8 lecture Flashcards
Paper focus Babic Rosario et al. (2020):
eWOM marketing and metrics: Is consumer- generated, consumption-related communication that employs digital tools and is directed primarily to other consumers
what is ewom not?
It is NOT: Buzz, Critic reviews, Recommendations systems (offline or what to watch next based on previous findings or previous purchases), Online search
What is electronic word-of-mouth?
eWOM is consumer-generated, consumption-related communication that employs digital tools and is directed primarily to other consumers.”
The EWOM process is ……. and ….. as part of customer journeys
non-linear and recursive
The EWOM process is ……. and ….. as part of customer journeys
non-linear and recursive
Why and how consumers create, are exposed to, and evaluate eWOM? 3X
- Motivation: the desire of readiness to process information
- Ability: the extent to which consumers have the necessary resource to process information
- Opportunity: the extent to which distractions or limited exposure time affect consumers’ attention to information
EWOM CREATION CONUSMERS AND MARKETERS
M
A
O
- are motivated to create eWOM by altruism, social value from interaction, hedonic benefits, impression management and identity formation (e.g., high-status products), balance restoration, venting, retribution, economic incentives
- can motivate consumers with communication (e.g., nudges, Q&A), community building (e.g., product co-development), (non)monetary incentives
- are able to create based on product knowledge, tech skill, proficiencies, competencies • educate consumers on eWOM creation to increase their ability
- have opportunity to create based on instant internet access, low posting costs, variety of eWOM formats • provide opportunities for eWOM creation such as platform affordances, barriers to entry, community, prescribing eWOM format (e.g., text length, rating scale)
Paper focus Chaffey et al. (2016) eWom marketing 5X
º Giving people a reason to talk about your products and services, and making it easier for the conversation to take place
º It is the art and science of building active, mutually beneficial consumer-to-consumer and consumer-to-marketer communications
ºRelies on production of engaging content to attract attention and generate eWOM ºFacilitating and monitoring customer interaction and participation throughout the web to encourage positive engagement with a company and its brands
º interactions may occur on a company site, social networks and other third-party sites
Echoverse:
Feedback effects between different channels and business outcomes (they affect each other and sales)
eWOM metrics 5
º eWOM variance (stars 5,4,3,2,1)
º eWOM valence (average, positive, negative, incremental 4.3 out of 5) º eWOM volume (cumulative, average, incremental customer ratings)
º eWOM composite valence volume (percentage) º eWOM content (Reviews)
EWOM dimension
wher?
how?
what?
where? platforms: platform type, eWOM sender and mesage, platform maturity, platform posting costs
how? eWOM metrics
What? Product type, stage in the product life cycle
EWOM dimension
wher?
how?
what?
where? platforms: platform type, eWOM sender and mesage, platform maturity, platform posting costs
how? eWOM metrics
What? Product type, stage in the product life cycle
EWOM charasterics, what plays an important role?
The context surrounding interpersonal communication
EWOM charasterics, what plays an important role?
The context surrounding interpersonal communication
E-WOM Platform types
(e-commerce, review and social media platforms)
eWOM message details 3X
helpfulness rating & time stamp
visibility (e.g., number of scrolls needed to access eWOM)
structured display of eWOM
eWOM sender details 2X
homophily (e.g., avatar, profile page, geographic location)
trustworthiness (e.g., real names, duration of membership, contact information)
E-wom about what?
Functional risk
3X
sampling, purchase, or additional information is required in order to evaluate the quality of services (Zeithaml 1981)
for hedonic products eWOM helps consumers identify the products that best match their idiosyncratic preferences (Moe and Trusov 2011)
eWOM reduces uncertainty of new products (Moe and Trusov 2011)
E-wom about what?Financial risk:
when financial risk is high, consumers rely more on eWOM for assurance (Murray 1991)
- What is the overall effect of eWOM on sales?
positive and not negligible
- On which platforms to focus? 3x
e-commerce platforms; platforms with more homophily cues; more visible eWOM and less structured display of the information
- For which products?
New products; products with higher financial risk
- What is the best platform-product combination?
e-commerce sites & new products; asymmetric effects (e.g., on social media eWOM is more effective for services, but for services eWOM is not more effective on social media)
- Which metric to focus on? 3x
eWOM volume (bandwagon effect), positive volume, variance; negative eWOM does not necessarily hurts sales but high variability does
The bandwagon effect is
a psychological phenomenon in which people do something primarily because other people are doing it, regardless of their own beliefs, which they may ignore or override.
Regression model:
Statistical model that estimates the relationship between one dependent variable and one or more independent variables using a line (the vraibele should be quantitative)
