Reading Question - Chen et al. (2011)

5 important questions on Reading Question - Chen et al. (2011)

When it comes to WOM, why does the negative WOM have a bigger impact than the positive WOM?

Standard vs. Exceptional information. Because today everyone expects good quality products, not receiving this is the exception to the rule.

Why does positive OL have a higher "conversion" - a bigger impact - than negative OL?

Positive has impact and negative does not. High conversion percentages is good but adding low percentages does not hurt.

What is a pro regarding mass products and niche products when it comes to OL information?

It helps mass products (high conversion) but it does not harm niche products (bought less).
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What is important when it comes to WOM and OL over time?

You should focus on pumping WoM & OL info in early stages of product introduction because its effect diminishes over time.

What is important to know about the interaction between WOM and OL?

They have a complementary effect on each other, the conversion rate has a much bigger impact if it coincides with WOM (backed up by a lot of reviews). You should provide and stimulate them simultaneously.

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