Joint Effect of Different Dimensions of eWOM on Product Sales

Understanding the antecedents and consequences of electronic word-of-mouth (eWOM) is of significant theoretical value and great interest to both consumers and firms. To reconcile the disagreement in the relationship between eWOM and product sales, we investigate the joint effect of different dimensi...

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Bibliographic Details
Published in:Information (Basel) 2022-07, Vol.13 (7), p.311
Main Authors: Liu, Xudong, Wu, Xianjiao, Ye, Qiang
Format: Article
Language:English
Subjects:
Automobile industry
Automobile sales
Automobiles
car sales
Computer & video games
Consumers
Consumption
Customers
Decision making
electronic word-of-mouth
Empirical analysis
Hotels & motels
Hypotheses
Internet
Literature reviews
Nondurable goods
online reviews
Popularity
Product quality
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Summary:Understanding the antecedents and consequences of electronic word-of-mouth (eWOM) is of significant theoretical value and great interest to both consumers and firms. To reconcile the disagreement in the relationship between eWOM and product sales, we investigate the joint effect of different dimensions of eWOM on the sales of durable goods (i.e., cars). Our study is based on eWOM collected from Autohome, a leading online review platform of automobiles in China. Our empirical results show that the volume and valence of eWOM positively affect car sales, and variance negatively affects car sales when the volume of eWOM is low. Further analyses of the joint effect show that the positive impact of eWOM volume on sales is stronger when the valence is lower and the variance is higher. This research contributes to the literature on eWOM and provides helpful suggestions for firms by shedding light on the joint effect of different dimensions of eWOM in the context of the Chinese automobile industry.
ISSN:2078-2489
2078-2489
DOI:10.3390/info13070311