Ewom-How do consumers evaluate online product reviews when making a purchase decision? Louise Elizabeth Carver Dissertation

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Ewom-How do consumers evaluate online
product reviews when making a purchase
decision?
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Acknowledgements
Firstly I would like to thank my family, boyfriend and best friend for all their
support and guidance in times of struggle. Secondly I would like to thank
my participants for their time and completing my questionnaire. And finally
I would like to thank my dissertation supervisor Richard Gay for his
support and David Hart for his additional help in Richard‟s absence
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Abstract
Electronic word of mouth (ewom) is an online extension of traditional wom
that offers greater scope and speed of information diffusion. It is a com-
munication medium that has seen a sudden increase in popularity. There-
fore, it is of particular interest to marketers to further understand consumer
buyer behaviour. This dissertation explores to what extent consumers are
influenced by online product reviews when making their purchase deci-
sions.
Recent academic research suggests that ewom in the form of online prod-
uct reviews can influence sales of a product and or service. Factors such
as source credibility, argument strength and community trust within the
online context are all key influencers over a consumers decision to pur-
chase.
This study aims to explore the influence of these factors further in order to
understand how the consumer evaluates electronic word of mouth in the
form of an online product review and to what degree it influences a con-
sumers product purchase decision. The research followed a quantative
design method by using online survey questionnaires.
The primary findings from this study showed how: consumers are less like-
ly to trust brand sites when conducting information seeking behaviour,
product information is the primary motive for information seeking and the
credibility of the product review itself is more influential than the source
when making purchase decisions and finally that a consumers evaluation
of an online product review will strongly influence a consumers purchase
decision.
Key words: Ewom, Motivations, Purchase decisions, Source credibility
The study also showed how more research needs to be conducted into
source and information credibility as well as the motivations for posting
online reviews and that using a multi-methods approach in future research
to further understand motivations would benefit this topic area.
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Contents Page
Title Page ................................................... Error! Bookmark not defined.
Declarations................................................ Error! Bookmark not defined.
Acknowledgements .................................................................................... 2
Abstract ...................................................................................................... 3
Contents Page ............................................................................................ 4
Chapter 1.0 Introduction ............................................................................. 8
1.1 Introduction to study .......................................................................... 9
1.2 Research Objectives ......................................................................... 9
Chapter 2.0 Literature Review .................................................................. 11
2.1 Introduction to chapter..................................................................... 12
2.2 From traditional to electronic wom................................................... 12
2.3 The growing popularity of ewom ..................................................... 13
2.4 How does ewom influence sales? ................................................... 13
2.5 Motivations for seeking .................................................................... 15
2.6 Electronic word of mouth platforms ................................................. 15
2.6.1 Independent product review sites ............................................. 15
2.6.2 Independent Retailer sites ........................................................ 16
2.6.3 Brand website ........................................................................... 16
2.6.4 Personal blogs, Message boards and Social networking sites .. 17
2.7 Virtual communities (VC‟s) .............................................................. 17
2.7.1 Perceived trust in a virtual community .......................................... 17
2.8 Source credibility ............................................................................. 19
2.9 Online consumer reviews ................................................................ 20
2.10 Consumer review and purchase decision ...................................... 21
2.11 Valence of views ........................................................................... 22
2.12 Information Adoption Model .......................................................... 23
2.13 Hypotheses ................................................................................... 23
Figure 2.1 Table of hypotheses.......................................................... 24
2.13 Summary of chapter ...................................................................... 25
Chapter 3.0 Methodology ......................................................................... 26
Figure 3.1: Methodology map ............................................................ 27
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3.1 Introduction to chapter..................................................................... 28
3.2 Secondary Research ....................................................................... 28
3.4 Primary Research............................................................................ 29
3.4.1 Philosophical paradigms: .......................................................... 30
3.4.2 Positivism as a paradigm .......................................................... 30
3.4.3 Research Approach .................................................................. 31
3.4.4 Deductive .................................................................................. 31
3.5 Primary Research Strategy ............................................................. 32
3.5.1 Quantative versus Qualitative ................................................... 32
3.5.2 Research Method ...................................................................... 32
3.5.3 Questionnaire design ................................................................ 33
3.6 Pilot Study ....................................................................................... 33
3.7 Sampling ......................................................................................... 34
3.8 Location........................................................................................... 35
3.9 Participants ..................................................................................... 35
3.10 Data analysis techniques .............................................................. 35
3.11 Survey Limitations ......................................................................... 36
3.12 Ethical considerations ................................................................... 36
3.13 Summary of chapter ...................................................................... 37
Chapter 4.0 Findings and Analysis ........................................................... 38
4:1 Introduction to chapter..................................................................... 39
Figure 4.1: Age demographics of respondents .................................. 39
4.2 Descriptive findings ......................................................................... 40
4.2.1 What is your motivation for posting an online product review? ..... 40
Figure 4.2 Motivations for posting ...................................................... 40
4.2.2 How do you rate the quality of a review based on the amount of
content available? ................................................................................. 41
Figure 4.3: Rating a review based on information content ................. 41
4.3 Hypotheses ..................................................................................... 42
4.3.1 H1: Respondents are less likely to trust social networking and
brand websites when seeking online product reviews ........................... 43
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4.3.2 H2: Respondents primary motivation for information seeking is to
find out more information about the product .......................................... 44
Figure 4.5: Primary motivations for information seeking .................... 44
4.3.3 H3: The credibility of the product review itself is more important to
the respondents than the site it is hosted on or the individual reviewer. 46
Figure 4.6: Credibility of the information and the source .................... 46
4.3.4 H4: A consumer‟s evaluation of online product reviews will strongly
influence their decision to purchase ...................................................... 47
Figure 4.7: How consumers evaluate the credibility of review content
........................................................................................................... 48
Figure 4.8: How do respondents rate the influence of online product
reviews on their purchase decisions .................................................. 49
4.4 Hypotheses Confirmation ................................................................ 50
Figure 4.9: Hypotheses ...................................................................... 50
4.5 Summary of chapter ........................................................................ 51
Chapter 5.0 Discussion and Conclusion ................................................... 52
5.1 Introduction to chapter..................................................................... 53
5.2 H1: Respondents are less likely to trust social networking and brand
websites when seeking online product reviews. .................................... 53
5.3 H2: Respondents Primary motivation for information seeking is to
find out more information about the product. ......................................... 54
5.4 H3: The credibility of the product review itself is more important to
respondents than the site it is hosted on or the individual reviewer ...... 55
5.5 H4: A consumer‟s evaluation of online product reviews will strongly
influence their decision to purchase. ..................................................... 56
5.6 Limitations ....................................................................................... 57
5.7 Further Research Recommendations.............................................. 57
5.8 Summary of chapter ........................................................................ 58
References ............................................................................................ 58
Bibliography .......................................................................................... 65
Bibliography ................................................ Error! Bookmark not defined.
Appendix A- Reflective statement............................................................. 66
Appendix B: Cheung et al (2008) Information Adoption Model ................. 68
Appendix C- Pilot Questionnaire............................................................... 69
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Appendix D: Pilot Questionnaire- Changes made ................................. 74
Appendix E: Final Questionnaire ........................................................... 87
Appendix F: Questionnaire Justifications .............................................. 92
Appendix G: Ethics Forms ........................................................................ 99
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Chapter 1.0 Introduction
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1.1 Introduction to study
Traditionally “Word of mouth is a consumer dominated channel of
marketing communication where the sender is independent of the market”.
Brown et al (2007) since the advent of the internet, this method has
evolved and now has an additional element in the form of electronic word
of mouth (ewom).Key ewom thinkers Hennig-Thurau et al (2010) refer to
ewom as “any positive or negative statement made by potential, actual
and former customers about a product or a company via the internet”.
ewom as a communication method has opened up a world of opinions by
introducing avenues that were not readily available in the past including
“social networking sites, blogs, wikis, recommendation sites and online
communities” Hennig-Thurau et al (2010) ,Wuyts et al (2010). This is a
current area of interest in the marketing field as marketers begin to
develop their knowledge of consumer information exchange online, in
order to further understand motivations for seeking and posting ewom and
how this information contributes to purchase decision behaviour. The topic
is also of particular interest to the researcher to understand how
consumers share and adopt information posted online.
