Masters Degrees (Business Management)

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Browsing Masters Degrees (Business Management) by Author "Bosman, Dirk Johannes"

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    The perceived credibility of electronic word-of-mouth communicaton on e-commerce platforms
    (Stellenbosch : Stellenbosch University, 2012-12) Bosman, Dirk Johannes; Boshoff, Christo; Van Rooyen, G-J.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Business Management.
    ENGLISH ABSTRACT: Enterprises and more specifically, marketing departments, function in a complex global market, while trying to deliver products and services to satisfy the needs of consumers. It is estimated that by 2013, enterprises will be spending $4.75 trillion and consumers $330 billion by means of commercial transactions over the Internet, and that by 2050 most transactions – if not all transactions – will be e-commerce based (Laudon and Traver, 2010:1-7). The 24-hour access to a global network of markets has brought about two major challenges for most enterprises. Firstly, the Internet as a publishing platform has exponentially increased the creation and sharing of information, which has significantly increased consumers’ search cost; and secondly, as more electronic word-of-mouth (EWOM) is being generated online, a significant amount of power and influence over enterprises has shifted to consumers (Chen, Wu and Yoon, 2004:716-722; Tapscott and Williams, 2008:52-53). Ultimately, enterprises are challenged to harness the power of EWOM for more successful e-commerce strategies and increased market share. Given previous studies, it was possible to extend the theoretical framework of EWOM communication in the fields of Internet marketing and online consumer behaviour. The purpose of this study was to create two models that could measure, over time, the impact of EWOM review communication on an e-commerce platform, specifically with regard to review credibility and sales levels. In using a non-probability judgement sampling procedure, it emerged that EWOM reviews do indeed influence the sales levels of e-commerce platform Amazon.com, and that certain review factors (platform, text length, time and star ratings) significantly influenced the credibility of Amazon.com and Barnesandnoble.com reviews. Furthermore, it was concluded that the overall credibility of reviews increases over time as more and more online users have the ability to scrutinise it. When Amazon.com and Barnesandnoble.com’s reviews were compared to each other, the results indicated that Amazon.com had more reviews than Barnesandnoble.com, and that the reviews posted at Amazon.com had on average longer text lengths and were found to be more helpful than the reviews at Barnesandnoble.com. The study's major contribution is that it provides wide-ranging guidelines for usability and user experience design, sales and inventory forecasting, as well as benchmark statistics for marketing campaigns.