| For years, word-of-mouth (WOM) has been credited with the ability to influence consumer behavior. Studies have shown that consumers trust their social networks and consider them more credible than advertisers and other media sources; therefore, WOM is immeasurably valuable to marketing. Historically, measuring the effects of WOM has been difficult since most has taken place within private social networks. The Internet and social media have now given marketers an opportunity to track and record the newest and possibly most influential form of WOM -- electronic word-of-mouth (eWOM). This is especially important because, with the Internet, consumers can potentially reach and influence peers on a global scale, making the power eWOM exponentially greater than traditional WOM.;Despite its prevalence in the popular press, relatively little empirical research has been done in eWOM, creating a rare case where academia is playing catch-up with practitioners. Accordingly, this study used the conceptual framework of relationship marketing to test several associated hypotheses. Linear regression analysis was employed to measure the impact of eWOM on the sales success of experience goods, specifically, Amazon Kindle books. Results from data (collected daily for twelve weeks) indicated that two eWOM variables have a consistent, positive impact on sales: 1) the number of customer reviews, and 2) the number of Amazon "likes." The average customer rating was significant four of the twelve weeks but only at a 90% confidence interval level. One additional eWOM variable, the number of Twitter Followers an author has, significantly impacted sales, but only during the five weeks surrounding the Christmas holiday; perhaps evidence of a "Social Media Holiday Effect." Interestingly, in the instances where the number of Facebook friends an author has was statistically significant, it showed a significantly negative effect on sales. No evidence was found to support a relationship between sales success and the average author rating, the average similar products rating, the category, or the publisher type. |