The researcher will conduct a quantitative study to find out how consumers
share information online. Areas that will be addressed include: Platform
preference, motivations for information seeking, how they evaluate the
credibility of a product review and how this influences a product purchase
decision. By researching these interactions the author hopes to discover
how perceptions are developed, how and why consumers purchase their
particular products and what is their motivation for sharing their
experiences with others using ewom communication.
1.2 Research Objectives
The researcher has formulated a set of research objectives in order to
identify areas of exploration and assist in structuring this report. Saunders
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et al (2003) define these as “are clear specific statements that identify
what the researcher wishes to accomplish as a result of doing the
research”.
The research objectives for this study were:
 To explore the concepts and theories surrounding the topic of
electronic word of mouth
 To find out what factors of electronic word of mouth help shape a
person‟s perspective of a product
 To gather information from a sample of 100+ participants from
various age groups who already engaged in electronic word of
mouth and are part of a virtual community
 To find out what sites these participants use and their reasoning
 To find out what participants motivations for information seeking
 To find out how consumers evaluate the credibility of a product
review
 To find out how consumers evaluation of an online product review
influences their purchase decisions.
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Chapter 2.0 Literature Review
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2.1 Introduction to chapter
In this chapter the researcher will detail and critically analyse a wide range
of literature surrounding electronic word of mouth and its effects on a
consumers purchase decision. In particular it will cover: traditional wom
and ewom, influence on sales, platforms, virtual communities, valence of
views, individual reviewers, online product reviews and Cheung et al
(2008) information adoption model. The chapter will conclude with a set of
hypotheses the author wishes to test.
2.2 From traditional to electronic wom
Word of mouth (wom) has a “strong influence on product and service
perceptions, leading to changes in judgements, value ratings and the
likelihood of purchase” Arndt (1967) Fitzgerald Bone (1995). It is viewed
by Cheung et al (2007) as one of the” most powerful communication tools
we use today, due to its influence on product and service judgement”.
However since the advent of the internet providing “online interaction and
uncapped sharing benefits”, wom has expanded into the online context in
the form of electronic word of mouth Bikhart and Schindler (2001). This
gives consumers the “chance to share information on a series of platforms
online” Brown et al (2007). This revolution has extended the traditional
word of mouth medium (an informal conversation with trusted
acquaintances) to “an online archived directory available to over 1.6 billion
internet users” Internet world stats (2010). One of key ewom thinkers
Hennig Thurau et al (2004) defines ewom as a communication that;
“refers to any positive or negative statement made by potential, actual or
former customers about a product service or company which is made
available to a multitude of people via the internet”. Litvin et al, (2005)
further updates this definition by saying that ewom is “the informal
communications through internet based technology concerning the usage
or characteristics or particular goods and services, or their sellers or
providers”. This illustrates how the definition has evolved over a 4 year
period, and has further established the importance of viewer perceptions
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to particular characteristics and people involved. Ewom as an online tool
enables users to “discuss and share opinions on a variety of topics in real
time anonymously”, in what Litvin et al, (2005) defines as a “virtual reality”.
2.3 The growing popularity of ewom
The popularity ewom as a tool has increased to a dramatic extent over the
last 5 years with over “500 million internet users using social networking
sites alone” Internet world stats (2010).The introduction of ewom platforms
such as: “social networking, blogs, opinion forums and product review
websites has opened up endless possibilities with consumers to discuss a
range of interests, products and services” Bikhart and Schindler (2001).
The informal nature of ewom is unique in the way it draws consumers in by
giving them a voice and a choice of platforms tailored to their needs.
Whilst also eliminating more traditional physical barriers and “providing
more direct channels to experts in a variety of fields and utilizing search
functionality to do so” Buda and Zhang (2000). Using ewom platforms to
search for information on products and services has become the norm in
many respects as using the “specificity of discussion topics” and using the
“internet as an enabler” allows the users to “find opinions and review
variants on near enough any potential purchase decision in the world”
Fong and Burton (2010). Authors Sun et al (2006) also believe that ewom
has the potential to “influence the adoption and use of products and or
services due to the informal nature in which the information is delivered
and interpreted by the receiver” further verified by Cheung and Rabjohn
(2008). Therefore it a topic of interest to marketers to further understand
how consumers evaluate their purchase decisions using this
communication medium Goldsmith and Horowitz (2006).
2.4 How does ewom influence sales?
Traditionally ewom has had a “higher impact in the services context
primarily the travel and hospitality industry” due to the nature of a “service
experience” requirement Litvin et al, (2005). However, due to the increase
of the internet popularity with more emphasis on “search” with consumers
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using popular search engines such as “Google and Yahoo” and
emphasising online marketplaces such as “Amazon and Ebay” this has
extended more recently to cover the product context also Jarvenpaa and
Tractinsky (1999). Key authors Godes and Mayzlin (2004) say there is an
“increasing need for marketers to better understand the relationship
between ewom and offline sales”. A study by Chevalier and Mayzlin (2006)
investigated the impact of ewom on product sales using existing
databases from amazon.com and Barnesandnoble.com. Its findings
suggested that positive review improvement for a book at each site leads
to increased sales of that book at the same site. Sorensen and Rasussen
(2004) also suggest that positive reviews can increase book sales. Ye et al
(2009) believe that this concept is applicable to both RPS and EPS
purchases. Research into the influence of online accommodation reviews
on hotel room sites in china provided results indicating how a 10%
increase of positive reviews reflected a 4.4% rise in sales. However, Davis
and Khazanchi (2008) discovered from their research into ewom attributes
and their effect on ecommerce sales that although “online product reviews
have potential to influence a consumer‟s purchase decision, they are not
the sole contributor for product sales”. Their findings dictate how the”
interaction between fellow consumers when posting ewom, is more
significant in a consumers purchase decision than the basic attributes”.
This can be made up by valence of views, volume of information and is
dependent on the product that is been discussed. Clemons (2008)
disagrees with Davis and Khazanchi (2008) and believes that online
reviews are the sole contributor for increased sales. His study into “how
information changes consumer behaviour” provides an example of a small
beer wholesaler in Pennsylvania “with 90% of its customer base within a
10 mile radius. Whose sales rose dramatically by a 2/3 after the
implementation of a website and exposure to rateabeer.com (online beer
review community) with 1/3 of demand coming from outside the state”.
Hence these results would indicate that there is a positive correlation
between an increase in positive reviews and increase in sales for a given
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product and or service however Davis and Khazanchi (2008) believe that
there are other influences that still need to be considered.
2.5 Motivations for seeking
Wolfinbarger and GIlly (2001) say that when consumers have” an idea of a
product they require further product information to clarify their decision”.
Hennig-Thurau (2004) study into consumer motivations provided the
foundations to information seeking behaviour. This was further backed up
Goldsmith and Horowitz (2006) study into “scaling measurement
motivations” to measure consumer‟s motivations for information seeking.
Its findings concluded that there are 8 main motivations for information
seeking:” Risk, Other opinions, Price comparison, Ease of access, by
accident, it‟s cool, Product information, and to seek information to follow
up traditional advertising methods”. Bikhart and Schindler (2001) state that
the availability of uncapped product information is an attractive feature in
the information seekers decision making process the consumers seek
information to clarify their purchase decision and to interact with fellow
consumers who have a shared interest in the product in order to find out
more product information Sher (2009). Goldsmith and Horowitz (2006).
2.6 Electronic word of mouth platforms
Bikhart and Schindlers (2001) study into ewom provided the following
platforms as the most popular used in product information exchange:
“Product review websites (e.g. consumer review) retailer‟s sites
(e.g.amazon.com), brands websites (e.g. forum.us.dell), personal blogs,
message boards and social networking sites (e.g. Facebook, MySpace)”.
2.6.1 Independent product review sites
Independent product review sites are generally known to be free of
marketing ploys Xue & Phelps (2004). The goals of such websites are to
help consumers make informed buying decisions by providing a platform
to share their product experiences. Ewom posted on an independent
product review website may be more likely to be attributed to the
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reviewer‟s “true feeling about the products actual performance making the
ewom on the product review website more persuasive than
recommendations posted on a more formal platform such as a brand
website” Senecal & Nantel (2004), Xue and Phelps (2004), Bikhart and
Schindler (2001).
2.6.2 Independent Retailer sites
Independent retailer sites such as amazon.com are independent sites that
sell a wide range of products Senecal & Nantel (2004), Bikhart and
Schindler (2001) however they differ from traditional brand websites as
they do not own the product names themselves. These sites offer the
consumers the chance to read product reviews and to also purchase the
product directly of the site is required. Bikhart and Schindler (2001) believe
that the “all in one site functionality” is attractive to a consumer when
seeking a product review evaluation because it offers them a variance of
views and a site to directly purchase products.
