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2009 - Social Ties and Online Word of Mouth
2009 - Social Ties and Online Word of Mouth
2009 - Social Ties and Online Word of Mouth
www.emeraldinsight.com/1066-2243.htm
INTR
19,1 Social ties and online word of
mouth
Erin M. Steffes and Lawrence E. Burgee
42 Towson University, Maryland, USA
Introduction
Word of mouth (WOM) communication, which can be defined as “all informal
communications directed at other consumers about the ownership, usage or
characteristics of particular goods or their sellers” is well established in academic
literature (Westbrook, 1987). Over the years, numerous studies have shown that word
of mouth communication has a significant impact on consumer choice as well as
post-purchase perceptions (e.g. Katz and Lazarsfeld, 1955; Engel et al., 1969; Herr et al.,
1991; Bone, 1995; Hennig-Thurau and Walsh, 2004). Additional studies have
demonstrated the power of WOM over other forms of advertising. In certain
Internet Research circumstances, WOM has a greater influence over consumer behavior than personal
Vol. 19 No. 1, 2009
pp. 42-59 selling, print advertisements, and radio (e.g. Katz and Lazarsfeld, 1955; Engel et al.,
q Emerald Group Publishing Limited
1066-2243
1969; Goldsmith and Horowitz, 2006). Various forms of WOM include both offline
DOI 10.1108/10662240910927812 communication (traditional) WOM and Internet facilitated online WOM (eWOM).
Regardless of the form of WOM, the focus of the communication is the sharing of Social ties and
information regarding individuals’ experiences with various products and services. online WOM
WOM has been shown to be particularly influential in the services marketing arena.
Research indicates that consumers rely on WOM to reduce their perceived risk derived
from the uncertainty inherent in service purchase decisions (Murray, 1991).
Despite the fundamental similarities in purpose between traditional WOM and
eWOM, significant differences also exist. While WOM is an immediate intimate 43
conversation, eWOM, much like e-mail communication, is most frequently an
asynchronous process whereby sender and receiver of information are separated by
both space and time. Second, while WOM is generally a process of sharing information
between small groups of two or more interested parties, eWOM harnesses the
bidirectional communication properties and unlimited reach of the Internet to share
opinions and experiences on a one-to-world platform rather than a one-to-one platform
(Dellarocas, 2003). Third, traditional WOM emanates from a sender who is known by
the receiver of the information, thereby the credibility of the sender and the message
contents are known to the receiver. The electronic nature of eWOM in most
applications eliminates the receiver’s ability to judge the credibility of the sender and
his/her message. The sharing of traditional WOM relies heavily on the altruistic nature
of the sender to pass information on which the sender believes will be beneficial the
user. Much of the persuasive nature of WOM is attributed to the fact that many
consumers trust communications from other people they know more than
communications from marketers (Goldsmith and Horowitz, 2006). The very nature
of eWOM highlights the important theoretical issues of source credibility and user
trust. Furthermore, the traditional framework for WOM communication is without a
profit motivation. When the known source of information found in WOM is replaced by
the unknown anonymous source of information in eWOM, the possibility of
non-altruistic or profit-motivated communication exists. For example, authors of books
could write favorable reviews of their own manuscripts on Amazon.com.
The Internet and supporting information technology have the combined ability to
have a profound impact on the consumer information search process across many
levels, including the amount of information searched, the type of information sought,
and the relative importance of the information acquired (Kulviwat et al., 2004; Klein,
1998; Bakos and Brynjolfsson, 2000). The Internet and e-commerce have facilitated a
shift in power in the marketplace from producers to consumers (Goldsmith and
Horowitz, 2006; Baker and Green, 2005; Donation, 2003; Kiecker and Cowles, 2001).
Recent research on the value information to the user, which combines economic,
behavioral and social influences, supports a user-centered evaluation of the value of
information (Raban, 2007). The notion of user-centered evaluation of information is
particularly germane for eWOM given the volume of user-generated information
available in the online environment and the ever-growing burden on users to determine
its worth. However, there is very limited research on social effects on information
valuation with the noted exception of foundational research on social ties on WOM
behavior conducted by Brown and Reingen (1987). Social effects, such as how well you
know the source of the information, can have a profound influence on the value that
consumers place on various pieces of information gathered in their information search.
