The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback
Online feedback mechanisms harness the bi-directional communication capabilities of the Internet in order to engineer large-scale word-of-mouth networks. Best known so far as a technology for building trust and fostering cooperation in online marketplaces, such...
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| Format: | Working Paper |
| Language: | en_US |
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2004
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| Online Access: | http://hdl.handle.net/1721.1/7346 |
| _version_ | 1826202841525518336 |
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| author | Dellarocas, Chrysanthos |
| author_facet | Dellarocas, Chrysanthos |
| author_sort | Dellarocas, Chrysanthos |
| collection | MIT |
| description | Online feedback mechanisms harness the bi-directional communication capabilities of the Internet in order to
engineer large-scale word-of-mouth networks. Best known so far as a technology for building trust and fostering
cooperation in online marketplaces, such as eBay, these mechanisms are poised to have a much wider impact on
organizations. Their growing popularity has potentially important implications for a wide range of management
activities, such as brand building, customer acquisition and retention, product development, and quality assurance.
This paper surveys our progress in understanding the new possibilities and challenges that these mechanisms
represent. It discusses some important dimensions in which Internet-based feedback mechanisms differ from
traditional word-of-mouth networks and surveys the most important issues related to their design, evaluation, and
use. It provides an overview of relevant work in game theory and economics on the topic of reputation. It discusses
how this body of work is being extended and combined with insights from computer science, management science,
sociology, and psychology in order to take into consideration the special properties of online environments. Finally,
it identifies opportunities that this new area presents for OR/MS research. |
| first_indexed | 2024-09-23T12:20:05Z |
| format | Working Paper |
| id | mit-1721.1/7346 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T12:20:05Z |
| publishDate | 2004 |
| record_format | dspace |
| spelling | mit-1721.1/73462019-04-10T23:12:14Z The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback Dellarocas, Chrysanthos Online Feedback Mechanisms Reputation Systems E-commerce Internet Game Theory Management Science Operations Research Online feedback mechanisms harness the bi-directional communication capabilities of the Internet in order to engineer large-scale word-of-mouth networks. Best known so far as a technology for building trust and fostering cooperation in online marketplaces, such as eBay, these mechanisms are poised to have a much wider impact on organizations. Their growing popularity has potentially important implications for a wide range of management activities, such as brand building, customer acquisition and retention, product development, and quality assurance. This paper surveys our progress in understanding the new possibilities and challenges that these mechanisms represent. It discusses some important dimensions in which Internet-based feedback mechanisms differ from traditional word-of-mouth networks and surveys the most important issues related to their design, evaluation, and use. It provides an overview of relevant work in game theory and economics on the topic of reputation. It discusses how this body of work is being extended and combined with insights from computer science, management science, sociology, and psychology in order to take into consideration the special properties of online environments. Finally, it identifies opportunities that this new area presents for OR/MS research. 2004-11-23T15:34:00Z 2004-11-23T15:34:00Z 2004-11-23T15:34:00Z Working Paper http://hdl.handle.net/1721.1/7346 en_US MIT Sloan School of Management Working Paper;4296-03 116525 bytes application/pdf application/pdf |
| spellingShingle | Online Feedback Mechanisms Reputation Systems E-commerce Internet Game Theory Management Science Operations Research Dellarocas, Chrysanthos The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback |
| title | The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback |
| title_full | The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback |
| title_fullStr | The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback |
| title_full_unstemmed | The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback |
| title_short | The Digitization of Word-of-Mouth: Promise and Challenges of Online Feedback |
| title_sort | digitization of word of mouth promise and challenges of online feedback |
| topic | Online Feedback Mechanisms Reputation Systems E-commerce Internet Game Theory Management Science Operations Research |
| url | http://hdl.handle.net/1721.1/7346 |
| work_keys_str_mv | AT dellarocaschrysanthos thedigitizationofwordofmouthpromiseandchallengesofonlinefeedback AT dellarocaschrysanthos digitizationofwordofmouthpromiseandchallengesofonlinefeedback |