2.6.3 Brand website
When ewom is posted on a brands website, consumers may perceive a
possibility of the reviewer being “influenced by the marketer” Xue and
Phelps ( 2004).Therefore the persuasion of a consumer generated product
review is “decreased due to the extent that there is a high possibility of a
marketer involvement that would influence the reviewer to provide a
biased representation of the products actual performance” Senecal and
Nantel (2004) Xue and Phelps (2004) Schindler and Bikhart (2001).The
consumer may also attribute the ewom towards a certain circumstance
“(e.g. the communicator is compensated by the brand for reviewing the
product favourably)” Therefore the discounting principle in attributional
theory Kelley (1973) suggests that ,”consumers may discount the products
actual performance as a reason for writing the review and not be
persuaded by the reviewers product recommendation”.
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2.6.4 Personal blogs, Message boards and Social networking sites
Bikhart and Schindler (2001) found that the subjects who gathered product
information from these types of online forums showed greater interest in
the product topic than those who acquired information on corporate
websites. However Xue and Phelps (2004) found that the superiority of an
online forum (versus a brands website) to influence brand attitudes
appeared only when participants had more experiences with offline wom
and less involvement with the product.
2.7 Virtual communities (VC’s)
In order for EWOM platforms to be effective they need to have followers.
Followers in the EWOM context are what we refer to as virtual
communities (VC‟s). Rheingold (1993) refers to virtual communities as a
“social aggregate that emerges when enough people carry on a public
discussion long enough with sufficient human feeling to form webs of
personal relationships in cyberspace” this is further backed up by Kollock
(1996). The awareness of VC‟s has grown considerably as Evans et al
(2001) makes reference to VC‟s as a “relatively unexplored source of
ewom”. However Godes and Mayzlin (2005) research conducted 5 years
later describe VC‟s as a “collection of likeminded people who come
together to discuss and share areas about a wide range of topics using
ewom platforms, for ease of access whilst also to read and post messages
for discussion”. Further thinking on VC‟s by authors Park and Lee (2008)
refer to them more as a “collective group focused on sharing information
on a many to many basis” and that their “online interactions are based
upon shared enthusiasm for and knowledge of a specific consumption
activity”.
2.7.1 Perceived trust in a virtual community
VC‟s within the consumers preferred platform offer “an inclusive mind-set
and shared group identity, around the consumers area of interest” Blanton
(2001). The difficulty that consumers face using these platforms is built in
the very nature of ewom in the form of anonominity Chatterjee (2001).
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However, even though the identity of the communicators making up the
virtual community is unknown, the consumer indirectly believes that there
is a “greater likelihood of finding people with product expertise among
weak tie communicators and is therefore more likely to trust the
recommendations”. Duhan et al (1997). Moorman et al (1991) Further
defines trust within these communities as “the willingness to rely on an
exchange partner in whom one has confidence” further supported by
Granitz and Ward (1996). Without this trust there would be no basis for
virtual communities to exist Lifen (2010). In the VC context the” importance
of confidence and reliability” act as the “sole basis of the relationship
development between a trustor and trustee, due to the lack of control the
trustor has over the actions of a trustee”. Jarvenpaa et al (1999) Lyons
(2004)Therefore the VC provides a virtual space for consumers with
similar interests and” expert knowledge in a particular field to share this
information in an environment they trust” Goldsmith and Horowitz (2006).
The perception is that these members are “motivated to share honest
experiences of a product in the most beneficial way for both the credibility
of the consumer and the reliability of the VC as a whole” Goldsmith and
Horowitz (2006), Corritore et al (2003). Nelson and Otnes (2005) study
into” cross-cultural ambivalence” provides the perfect example of trust
within a virtual community. Their study investigated the element of trust in
„bridal virtual VC‟s‟. Their findings concluded that brides within these VC‟s
came together to discuss wedding related “marketing activities, personal
experiences and useful websites whilst also providing emotional support,
social comparison and camaraderie”. Indirectly they left a left a trail of
product service recommendations to archive their experiences for future
members. Gruen et al (2006) The members of this community were seen
by new members as “weak-tie” experts Pitta and Fowler (2005) as they
shared similar information and experiences focused on wedding planning.
Which a novice information seeker would see as a product or service
recommendation and providing they have the same interest would most
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likely base their purchase decisions on the information provided by the
community.
2.8 Source credibility
Another interesting theme that appears in the literature surrounding online
consumer reviews is the motivation and “credibility of the source” providing
the individual reviews Rains (2007).Source credibility identifies the
“expertise and bias” as elements that determine the credibility of an
information source Buda and Zhang (2000), Birnbaum and Stegner (1979).
Chaiken (1980) furthers define it as the extent in which the information
source is perceived to be “believable, competent and trustworthy by
information recipients”. Bikhart and Schindler (2001) made the suggestion
that this information source may have greater credibility than traditional
marketing generated information, as the personal opinion and account of a
participant who has experienced the product first hand is judged to be a
trustworthy source Corritore (2003). Eagly and Chaiken (1975) believe that
the persuasiveness of a message depends on the “number of positive
attributes that the communicator posses. Authors Ko et al (2005) further
define this in an online context as an information source that is highly
credible, i.e. an expert in the field and the information provided by the
source will lead to the facilitation of knowledge transfer and reliability”
Grewal et al(1994). Consumers desire for “social interaction, economic
incentives, concern for other consumers and potential to enhance their
own self-worth are the primary factors leading to articulation behaviour”
Hennig Thurau et al (2004).
In the online context these evaluations must be made from the relatively
impersonal text-based resource exchange provided by actors on a
particular site network. Hung and Li (2007) Because of the lack of physical
cues this evaluation takes place in a reduced or altered cues environment.
If the individual possess greater awareness and knowledge about a
market and products within it Mitchell & Dacin, (1996), they are more likely
to be ranked highly in the expertise by other reviewers. The individuals are
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referred to as experts or opinion leaders by Katz & Lazarfeld (1955) and
they assist in accelerating the diffusion of information Tadelis (2002) Some
sites request that a background of the reviewer, photograph, some history
and location must be provided in order to use it, this is not the case in all
consumer review websites Therefore other users must rely solely on the
professionalism of the reviews and whether or not the views are plausible
Schindler and Bikhart (2005). Authors Brown et al (2007) investigation into
online source credibility discovered that the website factors were more
predominant factors in an individual‟s evaluation of source credibility rather
than review contributor individuals themselves, therefore the website acts
as a mediator and actor in the social networking process.
2.9 Online consumer reviews
Online consumer reviews are defined by the Opinion Research
Corporation (2010) as the consultation of online reviews, blogs and other
sources of online customer feedback with 70% of respondents consulting
these before making a purchase decision. These reviews cover a majority
or products, services and experiences Chatterjee (2001). For the purpose
of this study the author will define and further explore online consumer
reviews in a product context and discuss how these are used by
consumers to assist them in evaluating ewom when making their product
purchase decisions. Online consumer product reviews as defined by
authors Park et al (2007) state that an “online consumer review has a dual
role; it provides information about products and services and also serves
as a recommendation of a particular product or service”. The researcher
believes that due to the popularity of ewom in recent years and supporting
evidence provided by the Opinion Research Corporation (2010) stating
that 61% of their research sample used online consumer reviews in their
evaluation of a product purchase. Therefore it is essential to further
research how and why these reviews influence product decision making.
Xiofen and Yiling‟s, (2009) study into the “most effective advertising
methods”, concluded that consumer opinions on the network in the form of
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ewom are more effective than traditional advertising methods”. This could
be down to the scope and depth of information it provides without being
restricted to the consumers local social network. This is further supported
by authors Brown and Reigan (1987); Biyalogorsky et al (2003). This is
further supported by Nielsen‟s annual global online survey (2010) which
discovered that 70% of consumer trust opinions online.
2.10 Consumer review and purchase decision
Online consumer reviews are posted by users who have had a personal
interaction/experience with a particular product Park et al (2007). This
shows that how individuals personal usage and taste preferences are
more likely to affect this dependent on the consumers own product
preferences. I.e. if someone buys an apple ipod for use in a daily commute
situation without any outstanding loyalty to apple as a brand then their
review will differ to that of a Brand loyal apple consumer who uses the ipod
all day every day (www.apple.com). It is for this reason that the author
finds it appropriate to discuss that the product discussed in an online
consumer review differs depending on whether and how a product
specifically fulfils a consumers needs on a more individualistic basis
Goldsmith (2006). Rather than primarily focusing on the product attributes,
the online consumer review offers more context on how the usability,
adaptability and relevance differ between consumers Flavian (2005).