For example, Brown and Reingen’s research, conducted in the offline WOM arena,
finds that information obtained from strong tie connections are more influential in
INTR decision making than weak tie information. Our current research compares the
19,1 influence of various sources of information, including traditional WOM and eWOM on
consumer decision making in addition to testing whether the existing findings on the
influence of social ties and homophily on perceived information value hold in the online
environment.
While previous research has well established the importance of WOM on consumer
44 decision making, nearly all of the existing WOM research is grounded in off-line
research and experimentation. Our research is one of the first to compare the value of
offline WOM to eWOM in the consumer decision-making process. Furthermore, the
Internet has dramatically increased the amount of information available to consumers
prior to consumption of products or services, including the amount of eWOM at
consumer’s fingertips. As consumers become savvier using the Internet to gather
information on products and services, firms will have to determine the optimal strategy
for delivering information through both commercial and social pathways. In light of
the advances in online choice assistance techniques such as collaborative filtering and
recommendation agents, both of which harness the power of eWOM, it is important for
firms to understand the value of eWOM to the consumer. Finally, it is valuable to
understand if eWOM is a simple extension of WOM operating with identical social
impact, or if it is a distinct phenomenon with its own social implications.
Literature review
eWOM research
Perhaps because of the aforementioned differences between traditional WOM and
eWOM, there has been a renewed interest in researching WOM communication with a
specific focus on the motivations for participation, uses and impact of eWOM (e.g.
Dellarocas, 2003; Hennig-Thurau and Walsh, 2004; Hennis-Thurau et al., 2004;
Goldsmith and Horowitz, 2006; Fong and Burton, 2006). Historically, many of the
Internet applications of WOM focused on product ratings. Consumers appear to have a
high level of comfort using web sites like eBay, Amazon, CNET and Epinions to seek
product information from other consumers. Not surprisingly, most of the academic
research into eWOM has focused on online information research related to tangible
product purchase (e.g. Ratchford et al., 2003; Klein and Ford, 2003). While consumers
have little difficulty evaluating the quality of most search goods, determining
experience goods’ quality is more complicated. Therefore the availability of
trustworthy WOM information for experience goods, including nearly all services,
becomes critically important for consumers seeking to minimize risk in experience
good consumption. It should not be surprising that there is an emerging trend in
online information sharing via networks dedicated to the rating of services. Web sites
such as RateMyProfessors.com (RMP), LawyerRatingz.com, RateMDs.com and
myrateplan.com have begun to emerge as forums for rating the otherwise intangible
services. These information-sharing sites cover experience goods including professors,
teachers, lawyers, doctors, laptop service, cell phone and cable service. Our current
research focuses on perhaps the most developed and widely utilized eWOM forum for
experience goods, RMP, to gain a better understanding of how eWOM fits into the mix
of information students seek prior to consumption and how eWOM influences the
students’ ultimate choice of both course and professor in the university setting.
Social ties and eWOM Social ties and
While the power of WOM on consumer decision making has been well developed in online WOM
academic literature, a less-developed research stream in WOM research is the impact of
interpersonal relationship strength on WOM behavior. Applying a network analysis
framework to WOM referral behavior has provided some insight into how relational
properties such as tie strength and homophily impact WOM referral behavior (Brown
and Reingen, 1987). Brown and Reingen (1987) investigate the macro and micro level of 45
information exchange (flow of communication across groups and the flow within pairs
or small groups) while advancing the understanding of both tie strength’s and
homophily’s impact on WOM behavior. Tie strength, the level of intensity of the social
relationship between consumers or degree of overlap of two individuals’ friendship
varies greatly across a consumer’s social network. Consumers generally have a wide
range of relationship ties within their social network ranging from strong primary ties
such as those with close friends and family members to weak secondary ties such as
those with acquaintances rarely seen to nonexistent ties with complete strangers. The
few consumer behavior studies on communication flows focus primarily on the strong
tie relationships virtually overlooking the impact of weak tie relationships (e.g. Arndt,
1967; Leonard-Barton, 1985). Granovetter (1973) suggests that weak ties can play a
critical role in explaining a wide range of social network linking behaviors particularly
between micro and macro levels. As applied to WOM behavior, weak ties are often
critical to the dissemination of information between tightly woven strong tie clusters as
evidenced when weak tie acquaintances share restaurant opinions gathered from
consumption experiences with their family, their strong tie network. However, for
WOM consumer behavior the study of tie strength is very limited with the notable
exception of Brown and Reingen (1987).
