and Pittman (2001), using a 7-point Likert scale
(1 ¼ completely disagree; 7 ¼ completely agree). The order of the
items was randomized. To confirm that the manipulation of the
reviews was successful, participants were asked to rate the nega-
tivity of the four reviews they had read or the review they had
written on a scale from 1 (very negative) to 7 (very positive). The
apology manipulation was checked with one item measured on a 7-
point Likert scale (1 ¼ completely disagree; 7 ¼ completely agree).
Negative behavioral intentions were measured with a 7-point Lik-
ert scale (1 ¼ not at all likely; 7 ¼ extremely likely) of how likely
they were to 1) search for alternative providers, 2) stay with A.T.
(reversed), 3) quit A.T., 4) recommend A.T. to a friend (reversed).
Items were presented in a random order (Cronbach's a ¼ .71).
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521 517
8. Finally, information on gender, age, education level and country of
origin was collected.
4.6. Results of Study 2
4.6.1. Manipulation and randomization checks
Participants in the three conditions did not differ with respect to
gender (c2
(2) ¼ 2.031, p ¼ .362), education (c2
(8) ¼ 9.295, p ¼ .318),
country of origin (c2
(30) ¼ 33.686, p ¼ .294), or age (F2,121 ¼ 1.554,
p ¼ .216). We assessed if our manipulations worked. First, the
scenario successfully evoked negative feelings: Participants felt
angry at themselves for choosing A.T. (M ¼ 3.97, SD ¼ 1.74),
regretted having decided to choose A.T. (M ¼ 5.45, SD ¼ 1.33), and
felt angry at A.T. (M ¼ 5.97, SD ¼ 1.15). Second, the four negative
reviews in the stimulus material were perceived as negative
(M1 ¼ 1.86, SD1 ¼ 1.18; M2 ¼ 2.02, SD2 ¼ 1.14; M3 ¼ 2.02, SD3 ¼ 1.16;
M4 ¼ 2.02, SD4 ¼ 1.14). We also asked posters to evaluate their own
reviews, which were perceived as negative (M ¼ 2.47, SD ¼ 1.16).
There were no differences in how negative the reviews were
perceived, i.e., reviews posted by others were perceived equally
negative as reviews posted by the participants, F(3, 94) ¼ 1.75,
p ¼ .162. Finally, participants reported that the company apology
used the right tone of voice (M ¼ 4.52, SD ¼ 1.57).
4.6.2. Hypotheses testing
We used a two-way ANOVA to test our hypotheses. Because the
3 Â 2 design had a missing cell, Type IV sums of squares were used,
which compare a given cell with averages of other cells and are
preferred when there are missing treatment combinations
(Milliken Johnson, 2009). The interaction between condition and
company apology on negative behavioral intention was borderline
significant (F1,122 ¼ 3.109, p ¼ .040, h2
¼ 0.03) using one-sided
tested due to the directional nature of our hypotheses (Fig. 3).
Moreover, the main effects of condition, F2,122 ¼ 4.750, p ¼ .005,
h2
¼ 0.07, and company apology, F1,122 ¼ 8.369, p ¼ .003, h2
¼ 0.06,
on intention were also significant (one-sided).
To disentangle the interaction effect, simple effects tests with
least significant differences were applied. Mean scores for all var-
iables are included in Table 2 and significant differences are shown
based on multiple comparisons (p .05). Although the effect of
apology on posters was in the right direction, posters in the no
apology condition did not differ significantly from posters in the
apology condition (Mdiff ¼ À0.211, SE ¼ 0.27, F1,122 ¼ 0.613, p ¼ .435,
h2
¼ 0.01), leading us to reject H3. The hypothesized positive effect
of apology on viewers (H4) was confirmed by a significant differ-
ence between viewers in the no apology condition and those in the
apology condition (Mdiff ¼ À0.869, SE ¼ 0.26, F1,122 ¼ 11.304,
p ¼ .001, h2
¼ 0.09). When the apology was offered, viewers scored
lower on negative behavioral intentions than posters
(Mdiff ¼ À0.732, SE ¼ 0.27, F1,122 ¼ 7.242, p ¼ .008, h2
¼ 0.06). When
no apology was present, the differences between conditions were
not significant. Summarizing, the apology affected only viewers of
e-NWOM: viewers who read the public company apology
decreased their intention to quit and increased their intention to
stay and recommend the company.
4.7. Discussion of Study 2
Hypothesis 3 predicts that a company apology has a positive
moderating effect on posters, but we cannot confirm it. Posters who
were offered an apology did not differ from those who were not.
Posters may have just wanted to experience catharsis by releasing
negative emotions without expecting that the company would
respond to their complaints. This explanation not only confirms
venting as a mechanism for resolving cognitive dissonance, but also
is consistent with the finding that webcare satisfaction is negatively
affected by venting (Willemsen et al., 2013). Also, an apology from
the company may be associated with guilt, which people consider a
negative sign (Blodgett et al., 1997). Finally, it is possible that an
apology was not enough to evoke fairness perception or to trigger
elaboration on company usefulness. Cognitive appraisal theory
predicts that people's evaluation of a situation triggers emotions (del
Río-Lanza et al., 2009). If the apology was not perceived as a remedy
for the situation, it failed to elicit positive emotions about the firm.
