Impact of Electronic Word-of-Mouth to Consumer Adoption Process in the Online Discussion Forum: A Simulation Study

Authors: Aussadavut Dumrongsiri

Abstract:

Web-based technologies have created numerous opportunities for electronic word-of-mouth (eWOM) communication. There are many factors that affect customer adoption and decisionmaking process. However, only a few researches focus on some factors such as the membership time of forum and propensity to trust. Using a discrete-time event simulation to simulate a diffusion model along with a consumer decision model, the study shows the effect of each factor on adoption of opinions on on-line discussion forum. The purpose of this study is to examine the effect of factor affecting information adoption and decision making process. The model is constructed to test quantitative aspects of each factor. The simulation study shows the membership time and the propensity to trust has an effect on information adoption and purchasing decision. The result of simulation shows that the longer the membership time in the communities and the higher propensity to trust could lead to the higher demand rates because consumers find it easier and faster to trust the person in the community and then adopt the eWOM. Other implications for both researchers and practitioners are provided.

Keywords: word of mouth, simulation, consumer behavior, ebusiness, marketing, diffusion process.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1333126

References:

[1] "DoubleClick Consumer Holiday Shopping Survey Finds the Internet Continues to Gain Share of Holiday Spending," The Free Library. 2004. Retrieved March 30, 2010 from http://www.thefreelibrary.com/DoubleClick Consumer Holiday Shopping Survey Finds the Internet...-a0132601538
[2] Lazarfeld Katz , Personal Influence. Free Press. 1955.
[3] J. Arndt, "Role of product-related conversations in the diffusion of a new product". Journal of Marketing Research, vol. 4, pp. 291-295, 1967.
[4] J.E. Engel, R.D. Blackwell, R. J. Kegerreis, "How information is used to adopt an innovation," Journal of Advertising Research, vol. 9, 3-8. 1969.
[5] M.L. Richins, "Negative word-of-mouth by dissatisfied consumers: a pilot study," Journal of Marketing, vol. 47, pp. 68-78. 1983.
[6] M.L. Richins, T. Root-Shaffer, "The role of involvement and opinion leadership in consumer word-of-mouth: an implicit model made explicit," Advances in Consumer Research, vol. 15, pp. 32-36. 1988.
[7] Thorsten Hennig-Thurau, Kevin P. Gwinner, Gianfranco Walsh, and Dwayne D. Gremler, "Electronic Word-Of-Mouth Via Consumer- Opinion Platforms: What Motivates Consumers to Articulate Themselves on the Internet?," Journal of Interactive Marketing, vol. 18, pp. 38-52, 2004.
[8] C.M.K. Cheung, M.K.O. Lee, "Information adoption in an online discussion forum," Proceedings of the International Joint Conference on e-Business and Telecommunications, Barcelona, Spain, pp. 28-31 July, 2007.
[9] Nan Hu, Ling Liu, and Jennifer Zhang, "Do online Reviews Affect Product Sales? The Role of Reviewer Characteristics and Temporal Effects," Information Technology and Management, vol. 9, 2008
[10] E.M. Rogers, Diffusion of Innovations. The Free Press, New York. 1964.
[11] M. Kramer, Organizational Trust, pp. 82-108, 2006
[12] Xinxin Li, "Strategic Implications of Online Word of Mouth," unpublished doctoral dissertation, University of Pennsylvania. 2005.
[13] E M. Bass, "A new product growth for model consumer durables," Management Science. vol. 15, no. 5, pp. 215-227. 1969