The Influence of Online Customer Reviews on the Spread of Electronic Word-of-mouth
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v5i6.3369
Abstract
This study focuses on the impact of online reviews on electronic word-of-mouth (eWOM) communication, specifically the number, nature, and form of reviews and how publishing platforms promote eWOM by reducing purchase risk. Using a sample of 264 Chinese online consumers, the study analyses the data with SPSS 22.0 to reveal the moderating effects of online engagement and company reputation on the relationship between consumer reviews and purchase risk. The results show that review characteristics significantly affect consumers' purchase intention and eWOM communication, providing empirical support for eWOM management and marketing strategies. The study also points out directions for future research.
Keywords
online reviews, eWOM, purchase risk
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[2]Beisswanger, A. H., E. R. Stone, J. M. Hupp, L. Allgaier. 2003. Risk taking in relationships: Differences in deciding for oneself versus for a friend. Basic & Applied Social Psychology, 25 (2): 121-135.
[3]Boardman, R., McCormick, H. 2019. The impact of product presentation on decision-making and purchasing, Qualitative Market Research: An International Journal, 22(3): 365–380.
[4]Cheung, C.M., M.K. Lee, D.R. Thadani. 2009. The impact of positive electronic word-of-mouth on Consumer Online Purchasing Decision, Visioning and Engineering the Knowledge Society. A Web Science Perspective, pp. 501–510.
[5]Clement Addo, J. Fang, A. Asare, N. Kulbo. 2021. Customer engagement and purchase intention in live-streaming digital marketing platforms, The Service Industries Journal, 41(11-12): 767–786.
[6]CNNIC. “Number of online shoppers in China from 2012 to 2022 (in millions) [Graph]”. In Statista. Retrieved April 15, 2023, from https://www.statista.com/statistics/277391/number-of-online-buyers-in-china/, March 2, 2023.
[7]Coppola, D. 2022. “Topic: Online reviews in e-commerce, Statista.” https://www.statista.com/topics/9736/online-reviews-in-e-commerce/, Aug 1, 2022.
[8]Forward Intelligence (Qianzhan). “Share of Chinese consumers who have purchased apparel on e-commerce platforms in China as of 2019 [Graph]”. In Statista. https://www.statista.com/statistics/1243838/china-consumers-who-have-purchased-apparel-online/, May 14, 2020.
[9]Kang, H. 2013. A guide on the use of factor analysis in the assessment of construct validity, Journal of Korean Academy of Nursing, 43(5): 587.
[10]Kim, J., S.J. Lennon. 2013. Effects of reputation and website quality on online consumers' emotion, perceived risk and purchase intention, Journal of Research in Interactive Marketing, 7(1): 33–56.
[11]Lampert, S. I., L. J. Rosenberg. 1975. Word of mouth activity as information search: A reappraisal. Journal of the Academy of Marketing Science, 3(4): 337-354.
[12]Lawrence, M. and O’Connor, M. 2000. Sales forecasting updates: how good are they in practice?, International Journal of Forecasting, 16 (3): 369-382.
[13]Memon, M.A. et al. 2019. Moderation analysis: Issues and guidelines, Journal of Applied Structural Equation Modeling, 3(1): i-xi.
[14]Mo, Z., Y.-F. Li, P. Fan. 2015. Effect of online reviews on Consumer Purchase Behavior, Journal of Service Science and Management, 08(03): 419–424.
[15]Pemarathna, R. “Impact of xiaohongshu on its user based and Society: A Review”, ResearchGate. https://www.researchgate.net/publication/333974009_Impact_of_Xiaohongshu_on_Its_User_Based_and_Society_A_Review, June 2019.
[16]Pipitwanichakarn, T., N. Wongtada. 2020. The Role Online Review on mobile commerce adoption: An inclusive growth context, Journal of Asia Business Studies, 14(5): 759–778.
[17]Salminen, J., C. Kandpal, A. Kamel, S. Jung, B. Jansen. 2022. Creating and detecting fake reviews of online products, Journal of Retailing and Consumer Services, 64: 102771.
[18]Sun, Q., J. Niu, Z. Yao, H. Yan. 2019. Exploring ewom in online customer reviews: Sentiment analysis at a fine-grained level, Engineering Applications of Artificial Intelligence, 81: 68–78.
[19]Tran, V.D., T.D. Nguyen. 2022. The impact of security, individuality, reputation, and consumer attitudes on purchase intention of online shopping: The evidence in Vietnam, Cogent Psychology, 9(1).
[20]Wongkitrungrueng, A., N. Assarut. 2020. The role of live streaming in Building Consumer Trust and engagement with Social Commerce Sellers, Journal of Business Research, 117: 543–556.
[21]Yang, B. “The effect of OCRson customer's perceived risk associated with online Leisure Hotel Booking, Purdue e-Pubs.” https://docs.lib.purdue.edu/open_access_theses/93/#:~:text=The%20findings%20provided%20exploratory%20insights%20about%20the%20dimensions,perceived%20risk%20associated%20with%20online%20leisure%20hotel%20booking, 2013.
[22]Zhang, K.Z.K., S.J. Zhao, C.M.K. Cheung, M.K.O. Lee. 2014. Examining the influence of online reviews on consumers' decision-making: A heuristic–systematic model,” Decision Support Systems, 67: 78–89.
[23]Zheng, R., Z. Li, S. Na. 2022. How customer engagement in the live-streaming affects purchase intention and customer acquisition, E-tailer's perspective, Journal of Retailing and Consumer Services, 68: 103015.
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