Magnify Cascades of Electronic Word-of-Mouth (eWOM) on Social Networks: The Roles of User, Product, and Relationship Characteristics

Abstract

Firms are increasingly relying on electronic word-of-mouth (eWOM), in the form of online reviews and social media posts, to sell their products or services. A pivotal component of managing eWOM is to understand and, potentially influence, how one consumer's eWOM can lead to another's—a process called behavioral cascading. While prior eWOM research has established the importance of behavioral cascading between connected users, there is little understanding of what factors could impact the likelihood of such cascades. To address this gap, we draw on the theory of competitive altruism to identify several moderators of behavioral cascading in eWOM. Our empirical tests using an online review dataset from Yelp show that eWOM cascading between a followee and a follower is less likely when the followee is a high-status member, a female, or has a strong connection with the follower; and more likely when the product in consideration is inexpensive. These findings provide valuable insights about the behavioral cascading process in eWOM and hold implications for social media platforms and sellers to facilitate the cascades of eWOM between connected consumers.