Article

The effects of word-of-mouth incentivization on consumer brand attitude

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Abstract

Purpose This study aims to conceptualize and test the effect of monetary and non-monetary incentives for word-of-mouth (WOM) campaigns on the brand attitude of those receiving an incentivized brand recommendation. It also studied whether or not the type of relationship between the recommender and the person who receives the recommendation and the expertise of the recommender moderate the impact of incentivization on brand attitude. The results should enable brand management to improve the design of WOM campaigns. Design/methodology/approach An experiment was conducted utilizing a sample of about 645 respondents in Thailand. In a 3 × 3 experimental design, three levels of incentivization and three types of social relationships were manipulated. All other variables were measured through a respondent-administered questionnaire. For incentivization of WOM, monetary reward and non-monetary reward are compared to a non-incentivized control state. The three types of social relationships are an authority relationship, a kinship relationship and a market pricing relationship between strangers as the control state. Findings The results of the experiment show that the introduction of rewards for recommendations harms the attitude of the receiver of a recommendation toward the brand. The attitude of potential buyers toward the brand can be tainted by the impression that a brand has enticed friends and relatives into profiting from their relationship. The negative effects increase further with the introduction of cash rewards. Contrary to expectations, however, the social relationship between the recommender and the new customer did not moderate the effect of incentivization. Source expertise has a direct as well as moderating effect on brand attitude. Practical implications The findings suggest that companies should use referral rewards with caution. Brand managers need to be aware that there is a trade-off between the advantages and the disadvantages of incentivized WOM campaigns. Recommendations have been derived about how to improve the design of incentivized WOM campaigns. Whether the advantages outweigh the disadvantages probably depend to some extent on brand-specific factors such as brand strength and market- or industry-specific factors, such as a credence good quality within the industry. It also emphasized that WOM campaigns need to be carefully monitored by measuring customer attitudes toward the brand. Originality/value Although past research provides valuable conceptual and empirical insights into consumer responses in incentivized WOM situations, most research has focused on the immediate effectiveness of WOM by measuring purchasing intentions. There is still a lack of information about how different kinds of incentivization affect customer attitudes toward a brand that incentivizes WOM, and how various relationship types moderate the effects; in particular, authority relationships have not yet been studied in this context.

