The Impact of Electronic Word-of-Mouth on Consumers and Firms

Simon Monske investigates the influence of electronic word of mouth (eWOM) on consumers' information search strategies and how companies can measure and strategically use e-WOM. Based on preliminary studies and an eye-tracking online experiment, the author empirically proves that consumers increasingly read opinions of other consumers at the beginning of the information search and evaluate product specifications before making a purchase decision. In addition, Simon Monske evaluates an extensive company survey and shows that German companies would gain a competitive advantage with a sound analysis of eWOM data. However, companies lack organisational processes for the strategic use of insights gained.