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The effects of electronic word -of -mouth systems (EWOMS) on the acceptance of recommendation

Seong No Yoon, University of Nebraska - Lincoln

Abstract

Along with the growth of e-commerce, advances in information and communication technologies (ICTs) have enabled online retailers to provide new services to enhance customer value and to increase sales. A notable example of these services or technologies is online product recommendation systems that serve to reduce consumer search costs and uncertainty or risks associated with the purchase of unfamiliar products. Electronic word-of-mouth systems (EWOMS) are online product recommendation systems that allow consumers to electronically post consumption information in the form of product reviews and/or product ratings.^ This study examines the effects of EWOMS on a consumer’s acceptance of product recommendation. More specifically, this study explores relationships among several factors that may influence a consumer’s acceptance of product recommendation. Also, this study attempts to investigate the moderating effect of product types on the consumer’s recommendation acceptance. A proposed research model is developed based on the accessibility-diagnosticity model, information quality theory, source credibility theory, and theory of referent informational influence, along with ten hypotheses.^ A lab experiment was conducted to test hypotheses empirically. The results confirmed the effect of information quality on EWOMS recommendation acceptance. The study also found that information diagnosticity and informant trustworthiness are critical factors for consumers’ acceptance of recommendation. For the elements of EWOMS, the rating indicator is a predictor of information diagnosticity and information quality, while the helpfulness indicator is a predictor of information quality and informant trustworthiness. Meanwhile, the source identity indicator does not have an effect on informant trustworthiness. ^

Subject Area

Business Administration, Management

Recommended Citation

Yoon, Seong No, "The effects of electronic word -of -mouth systems (EWOMS) on the acceptance of recommendation" (2008). ETD collection for University of Nebraska - Lincoln. AAI3315881.
http://digitalcommons.unl.edu/dissertations/AAI3315881

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