Impact of eWOM

Abstract

Studies on the impact of eWOM can be classified into two categories (Pan 2014). First, market-level analysis, where researchers focus on market-level parameters, such as product sales. These studies use panel data from a website in order to investigate the impact of eWOM communications on product sales (Amblee and Bui 2007a; Baek et al. 2014). Second, individual-level analysis, where researchers consider eWOM as a process of personal influence, meaning communications between a sender and a receiver of eWOM can change the receiver’s attitude and purchase decision (Baber et al. 2016; Lis 2013). Attitude, purchase intention, sales, information adoption, and information overload are the most investigated consequences of eWOM communications. Hence, exploring the impact of eWOM will advance understanding of consumer behaviour. Thus, the objective of this chapter is to provide a review of existing studies on impact of eWOM communications from both consumer and company perspectives.