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Evaluating the influence of online forums in consumer buyer behaviour

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Presented at the 2013 Academy of Marketing Conference in Cardiff
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Jennie Byrne, Vicky O’Rourke Letterkenny Institute of Technology, Co. Donegal, Ireland Evaluating the influence of online forums in consumer buyer behaviour
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Page 1: Evaluating the influence of online forums in consumer buyer behaviour

Jennie Byrne, Vicky O’Rourke

Letterkenny Institute of Technology, Co. Donegal, Ireland

Evaluating the influence of online forums in consumer buyer

behaviour

Page 2: Evaluating the influence of online forums in consumer buyer behaviour

Marketing Manager since 2005

Online Marketing Manager at Jacksons Hotel, Co. Donegal

BBS – Limerick Institute of Technology (2004)

MSc – Letterkenny Institute of Technology (2012)

PhD – University of Ulster: Understanding the

influence of communities on consumer buyer

behaviour (Present)

About Me

Professional

Academic

Page 3: Evaluating the influence of online forums in consumer buyer behaviour

Background & Aim

Research Objectives:

1.Examine the influence of online

forums on consumers’ buying

behaviour

2.Understand why people use

online forums

3.Measure the awareness and

effectiveness of advertising within

online forums

Past, Present, Future

1979

Massive Impact

Online Discussions

Posters and Lurkers (Nonnecke and Preece,

2001)

User-Generated Content

‘Always Connected’

Share Opinions and Experiences

Page 4: Evaluating the influence of online forums in consumer buyer behaviour

Literature

• Exchange opinions (Kaiser and Bodendorf, 2012)

• Research products and services (Evans et al., 2001)

• Exchange information (Ridings and Gefen, 2004)

• Assist in problem solving (Savolainen, 2010)

• Information sharing (Pitta and Fowler, 2005)

• Social capital (Preece, 2001; Cook, 2005)

• Important element in buyer behaviour (Chen and Barnes, 2007)

• Credible sources highly accepted (Bearden and Etel, 1982)

• Consumers don’t notice

advertisements (Hadija

et al., 2012)

• Marketing research and

relationship marketing

(Pitta and Fowler, 2005)

Usage

Trust

Influence on Buyer Behaviou

r

Advertising

• Information search, evaluation and post-purchase stages

• Influenced by discussions or recommendations (Granitz

and Ward, 1996)

• More influential than traditional WOM (Steffes and

Burgee, 2009)

Page 5: Evaluating the influence of online forums in consumer buyer behaviour

Methodology

• Semi structured interviews with industry experts

• Face to face and via Skype

• Snowball sampling

• Four interviews

• Data analysis - themes and coded based on research

objectives (Morrill et al., 2000), Key quotes - ‘insiders

perspective’ (Patton, 2002)

• Online questionnaire with online forum users

• Survey Monkey

• Non-probability sampling

• Series of multiple choice, nominal and interval scale

questions

• 215 valid respondents

• Data analysis – filters and cross tabulations

Interviews

Questionnaires

Page 6: Evaluating the influence of online forums in consumer buyer behaviour

Usage

Interviews• Discuss specific topics and interests

• Access information

• Learn

• Explore ideas

Questionnaire 1. Discussion (77 percent)

2. Pastime (67 percent)

3. Advice (65 percent)

4. Research (56 percent)

Literature Raban and Rafaeli (2007), Lu and Hsiao, 2007),

Chen and Qi (2011), Pitta and Fowler (2005),

Evans et al., (2006)

Page 7: Evaluating the influence of online forums in consumer buyer behaviour

Trust

Interviews• Established members are highly trusted

• User generated content more trustworthy than

corporate messages

• Greater level of trust the higher the intension of

making a purchase

Questionnaire 62 percent trust members they have relationships

with over new members

Literature Bearden and Etel (1982), Bickart and Schindler

(2001), Lee et al (2011)

Page 8: Evaluating the influence of online forums in consumer buyer behaviour

Influence

Interviews • Excellent source of research

• Discussions influence posters and lurkers

• ‘big influence’ in purchasing decisions

Questionnaire •Reading discussions influences purchase intensions

(77 percent)

• Positive discussions entice them to purchase (75

percent)

• Negative discussions encourage them not to

purchase (68 percent)

Literature Granitz and Ward (1996), Kaiser and Bodendorf

(2012), Steffes and Burgee (2009), Park et al (2007),

Chen and Xie (2008), Chatterjee and Patrai (2001)

Page 9: Evaluating the influence of online forums in consumer buyer behaviour

Advertising

Interviews • Shouldn’t use forums as a promotional tool

• Customer service and feedback systems

• Promotion can be often seen as spam

• Discuss and listen to generate customer

engagement

• Build relationships

Questionnaire • Would never purchase a product or service based

on advertisement within online forums (72 percent)

• 54 percent rarely click on advertisements

• 62 percent rarely remember them

Literature Pitta and Fowler (2005), De Valck (2005), Barnatt

(1998)

Page 10: Evaluating the influence of online forums in consumer buyer behaviour

Conclusion

• Online forums are used for discussion, pastime, advice and/or

research

• The opinions of people trusted are valued more

• User-generated content more trustworthy than corporate messages

• Discussions within online forums influence purchase decisions

• Consumers ignored advertisements

• Customer service, feedback systems and relationship marketing

• Helpful insight for marketers

• Specific industries or sectors

• Case study approach

• Explore the possible hierarchy of perceived trustworthiness

Hierarchy of perceived trustworthiness

Page 11: Evaluating the influence of online forums in consumer buyer behaviour

PhD

Facebook Twitter Forums Blogs YouTubeInstagra

m

Home Electronics | Travel | Cars | Restaurants | Beauty | Fashion

Need / Problem

Information Search

Evaluation

Purchase

Post - Purchase

Profile of UsersImpact

on the decision making process

Emergent communication and behavioural influences

RO: 1a-d

RO: 2

RO: 2a

Page 12: Evaluating the influence of online forums in consumer buyer behaviour

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THANK YOU Questions?

@JenniePeoples


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