How online word-of-mouth impacts receivers

Abstract

Online word-of-mouth (WOM) can impact consumers’ product evaluations, purchase intentions, and choices—but when does it do so? How do those receiving WOM know whether to rely on a particular message? This article suggests that the multiple players involved in online WOM (receivers, senders, sellers, platforms, and other consumers) each have their own interests, which are often in conflict. Thus, receivers of WOM are faced with a judgment task in deciding what information to rely on: They must make inferences about the product in question and about the players who provide or present WOM. To do so, they use signals embedded in various components of WOM, such as average star ratings, message content, or sender characteristics. The product and player information provided by these signals shapes the impact of WOM by allowing receivers to make inferences about (a) their likelihood of product satisfaction, and (b) the trustworthiness of WOM players, and therefore the trustworthiness of their content. This article summarizes how each player changes the impact of online WOM, providing a lens for understanding the current literature in online WOM, offering insights for theory in this context, and opening up pathways for future research.