ServiceFriday: Four Factors for Using Electronic Word of Mouth to Boost Purchasing Decisions

Web 2.0, otherwise known as non-static websites that focus on the ability for users to collaborate and share information, allows consumers to readily share their experiences, thoughts, and opinions with others. This shared content is referred to as electronic word of mouth (eWOM) and can be 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”.

A study in the Journal of Services Marketing has shown that social collaboration in the form of eWOM is an integral part of the social commerce (s-commerce) success story.  S-commerce describes a new stream in e-commerce in which social factors are the determinant for purchasing decisions. Within the s-commerce model, consumers are empowered to generate content using social media by way of online communities, forums, ratings, reviews, and recommendations.

The study shows that eWOM engagement has a strong impact on customers’ purchase intentions.  “Our empirical test reveals that attitude toward eWOM, information credibility, innovativeness and website quality are important determinants of eWOM engagement, which also influences purchase intention. Firms might particularly benefit from eWOM if consumers request or share the content, which will eventually lead to greater returns.”

Four factors have been identified as keys to using eWOM effectively: information credibility, website quality, “innovativeness” (i.e. the consumer’s willingness to innovate), and the consumer’s attitude towards eWOM. These factors were found to influence eWOM engagement positively. The study also found that there was no significant relationship between information quality or social support and eWOM engagement. Thus, a company should focus on the website’s information credibility, e.g. provide photos and videos or reviews, rather than focus on improving information quality. Therefore, companies that would like to build an robust environment for consumer engagement by utilizing eWOM should concentrate on the four factors noted above. 

To access the full article, visit the Journal of Service Marketing at Emerald Insight: https://bit.ly/2VQMqjD (A fee may apply.)