MANAGING UNCERTAINTY ON EWOM: A COMPARISON STUDY BETWEEN COMMERCIAL AND THIRD PARTY WEBSITES

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1 MANAGING UNCERTAINTY ON EWOM: A COMPARISON STUDY BETWEEN COMMERCIAL AND THIRD PARTY WEBSITES Chuan Luo, School of Economic Information Engineering, Southwestern University of Finance and Economics, Chengdu, China, luochuan@swufe.edu.cn Wentian Li, School of Economic Information Engineering, Southwestern University of Finance and Economics, Chengdu, China, liwentian2010@gmail.com Xuesong Fu, School of Economic Information Engineering, Southwestern University of Finance and Economics, Chengdu, China, fuxuesong2020@gmail.com Tianhao Zeng, School of Economic Information Engineering, Southwestern University of Finance and Economics, Chengdu, China, tianhaomeng1@gmail.com Yao Lan, School of Economic Information Engineering, Southwestern University of Finance and Economics, Chengdu, China, nancyswufe@gmail.com Abstract This study utilizes elaboration likelihood model (ELM) as the theoretical foundation, to explore the effects of information comprehensiveness, argument strength, consistency and quantity on ewom (electronic word-of-mouth) readers information adoption intention in two types of websites (commercial and third party), we collect 278 data from one commercial and one third party website, the results find, in general, all of these four determinant factors can significant affect information adoption intention; however, their effects will be modified in different websites, this finding indicates that people do perceive different level of uncertainties in different websites, and they will utilize different signals to alleviate their information uncertainty concerns. The theoretical and practical implications of this study are also introduced. Keywords: Information Adoption, Elaboration Likelihood Model, Principal Agent Theory, Website Attribute

2 1 INTRODUCTION With the development and popularization of Internet, electronic commerce has deeply penetrated into our daily life. Before making purchase decisions, more and more people will try to seek the product/service information online to help them get a better understanding about the product/service. Current on Internet, people can acquire various kinds of product/service information from numerous websites; previous research (Mitra et al. 1999) categorizes the information into three types based on its source: marketer dominated information (online advertisements), consumer dominated information (electronic word-of-mouth, abbreviated as ewom, i.e., consumer reviews) and third party organization dominated information (consumer report); among them, various previous studies (Bickart et al. 2001; Duan et al. 2008; Luo et al. 2013) consider that ewom is the most crucial information to affect prospective consumers attitudes, especially when they perceive a high level of transaction risk (Park et al. 2012). Since ewom information can take a crucial role on prospective consumers attitudes toward the product/service, a large number of studies (e.g., Cheung et al. 2008; Cheung et al. 2009; Gu et al. 2013; Zhang et al. 2008) have been conducted to explore the determinant factors of ewom information adoption, and most of them have adopted elaboration likelihood model (ELM) (Petty et al. 1983; Petty et al. 1986) as their theoretical background, ELM is a dual process model which considers that information readers will utilize two routes to process the information, named central route and peripheral route, central route processes require the information readers to carefully scrutinize the content of the information, whereas peripheral route processes do not involve intensive cognitive efforts, information readers just utilize the environmental characteristics associated with the information to make their judgments. Based on this model, subsequent empirical studies have identified a series of significant determinant factors on information adoption, such as information argument quality (Cheung et al. 2012; Sussman et al. 2003), information comprehensiveness (Luo et al. 2013; Yang et al. 2005), information consistency (Cheung et al. 2009), information quantity (Park et al. 2007), source credibility (Cheung et al. 2008), and so on. These previous studies have consistently confirmed the validity of ELM in ewom context and greatly improved our understanding about the information reader s cognitive mode during their information processing. However, according to our best knowledge, most of them neglect the attributes of the websites where the information readers acquiring the ewom information, some previous researchers (Park et al. 2012) consider that prospective consumers can acquire ewom information from two kinds of websites, they are commercial websites (online retailers, such as amazon.com and jd.com, etc.) and third party websites (independent online discussion forums, such as dianping.com and pconline.com.cn, etc.). Obviously, these two kinds of websites possess different purposes to provide ewom information to their readers: the commercial websites want to improve their sales performances via the utilization of ewom strategies, whereas those third party discussion forums may intend to attract more Internet users to visit their websites since high visiting volume will finally enhance the value of the forum. According to principal agent theory (Akerlof 1970; Arrow 1963), the administrators of these two kinds of websites may have different motivations to hide information since they are self-interested parties, therefore, information readers will perceive different level of uncertainties toward the ewom information on these websites (Pavlou et al. 2007). For these reasons, we speculate that the attributes of the websites will affect information readers cognitive styles during their ewom information processing on these websites; they may depend on different information attributes to evaluate the ewom information, thus different ewom determinant factors effects on their information adoption intention will be modified. In general, the research question of this study is: Will the website attribute moderate the ewom determinant factors effects on information readers information adoption intention? The rest of this paper is organized as follows, first we introduce the theoretical background and literature review, and then we propose our research model and hypotheses, after that, the research