A second construct worth consideration in the study of WOM behavior is the
concept of homophily. Rogers (1983) suggests that homophily is the level to which
pairs of individuals share similarities in attributes such as age, gender, education and
social status. While some may suggest that tie strength and homophily are
synonymous (e.g. Gatignon and Robertson, 1985; Rogers, 1983), we view tie strength
and homophily as related but separate constructs in line with Brown and Reingen
(1987). A difference between the concepts is that while homophily refers to the
similarities in characteristics of individuals in relationships, tie strength is a property
of the strength of the relationship itself. Stated alternately, an individual could have a
very high level of homophily with a stranger of the same socio-economic background,
yet their tie strength would be non-existent. The current research investigates both
constructs’ impact on eWOM-related behavior for an experience good facilitated
through RMP.
RMP
An early application of eWOM, RMP, began in May 1999 and allows students to rate
their professors on a number of dimensions including helpfulness, clarity, easiness, and
overall quality. Students may also rate the professor as “hot” or “not hot” based on
physical attributes of the professor in addition to recording their overall comments on
the professor. RMP dominates the competition such as pickaprof.com, rateaprof.com,
campushopper.com, and studentdude.com. Rating sites of this genre are as sources of
eWOM as these sites facilitate “informal communications directed at other consumers
INTR about the ownership, usage or characteristics of particular goods or their sellers”
19,1 (Westbrook, 1987). The eWOM sites are rapidly growing in popularity. As stated on
their web site, “RateMyProfessors is the Internet’s largest listing of collegiate professor
ratings, with more than 6.8 million student-generated ratings of over 1 million
professors from 6,000 schools across the United States, Canada, England, and
Scotland”. Furthermore, RMP boasted more than 9 million student users (www.
46 ratemyprofessors.com). The emergence of eWOM as a viable source of information on
services has just begun to attract academic attention and research. Studies by Felton
et al. (2004, 2006), Kindred and Mohammed (2005), Davidson and Price (2006), Riniolo
et al. (2006), and Coladarci and Kornfield (2007) have studied the correlation among the
factors of helpfulness, clarity, easiness, overall quality and hotness in addition to the
relationship between RMP ratings and student evaluations of teaching (SET). Most all
of the existing body of research on RMP investigates correlations among the ratings
factors. That is, all of the existing research on RMP has investigated the correlations
between the various factors captured on the web site such as helpfulness, clarity,
easiness, overall quality, and hotness as opposed to the study of RMP as a source of
information in the consumer decision process as is the focus of the current work.
Despite its substantial size and apparent student popularity, there is a common
perception among faculty that RMP is simply a joke or a game played by students for
the sole purpose of entertainment rather than an important source of experience good
user information. There are numerous conversations on any given day occurring on the
Chronicle of Higher Education Forums related to the topic of RMP. The common
themes which emerge from the postings are as follows:
.
most students really do not use RMP ratings to choose their classes;
. students realize it is all fun and games;
.
students who rely on these rating systems are dumb;
.
if you (the professor) do not like your own rating on RMP, simply rate yourself a
number of times or get a colleague to do it and you will feel better about yourself.
These beliefs held by academics do not seem to be supported by the sheer number of
postings and users currently on RMP. Therefore, in the first stage of our study we seek
to provide evidence that RMP is perceived to be a credible source of eWOM by students
in contrast to the faculty perception that RateMyProfessors.com is purely
entertainment.
