Joint Effect of Different Dimensions of eWOM on Product Sales

Understanding the antecedents and consequences of electronic word-of-mouth (eWOM) is of significant theoretical value and great interest to both consumers and firms. To reconcile the disagreement in the relationship between eWOM and product sales, we investigate the joint effect of different dimensi...

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Main Authors: Xudong Liu, Xianjiao Wu, Qiang Ye
Format: Article
Language:English
Published: MDPI AG 2022-06-01
Series:Information
Subjects:
Online Access:https://www.mdpi.com/2078-2489/13/7/311
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author Xudong Liu
Xianjiao Wu
Qiang Ye
author_facet Xudong Liu
Xianjiao Wu
Qiang Ye
author_sort Xudong Liu
collection DOAJ
description Understanding the antecedents and consequences of electronic word-of-mouth (eWOM) is of significant theoretical value and great interest to both consumers and firms. To reconcile the disagreement in the relationship between eWOM and product sales, we investigate the joint effect of different dimensions of eWOM on the sales of durable goods (i.e., cars). Our study is based on eWOM collected from Autohome, a leading online review platform of automobiles in China. Our empirical results show that the volume and valence of eWOM positively affect car sales, and variance negatively affects car sales when the volume of eWOM is low. Further analyses of the joint effect show that the positive impact of eWOM volume on sales is stronger when the valence is lower and the variance is higher. This research contributes to the literature on eWOM and provides helpful suggestions for firms by shedding light on the joint effect of different dimensions of eWOM in the context of the Chinese automobile industry.
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spelling doaj.art-6557f1d3ad7f421ba11113ef3690bfd72023-12-01T22:16:47ZengMDPI AGInformation2078-24892022-06-0113731110.3390/info13070311Joint Effect of Different Dimensions of eWOM on Product SalesXudong Liu0Xianjiao Wu1Qiang Ye2School of Management, Harbin Institute of Technology, Harbin 150001, ChinaSchool of Management, Harbin Institute of Technology, Harbin 150001, ChinaSchool of Management, Harbin Institute of Technology, Harbin 150001, ChinaUnderstanding the antecedents and consequences of electronic word-of-mouth (eWOM) is of significant theoretical value and great interest to both consumers and firms. To reconcile the disagreement in the relationship between eWOM and product sales, we investigate the joint effect of different dimensions of eWOM on the sales of durable goods (i.e., cars). Our study is based on eWOM collected from Autohome, a leading online review platform of automobiles in China. Our empirical results show that the volume and valence of eWOM positively affect car sales, and variance negatively affects car sales when the volume of eWOM is low. Further analyses of the joint effect show that the positive impact of eWOM volume on sales is stronger when the valence is lower and the variance is higher. This research contributes to the literature on eWOM and provides helpful suggestions for firms by shedding light on the joint effect of different dimensions of eWOM in the context of the Chinese automobile industry.https://www.mdpi.com/2078-2489/13/7/311electronic word-of-mouthonline reviewscar sales
spellingShingle Xudong Liu
Xianjiao Wu
Qiang Ye
Joint Effect of Different Dimensions of eWOM on Product Sales
Information
electronic word-of-mouth
online reviews
car sales
title Joint Effect of Different Dimensions of eWOM on Product Sales
title_full Joint Effect of Different Dimensions of eWOM on Product Sales
title_fullStr Joint Effect of Different Dimensions of eWOM on Product Sales
title_full_unstemmed Joint Effect of Different Dimensions of eWOM on Product Sales
title_short Joint Effect of Different Dimensions of eWOM on Product Sales
title_sort joint effect of different dimensions of ewom on product sales
topic electronic word-of-mouth
online reviews
car sales
url https://www.mdpi.com/2078-2489/13/7/311
work_keys_str_mv AT xudongliu jointeffectofdifferentdimensionsofewomonproductsales
AT xianjiaowu jointeffectofdifferentdimensionsofewomonproductsales
AT qiangye jointeffectofdifferentdimensionsofewomonproductsales