3 methodology is described, the data analyses and the results are discussed next, finally we present the discussions and implications, with the acknowledgement of limitations. 2 THEORETICAL BACKGROUND AND LITERATURE REVIEW 2.1 Elaboration Likelihood Model Elaboration Likelihood Model (ELM), which is proposed by Petty and Cacioppo (1983; 1986), is a dual process theory of information processing. This model suggests that there are two routes (central and peripheral routes) to persuasion; it further indicates that the information readers attitude formation or change is depended on the degree of their elaboration levels. When information readers elaboration level is high, they incline to adopt central route to process the information, central route involves intensive cognitive efforts, when they adopt this route to process information, they will carefully evaluate the quality of the information content, and thus, content-relevant factors tend to be the most significant determinant factor to affect their attitudes. In contrast, if information reader s elaboration level is low, they employ less cognitive effort to evaluate the information content, instead, they utilize various environmental characteristics (irrelevant with the information content) associated with the information (i.e., peripheral route) to make decisions. Sussman and Siegal (2003) further consider that in common situations, the persuasion of the information will involve both central and peripheral routes simultaneously. Based upon this model, numerous previous studies have been conducted to explore central and peripheral route factors effects on information readers cognitions in various information communication contexts. For instance, Sussman and Siegal (2003) confirm that information quality (central factor) and source credibility (peripheral factor) can positively affect information readers information adoption intention in communications; Cheung et al. (2008) extend this model and further consider that the information quality and source credibility contains various components which may exert different effects on readers information adoption intention, to be more specifically, they utilize relevance, timeliness, accuracy and comprehensiveness to represent the information quality, and adopt source expertise and source trustworthiness to depict source credibility, they have identified these 6 factors effects in a third party discussion forum; some more studies (Cheung et al. 2009; Cheung et al. 2012; Park et al. 2007) further propose that information consistency, information rating, information framing, information quantity, etc., will also take significant effects in various research contexts. In general, prior studies have confirmed abundant central and peripheral factors significant effects on information readers cognitions thus validate the applicability of ELM. 2.2 Principal Agent Theory Principal agent phenomenon indicates the ubiquitous relationship in which the agent party performs the work according to the principal party s benefit based on a mutual agreement contract (Eisenhardt 1989). Principal agent theory (Akerlof 1970; Arrow 1963) describes an agency dilemma which concerns the problems to motivate the agent party to act on the principal party s best interests, this problem arises when two parties have different interests and asymmetric information. As this theory indicates, in the principal agent relationship, principals and agents are both self-interested parties with incongruent interests, commonly, the agents possess more information than principals (Mishra et al. 1998), the principals will consider that the agents have the motivation to hide information for their own benefits due to the incongruent interests, thus they will feel a high level of risk and uncertainty in this relationship, in order to mitigate the risk and uncertainty perception, they will carefully evaluate various signals extracted from the information sent by the agents; if they considers that these signals are believable, their information asymmetry perception and uncertainty anxiety will be mitigated (Pavlou et al. 2007). Principal agent theory can be applied to various contexts related to transactional exchanges such as spot market exchanges, insurance client relationships and online buyer-seller transactions (e.g.,

