An Elaboration Likelihood Model Perspective on the Effectiveness of Electronic Word of Mouth Recommendations

Abstract

Electronic word of mouth (eWOM) recommendations are online consumer-generated recommendations posted on the service providers' or the third-party websites, which are expected to affect consumers’ perceptions of adopting experience services. In recognition of the increasing significance of eWOM recommendations, this study delves further into this topic by proposing a research model that explains the contingency factors affecting the effectiveness of eWOM recommendations on consumers’ perceptions of adopting experience services. We contend that the effectiveness of eWOM recommendations is contingent on the task complexity of evaluating the experience services and consumers’ degree of cognitive and sensory innovativeness. We draw on the elaboration likelihood model, cognitive load theory, service adoption process theory, and the two dimensions of consumer’s innovativeness (i.e., cognitive innovativeness and sensory innovativeness), as the theoretical underpinnings, to propose nine hypotheses. These hypotheses are empirically tested based on data collected from 263 subjects. To that end, we used a controlled longitudinal laboratory experiment, based on a mixed methods (quantitative – qualitative) research methodology. The results of statistical tests of quantitative data and the content analysis of the qualitative data illustrate that the effectiveness of eWOM recommendations on consumers’ perceptions of adopting experience services is contingent on the consumers’ prior knowledge of the service context, consumers’ level of cognitive and sensory innovativeness, and the consumers’ level of experience with the service, which is determined by the stage of the service adoption process (i.e., pre-usage, initial use, and repeated use). Our findings show that the confluence of these factors creates different settings that determine the effectiveness of eWOM recommendations. These findings provide valuable contributions to the theory and practice by ameliorating important gaps in the eWOM literature.