A statistical measure of a population's propensity to engage in post-purchase online word-of-mouth

Abstract

The emergence of online communities has enabled firms to monitor consumer-generated online word-of-mouth (WOM) in real-time by mining publicly available information from the Internet. A prerequisite for harnessing this new ability is the development of appropriate WOM metrics and the identification of relationships between such metrics and consumer behavior. Along these lines this paper introduces a metric of a purchasing population's propensity to rate a product online. Using data from a popular movie website we find that our metric exhibits several relationships that have been previously found to exist between aspects of a product and consumers' propensity to engage in offline WOM about it. Our study, thus, provides positive evidence for the validity of our metric as a proxy of a population's propensity to engage in post-purchase online WOM. Our results also suggest that the antecedents of offline and online WOM exhibit important similarities. © Institute of Mathematical Statistics, 2006.