4 Milgrom et al. 1992; Pavlou et al. 2007; Rothschild et al. 1992). Following this viewpoint, this study believes that this theory can also be applied to ewom communication relationships; we consider the ewom exhibition websites to be the agent and regard the information readers as the principal, in this relationship, the websites take the responsibility to provide informative and instructive ewom information to information readers to satisfy their information requirements. We predict that, information readers will perceive different level of uncertainty during their ewom information processing in different kinds of websites due to these websites distinct interests; they may utilize different signals derived from the ewom to evaluate the information, therefore, different information attributes effect on their information adoption intention will be modified. We present our research model and hypotheses in the following section. 3 RESEARCH MODEL AND HYPOTHESES Based upon ELM, this study proposes a series of ewom determinant factors to affect readers information adoption intention when they process all the ewom information toward a product/service in a website; following principal agent theory, we further predict these factors effect will be moderated by the website attribute, the research model is shown in figure 1. Information comprehensiveness H1a Information Strength H1b Information Adoption Information Consistency H1c Information Quantity H1d H4 H3 H2 H5 Website Attribute (Commercial or Third Party) Figure 1. Research Model Prior studies (Sussman et al. 2003; Zhang et al. 2008) consider that information quality serves as the most significant central route factor to affect information readers information adoption intention, subsequent studies (Cheung et al. 2008; Lee et al. 2002; Yang et al. 2005) indicate that the quality of information contains various components, and to explore the unique effect of each quality component will help research further understand the internal impact mechanism of information quality on information readers cognitions, Luo et al. (2013) consider that the information comprehensiveness and argument strength are the two crucial components to affect information readers cognition in ewom context, information comprehensiveness is defined as the extent to which the ewom information covers various aspects of the discussed product/service thus provides completeness information to the readers (McKinney et al. 2002); and argument strength indicates that if the argument of the ewom information is valid and convincing in supporting its viewpoint (Cheung et al. 2009). This study adopts this viewpoint and incorporates these two factors into our research model;

5 we consider these two central factors have positive effects on ewom readers information adoption intention. Sussman and Siegal (2003) suggest that the source credibility is an important peripheral cue during readers information processing; source credibility is defined as an information reader s perception of the expertise and trustworthiness of the information composer (Sternthal et al. 1978). Other researchers (Cheung et al. 2009; Laczniak et al. 2001) further indicate that information consistency can be another significant peripheral factor to affect ewom readers information adoption intention, this is because consistent information indicates that various information composers hold the same viewpoint toward the discussed target (Barry et al. 1998), and commonly, information readers will incline to adopt the viewpoint endorsed by a large number of persons because of herd behaviour (Banerjee 1992); similarly, some more studies (Lu et al. 2013; Park et al. 2007) consider that information quantity (the number of reviews) will also have a positive impact on ewom readers since people often have a mass-following psychology (Cialdini et al. 2004). In this study, we will not include the source credibility into our research model since we focus on a group of ewom reviews instead of a piece of information, some of the review composers may be considered as high credible persons whereas others may be treated as low credible ones, therefore, it is hard for the information readers to judge the source credibility; we incorporate information consistency and information quantity into our research model as the two peripheral cues, we consider these two factors will significantly affect ewom reader s information adoption intention. In general, following previous research s finding, we hypothesize: H1: ewom information comprehensiveness (H1a), argument strength (H1b), consistency (H1c) and quantity (H1d) will have positive effects on ewom readers information adoption intention. We further predict that these 4 ewom determinant factors will have different effects on ewom readers information adoption intention in different kinds of websites. As principal agent theory (Akerlof 1970; Arrow 1963) indicates, agents and principals are both self-interested parties with incongruent interests, agents may have strong motivations to hide information to pursue their own benefits. Thus, principals will inevitably perceive a high level of uncertainty perception since they cannot fully predict the agents behaviours due to information disadvantages, they have to utilize the signals sent by the agents to make their judgements (Pavlou et al. 2007). As different websites may obtain different benefits through information hidden behaviours, and due to different informational signals may imply different connotations to ewom readers, thus, it is rational to conjecture they may refer to different informational signals to process the ewom information in different websites. For information comprehensiveness and argument strength, we predict their effects on ewom readers information adoption intention will be weaker in the commercial websites compared with in third party websites. We consider that the commercial websites will definitely have a high motivation to introduce high quality (i.e., comprehensiveness and high argument strength) ewom information to the ewom readers since it probably will improve their sales performances (Chevalier et al. 2006; Lu et al. 2013); although it is illegal to distort the ewom information on their web pages, they can change the ewom exhibition systems thus exhibit comprehensive and high argument strength ewom reviews in a prominent location and set the low quality ewom reviews into a hiding place; furthermore, they even can induce some previous consumers to compose high quality information on their web pages. Therefore, the ewom readers may not consider comprehensiveness and argument strength as the effective signals to solve their information asymmetry problem (Pavlou et al. 2007); therefore, these signals will not successfully mitigate their uncertainty perception. However, for those third party websites, their purposes are to attract more information readers thus to get a high visiting volume, they do not have strong motivation to recommend high quality ewom information to the readers since it cannot help them pursue extra benefits, thus, we predict comprehensiveness and argument strength will be the effective signals to alleviate their perceived uncertainty thus can significantly affect their information adoption intention. We then propose our hypotheses: H2: The effect of information comprehensiveness on ewom readers information adoption intention will be weaker in the commercial websites than in the third party websites.

