Effects of service attributes and competition on electronic word of mouth: an elaboration likelihood perspective.

Abstract

The management of electronic word of mouth (eWOM) is critical in e-commerce. In this study, on the basis of the elaboration likelihood model (ELM), we constructed a model of factors influencing eWOM by dividing merchants' attributes into the central and peripheral routes, which correspond to consumers' systematic and heuristic cognitive modes respectively. We then tested the developed model by using a cross-sectional data set. The results of this study indicate that the degree of competition faced by merchants has a significant negative association with eWOM. Moreover, price level and location moderate the relationship between competition and eWOM. The services of reservation and group buying have positive associations with eWOM. This research has three main contributions. First, we explored the effect of competition on eWOM. Second, we validated the feasibility of applying the ELM to the catering industry by dividing merchant attributes into the central and peripheral routes; this approach is consistent with systematic and heuristic cognitive theories. Finally, this research provides practical suggestions for eWOM management in the catering industry.