Credibility in E-WOM How review perceptions impact their persuasiveness Natalie Van Hemelen (KULeuven), Peeter W. J. Verlegh (UVA) & Tim Smits (KULeuven) Theoretical background: Introduction • With the advent of social media, E-WOM and online consumer reviews became increasingly popular • Online consumer reviews o “Online recommendations about products, services, organizations or brands, based on consumers’ personal experiences” o E.g., Yelp Succes and impact of online review sites • People attach a lot of importance to the non-commercial opinion of social others (Fong & Burton, 2004) • Online reviews (often) perceived as impartial People are less suspicious about their credibility o 72% trust online reviews as much as personal recommendations o 58% trust products that have positive online reviews Reviews have a strong persuasive impact on persons’ attitudes But impact depends on a lot of factors: valence, credebility recommendation source, etc. Valence and perceived credibility • Debate: Positive OR negative reviews most impactful? o Psychology & Consumer research: Negative information stronger impact because it is perceived as more diagnostic >< But many studies found the opposite: Positive E-WOM more impactful than negative... • Floh and collegeaus (2009): many researchers only take perceived valence into account (see also Sussan et al., 2006; Willemsen et al., 2012) Valence and perceived credibility • Review’s valence and credibilty cannot be assumed to be independent from each other... Current study: Combined persuasive impact of perceived valence and credibility Hypotheses (1) • Given the previous, we predict that valence and credibility will both have an effect on the receiver’s product attitude • Valence: Straightforward effect H1: Positive reviews (vs negative ones) will increase the attitude towards the product • Credibility: Moderated effect H2a: For positive reviews, higher credibility will increase the attitude towards the product H2b: For negative reviews, higher credibility will decrease the attitude towards the product Hypotheses (2) • But, valence is also likely to affect credibility... • Rationale: Negative information Attention Source questioning • H3: Positive reviews (vs negative ones) wil increase the review’s perceived credibility Moderated mediation model *Type 1 Model as outlined by Preacher, Rucker & Hayes (2007) Method (1) • Procedure & participants o Between subjects design with 2 conditions (positive vs negative review) o 89 Bachelor students of a Flemish University College • 62 men (69,7%), 27 women (30,3%) • Between 18 and 24 years old (M = 19,22; SD = 1,81) • Visit regularly a restaurant (M = 4,71, SD = 1,189) o Online study • • • • Read one of the 2 reviews Different questions to assess their attitudes Instruction to write a review themselves about the restaurant Afterwards 3 raters coded the reviews Method (2) • Stimuli Method (3) • Measures o Attitude restaurant • 10 (7-point) bipolar rating scales: qualitative – not qualitative, creative – uncreative, attractive – unattractive,… • Total attitude score: mean of the scores on the 10 rating scales (Cronbach’s α = .953, M = 41.287, SD = 10.959) o Credibility review • 4 (7-point) bipolar rating scales: honest – dishonest, credible – incredible,… • Total credibility score: mean of the scores on the 4 rating scales • (Cronbach’s α = .687, M = 3.862, SD = 1.645) Results • Proposed model confirmed! *Bootstrapping Macro SPSS (model 74), Hayes et al. (5000 samples) Hypothesis 1 Valence review b = 1.511, p < .001 Attitude restaurant Hypotheses 2a & 2b * p < .001 Hypothesis 3 Moderated mediation model b = 1.511* (b = -1.318*) *p < .001 Future research • In our study the findings only hold for one type of reviews o In a follow-up study, we want to test whether the findings also hold for other types of reviews, products,... • Future research can further investigate why negative reviews are exactly perceived as less credible than positive ones Thank you for your attention!