Hypothesis 4 predicts that viewers who receive the company
apology show more positive behavioral intentions. Our results
confirm Hypothesis 4: Viewers who saw that the complaints had
been addressed by the company increased their positive behavioral
intentions. This is consistent with van Noort and Willemsen (2011),
showing that webcare can diminish the negative effects of NWOM.
This also suggests that for e-NWOM viewers, the additional infor-
mation provided by the company is used for the viewers' attribu-
tion process. Company apology changes the level of consensus in
what viewers read on the online forum, which then influences the
causal attribution of viewers.
5. General discussion
This study examines the effect of posting and viewing e-NWOM
on purchase behaviors, and the moderating role of company use-
fulness and company apology. A series of two studies showed that
(1) posting e-NWOM has a positive effect when posters are
reminded of the firm's usefulness after engaging in posting
behavior, (2) viewing e-NWOM that consists of uniformly negative
opinions decreases subsequent purchases, and (3) a company
4.44.64.85.05.25.45.6
Conditions
EstimatedMarginalMeans
Control Viewer Poster
Apology
No
Yes
Fig. 3. Interaction effect between condition and company apology on negative
behavioral intention (study 2).
Table 2
Mean differences on intention.
Conditions No apology Apology
M SD N M SD N
Control 5.69a 0.95 29 e e e
Viewer 5.30a 0.95 27 4.43b 0.73 24
Poster 5.37a 1.04 25 5.16a 0.89 22
Total 5.46a 0.98 81 4.78a 0.88 46
Note. Means with different subscripts (a, b) differ significantly at p .05.
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521518
9. responsedreminding customers of the value provided by the firm
and apologizing for the policy changedincreases behavioral
intention among e-NWOM viewers.
The effect of posting e-NWOM is moderated by whether posters
are aware of the usefulness of the brand through point redemption.
The findings suggest the importance of relationship marketing in
the emergence of e-NWOM crisis. The existing relationship be-
tween customers and the company, especially when customers
perceive the company to be useful to them, works as a positive
moderator that mitigates the negative sentiments from elaborating
what they have experienced (i.e., self-prophecy). In addition, the
positive impact of posting through venting (Nyer Gopinath,
2005) can be escalated when customers are placed in a situation
where they are reminded of how the brand creates value.
In addition to the positive impact of venting, the specific context
of e-NWOM (i.e., online public forum) may provide another
explanation for why expression of e-NWOM may exert a positive
influence on posters. According to Liu and Shrum (2002), a higher
level of interactivity helps users to gain a greater sense of infor-
mation control, which results in a more positive mood and attitude
toward the website and user satisfaction. The interface of an online
discussion board (i.e., message threads) also gives a sense that
people are engaged in an exchange of dialog with other partici-
pants, and the exchange directly leads to a higher sense of user
engagement and positive attitude toward the website and the
brand (Sundar, Bellur, Oh, Xu, Jia, 2013). Given that our study
used a firm's community website that provides two-way commu-
nication among consumers and/or between the firm and con-
sumers in a message-thread style, this situational factor may have
contributed to a positive outcome from e-NWOM posters by
providing them with a sense of agency and engagement.
For e-NWOM viewers, we find that merely viewing without
participating in the online discussion has a negative influence on
future purchases. Without releasing negative feelings and thoughts
in the form of writing, e-NWOM viewers are most likely to obtain
negative information and absorb negative sentiments about the
company. In line with attribution theory, viewers who use the
uniformly negative information to assess causal attributions are
more likely to conform to the group opinion and blame the firm to
be the culprit of the complaints, which results in decreasing pur-
chases from the company (Laczniak et al., 2001).
We also examine whether the offering of a company apology
reminding customers about the value of the company alleviates
negative purchase intentions of posters and viewers. The findings
indicate that the apology works for both viewers and posters,
although the effect on posters was not statistically significant. The
differences between posters and viewers could be explained by
different levels of issue involvement in e-NWOM processing
(Breitsohl et al., 2010). Because viewers are not as emotionally
involved as complainers, they are more likely to engage in shallow
cognitive processing. On the other hand, posters, who engage
themselves in the situation, have higher levels of cognitive and
emotional involvement, which will lead them to deeper cognitive
processing. As argued by the elaboration likelihood model (Petty
Cacioppo, 1986), individuals who engage in deep processing pay
more attention to the content of the message and arguments pre-
sented in it, while individuals following the peripheral route of
processing pay more attention to heuristic cues. We posit that the
company apology was accepted by viewers based on the heuristic:
the presence of company apology itself is a sign of webcare and
enough for viewers to rebuild trust. Posters, however, need more
than a mere presence of company apology and may need a more
concrete reminder of how the company provides value or some
type of compensation that serves as a remedy for their high level of
negative involvement with the issue in hand.
