Electronic word of mouth systems and acceptance of user-generated contents

Abstract

Web 2.0 has enabled businesses, especially online retailers, to provide new services to enhance customer value and to increase sales. A notable example of these services or technologies is the online product recommendation system that serves to reduce consumer search costs and risks associated with the purchase of unfamiliar products. Electronic word-of-mouth systems (EWOMS) are online product recommendation systems that allow consumers to electronically post information in the form of product reviews and/or product ratings. This study examines the effects of EWOMS on consumers’ acceptance of product recommendations. The proposed research model is developed based on the accessibility-diagnosticity model and source credibility theory. A lab experiment was conducted to empirically test hypotheses. The study found that information diagnosticity, informant trustworthiness, and perceived usefulness are critical factors for consumers’ acceptance of recommendations based on EWOMS.