8 lecture

Question 1

Paper focus Babic Rosario et al. (2020):

Answer 1

eWOM marketing and metrics: Is consumer- generated, consumption-related communication that employs digital tools and is directed primarily to other consumers

Question 2

what is ewom not?

Answer 2

It is NOT: Buzz, Critic reviews, Recommendations systems (offline or what to watch next based on previous findings or previous purchases), Online search

Question 3

What is electronic word-of-mouth?

Answer 3

eWOM is consumer-generated, consumption-related communication that employs digital tools and is directed primarily to other consumers.”

Question 4

The EWOM process is ……. and ….. as part of customer journeys

Answer 4

non-linear and recursive

Question 4

The EWOM process is ……. and ….. as part of customer journeys

Answer 4

non-linear and recursive

Question 5

Why and how consumers create, are exposed to, and evaluate eWOM? 3X

Answer 5

• 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

Question 6

EWOM CREATION CONUSMERS AND MARKETERS
M
A
O

Answer 6

• 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)

Question 7

Paper focus Chaffey et al. (2016) eWom marketing 5X

Answer 7

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

Question 8

Echoverse:

Answer 8

Feedback effects between different channels and business outcomes (they affect each other and sales)

Question 9

eWOM metrics 5

Answer 9

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)

Question 10

EWOM dimension
wher?
how?
what?

Answer 10

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

Question 10

EWOM dimension
wher?
how?
what?

Answer 10

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

Question 11

EWOM charasterics, what plays an important role?

Answer 11

The context surrounding interpersonal communication

Question 12

EWOM charasterics, what plays an important role?

Answer 12

The context surrounding interpersonal communication

Question 13

E-WOM Platform types

Answer 13

(e-commerce, review and social media platforms)

Question 14

eWOM message details 3X

Answer 14

 helpfulness rating & time stamp
 visibility (e.g., number of scrolls needed to access eWOM)
 structured display of eWOM

Question 15

eWOM sender details 2X

Answer 15

 homophily (e.g., avatar, profile page, geographic location)
 trustworthiness (e.g., real names, duration of membership, contact information)

Question 16

E-wom about what?
Functional risk
3X

Answer 16

 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)

Question 17

E-wom about what?Financial risk:

Answer 17

 when financial risk is high, consumers rely more on eWOM for assurance (Murray 1991)

Question 18

1. What is the overall effect of eWOM on sales?

Answer 18

positive and not negligible

Question 19

2. On which platforms to focus? 3x

Answer 19

e-commerce platforms; platforms with more homophily cues; more visible eWOM and less structured display of the information

Question 20

3. For which products?

Answer 20

New products; products with higher financial risk

Question 21

4. What is the best platform-product combination?

Answer 21

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)

Question 22

5. Which metric to focus on? 3x

Answer 22

eWOM volume (bandwagon effect), positive volume, variance; negative eWOM does not necessarily hurts sales but high variability does

Question 23

The bandwagon effect is

Answer 23

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.

Question 24

Regression model:

Answer 24

Statistical model that estimates the relationship between one dependent variable and one or more independent variables using a line (the vraibele should be quantitative)