The differential effect of webcare on posters and viewers may
also be explained by social learning theory (Bandura, 1977). As
Schamari and Schaefers (2015) discuss, consumers learn not only
from direct experience, but also through observing others and
imitating their behaviors (Blazevic et al., 2013; Libai et al., 2010).
Hence, when a consumer observes the dialog between posters and
the company, she learns that the company makes an effort to
address problems consumers encounter. Viewers may perceive the
firm's response as having higher complaint utility, because the
firm's identity and expertise are evident (Breitsohl et al., 2010).
Hence, viewers may perceive company response as more credible
than the original complaint, and show positive responses towards
the company.
6. Contributions and practical implications
This study offers substantive contributions. First, we advance
our understanding of the effects of e-NWOM by distinguishing
posting and viewing behavior. We test how perceptions about
company usefulness and a company apology moderate the effects
of engaging in e-NWOM behavior. Given the dearth of research on
those who create messages, this study provides a comprehensive
picture of the effects of producing and consuming it. Second, we
provide evidence showing how e-NWOM impacts a firm's revenue
by linking online social media data with customers' actual purchase
data (Study 1). Methodologically, we use propensity score matching
to reduce potential selection bias in actual social media and pur-
chase data, which is underrepresented in advertising literature. Our
paper can serve as an example of how field data can be used to
advance our understanding of advertising research. Third, we
contribute to the growing literature on webcare by testing the ef-
fect of a company apology. Lastly, Study 2 provides a more inter-
nally valid test of the relationships between e-NWOM activities, the
firm's response, and consumer behaviors by conducting a ran-
domized controlled experiment.
Managerially, our findings suggest that companies should
customize strategies in response to e-NWOM messages, since the
effects of posting and viewing differ. For viewers, it is important to
address the dominant opinions by being transparent and keeping
them informed so that they perceive the brand as being beneficial
and useful. Such an intervention will show that the company is
timely in handling complaints and attentive to its customers
(Allsop et al., 2007). For posters, a company should encourage
customers to participate in their WOM activities. At the same time,
it should also provide an opportunity that helps posters be engaged
with the brand and reminds them of the brand's benefits. Brand
managers should carefully monitor the sentiments expressed in e-
NWOM messages and provide reactive interventions.
This study has limitations and raises questions for future
research. Our data does not allow us to study the long-term effect of
e-NWOM. Thus, we are not be able to answer the question of how
long the observed effect will hold and what company interventions
are appropriate across the time span. Second, we used a similar e-
NWOM incident that is specific to the members of the firms
involved and is of high consensus. Future research should investi-
gate e-NWOM generated in different configurations of consensus,
distinctiveness, and consistency to see how these conditions
change the effect of posting and viewing.
Acknowledgment
We appreciate support from Northwestern University's Spiegel
Research Center on Digital and Database Marketing. We also thank
the Center's Executive Director Tom Collinger for sharing his in-
sights on earlier versions of this manuscript.
S.J. Kim et al. / Computers in Human Behavior 54 (2016) 511e521 519
10. Appendix A
Reviews
Appendix B
Apology
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I just received my bill from you, and it was a surprise. $15 data penalty plus another $20 for going over my limit. THIS IS SO UNFAIR!!! You are just greedy!
American Telecom just hit me with a HUGE overage charge. I called to complain and they told me I have to pay, and there will be a late fee if I don't pay the overage charge
on time. There was absolute no effort by the supervisor to preserve goodwill. If this is not illegal, then it is at least unethical.
I went over my data by a measly 2 MB and American Telecom charged me $17! Can you believe it? Wow, how stingy and deceitfuldbeware!!!
I wish I could give a half of a star … I am so unhappy with them I can't begin to describe it. I went to speak with a manager who sat and said there is absolutely nothing he
can do to help me out, just that their policy had suddenly changed. If they had told me when I was getting my phone with them, I would've totally been fine, but to just
inform us about the changes like that, it is unacceptable. They also didn't seem like you wanted to help in any way which just tells me that this company does not value
their customers at all.
We are sorry that you are angry about our data-overage policy change. Our goal has always been to provide the best cell phone service in the industry. We offer less
expensive plans with low data limits for customers who do not plan to use much data, and other plans for customers who use their mobile phone for dataeintensive
activities, such as music and video streaming. We want customers to have a plan that is right for their needs.
In the future, we will send you SMS messages when you are nearing your data limit or when you are about to exceed your limit, and ask whether you wish to exceed your
limit and pay the fee.
American Telecom offers many benefits that other carriers do not have. Only our 4G network is 100% 4G LTE the gold standard of wireless technology. Available in over 500
cities, American Telecom 4G LTE covers almost 97% of the U.S. population. Moreover, American Telecom makes it easier to buy a new device, with a low upfront cost and
affordable monthly payments.
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