Giving electronic word of mouth (eWOM) as a prepurchase behavior: The case of online group buying

Abstract

Electronic word of mouth (eWOM) has traditionally been examined as a prepurchase behavior when it is sought (eWOM-seeking) and a postpurchase behavior when it is given (eWOM-giving). This research extends understanding of referral behavior by providing fresh insights into giving eWOM as a prepurchase behavior using the case of online group buying. Using a between-subjects Solomon experiment, this research finds that consumers are more likely to give prepurchase eWOM for online group purchases for utilitarian products paired with affective messages and larger discount prices than for hedonic products promoted under the same combination of marketing stimuli. This research also furnishes actionable guidelines for marketers to develop marketing-mix strategies that encourage target customers to actively give prepurchase eWOM for online group purchases, including the boundaries in situations in which additional investments beyond what is required do not further enlarge the size of online buyer aggregation.