A Statistical Measure of a Population's Propensity to Engage in Post-Purchase Online Word-of-Mouth

Mathematics – Statistics Theory

Scientific paper

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Published at http://dx.doi.org/10.1214/088342306000000169 in the Statistical Science (http://www.imstat.org/sts/) by the Insti

Scientific paper

10.1214/088342306000000169

The emergence of online communities has enabled firms to monitor consumer-generated online word-of-mouth (WOM) in real-time by mining publicly available information from the Internet. A prerequisite for harnessing this new ability is the development of appropriate WOM metrics and the identification of relationships between such metrics and consumer behavior. Along these lines this paper introduces a metric of a purchasing population's propensity to rate a product online. Using data from a popular movie website we find that our metric exhibits several relationships that have been previously found to exist between aspects of a product and consumers' propensity to engage in offline WOM about it. Our study, thus, provides positive evidence for the validity of our metric as a proxy of a population's propensity to engage in post-purchase online WOM. Our results also suggest that the antecedents of offline and online WOM exhibit important similarities.

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