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Journal Selections from MSI

Effect of eWOM on Sales

Meta-analysis offers generalized empirical findings – what works and what doesn’t.

Many studies have examined the relationship of user-generated online content on consumer purchase decisions. Ana Babić Rosario, Francesca Sotgiu, Kristine De Valck, and Tammo H.A. Bijmolt conduct a meta-analysis of 1,532 effect sizes across 96 studies and 26 product categories to develop some empirical generalizations:

  • On average, eWOM is positively correlated with sales (.091), but its effectiveness differs across platform, product, and metric factors.
  • Negative eWOM does not always jeopardize sales, but high variability (i.e., consumer disagreement on a product's quality) does.
  • Moderators include platform (social media v. e-commerce), product (new tangible goods v. services), and volume v. valence effects.

Table 6  summarizes implications for platform and product managers (i.e., “eWOM is most effective when . . .”).

Download from the American Marketing Association 
The Effect of Electronic Word of Mouth on Sales: A Meta-Analytic Review of Platform, Product, and Metric Factors by Ana Babić Rosario, Francesca Sotgiu, Kristine De Valck, and Tammo H.A. Bijmolt, Journal of Marketing Research (June 2016) 

Journal Selections from MSI (October 2016)

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