The effect of online word-of-mouth in electronic markets: An investigation of the culture differences in the Chinese and U.S. contexts

Yu Xiu-He, Guo Xi-Tong, Yao Qi-Yan

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

Abstract

Feedback profiles could affect both prices and the probability of sales. However, cultural mindset interprets the online feedback differently, which is likely to result in the variation of online trading behavior. The previous studies have been long downplayed in the online trading behavior. With the growing amount of Chinese E-Commerce, we ask whether the western e-commerce model works in the Chinese Context. This study attempts to explore and compare the effect of online word-of-mouth on trust building, and price premium in Chinese and U.S. Contexts. We propose that collectivism would increase the buyer's reliance on the feedback profile. Risk avoidance moderates the association between information of feedback profile and price premium. Structural equation model and regression techniques will be employed to analyze the data collected from online auctions and questionnaires. Future research opportunities are identified. © 2011 IEEE.
Original languageEnglish
Title of host publication2011 International Conference on Management Science and Engineering, ICMSE 2011 - 18th Annual Conference Proceedings
Pages34-40
DOIs
Publication statusPublished - 2011
Event2011 18th Annual International Conference on Management Science and Engineering, ICMSE 2011 - Rome, Italy
Duration: 13 Sept 201115 Sept 2011

Publication series

NameInternational Conference on Management Science and Engineering - Annual Conference Proceedings
ISSN (Print)2155-1847

Conference

Conference2011 18th Annual International Conference on Management Science and Engineering, ICMSE 2011
PlaceItaly
CityRome
Period13/09/1115/09/11

Bibliographical note

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Research Keywords

  • culture
  • electronic markets
  • price premiums
  • trust
  • word-of-mouth

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