Authors Chen and Xie (2008) conducted further research investigating this
as part of the marketing mix and concluded that consumer reviews are
more “user orientated and able to find products matching specific
consumer‟s interests and needs which are more notably applicable when
applying to the unsophisticated novice consumer”. Senecal and Nantel
(2004). State how novice consumers are more likely to “disregard the
traditional 3rd party product reviews” as they perceive them as more biased
towards the needs of a company rather than them as an individual
consumer .Chen, xie This is further backed up by Doh (2009) who says
consumers also evaluate the ways in which the product value could
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contribute to their daily lifestyle activities This study although limited to an
EPS product (digital camera) and using American review sites gives the
author some indication of how these reviews are viewed and provides a
basis for further research.
2.11 Valence of views
More out-dated studies by authors Adaval (2001) and Chatterjee (2001)
have provided a basis to examine the effects of ewom valence and to see
how both positive and negative reviews influence a consumer‟s purchase
decision Lerman and Sen (2007). Traditionally a negative review (nwom)
of a product would be valued more highly than a positive review (pwom) of
the same product Yang and Mai (2008). However, the ideals are more
focused around the consumers existing relationship with the product and
whether or not they already have a positive association with it. If this is the
case then consumers will seek out online reviews that put the product in a
positive light to confirm their decision Dargan (2008) These consumers are
more likely to disregard negative reviews as it goes against their product
perception. Ward and Ostrom (2001) In contrast Lerman and Sen (2007)
examination into negative reviews on the web hypothesised that
consumers are more likely to seek negative reviews than positive ones for
their purchase decisions, as in offline consumer behaviour. However their
findings depicted the opposite by concluding how consumers are actually
more likely to look for positivity review bias in reviews and „weigh up the
negativity options, due to the nature of the reviewer using the product and
how it was fit for that individual‟s purpose” . Lee et al (2008) furthers this
by saying that reviews that offer a variance of views influence a purchase
decision due to shared consumer interest, number of reviews and further
resonation with individual reviewers. Sun et al (2009) further backed this
up using findings from their investigation into “how consumers evaluate
ewom” which suggested that the presence of NWOM can actually increase
the credibility of ratings therefore gaining the trust of the consumer and
reducing marketer bias.
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2.12 Information Adoption Model
The information adoption process is what Nonaka (1994) defines as the
“internalization phase of knowledge transfer, in which explicit information is
transformed into internalized knowledge and meaning”. This process has
evolved over the years and is a theory in which Cheung et al (2008)
believe to directly link to a consumers purchase intention. The” information
adoption model” Cheung et al (2008) was formulated from the foundations
of the elaboration likelihood model (ELM) devised by Sussman and Siegal
(2003). This model was created to explain how consumers are „influenced
to adopt information posted in “computer-mediated communication
contexts”. ELM depicts how consumers can be influenced by a message
that influences attitudes and behaviour both centrally and peripherally i.e.
the quality of an argument and external influences to that argument. Within
this model, these are broken up into information quality and source
credibility. Due to the ever-changing developments in technology this
model is now seen as out-dated. Cheung et al (2008) proposes the
information adoption model chosen to be adapted by the author to fulfil the
purchase decision objective. This model looks into receiver‟s behaviour
when evaluating the credibility of a source and a review. McKnight and
Kacmar (2002) discuss how information credibility is a vital predictor on
the online consumer‟s further action and how a consumer that „believes
the online information has no reason not to adopt it‟. (Model can be found
in Appendices B)
2.13 Hypotheses
The author has devised the following hypotheses based on the evaluation
of the literature that this study will aim to measure in order to see how
consumers evaluate reviews
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Figure 2.1 Table of hypotheses
Hypotheses Supporting Authors
H1 Respondents are less Bikhart and Schindler
likely to trust social (2001) Xue and Phelps
networking and brand (2004) Senecal and Nantel
websites when seeking (2004) Gruen et al (2006)
online product reviews Sen and Lerman (2007)
Dellocras (2003)
H2 Respondents primary Bellman et al (1999)
motivation for Bikhart and Schindler
information seeking is to (2001) Park et al (2007)
find out more Hodkinson et al (2000)
information about the Wolfinbarger and Gilly
product (2001)
H3 The credibility of the Park et al (2007) Cheung
product review itself is et al (2008) Brown et al
more important to the (2007) Bhatterjee and
respondents than the Sanford (2006) Mcknight
site it is hosted on or the and Kacmar (2002)
individual reviewer Grewal, (1994)
H4 A consumers evaluation Sun et al (2006) Jarvanpaa
of online product et al (1999) Lee et al
reviews will strongly (2008) Park and Lee
influence their decision (2008) Litvin et al (2005)
to purchase Cheung et al (2008)
Goldsmith and Horowitz
(2006) Mcknight and
Kacmar (2002)
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2.13 Summary of chapter
The author has discussed a wide range of literature focused around the
evaluation of electronic word of mouth and its possible influence on as
consumers purchase decision. The information adoption model has also
been discussed in order to see to what degree do consumer view the
information credible and decide to purchase as a result.
The next chapter will discuss the authors chosen research method in order
to explore this topic further and further discover to what extent online
product review influence purchase intention.
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Chapter 3.0 Methodology
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The researcher has chosen to put together this methodology map to
provide the reader with a more visual overview of the chosen research
method for this study.
Figure 3.1: Methodology map
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3.1 Introduction to chapter
The literature review in chapter two provided a set of gaps in which the
researcher wanted to further explore, classed as hypotheses. In order to
do this it is imperative to distinguish, both the set process and rationale in
a methodological way, to ensure any replication or future study has a
credible background. Lewis, Saunders and Thornhill, 2003 state that this
allows the methodology to be re-tested in future studies. For the purposes
for this study the methodology aimed to explore the relationship between
particular attributes that influence electronic word of mouth adoption and
whether or not this has any influence over a consumers purchase
decision.
In this chapter the author considered the research scope, philosophy,
approach, strategy and method. The author then analysed the limitations
and ethical considerations of the primary research in this project to ensure
the data was obtained by correct ethical means and all limitations were
extensively justified.
3.2 Secondary Research
Saunders et al (2003) State that: „Secondary data can provide a useful
source from which to answer your research question (s)‟.In order to
effectively define the primary research question the researcher has
conducted a thorough analysis of secondary research with a direct link to
electronic word of mouth. It is from this that the researcher then
discovered gaps in the literature when determining its influence on a
consumers purchase decision. Initially, a variety of online journals and
statistical databases were consulted on the above. The researcher then
further consulted some of the more dated traditional word of mouth theory
in a variety of books to establish more credibility in the field. Websites and
online forums were also explored by the author to provide examples of the
reviews in action, therefore giving the author a feel for the online
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environment and further understand how this information was
communicated, and whether or not this varied in different online situations.
From the secondary research findings the author found that most of the
literature around electronic word of mouth had a direct focus on its
evaluation with brief articles looking for links between this and a
consumers purchase decision. It is from this that the author decided on the
following key themes, providing the primary research with a more direct
focus of enquiry.
 Electronic word of mouth platforms
 Virtual Communities
 Individual reviewers
 Online opinions
 Information adoption model as a means of product evaluation
According to Burns and Bush 2010 and further verified by Saunders et al
2003, there are both advantages and disadvantages when using
secondary data in your research project, although the information gained
from these sources are easy to obtain, inexpensive, readily available, and
hold the possibility to enhance primary data. Other elements such as the
information being: misinterpreted, outdated, differing measurement units
and false interpretation of the academic terminology when analysing these
could prove problematic. Therefore the researcher understands the
importance of being aware of these issues in order to overcome them.
3.4 Primary Research
Burns and Bush (2006) define primary research as the ‟process by which
data is developed and gathered by the researcher specifically for research
projects‟. The researcher will be conducting primary research in order to
further verify some of the secondary research mentioned above. The
author believes that the electronic word of mouth topic as a whole does
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not offer a vast amount of secondary data that investigates the linkages
between electronic word of mouth evaluation and purchase decision and
therefore wishes to investigate this further.