6 H3: The effect of information argument strength on ewom readers information adoption intention will be weaker in the commercial websites than in the third party websites. We do not predict that the effects of information consistency and quantity on ewom readers information adoption will be attenuated in the commercial websites. This is because in both commercial and third party websites, the number of the reviews toward a product/service will be presented on the webpage; besides, ewom readers can easily understand if the reviews toward with same target are consistent or not by examining the numbers of positive, neutral, and negative reviews; these information signals are originated from various ewom composers which are regarded as social influences (Cheung et al. 2009). We conjecture the commercial websites, especially those famous ones, will not dare to change these signals since it will be observed by various ewom composers (probably previous consumers), and thus, we consider these two signals can significantly affect ewom reader s information adoption intention. For the third party websites, we consider information consistency and quantity s effects will also be salient since these websites do not have any motivation to distort these signals. We propose the following hypotheses: H4: The effect of information consistency on ewom readers information adoption will be significant in both commercial and third party websites. H5: The effect of information quantity on ewom readers information adoption will be significant in both commercial and third party websites. 4 METHODOLOGY The research model are tested utilizing the field data collected from two popular and well-known websites in China, namely (jd) and (pconline), the first one is a B2C commercial website which mainly sells electronic products, this website allows the consumers to leave their review comments toward their purchased products on the web pages; and the second one is a professional third party discussion forum which focuses on discussing electronic products. We deliberately choose these two websites since they target the same product type; it will alleviate this confounding factor s disturbing influences in our research model. Actually, we have done a prior interview with around 70 undergraduates major in electronic commerce about these two websites before the data collection, more than 80% of them know these two websites, it confirms their representativeness. We invited these two websites members via various online communication tools; especially, we randomly selected these members to ensure the demographic diversity of our sample. Once the members agreed to fill in our online questionnaire, we first asked them to browse on the web pages of the corresponding website, and read all the ewom reviews about a certain product/service they interested in, if they acknowledged that they have finished the reading, we then sent them the questionnaire hyperlink. We noticed them that all the questions had no correct answer; they just needed to fill in according to their own cognitions. The questionnaire has 3 main sections. The first section includes the introduction information, we also ask the participants to leave the hyperlink of the ewom reviews to us, and it will help us trace the number of the reviews (ewom quantity) toward the product/service they concerned. The second section contains the construct items in the research model, including information comprehensiveness, argument strength, consistency as well as information adoption, they are adopted from previous research; and we also ask the participants about the attributes of the websites with 3 self-developed items to test their perception about the relationship between ewom information and the websites benefit; all of these items are reflective indicators with a Likert-type 7-point. In the final section we ask the participants about their demographic information. Please see appendix A to get more information

7 5 RESULTS 5.1 Sample Demographics With 2 months data collection, we get 278 samples, 142 of them are from jd and other 136 are from pconline. They are from various provinces in China, their occupations includes managers, workers, government officials, students, scholars, among others. Please see table 1 to get more information. Gender Male % Female % Age 20 and below % % % Above % Education High School Graduate % Bachelor s Degree % Master and above % Table 1. Sample Demographics 5.2 Measurement Model Analyses Confirmatory factor analysis (CFA) is used to test the measurement model. Especially, item loading, composite reliability, Cronbach's Alpha and average variance extracted (AVE) for each construct are used to assess the convergent validity (Fornell et al. 1981). Tables 2 shows, the composite reliability of all the constructs are above 0.9, the Cronbach's Alpha are above 0.8, the AVE for all of the constructs are above 0.7, and the item loadings are above 0.8; all are beyond their corresponding thresholds, these results confirm the convergent validity is acceptable. We also test the discriminant validity of our data; table 3 shows the square roots of the AVE of all constructs are much higher than all cross-correlations, which confirm sufficient discriminant validity. We exclude the information quality in measurement model analyses since we utilize the real number of reviews collected from the web pages. Construct Information comprehensiveness (INCP) Composite Reliability Average Variance Extracted Cronbach s Alpha Information Strength (INST) Item Item Loading INCP INCP INCP INST INST INST