Research issues and hypotheses
RMP as an information source
The first stage of our investigation, we seek evidence to determine whether students
perceive RMP as a source of information or a source of entertainment. While the
volume of ratings, over 6 million, and number of professors rated, over 1 million,
provide some evidence that students are investing time on the web site and are
therefore likely finding value in the experience, the inclusion of the “hot/not hot” rating
provides some indication that RMP is primarily for entertainment. The college-aged
generation has grown up with access to the Internet and invests a significant part of
their free time in Internet-related activities. By 2006, teens spent more than 26 hours
online each week (Moskalyuk, 2006). In a survey of 4000 Internet users, researchers at
Stanford University found that virtually all Internet users engaged in some form of
information-seeking activity (Stanford University, n.d.). Due to the depth of the Social ties and
information found on RMP and the overall reliance of the target audience on the online WOM
Internet, we investigate students’ use RMP:
RI1. Students utilize RMP as an information resource.
Method
In spring 2007, we administered a survey to the target audience of RMP, 482 US college
students enrolled in either Principles of Marketing or Principles of e-Business at a
four-year university. The survey contained 24 questions related to RMP usage, course
selection, professor selection, and demographic information. A summary of
demographic information can be found in Table II. As seen in the table, the
“average” respondent was a junior, 21.5 years old, declared business major, 56.4
percent male, with a 3.13 grade point average and approximately ten friends. We felt
that capturing the number of close friends could give us an indication of whether the
respondent was a particularly solitary or social individual, which may prove useful
when investigating information-seeking behavior. Additionally, we captured overall
Internet usage behavior, found in Table III. The majority of our sample, 75.4 percent,
classifies themselves as heavy users, another 23 percent moderate users and only 2
percent light users of the Internet. This distribution is not surprising, given the
sample’s age distribution and student status.
Results
RI1
The first goal of our investigation was to determine to what extent our sample was
aware of and/or using eWOM and to determine whether the users perceived that RMP
was a source of information or primarily a source of entertainment. To determine
Social ties and
Utility of an experience good Issue: students report using the web site as an important
eWOM web site – informational resource in the selection of professors. Professors report online WOM
RateMyProfessors.com that the web site is a joke and useful for entertainment only
Comparison: informational web site vs entertainment web site
RI1. Students utilize RateMyProfessors.com as an information
resource
Tie strength Definition: the level of intensity of a social relationship between two 49
individuals
Comparison: strong tie vs weak or non-existent tie
H1a. Given a choice between strong tie and weak or non-existent tie
sources of information, strong tie sources are more likely to be used as
a preferred or primary information source
H1b. Information from strong tie referral sources are perceived as
more influential in the consumer’s decision making process than
information obtained from weak tie or non-existent tie information
sources
Homophily Definition: The degree to which pairs of individuals are similar in age,
gender, education, and social status
Comparison: homophilous information sources vs heterophilous
information sources
H2a. Information from homophilous sources information sources are
more likely to be used as a preferred or primary information sources as
compared to heterophilous information sources
H2b. Information from homophilous sources is more influential in the
consumer’s decision-making process than information obtained from Table I.
heterophilous information sources Research issues
As shown in Table VII, 41 percent of students indicated that RMP was the single most
54 important factor as related to choosing a professor. The practical influence, preferred
time slot was the second most important factor at 21 percent, while talking with friends
at 17 percent and having taken the professor previously at 15 percent were third and
fourth. The weak tie advisor recommendation at 3 percent was a distant fifth.
Therefore, the actual ordering of influence of factors is as follows:
RateMyProfessors.com 41 179
Time of day 21 92
Talk with friends 17 75
Table VII. Personal experience 15 64
Most influential factor, Advisor recommendation 3 13
professor choice No choice of professor 2 9
majors. This demonstrates a high level of homophily between the respondent and Social ties and
friend and respondent and RMP pairings. However the academic advisors, who are online WOM
faculty members at the institution, share far fewer characteristics with the students
(age, income, education) and therefore have a much lower level of homophily. In line
with H2a, we expect that information from homophilous sources such as friends and
RMP will be utilized more frequently than information from heterogeneous sources.
Referring to Table VI, we find that RMP and taking with friends were both rated as 55
more important than advisor recommendation. Therefore, we do find support for H2a.
This finding falls in line a well-established stream of social interaction literature that
shows that people like to interact with other people who are more like themselves
(Laumann, 1966). Therefore, it follows that people are utilizing homophilic sources of
information to aid them in their decision-making processes more frequently than
heterophilic sources.
