Impact of Multiple Word of Mouth Sources on Retail Sales
نویسندگان
چکیده
Consumer opinions, experiences, and product recommendations posted on online WOM sites have become a major information source in consumer purchase decisions. However, prior research has largely focused on the influence of a single source of WOM – particularly retailer-hosted WOM. This study investigates the relative impact of multiple WOM information on retail sales. We collected a panel of sales data of 148 camera products from Amazon and WOM data from both Amazon and well-known third-party websites for four months. Our analysis reveals that thirdparty hosted WOM has a significant impact on retail sales while retailer-hosted WOM has much less influence on its own sales. Our finding suggests that third-party hosted WOM is an important source of information for online retail customers. We raise questions about the value and influence of retailer-hosted WOM in the presence of reputable third-party hosted WOM sources.
منابع مشابه
The Impact of Free Sampling of Information Goods on the Dynamics of Online Word-of-Mouth and Retail Sales
Free sampling of information goods has become a common business practice in expectation of reducing consumers’ uncertainty of product quality and helping product diffusion, yet receiving limited investigation of how consumers process free sampling and online word-of-mouth (WOM) and its consequences on retail sales. In this research, we examine the impact of free sampling of information goods on...
متن کاملAn Empirical Study on How Third-Party Websites Influence the Feedback Mechanism between Online Word-of-Mouth and Retail Sales
Firms use social media marketing to promote products and collect consumer feedback for the product development process. Their practice of investing in retailer-hosted Word-of-Mouth (internal WOM) is supported by a positive feedback mechanism between internal WOM and retail sales. Internal WOM is a sales influencer: consumers can get informed about a product by a large volume of internal WOM. It...
متن کاملThe Influence of Online Word of Mouth on Product Sales in Retail E-commerce: An Empirical Investigation
Deepak Khazanchi College of Information Science and Technology University of Nebraska at Omaha khazanchi@ unomaha.edu The ability to exchange opinions and experiences online is known as online word of mouth (WOM). Due to the high acceptance of consumers and their apparent reliance on online WOM it is important for organizations to understand how it works and what kind of impact it has on produc...
متن کاملAn Empirical Study of Online Word of Mouth as a Predictor for Multi-product Category e-Commerce Sales
The ability to exchange opinions and experiences online is known as online word of mouth (WOM) and has been shown in the literature to have the potential to impact e-commerce sales. The purpose of this paper is to expand previous findings by empirically evaluating the impact of online WOM attributes and other related factors (e.g. product views, promotion, and category) on e-commerce sales usin...
متن کامل