8 Information Consistency INCN (INCN) INCN INCN Information Quantity (INQ) N.A N.A N.A INQ1 N.A Information Adoption INAD (INAD) INAD INAD INAD INAD Table 2. Convergent validity of constructs INCP INST INCN INAD INCP INST INCN INAD Table 3. Square root of AVE and cross-correlations 5.3 Structural Model Analyses We utilize SPSS to test the hypotheses in the research model. First, we utilize linear regression to run all the 278 data from the two websites together, to test the general effects of the four independent variables in our research model, the result confirms the significance of the full model, with F= , P<0.01, and the R 2 is 60.7%. Table 4 further shows that all of the four independent variables are significant, this is consistent with our H1, it also re-confirms that both central and peripheral factors will be the salient cues to affect information adoption intention. Determinant Beta T INCP ** INST ** INCN ** INQ ** R 2 =0.607, F= Table 4. Main Effects Test Note: ** p<0.01 We then analyze the data from the two websites separately. First, we test the difference of the website attribute (WEBA) the participants perceived; we utilize one way ANOVA to compare the mean value of the 3 website attributes items, the result shows that the score of jd is and the score of pconline is 4.259, the difference is significant with F= and P<0.01, which confirms that ewom readers do consider these two websites have different attributes. Second, we utilize linear regression to run the data from the two websites separately, as shown in table 5, we find the 4 independent variables effects are different in the two data sets: in jd, information comprehensiveness, consistency

9 and quantity have significant effects on information adoption intention; whereas in pconline, only information comprehensiveness and argument strength have significant effects. We utilize Fisher's Z Transformation test (Fisher 1915) to calculate a value of Z that can be applied to assess the significance of the difference between the two corresponding correlation coefficients in the two websites, as shown in table 5, the corresponding coefficients of information argument strength, consistency and quantity in the two model are significantly different, whereas the coefficients of information comprehensiveness is similar without significant difference. Thus, our hypotheses H3 is supported, whereas H2, H4, H5 are not supported. JD(142) PCONLINE(136) COMPARISON Determinant Beta T Beta T Z Sig. INCP * * INST ** INCN ** INQ ** R 2 =0.645, F= R 2 =0.645, F= Table 5. Comparison of Jd and Pconline Note: * p<0.05, ** p< DISCUSSION, IMPLICATION AND CONCLUSION This study utilizes ELM as the theoretical background, to test both central and peripheral factors effects on ewom readers information adoption intention when they process a group of review information toward a product/service in a website, we confirms that the two central factors (information comprehensiveness and argument strength), and the two peripheral factors (information consistency and quantity) can significantly affect the information adoption intention, it re-confirms the validity of ELM in our research context. We further explore the website attribute moderating effects on the relationships between the 4 ewom determinant factors and information adoption intention. The result approves that 3 ewom determinant factors (both derived from the central and the peripheral routes) effects are modified in different websites. It validates the significance and effectiveness of our research model. To be more specifically, we find that information argument strength cannot affect ewom reader s information adoption intention in commercial websites, where as its effect is rather significant in third party websites, this is consistent with our prediction, ewom readers will perceive a high level of risk and uncertainty in commercial websites, they feel anxious about the website administrators information hidden behaviours, thus, they are reluctant to accept the ewom information even it contains persuasive arguments. However, information comprehensiveness has a constant effect on ewom reader s information adoption intention in both websites, it contradict with our hypothesis, it indicates that these two central factors imply different connotations to ewom readers; we estimate, probably, acceptance of the persuasive arguments may induce ewom readers to form a positive (or negative) attitude toward the product/service, that will guide them to make corresponding purchase decisions; whereas, acceptance of the comprehensive information just indicates that readers get a better understanding about various attributes of product/service, it will not strongly associate with their attitude formation. For the two peripheral factors, we find they have significant effects on ewom readers information adoption intention in commercial websites, this is consistent with our prediction; however, they have no significant effects in third party websites, it is inconsistent with our hypotheses, we speculate, since ewom readers consider that third party websites have no strong motivation to hide information,