3.4.1 Philosophical paradigms:
Research philosophy is the way that researchers look at the development
of knowledge. Without having a solid philosophical position the researcher
believes there would be problems when interpreting the research that will
be collated, as it „provides a basis to examine these assumptions,
challenge them and behave in a different way if there is a quantifiable
need to‟. Saunders et al (2003) Hussey and Hussey (1997) claim that
researchers basic beliefs about the world will be reflected in the way which
research is designed, collected, analysed and presented. Within this there
are two primary conflicting philosophies that determine the principles and
methods of the author‟s research. Positivism and Interpretivism. Positivism
takes a more scientific law-like generalizable approach in contrast to
Interpretivism which has a focus on understanding the more complex
issues that differ between situations Saunders et al (2003) However due to
the researchers scientific approach to the topic the researcher has decided
to use „Positivism‟ as a foundation research philosophy.
3.4.2 Positivism as a paradigm
The researcher believes that due to the core principles of positivism,
reflecting that of a „natural scientist‟ combined with the observation of
social reality and establishment of factual generalizability, will in effect
make the results from this research more succinct, credible and applicable
to answering the research question. Salkind (2009) Due to the nature of
the research question and the currency of ewom topic, the researcher
believes that the positivism approach will provide a solid ground for
replication of this study and that the highly structured method will also
provide a feasible foundation for further study into electronic word of
mouth as a new area of interest. The author relied heavily on the use of
quantitative data which is objective in nature and concentrates on
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measuring phenomena. This involves collecting and analysing numerical
data and applying statistical tests.
3.4.3 Research Approach
When deciding on the research approaches there are two conflicting
views. Deductive and Inductive. The deductive approach focuses on
developing existing theory which can be verified by further testable
hypotheses. In contrast the inductive approach looks at the ways in which
to collect data and develop theory as a result of the data analysis in
contrast.
3.4.4 Deductive
Due to the scientific nature of this research paper, the researcher has
decided to take a deductive approach as it will be the most effective when
analysing the results. The deductive approach offers the researcher the
chance to test a particular theory, in this paper Cheung‟s 2008 Information
Adoption Theory, by developing a series of hypotheses to use as
quantifiable measures. Leedy and Omrod, (2010) It is then further
investigated using an effective research design tailored to this. This
approach tends to be the most widely used by researcher that also
instigates a Positivism research philosophy. Due to the nature and
currency of electronic word of mouth, the researcher wishes to test
existing theoretical research using deductive laws to provide the basis of
explanation, permit the anticipation of phenomena, predict their
occurrence and therefore allow them to be controlled. Hussey and Hussey
(1997) Leedy and Omrod, (2010) The literature utilised in this study to date
has assisted in the shaping of the research objectives required to study,
with all indication directed towards developing these perspectives for
future ewom marketing therefore the researcher believes that this is the
most effective approach to use.
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3.5 Primary Research Strategy
3.5.1 Quantative versus Qualitative
Due to the nature of the paper with its focus on modern day technology
and the scope it offers, the researcher chose to take a quantative
approach. Quantative research provides the researcher with a set of
measurable data that is more resistant to bias. Saunders et al (2003)This
data is then measured using a number of statistical tests in order to depict
how effective a relationship is between two or more variables which in this
case is a.) How consumers assess the attributes of electronic word of
mouth and whether this assessment leads to a product purchase decision,
which is paramount in answering the research question.
3.5.2 Research Method
In order to do this the researcher has chosen to use the online survey
method in the form of a questionnaire posted on online survey site
www.surveymonkey.com. According to Zikmund et al, (2010), Surveys
provide a quick inexpensive, efficient and accurate means of assessing
information about a population. This research will benefit from the use of
questionnaires as it will form a basis for comparisons across electronic
word of mouth „attributes. According to Saunders et al (2003) Surveys
allow the collection of a large amount of data from a sizeable population in
a highly economical way. Hair, Bush and Ortinau (2009, p.235) build on
this by highlighting the advantages of using a survey method as it gives
the researcher the ability to accommodate large sample sizes at relatively
low costs, as well as the ability to collect data which can be manipulated
with a certain level of ease . The data from this method also uses
standardised questions that the researcher can be confident will be
interpreted in the same way by all respondents Robson, (2002) which
allows for easy comparisons, whilst also providing a visual aid to identify
patterns and tables in order to uncover trends. It also provides the ability to
tap into more individualistic factors which are not directly observable such
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as attitudes, feelings and preferences, by using the „other‟ boxes
functionality.
3.5.3 Questionnaire design
Czaja and Blair (2005,p.21) states that „often the differences between a
good study and a poor one is that in the former, researchers look or
anticipate problems and in the latter, researchers assume that if the
questions are answered the data is valid‟. It is therefore of great
importance to ensure that each question is clearly written, easy to
understand and that the responses will add to the value of the overall
research. It is important to avoid bias questions in the design which
Chisnall (2005 p.139) explains how questions should be phrased carefully
in order to avoid suggesting that certain answers are more acceptable
than others. When designing the questionnaire the researcher decided to
take the approach stated by Bourque and Clark (1994) by adopting
questions used in Cheung‟s 2008 adoption study to help give clearer
measurements from the model. The researcher also devised additional
questions adapted from key themes within the literature such as: Product
review search, posting motivations, Influence of review and Product review
differentiation. In order to write these questions the author had to depict
which question styles would suit dependent on the question attribute and
therefore provide the most credible and reliable results when analysing
using statistical measures, in order to do this the author used a variation of
ranking, category, list and rating scales style questions. (Screen shots of
the questionnaire can be found in Appendix E and Breakdown of the
questions in Appendix F
3.6 Pilot Study
A pilot test was conducted to test „weakness in design and instrumentation
to ensure the research is able to run smoothly when the full survey is
conducted‟ Cooper and Schindler (2003) It involves posting a small
percentage of surveys relative to the total sample size, and receiving
feedback on which elements were difficult to understand and highlighting
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any changes that should be made to gain optimum results. The researcher
posted a list of 20 questions on facebook.com site using a unique survey
link in which to fill out and to private message any difficulties,
recommended changes and formatting queries/ problems. The response
rate for this was 10 respondents a 10% mark-up of minimum survey
responses as stated by Saunders et al (2003) Some of the feedback
included that questions 15 and 16 were too confusing and did not correlate
with the previous measurement pattern, that questions were unable to be
skipped if the respondent thought they should be exempt based on their
experiences and that some of the wording of the questions needed to be
changed to be more understandable. Overall the comments were positive
which gave the researcher confidence when posting the final version.
(Screenshots of the pilot study can be found in Appendix C and
Justifications in Appendix D.)
3.7 Sampling
Sampling techniques provide a range of methods that enables the
researcher to reduce the amount of data that they need to collect by
narrowing it down to a subgroup rather than all possible cases or
elements. Saunders et al (2003) Due to the restrictions of a census
approach (sampling the entire population) and for the purpose of this
research it would be impractical and also carries time, budget and data
analysis constraints. By using a sampling technique this offers the
researcher a more manageable set of data to work with. Henry (1990)
argues that using a sampling technique actually increases the credibility of
the data by providing a higher overall accuracy than a census, and
enables the researcher to spend more time devising more effective
research questions. For the purpose of this study the researcher has
chosen a non-probability sampling technique in the form of judgement
sampling. Due to the constraints of the study when discussing electronic
word of mouth and the sample being made up of online product review
users, the researcher used purposive judgement in order to attract the
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sample. Although usually used in smaller case study research (as depicted
by Saunders et al (2003) the targeting of informative samples does not
necessarily have to be small, as long as the researcher understands the
limitations of the method. In this studies case the lack of detail available
within the participant‟s answers. When attempting to target informative
samples this approach will allow the researcher a chance to target a larger
sample of 100+. This sample will answer set questions on their overall
online review experience based on the judgement that they have all had
some contact with online reviews.
3.8 Location
The researcher distributed this online survey using a unique link posted to
various social networking sites and independent product review sites, such
as: facebook.com , twitter.com , linkedin.com, and on forum threads within
the sites: Onlineproductreviews.com and independentproductreviews.com
in order to target those who had a previous experience or relationship with
online reviews. This location was used due to the electronic nature of the
topic and the researcher believed it would be more successful than other
„more traditional‟ quantative methods due to the participants being able to
complete the survey in their natural habitat, as they would when reading
or filling out a product review online.
