iREVIEW: The role of online word-of-mouth in a high involvement decision context

Abstract: This study investigates the effects of online word-of-mouth (eWOM) in form of online reviews, on key pre-purchase variables, in a high involvement decision context. To get a deeper understanding of what can cause these effects, the impact of source credibility and homophily was also tested. An experiment regarding the choice of master program was conducted, where the student review was contrasted against marketer generated information. The results of the experiment revealed that eWOM information is stickier than marketer generated information since it is more likely to be discussed afterwards, and that eWOM is more effective in affecting subjective expectations. Furthermore, the more credible the source is considered, and the more the reader can relate to the reviewer, the more influential the review will be. The study also confirmed that a third party website is considered less biased, and consequently more credible compared to a company affiliated website. Implications for marketers and suggestions on future research are discussed.