Online Consumer Reviews: Does Negative Electronic Word-of-Mouth Hurt More?

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Christy M.K. Cheung - Hong Kong Baptist University, Matthew K.O. Lee - City University of Hong Kong

[edit] Abstract

Web-based technologies have created numerous opportunities for electronic word-of-mouth (eWOM) communication. This phenomenon impacts retailers as this easily accessible information could greatly affect consumer purchasing decision. The connectivity of the Web allows one-to-many and many-to-many communications among users that make information spread much faster and broader, including the spread of negative information. In this paper, we investigate the impact of online consumer reviews on consumer online purchasing decision. Specifically, we compare the impact of both negative and positive eWOM using a laboratory experiment. Our results show that the mean values of emotional trust and intention to shop online are significantly lower in the negative treatment group. We expect the result of this paper will generate researchers and marketers’ interest in this important area of research and practice.