In times of web 2.0 consumer generated content tends to have an even stronger influence on potential customers than marketing activities from the business side. The electronic world vastly accelerated the proliferation of information. Especially younger people often collect independent information about a product online, before actually puchasing it. Classic advertisement is predominantly considered to be biased. Due to this potential of autonomous information, it is crucial for companies to find effective ways to track, measure and interpret electronic Word-of-Mouth (e-WOM).
This paper presents ways to measure web based contents quantitatively and introduces appropriate indicators to provide the company with a full-spectrum-view of the consumer generated media. Moreover the interrelation between e-WOM and sales is shown. As a conclusion, suitable metrics are adapted to a practically usable dashboard for the management.
Table of Contents
1 Introduction
2 The Usefulness of a Dashboard
3 Word of Mouth
4 WOM Dimensions
4.1 WOM Volume
4.2 WOM Valence
5 Adapted Metrics for e-WOM
5.1 WOM Volume-Related Metrics
5.1.1 Return on Marketing Investment (ROMI) / Cost per Click
5.1.2 Adapted Homepage Views and Page Impressions per Visit
5.1.3 Adapted Google Hits
5.1.4 Online-Forum Activity
5.1.5 Adapted PageRank (APR)
5.2 WOM Valence-Related Metrics
5.2.1 Retention Rate
5.2.2 Willingness to Pay
5.2.3 Conversion Rate
5.2.4 Willingness to Recommend (Net Promoter Score)
5.2.5 Review Star Quantity
5.2.6 Forum Valence
6 Development of an e-WOM Dashboard
6.1 The e-WOM Dashboard
6.2 Utilization of the “right” Metrics
7 Implications for Practical Intervention
7.1 Matrix-Based Strategies
7.2 APR-Based Strategies
8 Summary
Research Objectives and Themes
The primary objective of this work is to develop a conceptual dashboard that measures and visualizes electronic Word-of-Mouth (e-WOM) to support management decision-making. By identifying key metrics for volume and valence, the paper addresses how companies can effectively track consumer-generated media and utilize these insights to derive actionable marketing strategies.
- Theoretical foundation of e-WOM dimensions (Volume and Valence).
- Evaluation of quantitative metrics for measuring online consumer influence.
- Conceptual design of an integrated e-WOM dashboard for management.
- Analysis of the relationship between e-WOM metrics and sales performance.
- Development of strategic intervention methods based on dashboard findings.
Excerpt from the Book
3 Word of Mouth
About two thirds of all sales in the consumer goods industry are based on Word-of-Mouth (Taylor 2003). The strong impact is to explain, as personal sources are in general viewed to be more trustworthy (Buttle 1998). As researchers found out, e-WOM is considered today as an endogenous factor that is mutually interrelated with the sales volume. Not only sales are affected by e-WOM but also increased sales cause a higher amount of interpersonal information exchange (Duan, Gu, Winston 2008). The internet made significant changes to the concept of WOM by heavily increasing the diffusion rate of information and making it less personal.
The main difference of e-WOM compared to traditional mass communication measures is the bi-directionality. The internet enables message recipients to publicly respond to messages and to publish their personal opinions and thoughts (Dellarocas 2003). But not only goods and services are reviewed on the internet today, the reviewers themselves have distinctive reputations and exposure values. Research found out, that the readers of e-WOM not only pay attention to the content of a message but also to the quality of the source of information (Hu, Liu, Zhang 2008; Forman, Ghose, Wiesenfeld 2008; Duan, Gu, Winston 2008). Furthermore, a certain spillover effect has been discovered, showing that the sales of products can also be affected by WOM about other related products (Sicilia, Ruiz, Johar 2008).
To approach the e-WOM problem in a more structured way, this paper focuses on the two main dimensions, volume and valence and how they can be reasonably represented by appropriate metrics.
Summary of Chapters
1 Introduction: This chapter highlights the critical importance of e-WOM in the Web 2.0 era and introduces the need for measurable indicators to guide management.
2 The Usefulness of a Dashboard: This chapter explains the concept of dashboards as visual management tools that provide concise performance insights and improve organizational decision-making.
3 Word of Mouth: This chapter examines the definition and impact of Word-of-Mouth, emphasizing the shift toward bi-directional e-WOM and its correlation with sales.
4 WOM Dimensions: This chapter categorizes e-WOM into two primary dimensions: volume, representing quantity, and valence, representing sentiment.
5 Adapted Metrics for e-WOM: This chapter details various quantitative indicators for tracking volume and valence in online environments, including adapted versions of traditional metrics.
6 Development of an e-WOM Dashboard: This chapter presents a conceptual dashboard design that utilizes the previously identified metrics to visualize company and product performance.
7 Implications for Practical Intervention: This chapter suggests actionable strategies based on dashboard outputs, such as matrix-based and APR-based interventions to manage e-WOM.
8 Summary: This chapter synthesizes the main findings and concludes that controlling e-WOM is essential for managing consumer perceptions and business success.
Keywords
e-WOM, Consumer Generated Media, Dashboard, Marketing Metrics, WOM Volume, WOM Valence, Performance Measurement, Online Marketing, Sales Impact, Data Visualization, Strategic Management, Consumer Behavior, Adapted PageRank, Social Networks, Digital Business.
Frequently Asked Questions
What is the core focus of this paper?
The paper focuses on creating a structured dashboard to measure, track, and visualize consumer-generated media (e-WOM) for business management.
What are the central thematic areas?
The central themes are the dimensions of e-WOM (volume and valence), the development of key performance indicators (KPIs), and the strategic application of these metrics in a dashboard format.
What is the primary research goal?
The goal is to provide a comprehensive management tool that converts complex online data into an intuitive visual format to support business strategy.
Which methodology is applied?
The research uses a descriptive and analytical approach to identify and adapt existing metrics, culminating in a conceptual design for an e-WOM dashboard.
What topics are covered in the main section?
The main section covers the conceptual framework of e-WOM, specific quantitative metrics (like Adapted PageRank and ROMI), dashboard construction, and practical intervention strategies based on performance data.
Which keywords characterize the work?
Key terms include e-WOM, dashboard, marketing metrics, volume, valence, and strategic intervention.
How does the dashboard handle different product levels?
The dashboard is designed in two stages: a company-level view for an overall situation assessment and a product-level view that allows users to drill down into specific items for detailed analysis.
What is the significance of the "Valence-O-Meter"?
The Valence-O-Meter is a gauge-like indicator within the dashboard that displays the overall online sentiment regarding a company or product, emphasizing that negative sentiment typically has a stronger impact on sales than positive sentiment.
Why is the Adapted PageRank (APR) included?
APR is included to measure the influence of nodes in consumer social networks, serving as a forecasting tool to identify potential market trends and the need for early intervention.
- Citar trabajo
- Christian Hackel (Autor), 2009, Dashboard for Consumer Generated Media, Múnich, GRIN Verlag, https://www.grin.com/document/126264