10 thus, they can get full understanding about the product/services via information comprehensiveness and argument strength, thus regard the two peripheral factors to be less important determinants. We believe this study makes several important practical implications to the commercial websites (the online sellers) as well as the administrators of third party discussion forums. The findings of this study will guide them to adopt different ewom marketing strategies to manage the ewom information on their corresponding websites, then to improve the effectiveness of ewom information. For the commercial websites, the sellers should encourage more consumers to leave their reviews on the web pages; besides, they need to notice, if the consumers give inconsistent comments, they should try to find out the problems and solve them immediately, this will improve the review consistency; thirdly, they need to motivate consumers to compose comprehensive, instead of persuasive review information. For the third party discussion forums, they need to persuade the forum members to compose both comprehensive and persuasive review information; they do not need to put much effect on increasing the number of the reviews toward the product/service, or try to keep the reviews hold consistent viewpoint, since ewom readers will not utilize these signals to evaluate the information. Finally, we acknowledge some limitations of this study, first, this study only includes one website attribute (commercial or third party website) in our research model, to test if the ewom determinant factors have different effects on ewom readers information adoption intention in different websites, we suggest further research incorporates more website attributes (such as website reputation), to further investigate their effects during ewom reader s information processing. Second, the two websites we chosen only concern one type of product (electronic products), thus, we are not sure if this findings can be applied to other product/service types, subsequent studies may apply our research model to other research contexts to further generalize the findings of this study. 7 ACKNOWLEDGEMENT This work is supported by the Fundamental Research Funds for the Central Universities (No.JBK120505) and a State Key Research Project from the National Social Science Foundation (Grant No. 11AZD077). References Akerlof, G. (1970). The Market for Lemons: Quality Uncertainty and the Market Mechanism. Quarterly Journal of Economics, 84(3), Arrow, K. J. (1963). Uncertainty and the welfare economics of medical care. The American economic review, Banerjee, A. V. (1992). A simple model of herd behavior (Vol. 107, pp ): Oxford University Press. Barry, C. L., & Schamber, L. (1998). Users' criteria for relevance evaluation: A cross-situational comparison. Information Processing & Management, 34(2-3), Bickart, B., & Schindler, R. M. (2001). Internet forums as influential sources of consumer information. Journal of Interactive Marketing, 15(3), Cheung, C. M., Lee, M. K., & Rabjohn, N. (2008). The impact of electronic word-of-mouth: The adoption of online opinions in online customer communities. Internet Research, 18(3), Cheung, M. Y., Luo, C., Sia, C. L., & Chen, H. P. (2009). Credibility of Electronic Word-Of-Mouth: Informational and Normative Determinants of Online Consumer Recommendations. International Journal of Electronic Commerce, 13(4), Cheung, M. Y., Sia, C. L., & Kuan, K. Y. (2012). Is This Review Believable? A Study of Factors Affecting the Credibility of Online Consumer Reviews from an ELM Perspective. Journal of the Association for Information Systems, 13(8), Chevalier, J. A., & Mayzlin, D. (2006). The Effect of Word of Mouth on Sales: Online Book Reviews. Journal of Marketing Research, 43(3), Cialdini, R. B., & Goldstein, N. J. (2004). Social Influence: Compliance and Conformity. Annual Review of Psychology, 55,

