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)
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