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Credibility in E-WOM

Credibility in E-WOM. How review perceptions impact their persuasiveness. Natalie Van Hemelen ( KULeuven ), Peeter W. J. Verlegh (UVA) & Tim Smits ( KULeuven ) . Theoretical background: Introduction.

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Credibility in E-WOM

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  1. Credibility in E-WOM How review perceptions impact theirpersuasiveness Natalie Van Hemelen (KULeuven), Peeter W. J. Verlegh (UVA) & Tim Smits (KULeuven)

  2. Theoretical background: Introduction • With the advent of social media, E-WOM and online consumer reviews becameincreasinglypopular • Online consumer reviews • “Online recommendationsaboutproducts, services, organizations or brands, based on consumers’ personal experiences” • E.g., Yelp

  3. Succes and impact of online review sites • People attach a lot of importancetothe non-commercial opinion of socialothers (Fong & Burton, 2004) • Online reviews (often) perceived as impartial People are lesssuspiciousabouttheircredibility • 72% trust online reviews as much as personal recommendations • 58% trust productsthat have positive online reviews Reviews have a strong persuasive impact on persons’ attitudes But impact depends on a lot of factors: valence, credebilityrecommendation source, etc.

  4. Valenceandperceivedcredibility • Debate: Positive OR negative reviews most impactful? • Psychology & Consumer research: Negative information stronger impact becauseit is perceived as more diagnostic >< But many studies found the opposite: Positive E-WOM more impactfulthannegative... • Floh and collegeaus (2009): manyresearchersonly take perceivedvalenceinto account (seealsoSussanet al., 2006; Willemsen et al., 2012)

  5. Valenceandperceivedcredibility • Review’svalenceandcredibiltycannotbeassumedtobe independent fromeachother... Currentstudy: Combinedpersuasive impact of perceivedvalenceandcredibility

  6. Hypotheses (1) • Given the previous, we predictthatvalenceandcredibilitywillboth have aneffect on the receiver’s product attitude • Valence: Straightforward effect H1: Positive reviews (vsnegativeones) willincrease the attitude towards the product • Credibility: Moderated effect H2a: For positive reviews, highercredibilitywillincrease the attitude towards the product H2b: For negative reviews, highercredibilitywilldecrease the attitude towards the product

  7. Hypotheses (2) • But, valence is alsolikelyto affect credibility... • Rationale: Negative information  Attention  Source questioning • H3: Positive reviews (vsnegativeones) wil increase the review’sperceivedcredibility

  8. Moderatedmediationmodel *Type 1 Model as outlinedbyPreacher, Rucker & Hayes (2007)

  9. Method (1) • Procedure & participants • Between subjects design with 2 conditions (positivevsnegative review) • 89 Bachelor students of a Flemish University College • 62 men (69,7%), 27 women (30,3%) • Between18 and 24 yearsold (M = 19,22; SD = 1,81) • Visitregularly a restaurant (M = 4,71, SD = 1,189) • Online study • Read one of the 2 reviews • Different questionstoassesstheir attitudes • Instructiontowrite a review themselvesabout the restaurant • Afterwards 3 raterscoded the reviews

  10. Method (2) • Stimuli

  11. Method (3) • Measures • Attitude restaurant • 10 (7-point) bipolar rating scales: qualitative – not qualitative, creative – uncreative, attractive – unattractive,… • Total attitude score: mean of the scores on the 10 rating scales (Cronbach’s α = .953, M = 41.287, SD = 10.959) • Credibility review • 4 (7-point) bipolar rating scales: honest – dishonest, credible – incredible,… • Total credibility score: mean of the scores on the 4 rating scales • (Cronbach’s α = .687, M = 3.862, SD = 1.645)

  12. Results • Proposed model confirmed! *Bootstrapping Macro SPSS (model 74), Hayes et al. (5000 samples)

  13. Hypothesis 1 Valence review Attitude restaurant • b = 1.511, p < .001

  14. Hypotheses 2a & 2b b = .141, p = .129 b = .495* * p < .001

  15. Hypothesis 3 b = .347, p < .001

  16. Moderatedmediation model • b = 1.511* • (b = -1.318*) b = .141, p = .129 b = .495* b = .347* *p < .001

  17. Future research • In ourstudy the findingsonlyholdforone type of reviews • In a follow-up study, we want to test whether the findingsalsoholdforothertypes of reviews, products,... • Future research canfurtherinvestigatewhynegative reviews are exactlyperceived as lesscrediblethanpositiveones

  18. Thankyouforyourattention!

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