There are two sources of social influence that can shape consumer purchases: Overall popularity of the product, as evidenced by indicators such as best-selling lists or online ratings, which aggregate the choices or opinions of previous buyers in the system. Popularity of the product within the buyer’s social circle. This can be evidenced by people … Continue reading Popular choice vs friends’ recommendations – which is most influential?
The question I get asked most often (after whether social media activity helps with sales and profitability) is how to handle negative online reviews. The comments left by other customers, and any responses left by the company, are available for all to see, and can impact on the company’s reputation. So, many companies worry that … Continue reading Handling negative online reviews: speed and voice matter; status and action frame not so much
Customer reviews are a very important source of information for buyers when it is difficult to evaluate or test a product before purchase, as in the case of online purchases. Positive reviews can amplify sales by as much as 0.149, and is particularly relevant for high financial risk decisions, services, hedonic products, and new … Continue reading When good product reviews are bad news for business
While we tend to discuss word of mouth in terms of traditional (i.e., face to face) vs. electronic, this paper by Thorsten Hennig-Thurau, Caroline Wiertz and Fabian Feldhaus indicates that this separation is two simplistic. The paper looks at the impact of Twitter conversations on the performance of new movies. It finds that customers … Continue reading Twitter conversations have the credibility of friends’ recommendations and the impact of online reviews