Zhang, J. Q., Craciun, G., & Shin,
D. (2010). When does electronic word-of-mouth matter? A study of consumer
product reviews. Journal of Business Research, 63(12), 1336-1341.
1). I
think the authors started this research with an objective of understanding the
way in which online product review by customers acts as electronic
word-of-mouth. The authors try to understand the way in which eWOM influences
the persuasiveness of customers toward purchasing different products. The goal
of the authors is to understand whether eWOM are an effective way of
influencing customers to purchase a product or not.
2). The study is based on the regulatory focus
theory. The study has both quantitative and theoretical basis. The regulatory
focus theory is used as a basis for determining the consumption goals which
customers relate with a particular reviewed product, moderating the effect
valence review on persuasiveness. The theory is based on the argument that
people pursue certain goals in life. Hence, the customers' goals while
purchasing particular products influence their attitude towards the eWOM on
their purchasing behaviors. The theory indicates that regulation can be induced
or primed. The theory tries to show that customer consumption practices towards
a certain product can be regulated by the nature of the review provided through
eWOM.
3). “H1a:
for products associated with promotion consumption goals, positive reviews are
more persuasive than negative ones.†(p. 1337)
"H1b: For products associated with prevention
consumption goals negative reviews are more influential than positive
reviews." (p.1337)
4).For
purposes observing these two hypotheses the authors carried out an experimental
study. The primary aim was to determine
the way in which the goal of customers in purchasing a particular product
influences the persuasion that product reviews that have been done
electronically influence the attitude towards a given product. The author first
investigated existing literature to ascertain whether the two hypotheses are
true or not. In the second study a random sample method was applied, whereby,
reviews in the Amazon.com website were replicated with the aim of determining
how they influence the customer's persuasiveness toward purchasing a particular
product. The first study was based on
controlled experimental environment, during the second one actual data from a
website so as to understand whether the provided hypotheses are correct or not.
5) A total
of 150 students were used as participants in the first study, while in the
second study data was retrieved from a real website to investigate how it could
influence the purchasing behaviors of customers based on the goals they had
while purchasing the product. The participants used in the study were the
appropriate one as they had adequate nature of the study, and this would enable
them to give accurate responses concerning the issues being studies.
6). The study
provided answers related to H1a. The data collected as well as analyzed in the
study revealed that customers are more persuaded by positive reviews to
purchase products which meet their consumption goals. Hence, the study
indicated this hypothesis as true. On the other hand, the study helped to test
the H1b. The collected data showed that customers are influenced to purchase
preventative products if their reviews are negative, compared to when they are
positive.
7). Based on this research it is evident the
issue of how product quality influences the persuasiveness of customers toward
purchasing it is not addressed. Hence, future studies should focus on this area
so as to understand the way in which it influences the customers buying
behaviors, as far as EWOM are concerned.
Additional articles
Petrobras cost of capital case study ~ Why do you think Petrobrás’s cost of capital is so high? Are there better ways, or other ways, of calculating its weighted average cost of capital? Petrobras was a Brazilian oil company that was un...Petrobrás’-WACC:-Case-Study …
Read ArticleIt is true that indeed, human beings can behave like a rotten watermelon. In that, they can nice and good on the outside, but once you cut it open you realized it was the complete opposite. The assumption was concretely influenced during my educa...Reflective-Essay-Writing …
Read ArticleSocial and Personality Development in Infancy The social and personality development can be understood from three primary perspectives that interact to shape the development. The first of these aspects is the biological maturation which is res...Social-and-Personality-Development-in-Infancy …
Read Article