3.9 Participants
The main criterion for participation eligibility is that all participants needed
to have had contact with an online product review from either a sender
and/ or receiver perspective. Age and gender was not an issue only that
the participants had to be over the age of 18. The participants remained
anonymous throughout the data collection and also had the chance to opt
of the survey at any stage.
3.10 Data analysis techniques
Data analysis techniques as quoted by Saunders et al (2003) are the way
in which data is analysed and interpreted. The way this can be done is
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through the creation of simple tables, diagrams, charts and graphs to show
the frequency of occurrence through establishing statistical relationships
between variables to complex statistical modelling. The researcher has
decided for the purposes for this study to use the programs: SPSS and
Microsoft EXCEL Burns and Bush (2006) To provide a series of charts,
tables and graphs The researcher believes that statistical analysis is not
applicable to these findings and that presenting the data in a series of
tables, charts and graphs is the most effective method to analyse the data
3.11 Survey Limitations
However surveys are not without fault there are some limitations in the
case of this research project the nature of the survey strategy in the form
of a questionnaire and its distribution online means that the survey may be
subject to a low response rate especially with the sites it has been posted
on Saunders et al (2003). There is also a minimal chance that the
researcher will know the accurate age, gender of participants and whether
or not the information they provide is honest. (Due to the lack of face to
face contact) and the information gained using this method will also be
limited to the questions devised by the researcher. There is also some risk
of misinterpretation from the researcher‟s perspective in the analysis stage
which could also devalue the results. Saunders et al (2003) Even with
these problems the researcher has attempted overcome them by starting
discussions throughout forum threads on the topic and posting links to the
survey on there with follow ups on weekly intervals as recommended by
Salkind, (2009). The researcher has also indicated at the start of the study
that the questionnaire will take a maximum or 5 minutes and that the
respondents have the chance to opt out at any time.
3.12 Ethical considerations
The researcher has complied with all NBS guidelines throughout the
research process from design to analysis.
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 Electronic consent was obtained from participants aged 18 and
over.
 All participants are anonymous, the researcher only included age
and gender questions and there is no way to identify the
participants.
 Confidentiality was detailed on the opening passage of the survey.
The results will be held in the strictest confidence and only made
available to the researcher, dissertation supervisor and a second
marker. All other evidence of participation will be removed after the
dissertation hand in. (please see Appendix C)
 Participants were informed that they could remove their answers at
any time if they so wished.
 When reporting the results the anonominity and confidentiality of
the participants will be upheld at all times.
 All elements of the Data Protection Act 1998 interelatable to the
data collection from surveys will be upheld.
3.13 Summary of chapter
The methods outlined in this section will ensure that the research gained is
valid, ethically correct and accurate. Most importantly it will ensure that the
research objectives are met during the course of the data collection and
data analysis stages in order to gain a thorough understanding of the
topic, whilst also providing guidelines for future research by offering a
standardised method.
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Chapter 4.0 Findings and Analysis
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4:1 Introduction to chapter
This chapter aims to outline the results gathered from the survey
questionnaire (Appendix E) as outlined in the methodology chapter 3.
These results provide a descriptive basis for analysis and also include
hypotheses which have been designed to investigate any direct links
between the factors affecting a consumer review evaluation and their
influence on purchase decisions.
The researcher distributed a unique survey link from the following sites:
Facebook, Twitter, LinkedIn, onlineproductreviews.com and
independentproductreviews.com. 113 questionnaires were completed with
109 providing valid for the results of this study therefore the researchers
response rate was 96.0%.
Figure 4.1: Age demographics of respondents
There is a high level of respondents between the ages of 18-24 this could
be reflective of the sites that the researcher posted the questionnaire on,
as social networking sites are more favourable towards consumers
between these ages. Respondents aged between 24-65 are more likely to
have been directed from the online review forum threads on the
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independent online review sites that the questionnaire was posted on.
61% of the sample was female and 39% male
4.2 Descriptive findings
4.2.1 What is your motivation for posting an online product review?
Research objective: To find out whether a respondent was more likely to
review after a good or bad product experience
Figure 4.2 Motivations for posting
Findings: 33% of respondents said although they use online product
reviews they have never posted one themselves. The remaining 67% of
respondents said that they would post a product review post purchase.
The remaining respondents in the sample were additionally asked what
their motivations for posting a product review were. 46.8% said they would
only post after a good product experience, followed by 10.1% saying they
would only post a product review after a bad experience and 10.1% saying
they would post a review to ‟gain community status‟ in an online virtual
community.
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Analysis: From these results we can see that there is still a grey area
around participants who seek reviews but do not post reviews post
purchase and the respondents who do review post purchase. The
participants who do review post purchase are more likely to review after a
good experience in comparison to those who only review after a bad
product experience. Interestingly the same percentages who only post
after a bad product experience also post reviews in order to gain
community status. Therefore it is evident that the main motivation for
posted online product reviews is influenced by a good product experience.
4.2.2 How do you rate the quality of a review based on the amount of
content available?
Researcher objective: The researcher wanted to know how credible the
respondents viewed the information in reviews based on the amount of
content available.
Figure 4.3: Rating a review based on information content
A graph to show how respondents rate
the credibility of reviews based on the
amount of content available
60
50
Very credible
40
credible
30
20 not sure
10 not credible
0 not very credible
1-5 indepth 5-10 indepth 1-5 short 5-10 short
reviews reviews reviews reviews
Findings: As we can see from the graph above, respondents rated 5-10
indepth reviews as very credible amounting to 61% of the sample followed
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by 5-short reviews at 19%, 1-5 indepth reviews at 18% and 1-5 short
reviews at 14%.
This shows that respondents felt that 5-10 indepth reviews were more
credible which the researcher believes could be due to the amount of
content available. However, 69% also viewed 5-10 short reviews as more
credible than 5-10 in-depth reviews at 39% of the sample. 1-5 indepth
reviews amounted to 60% of the sample and 50% to 1-5 short reviews.
This shows how respondents found 5-10 short reviews as more credible
than 5-10 indepth reviews for this particular option.
Interestingly 15% of the sample said they were unsure of the credibility of
1-5 short reviews in comparison to the 9% who were unsure about 1-5
indepth reviews. 6% rated 1-5 indepth reviews as not credible, the same
amount as 5-10 short reviews and no respondents chose 5-10 indepth
reviews to be not credible. Another interesting finding is 14% of
respondents said that they would find 1-5 short reviews not very credible in
comparison to 7% who said the same for 1-5indepth reviews. Only 2%
found 5-10 short reviews not very credible and no respondents found 5-10
indepth reviews not credible.
Analysis: From these results we can see that the credibility of reviews lies
between two extremes 5-10 short reviews and 5-10 indepth reviews. The
latter of which has the highest very credible rate 61%. From these results
the researcher believes that even though the differences between
respondents credibility expectations are clear, that respondents are more
likely to value 5-10 indepth reviews as more credible overall with 5-10
short reviews still viewed as credible in comparison to 1-5 indepth reviews
and 1-5 short reviews which respondents perceptions appeared more
scattered.
4.3 Hypotheses
The researcher devised 4 hypotheses after consulting the literature. These
hypotheses provided a series of factors that could potentially influence a
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consumer‟s purchase decision based on their evaluation of the ewom
available. In order to present these results, the researcher used a variety
of charts and graphs to show the relationship between factors that
influenced a consumer‟s purchase decision based on the evaluation of
these reviews.
4.3.1 H1: Respondents are less likely to trust social networking and
brand websites when seeking online product reviews
Researcher’s objective: To discover which ewom platforms respondents
trust when conducting information seeking behaviour
Figure 4.4: Sites used to seek ewom
A chart to show respondents
preffered information seeking sites
combinations based on trust
accountabilty
5%
8% Independent Retailer and
Independent Review Sites
11% 46%
11% Brand and Independent
Retailer Sites
19%
Findings: The results show that respondents top platform combination
was the independent review/ independent retailer sites 46% followed by
Brand websites/ independent retailer sites 19%. Directly after this was
social networking/ independent retailer site 11% then followed by the
brand/ independent review site 11%. The least favourable combinations
were brand website/ independent review 9% and social networking/ brand
websites 6%.
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Analysis: From these results we can see how respondents favoured
independent retailer/independent review sites totalling nearly half the
sample size. In comparison to brand and social networking sites that were
rated the lowest by respondents. The concept of trust accountability shows
how consumers are less likely to trust information posted on brand and
social networking sites, and more likely to trust information posted on
brand/ independent retailer sites.
