The power of social learning: How do observational and word-of-mouth learning influence online consumer decision processes?

Abstract

Observational learning (OL) and word-of-mouth learning (WOML), two main types of social learning, can influence online consumer decisions. The consumer decision process is not limited to consumption decisions; it may be viewed as a problem-solving process that includes three stages: search, evaluation, and purchase. To date, the effects and the mechanisms of OL and WOML on the purchase process remain unclear for both researchers and marketers. In this study, we examined the differences between the effects of OL and WOML on consumers’ decisions at three online shopping stages through the theoretical route of motivation reinforcement. This approach revealed the influencing mechanisms, and we further investigated the moderating role of product involvement. We found that WOML has a greater influence on the consumer decision process than OL when consumers purchase high-involvement products, while OL has a greater influence on the consumer decision process than WOML when consumers purchase low-involvement products. Furthermore, OL will reinforce consumers’ extrinsic motivations, while WOML will reinforce consumers’ intrinsic motivations, which are negatively moderated by product involvement and sequentially affect the consumer decision process. This study enhances the theoretical understanding of the effects and mechanisms of social learning on the consumer decision process. Our findings provide meaningful insights for platform managers and sellers on how to effectively assist consumers from the beginning to the end of the purchase process.