11 Duan, W., GU, B., & Whinston, A. B. (2008). The dynamics of online word-of-mouth and product sales An empirical investigation of the movie industry. Journal of Retailing, 84(2), Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), Fisher, R. A. (1915). Frequency distribution of the values of the correlation coefficient in samples from an indefinitely large population. Biometrika, 10(4), Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement errors. Journal of Marketing Research 18(1), Gu, B., Tang, Q., & Whinston, A. B. (2013). The influence of online word-of-mouth on long tail formation. Decision Support Systems, 56, Laczniak, R. N., DeCarlo, T. E., & Ramaswami, S. N. (2001). Consumers' responses to negative word-of-mouth communication: An attribution theory perspective. Journal of Consumer Psychology, 11(1), Lee, Y. W., Strong, D. M., Kahn, B. K., & Wang, R. Y. (2002). AIMQ: a methodology for information quality assessment. Information & Management, 40(2), Lu, X., Ba, S., Huang, L., & Feng, Y. (2013). Promotional Marketing or Word-of-Mouth? Evidence from Online Restaurant Reviews. Information Systems Research, 24(3), Luo, C., Luo, X. R., Schatzberg, L., & Sia, C. L. (2013). Impact of informational factors on online recommendation credibility: The moderating role of source credibility. Decision Support Systems, 56, McKinney, V., Yoon, K., & Zahedi, F. (2002). The Measurement of Web-Customer Satisfaction: An Expectation and Disconfirmation Approach. Information Systems Research, 13(3), Milgrom, P. R., & Roberts, J. (1992). Economics, organization and management (Vol. 7): Prenticehall Englewood Cliffs, NJ. Mishra, D. P., Heide, J. B., & Cort, S. G. (1998). Information asymmetry and levels of agency relationships. Journal of Marketing Research (JMR), 35(3). Mitra, K., Reiss, M. C., & Capella, L. M. (1999). An examination of perceived risk, information search and behavioral intentions in search, experience and credence services. Journal of Services Marketing, 13(3), Park, D. H., Lee, J., & Han, I. (2007). The effect of on-line consumer reviews on consumer purchasing intention: The moderating role of involvement. International Journal of Electronic Commerce, 11(4), Park, J., Gu, B., & Lee, H. (2012). The relationship between retailer-hosted and third-party hosted WOM sources and their influence on retailer sales. Electronic Commerce Research and Applications, 11(3), Pavlou, P. A., Liang, H. G., & Xue, Y. J. (2007). Understanding and mitigating uncertainty in online exchange relationships: A principal-agent perspective. Mis Quarterly, 31(1), Petty, R. E., & Cacioppo, J. T. (1983). Central and Peripheral Routes to Persuasion: Application to Advertising. In L. Percy & A. Woodside (Eds.), Advertising and Consumer Psychology (pp. 3-23). Lexington: Lexington Books. Petty, R. E., & Cacioppo, J. T. (1986). Communication and persuasion: Central and peripheral routes to attitude change. New York: Springer-Verlag. Rothschild, M., & Stiglitz, J. (1992). Equilibrium in competitive insurance markets: An essay on the economics of imperfect information: Springer. Sternthal, B., Dholakia, R., & Leavitt, C. (1978). The persuasive effect of source credibility: Tests of cognitive response. Journal of Consumer Research, Sussman, S. W., & Siegal, W. S. (2003). Informational influence in organizations: An integrated approach to knowledge adoption. Information Systems Research, 14(1). Yang, Z., Cai, S., Zhou, Z., & Zhou, N. (2005). Development and validation of an instrument to measure user perceived service quality of information presenting web portals. Information & Management, 42(4), Zhang, W., & Watts, S. A. (2008). Capitalizing on content: Information adoption in two online communities. Journal of the Association for Information Systems, 9(2),

12 Appendix A. Constructs Items INCP Item1 The content of the review information is sufficient Adapted from Item2 The content of the review information is comprehensive (Luo et al. 2013) Item3 The review information provides complete descriptions INST Item1 The arguments of the review information are convincing Adapted from Item2 The arguments of the review information are strong (Cheung et al. Item3 The arguments of the review information are persuasive 2009) INCN Item1 The comments of the review information are consistent Adapted from Item2 The viewpoints of the review information are similar (Cheung et al. Item3 The reivew information hold similar attitude. 2009) INAD Item1 To what extent does the review information motivate you to Adapted from make purchase decision (purchase or not purchase) (Sussman et al. Item2 To what extent do you agree with the review information 2003) Item3 To what extent does the review information enhance your pruchase decision efficiency Item4 To what extent will you make your purchase decision based upon the comments of the review information Item5 To what extent does the review information help you make better pruchase decision WEBA Item1 The website has strong interest relationship with the discussed Self-developed product Item2 The website has strong commerical relationship with the discussed product Item3 The sale performance of the discussed product is closely related with the website

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