Presentation on theme: "Jie Feng, SUNY-Oneonta Purushottam Papatla, UWM October 13, 2012 Online Opinions for Automobiles: A Dynamic Perspective."— Presentation transcript:
Jie Feng, SUNY-Oneonta Purushottam Papatla, UWM October 13, 2012 Online Opinions for Automobiles: A Dynamic Perspective
Impact of online WOM on sales -Godes and Mayzlin (2004) -Chevalier and Mayzlin (2006) -Liu (2006) -Dellarocas, Zhang, and Awad (2007) -Duan, Gu, and Whinston (2008) - Zhu and Zhang (2010) Supply Side of Online Word of Mouth
Key Research Question— Whether the salience of two composite auto attributes: Design/Performance and Quality/Reliability, in consumers’ ratings evolves with reviewers’ experiences? Control for --Product Heterogeneity --Reviewer Characteristics --Rating Dynamics --Social Influences
Quality/Reliability Design/Performance According to J.D.Power & Associates, “There are basically two schools of thought among consumers in determining which new-vehicle model to buy. Many consumers are looking for a painless, trouble-free ownership experience. …However, there is a large group of buyers who are most interested in things like comfort, style and performance (2006).”
Quality/ReliabilityDesign/Performance 0 2year 4year 6year Freedom from defects” or “things that have not gone wrong” Appearance, body-style, layout and driving performance that can "excite and delight" car owners
5-“Love it” if r4
Design /Performance plays a more significant role when online opinions are stated soon after the purchase. Over time, however, this effect weakens. The role of quality increases in online opinions over time, and it plays a more significant role when online opinions are stated long after the purchase. In terms of social influences, we find that the online opinions expressed previously by other reviewers do affect consumer ratings: a higher percentage of positives in the previously expressed opinions leads to more positive consumer ratings while a larger percentage of negatives worsens the same. In addition, we also find that positive expert opinions improve ratings while negative expert opinions hurt them. Further, the negative effect of negative expert opinions is larger than the positive effect of positive expert opinions.