Finally, we investigate whether homophilic sources of information are more
influential over consumer’s decisions than heterophilic sources. Referring back to
Table VII, we find that the homophilic sources of information (RMP at 41 percent and
Talking with friends at 17 percent) are more likely to be reported as the single most
influential factor in the choice of professor as compared to the heterophilic source
(Advisor recommendation at 3 percent). Not only are students more likely to engage
homophilic sources during their information search as we see from the H2a results, but
students also report that homophilic information has a greater influence over their
decision making (is more important in their decision-making process) than heterophilic
information sources, thus supporting H2b. A summary of all four hypotheses and
findings is presented in Table VIII. It is interesting that the strong tie/weak tie
hypotheses are not supported while the homophily hypotheses are. Perhaps this is an
indication of the importance consumers place in their demographic or sociographic
similarity to the information provider (homophily) rather than the depth of their
interpersonal relationship (tie strength) as related to eWOM. Stated alternately, as long
as you are similar to me in terms of age, income, education, etc., I value and believe
Hypotheses Results
H1a Given a choice between strong tie and weak or Not supported
non-existent tie sources of information, strong tie
sources are more likely to be use as a preferred or
primary information source
H1b Information from strong tie referral sources are Not supported
perceived as more influential in the consumer’s
decision-making process than information obtained
from weak tie or non-existent tie information sources
H2a Information from homophilous sources information Supported
sources are more likely to be used as a preferred or
primary information sources as compared to
heterophilous information sources
H2b Information from homophilous sources is more Supported
influential in the consumer’s decision making
process than information obtained from Table VIII.
heterophilous information sources. Summary of results
INTR your input or opinion. However, I do not need to know you on a personal level to believe
19,1 your input or value your opinion.
Conclusion
In conclusion, our research shows that students are relying heavily on eWOM through
RMP in their decision process. We provide evidence that students use RMP as an
important source of information rather than as a source of entertainment. When we
include eWOM as a source of information for decision making, we find that the
strength of strong ties does not hold. On the contrary, we provide evidence that when
eWOM is included as a source of information, users rate the information they gather
from the anonymous non-existent tie online forum sources as more important than the
strong tie or weak tie sources. However, we do find support for the existing social Social ties and
theory of homophily, that is users utilize information from homophilic sources more online WOM
frequently than information from heterophilic sources. Nonetheless, there remains a
great deal of research to be done in both the traditional WOM and emerging eWOM
fields. Our study provides an early investigation of whether existing theories of
interpersonal communication hold in an online context.
This study provides numerous significant contributions to theory and practice that 57
should be emphasized. Our research is one of the first to compare the value of offline
WOM to eWOM in the consumer decision-making process, particularly as it applies to
experience good user information. It underlines the importance for firms to understand
the value of eWOM to the consumer. It accentuates how eWOM is a distinct
phenomenon with its own social implications. In this era of online social networking,
eWOM web sites are rapidly growing in popularity and should be the focus of more
studies.
We have shown the power of RMP as an important source of experience good user
information, and provide evidence that RMP is perceived to be a credible source of
eWOM. Students are using RMP to aid in their decision-making process and certainly
value the web site as more than just entertainment. We show that students are willing
to sacrifice a desirable course time for a more desirable professor.
This study examines the impact of weak tie relationships not attended to in other tie
studies, and combines a look at tie strength and homophily. Our study posits that
students’ personal experience (strong tie) and RMP (non-existent tie) are more
important than talking with friends (strong tie) and academic advisor (weak tie) when
selecting which professor to take for a course. Additionally, we have shown that
consumers are actively seeking information from various sources (strong, weak and
non-existent tie alike) and are placing a great deal of weight (relative to influence over
decision marking) to information sources one would not expect to be particularly
powerful influencers (non-existent or weak tie sources).
There are limitations of this study that are important to mention. The study was
conducted in an academic setting using one web site, RMP, and relates to students and
professors. It does not examine commercial business transactions such as ratings sites
that report on lawyers, plumbers, doctors, realtors, etc. As a WOM vehicle, the
anonymity of ratings on RMP could skew the value of the information sourced by the
students. However, this could be a limitation of any study of this type in which the tie is
non-existent.
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