The Effect of Price Presentation, Sales Restrictions, and Social Networks on Consumer EWOM Intention

Abstract

Word-of-mouth (WOM) is recognized as an effective communication channel among consumers. The Internet provides consumers with richer sales information and more online associates than do brick-and-mortar stores but makes complex the assessment of the shaping of electronic WOM (eWOM) intention. Thus, our research questions are as follows. (1) Do price presentation and sales restriction strategies, which are used by brick-and-mortar stores, affect eWOM intention through deal evaluation in online settings? (2) Is the effect of price presentation on deal evaluation moderated by the properties of social networks? (3) Is the effect of sales restrictions on deal evaluation moderated by the properties of social networks? (4) Is the effect of deal evaluation on eWOM intention moderated by the properties of social networks? To answer these questions, we will explore the research model from the perspective of eWOM senders in a laboratory setting. This experiment will allow us to control for variables that are difficult to control in the field and examine the mechanisms behind eWOM intention. The preliminary validation of the research model will increase its explanatory power in the field and allow us examine the value of eWOM associated with eWOM intention in the future research.