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The Effect Of Quantitative Electronic Word Of Mouth On Consumer Perceived Product Quality

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  • Yingtao Shen
  • Shenyu Li
  • Michelle DeMoss

Abstract

Online shoppers today can easily share reviews of their product usage experiences on a third-party website. Many retail websites allow individuals to submit qualitative and/or quantitative reviews, using a typical five-point scale. With the increase in online shopping behaviors, the impact of these reviews, or electronic word of mouth, on consumers’ decisions is drawing more attention. Yet how do these on-line consumer reviews impact consumer behavior? This study empirically tests how quantitative product reviews affect online shoppers’ perception of product quality. We find that: (1) extreme ratings have a greater impact on prospective customers’ perceived quality than do median ratings while negative reviews have greater impact than positive reviews; (2) none of the volume, valence and consensus of electronic word of mouth can predict perceived quality reliably; (3) there is no difference between the perceived product quality formed by Chinese and American subjects when judging product quality, based on the same quantitative online product reviews.

Suggested Citation

  • Yingtao Shen & Shenyu Li & Michelle DeMoss, 2012. "The Effect Of Quantitative Electronic Word Of Mouth On Consumer Perceived Product Quality," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 5(2), pages 19-29.
    • Handle: RePEc:ibf:ijmmre:v:5:y:2012:i:2:p:19-29
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    References listed on IDEAS

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    1. Duan, Wenjing & Gu, Bin & Whinston, Andrew B., 2008. "The dynamics of online word-of-mouth and product sales—An empirical investigation of the movie industry," Journal of Retailing, Elsevier, vol. 84(2), pages 233-242.
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    6. Khare, Adwait & Labrecque, Lauren I. & Asare, Anthony K., 2011. "The Assimilative and Contrastive Effects of Word-of-Mouth Volume: An Experimental Examination of Online Consumer Ratings," Journal of Retailing, Elsevier, vol. 87(1), pages 111-126.
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    Cited by:

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    2. Kejun Lin & Wenbin Du & Shixin Yang & Chang Liu & Sanggyun Na, 2023. "The Effects of Social Media Communication and e-WOM on Brand Equity: The Moderating Roles of Product Involvement," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    3. Hui Zhang & Huguang Rao & Junzheng Feng, 2018. "Product innovation based on online review data mining: a case study of Huawei phones," Electronic Commerce Research, Springer, vol. 18(1), pages 3-22, March.
    4. Byoungsoo Kim, 2018. "The Role of Dedication-Based and Constraint-Based Mechanisms in Consumers’ Sustainable Outcomes in the Coffee Chain Industry," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    5. Erik Maier & Robert Wilken & Florian Dost, 2015. "The double benefits of consumer certainty: combining risk and range effects," Marketing Letters, Springer, vol. 26(4), pages 473-488, December.
    6. Judy A. Siguaw & Enping Mai & Xiaojing Sheng, 2021. "Word-of-mouth, servicescapes and the impact on brand effects," SN Business & Economics, Springer, vol. 1(1), pages 1-26, January.
    7. Nerea Alejandra Ramírez-Castillo & Jéssica Müller-Pérez & Ángel Acevedo-Duque & Sheyla Müller-Pérez & Romel Ramón González-Díaz & Jorge Suarez Campos & Luiz Vicente Ovalles-Toledo, 2021. "Sustainable Moviegoer Intention to Attend Cinemas Based on the Theory of Planned Behavior," Sustainability, MDPI, vol. 13(16), pages 1-20, August.

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    More about this item

    Keywords

    Electronic Word of Mouth; Online Review; Perceived Quality of Products;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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