4.3.2 H2: Respondents primary motivation for information seeking is
to find out more information about the product
Researcher’s objective: To find out what the respondents most
consistent motivation is for information seeking
Figure 4.5: Primary motivations for information seeking
Combination no of
coding Combinations respondents
135 Price-People Experiences-Product Info 25%
125 Price/Risk/Product Info 11%
235 Risk/People Experiences/Product Info 10%
123 Price/Risk/People Experiences 9%
People Experience/How Products
345 Used/Product Info 7%
Risk/People Experiences/How Products
234 Used 6%
156 Price/Product Info/Lifestyle 5%
145 Price/How Products Used/ Product Info 5%
245 Risk/How Products Used/Product Info 5%
124 Price/Risk/How Products Used 3%
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356 People Experience/Product Info/Lifestyle 3%
126 Price/Risk/Lifestyle 2%
Price/People Experiences/How Products
134 Used 2%
146 Price/How Products Used/Lifestyle 2%
People Experience/How Products
346 Used/Lifestyle 2%
136 Price/People Experiences 1%
236 Risk/People Experiences/Lifestyle 1%
256 Minimise Risk/Product Info/Lifestyle 1%
Total 100%
Findings: This was done by asking respondents to „group‟ together what
they believed to be their top 3 motivations in order to find the most
consistent one. From the results shown in the chart above we can see that
the most popular combination of motivations were; „to compare price/ read
about people‟s product experiences and product information 25% of the
sample. The second most popular combination was to: Compare price/
evaluate risk/ and product information at 11%, followed closely by: to
evaluate risk/compare peoples experiences and product information at
10%. In contrast motivation combinations: To compare prices/peoples
experiences/lifestyle, to evaluate risk/peoples experiences and product
information and evaluate risk/peoples experiences and lifestyle had an
equal distribution of 1% of the sample.
Analysis: Therefore from these results we can see that the most popular
motivations for information seeking using product reviews are to seek
product reviews followed by price. This proves the hypotheses correct
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4.3.3 H3: The credibility of the product review itself is more important
to the respondents than the site it is hosted on or the individual
reviewer
Hypotheses Reasoning: The researcher wanted to find out what the
respondents felt was most important, the credibility of the product review
or the source of information.
Figure 4.6: Credibility of the information and the source
A chart to show how important
respondents rate the credibility of the
product review, individual reviewers
and site
60%
Axis Title
40%
Site
20%
Individual reviewer
0%
Product review itself
Very Important Important Not important
Axis Title
Findings: From these results we can see how respondents rated the
importance of the „Site‟, „Individual reviewer‟ and the „product review itself‟.
These are as follows: 47.7% of Respondents rated „the product review‟ as
„very important followed by the site 43.1% and then the individual reviewer
40.4%.
Therefore the sample believed that the product review itself was „very
important‟ when conducting their information seeking behaviour.
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For the „important‟ option 52.3% rated the product review itself, followed by
the site at 36.7% and then the individual reviewer at 27.5%.
Therefore the sample rated the product review itself the most highly when
choosing „important‟ in their information seeking behaviour.
Finally respondents rated what they believed to be the least important with
32.1% choosing the individual reviewer when compared to the site 15.6%
and the product review itself 4.6%
Analysis: From these results we can see how the content reflected in the
product review itself is the most influential to respondents when
information seeking closely followed by the site the review is hosted on.
The individual reviewer was seen as the least important influence on the
respondent‟s information seeking behaviour. Therefore the researcher
believes that the hypothesis is proven correct.
4.3.4 H4: A consumer’s evaluation of online product reviews will
strongly influence their decision to purchase
Hypotheses Reasoning: The researcher wanted to measure the extent to
which respondents found the above credible as according to Cheung,
2008 study these attributes directly influence ewom adoption The research
also wanted to know how much the credibility of these reviews influenced
a consumers purchase decision
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Figure 4.7: How consumers evaluate the credibility of review content
A graph to show how consumers
evaluate the credibility of review
content
80 Strongly Disagree
60
40 Disagree
20
0
Neither Agree or
Disagree
Agree
Findings: As we can see from the graph above respondents voted the
following 8 as credible with very little differentiation between these views. I
believe that the online reviews posted on this site are: honest 16% credible
64% trustworthy 56% justified 61% relevant 59% accurate 51% valuable
60% informative 55% however option 8 free from bias 34% was rated the
lowest in this category. Respondents also „strongly agreed‟ that the online
product reviews on their preferred site were: „honest‟ 28% „credible‟ 23%
„trustworthy‟ 23% „Justified,‟ 24% „relevant,‟ 30% „accurate,‟ 25%
„valuable,‟ 29%‟informative,‟ 33% and „free from marketer bias,‟ 24%.
Interestingly some respondents were unsure of their beliefs about the
product providing the results: „honest,‟ 11% „credible,‟ 10% „trustworthy,‟
20% „justified,‟ 13% „relevant,‟ 10% „accurate,‟ 19% „valuable,‟ 8%
„informative,‟ 12% „free from bias,‟ 22%. When looking at attributes that
respondents disagreed with the following were rated: „honest,‟ 0%
„credible,‟ 2% „trustworthy,‟ 1% „justified,‟ 2% „relevant,‟ 0% „accurate,‟ 5%
„valuable,‟ 3% „informative,‟ 0% and „free from marketer bias,‟ 17%. Finally,
Strongly disagree showed the following results: „honest,‟ 0%, „credible,‟ 1%
„trustworthy,‟ 0% „justified,‟ 0% „relevant,‟ 1% „accurate,‟ 0% „informative,‟
0% and „free from marketer bias,‟ 4%.
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Figure 4.8: How do respondents rate the influence of online product
reviews on their purchase decisions
Also 72% of respondents said they were strongly influenced to purchase a
product based on their evaluation of the credibility of a review discussed
above with only 26% saying they would not be influenced and 2% saying
product reviews had no influenced over their purchase decision.
Analysis: From these results we can see how 33% strongly agree that the
reviews are „informative‟ and 30% ‟relevant‟ which suggests that the
respondent finds the information posted in an online review applicable to
their needs. In the „agree‟ section respondents rated the results as honest
61% and credible 64% making up the highest amount in the sample.
Interestingly marketer bias scored noticeably less than the average in the
„agree‟ section at 34% and the highest in both the disagree section 17%
and 22% in the either disagree or agree option. This would suggest that
respondents are still unsure as to whether or not reviews are still
influenced by marketers, but it is an issue they are aware of when reading
reviews. 72% of participants who said that the credibility of the reviews in
the method shown in figure 4.7 would strongly influence their purchase
decisions.
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Finalise: 92.7% of the sample answered „yes‟ when asked if they have
purchased the product post review with only 7.3% saying no. From this the
researcher believes that the higher the respondent rate the above
attributes as strongly agree or agree the more likely they are the purchase
the product.
4.4 Hypotheses Confirmation
The researcher confirms that all the hypotheses have been proved correct
and will further discuss this in chapter 5
Figure 4.9: Hypotheses
Hypotheses Supporting Authors Were the
hypotheses
proven?
H1 Respondents are less Bikhart and Schindler The hypothesis
likely to trust social (2001) Xue and Phelps was proven
networking and brand (2004) Senecal and correct
websites when seeking Nantel (2004) Gruen et
online product reviews al (2006) Sen and
Lerman (2007)
Dellocras (2003)
H2 Respondents primary Bellman et al (1999) The hypothesis
motivation for Bikhart and Schindler was proven
information seeking is (2001) Park et al (2007) correct
to find out more Hodkinson et al (2000)
information about the Wolfinbarger and Gilly
product (2001)
H3 The credibility of the Park et al (2007) The hypothesis
product review itself is Cheung et al (2008) was proven
more important to the Brown et al (2007) correct
respondents than the Bhatterjee and Sanford
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site it is hosted on or (2006) Mcknight and
the individual reviewer Kacmar (2002)
Grewal, (1994)
H4 A consumers Sun et al (2006) The hypothesis
evaluation of online Jarvanpaa et al (1999) was proven
product reviews will Lee et al (2008) Park correct
strongly influence their and Lee (2008) Litvin et
decision to purchase al (2005) Cheung et al
(2008) Goldsmith and
Horowitz (2006)
Mcknight and Kacmar
(2002)
4.5 Summary of chapter
This chapter has provided results from the questionnaire deposited at the
end of chapter 3. From these results we can see that respondents prefer
to use independent retailer and independent review sites to conduct their
information seeking behaviour. Their main motivation combinations for
using these platforms are to compare price/experiences and see how the
product would be applicable to their lifestyle. They do not trust brand
websites and social networking as much as independent sites and they
are more likely to post a review themselves after a good product
experience.
