Table 4: Summary of Results.
Independent
Variables
Effect on Dependent
Variable
Volume √
Valence √
% of Negative Reviews √
% of Positive Reviews √
Product Type √
Product Lifecycle (PLC) Partial support
new product sales may lead to the poor results.
The findings reveal the significant effect of
WOM including the multiple indicators of WOM
including volume, valence and the ratio of negative
vs. positive reviews on new product sales in the
online setting. The findings of this study indicate
several interesting practical directions for
practitioners. Marketers need to observe and respond
to online WOM communication actively. They
should develop strategies to promote consumer
advocacy, to encourage consumer reviews and other
forms of WOM, and hopefully generate positive
reviews when they launch new products. Given the
speed and wide reach of online WOM, the benefit of
satisfied customers as the best advertisement can be
amplified many times. This applies to both
experience and search products, but more so for
experience products, which are subject to greater
influence from online WOM because experience
products have less tangible attributes than search
products.
Positive consumer reviews can help reduce the
uncertainty and risks associated with purchasing
new products for potential buyers. Marketers may
incorporate valuable consumer feedback, especially
the negative WOM, in the development and
marketing of new products. Meanwhile, it is not
necessary for practitioners to discourage and
manipulate the negative reviews in the forums,
because according to our finding, online negative
reviews may not directly hurt new product sales as
long as the overall effect of WOM is positive.
Finally, the effect of online WOM on new product
sales is perhaps more influential beyond the
introductory stage of a product’s life cycle for
experience products, calling for greater efforts to
monitor and respond to online WOM.
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