Chapter 5 will conclude these findings, discuss any study limitations and
recommend any further research.
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Chapter 5.0 Discussion and Conclusion
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5.1 Introduction to chapter
In this chapter the researcher aims to compare findings of the primary
research outlined in chapter four with the relevant literature discussed in
chapter two to determine if any similarities have been established. All
research objectives stated in chapter one have been fulfilled.
Study limitations and restrictions will also be discussed, as well as any
future research suggestions to further explore how consumers evaluate
electronic word of mouth when making their purchase decisions.
5.2 H1: Respondents are less likely to trust social networking and
brand websites when seeking online product reviews.
The researcher‟s primary findings showed how Social networking and
brand websites were the respondent‟s least favourable sites when
information seeking in comparison to independent review and retailer
sites.
Within the ewom platform literature it is apparent that marketer bias is a
mediating factor in preferred site choice for information seekers. Various
authors discussed in chapter two further back this up. Bikhart and
Schindler (2001) state that reviews posted by professional reviewers are
more likely to attribute marketer bias in a consumer‟s opinion, and provide
minimal if any negative reviews on the product. Xue and Phelps (2004)
state that ewom posted on a brands website is perceived by consumers to
contain marketing bias and therefore the persuasion of that message is
decreased as it provides a biased representation of the products actual
performance. Senecal and Nantel (2004) state that marketer influenced
reviews have a higher association with brand websites in comparison to
independent retailer and review sites. The value of information posted on a
social networking site has also decreased due to the noticeable increase
of marketer‟s influence of product recommendations that are taken from
the consumers browsing history. Gruen et al (2006) study into independent
forums further back up how C2C interactions found on independent review
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sites are more influential on a consumers purchase decision in comparison
to brand and social networking related content due to the motivation to
share honest opinions. Authors Sen and Lerman (2007) state that
consumers generally trust peer consumers more than they trust
advertisers or marketers. Dellarocas (2003) found that online channels
such as eBay (which acts as a marketplace for buyers and sellers to meet)
is an important in building trust and fostering cooperation amongst
consumers in these virtual communities. Therefore the primary research
findings further support the above theorist‟s conclusions.
5.3 H2: Respondents Primary motivation for information seeking is to
find out more information about the product.
The researcher‟s primary research findings showed how the respondent‟s
primary motivation for seeking was to find out more product information, as
it was the most consistent factor in respondent‟s motivation combinations
appearing in 53% of respondents results.
Bellman et al (1999) found that the most important predictor of online
buying behaviour was online product information search. Consumers who
had a „wired lifestyle' and used the Internet for most of their activities (such
as reading the news, paying bills, etc.) naturally turned to the Internet to
search for product information posted in online reviews at the primary
stage of a purchase decision. Bikhart and Schindler (2001) state that the
availability of uncapped product information is an attractive feature in the
information seekers decision making process. Park et al (2007) state that
consumer reviews have a dual role, primarily it provides product
information and also serves as a recommendation which is of value to the
information seeker. Therefore it is not surprising that product information
seeking often is portrayed as a critical stage conducted early in the
consumer buying process (Shim et al 2001; Hodkinson et al 2000).
Consumers primarily seek product information when making a purchase
decision in order to clarify their decision and further build up their
knowledge of the product before they consult any other attributes.
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Wolfinbarger and GIlly (2001) say that when consumers have an idea of a
product they require further product information to clarify their decision.
Therefore the primary research findings further support the above
theorist‟s conclusions.
5.4 H3: The credibility of the product review itself is more important
to respondents than the site it is hosted on or the individual reviewer
The researcher‟s primary research findings showed how consumers value
the credibility of the information within a product review over the credibility
of the source.
Park et al (2007) state how the product review itself provides a dual role. It
provides information about various products and services, and also serves
as a recommendation for a particular product or service. Cheung et al‟s
(2008) study into ewom adoption found that the usefulness of the
information and the quality of information formulated by the
comprehensiveness and relevance of the review are more influential to
consumers evaluating a product review than the credibility of the source
the information is obtained from. Brown et al (2007) states how the
credibility of the site as an information source is more important to a
consumer at the initial stage of information seeking in comparison to the
individual reviewer. However Bhatterjee and Sanford (2006) state how
the individual review needs to fulfil a consumers expectations of a product
by providing a persuasive message that is supported by the strength of
either positive or negative arguments embedded within that message, in
order to be perceived by the consumer as a credible source of information.
Cheung et al 2008 further believes that this is more likely to influence a
consumer‟s adoption of ewom. If the message is perceived as informative
and useful to the consumer by providing a strong argument for or against a
product purchase, it is valued more highly by the consumer and seen as
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more important and credible regardless of the site it is hosted on or the
individual reviewer. Mcknight and Kacmar (2002) further back this up by
saying that information credibility is a vital predictor on the online
consumers further action and that a consumer who believes online
information has no reason to adopt it Therefore the primary research
findings further support these theorists conclusions
5.5 H4: A consumer’s evaluation of online product reviews will
strongly influence their decision to purchase.
The primary research findings show how consumers are heavily influenced
by the product reviews on their purchase decisions.
Sun et al (2006) states that the informal nature in which the information is
delivered and interpreted by the receiver through the use of product
reviews has a direct influence on information adoption which leads to
purchase decisions. This is further backed up by Jarvanpaa et al (1999)
who states that when consumers conduct any activity online they face:
uncertainty, vulnerability and a need for dependence on reliable sources of
information, therefore using preconceptual product ideas and further
verifying using a variance of reviews to support or reject will influence their
purchase decision. Lee et al (2008) furthers this by saying that reviews
that offer a variance of views influence a purchase decision due to shared
consumer interest, number of reviews and further resonation with
individual reviewers. Park and Lee (2008)states that consumers „seek out
weak tie experts‟ who have superior knowledge or a product that they
have a shared interest in order to verify their purchase decisions in the
context of products they are unfamiliar with. Litvin et al (2005) states how
a consumer‟s evaluation of a product review is heavily influenced by virtual
relationships developed within a virtual community sharing a collective
interest on particular product topics. Park and lee (2008) and Cheung et al
(2008) further back this up by stating how virtual communities are
influential as they offer a variance of honest reviews free from marketing
bias. Goldsmith and Horowitz (2006) also state that consumers that have
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increased knowledge in a particular field and who are motivated to share
honest experiences of a product in the most beneficial and credible way
for the consumer are more likely to be perceived as a credible source of
information which consumers will use to evaluate their purchase decision.
To finalise Mcknight and Kacmar (2002) also contribute by saying that
information credibility is a vital predictor on the online consumers further
action and that a consumer who believes online information has no reason
to adopt it Therefore the primary research findings further support these
theorists conclusions.
5.6 Limitations
The researcher experienced limitations within this study primarily due to
the currentness of this topic, budget and time constraints. The study aimed
to explore how consumers evaluate ewom when making their purchase
decisions; however the study did not take into account the differences in
demographics, or further investigation into ewom valence and could have
benefitted from more motivational literature. The topic of electronic word of
mouth is what marketers would define as „real-time‟ for this reason
investigative study into motivations, seeking and purchase decision
evaluation is difficult to understand, especially as the modern day
consumer is still trying to establish the degree to which the review confirms
their purchase decisions. The researcher used as much literature to back
up the findings however there are still noticeable gaps when discussing
the above topics. Therefore the research cannot be generalised to the
population due to these limitations
5.7 Further Research Recommendations
The researcher would recommend a multimethods approach to be taken
into any future research in this field. The researcher believes that focus
groups and indepth interviews with larger samples followed up by a
quantative survey approach would prove beneficial in determining how a
consumer evaluates online product reviews when making their purchase
decisions. The nature of the topic has a lot to offer to marketers to assist
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them in understanding consumer behaviour and the author believes that
over the next 5 years more research using a multimethods approach will
help them understand this. The researcher also believes that themes such
as trust and virtual communities should be further explored as these are
diverse fields with a lot of information is of use to the marketer and when
understanding them thoroughly could be incorporated into future marketing
plans to gain consumer loyalty.
5.8 Summary of chapter
This chapter has made comparisons and drawn similarities out of the
literature taken from chapter two. It has also concluded the researcher‟s
findings and proved the hypotheses correct.
References
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