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... Emerging research on incentivization of reviews (Stephen, Bart, Du Plessis, & Goncalves, 2012), weblogs (Lu, Chang, & Chang, 2014) or product recommendations (Pongjit, Beise-Zee, & Veloutsou, 2015) provides first insights into the use of these marketing tactics. However, it is still unclear how incentivization de facto affects the consumers' perception of key drivers of review relevance including trustworthiness, expertise, and credibility. ...
... Emerging research has observed and studied a number of possible activities to do so. Besides merely asking a customer to write a review after a purchase, in particular manipulation (e.g., Hu et al., 2011;Jin Ma & Lee, 2014) and incentivization (Pongjit et al., 2015;Stephen et al., 2012) have been discussed as strategies to benefit from customer reviews, whereby the boundaries between both practices are fluid. ...
... Stephen et al. (2013) found that paying a small incentive of 1 $ had no impact on the writers' efforts to write the review, but negatively influences the product evaluations of the readers of the review. This is further substantiated by Pongjit, Beise-Zee, and Veloutsou (2015) who show that non-monetary and especially monetary rewards for recommendations harm the attitude of the recommendation receiver towards the brand. ...
Conference Paper
Online product reviews represent crucial information cues for consumers’ future buying behaviour. This paper studies the disclosure of incentivization of product reviews on consumers’ perception of the writer of a review and review adoption across three different online contexts: (1) an online shop customer review, (2) a review on a news website, and (3) a review on an expert’s blog. Based on an experimental study (N=380) manipulating the disclosure of incentivization and the review context, it is shown that perceived trustworthiness is significantly lower if the incentivization is disclosed for reviews in the contexts ‘online shop’ and ‘news website’. Moreover, for reviews embedded in a news website perceived expertise of the review writer is lower if the review discloses incentivization. However, no significant differences were found for the blog context. Our findings suggest that, if not explicitly forced, companies are not advised to disclose review incentivization.
... Some reviewers have never purchased or tried the product and are providing fake reviews for self-gain, whereas others are incentivized to submit online posts (Steward et al., 2020). In the case of incentivized WOM, the incentivization process can induce biased self-interest on the side of the recommender (Pongjit and Beise-Zee, 2015). Large online retailers, such as Amazon, have issues with deceptive reviews, including incentivized reviews where the vendor or a reputation-management company offer free or discounted products to reviewers in exchange for recipients' "honest opinion" on the item in a review on Amazon (Perez, 2016;Soper, 2015). ...
... Studies on WOM communication have found that when consumers are suspicious of ulterior motives, the effectiveness of the message will decrease (Godes and Mayzlin, 2004;Mayzlin, 2006). The use of rewards for recommendations hurts the receiver's attitude toward the brand because the impression that a business has motivated friends to profit from a personal relationship (Pongjit and Beise-Zee, 2015). ...
Article
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Purpose This study aims to formulate a new framework for identifying deception in consumer reviews through the lens of interpersonal deception theory (IDT) and the persuasion knowledge model (PKM). It evaluates variables contributing to consumer intentions to purchase after reading deceptive reviews and proposes deception identification cues to be incorporated into the interpersonal communication theoretical framework. Design/methodology/approach The first study is qualitative and quantitative, based on sentiment and lexical analysis of 1,000 consumer reviews. The second study uses the US national consumer survey with a partial least squares partial least squares-structural equation modeling and a process-based mediation–moderation analysis. Findings This study shows deceptive characteristics that cannot be dissimulated by reviewing consumers that represent review legitimacy based on review valence, authenticity, formalism and analytical writing. The results also support the central role of consumer suspicion of an ulterior motive, with a direct and mediation effect regarding consumer emotions and intentions, including brand trust and purchase intentions. Research limitations/implications This paper presents a new framework for identifying deception in consumer reviews based on IDT and PKM, adding new theoretical elements that help adapt these theories to written digital communication specificities. This study clarifies the role of suspicion in a deceptive communication context and shows the variables contributing to consumers’ purchase intention after reading deceptive reviews. The results also emphasize the benefits of lexical analysis in identifying deceptive characteristics of reviews. Practical implications Companies can consider the vulnerability of certain generations based on lower levels of suspicions and different linguistic cues to detect deception in reviews. Long-term, marketers can also implement deception identification practices as potential new business models and opportunities. Social implications Policymakers and regulators need to consider critical deception cues and the differences in suspicion levels among segments of consumers in the formulation of preventative and deception management measures. Originality/value This study contributes to the literature by formulating a new framework for identifying deception in consumer reviews, adapted to the characteristics of written digital communication. This study emphasizes deception cues in electronic word-of-mouth and provides additional opportunities for theorizing deception in electronic communication.
... Opinion leaders can receive either monetary or non-monetary incentives in exchange for a post (Pongjit and Beise-Zee, 2015). Previous studies on consumer behaviour have shown that monetary incentives increase individuals' intention to spread electronic word-of-mouth (e-WoM; Reimer and Benkenstein, 2016). ...
... Opinion leaders are recruited as marketers who can transform interpersonal communication into persuasion (Kozinets et al., 2010). Thus, the traditional social contract that keeps marketplace relationships at a distance from the opinion leader-followers relationship may be violated (Pongjit and Beise-Zee, 2015). ...
Article
Purpose Opinion leaders are increasingly important as a source of information, with consumers judging them to be more credible than other media and more influential than other consumers. Thus, companies have an interest in engaging opinion leaders to post about products and brands, and the authors analyse different incentives for encouraging them to spread the word on social media (via electronic word-of-mouth [e-WoM]). Design/methodology/approach A 2 × 3 between-subjects experimental design was developed in which 359 technological opinion leaders (bloggers) participated. The authors manipulated the monetary incentive (money vs no money) and non-monetary incentives (information only vs return product vs keep product) offered in exchange for a brand post. Findings Various techniques for approaching opinion leaders are effective, but to differing degrees. Providing a product free of charge increases the likelihood that opinion leaders will post about it, and the highest intention to post is observed when they are allowed to keep the product. In contrast, giving money to opinion leaders could have an indirect negative impact on their intention to post through the expected negative reaction of followers. Originality/value It remains unclear how opinion leaders can best be encouraged to spread e-WoM, as incentives used for consumers may work differently for opinion leaders, who have followers that they want to maintain. The main contribution of this paper lies in its explanation of why opinion leaders react differently to monetary versus non-monetary incentives.
... This kind of "informal, person-to-person communication" in which people give recommendations to others is defined as WOM communication (Harrison-walker, 2001, p. 63). Many studies have shown that WOM intentions have a powerful influence on behavior, especially consumers' information seeking, evaluating, and decision-making (Brown et al., 2007;Fuentes-Blasco et al., 2017;Pongjit and Beise-Zee, 2015;Wallace et al., 2014). As Brown et al. (2007) explained, "WOM can convert lower purchase cognition and affect into higher purchase The effects of reputation, value congruence cognition and affect, subsequently leading to committed behaviors" (p. ...
... 4). In addition, previous studies have examined the antecedents of WOM such as how social influence of the recommenders affects the credibility and reliability of WOM recommendations (Pongjit and Beise-Zee, 2015); the positive association that WOM has with consumers' satisfaction, loyalty, and commitment to the company (Harrison-walker, 2001;Brown et al., 2005); and the buying environment (i.e., atmospherics) that affects WOM and purchase intentions (Hatzithomas et al., 2018). ...
Article
Purpose – This study developed and tested a consumer relations model to determine linkages among brand identity, reputation and value congruence with positive Word-of- Mouth (WOM) intentions. Design/methodology/approach – An intercept survey was conducted during which 350 participants were asked about their perceptions of the store from where they are most likely to purchase coffee among options including multi-national corporations (MNCs) that have global brand identity and small to medium enterprises (SMEs) with local brand identity. Findings – Reputation and value congruence were positively related to positive WOM intentions. Unexpectedly, respondents indicated more positive WOM intentions toward SMEs than MNCs. Research limitations/implications – The findings suggested that value congruence and reputation are positively associated with WOM intentions. Yet, consumers indicated greater WOM intentions toward SMEs than MNCs, which implies that SMEs may be unique and have the ability to create more emotional attachment between businesses and consumers. Practical implications – To promote consumers’ positive WOM intentions, corporate/brand communication practitioners need to build a favorable reputation through effective communication that externalizes organizational values among consumers and includes companies’ commitment to the communities in which they operate. Originality/value – Like SMEs, MNCs should build quality relationships with the local community where they conduct business. Also, based on definitions of values and values congruence in the research literature, an original five-item scale of value congruence was developed and validated to measure the congruence between consumers’ personal values and their perceptions of a company’s values in the context of consumer relationship management.
... The relationship between receiver and sender of word of mouth campaign is influenced by giving financial and non-financial rewards for that particular communication regarding a brand (Pongjit & Beise-Zee, 2015). Moreover, reviews about particular product affect the customers. ...
... They argue that brand name has a positive effect on perception. Moving on to the price variable, it shows that there is a positive and significant relationship with WOM (0.09) which is supported by research of Pongjit and Beise-Zee (2015) and quality perception (0.47) which is supported by Khan and Ahmed (2016); with p-values of 0.024 and 0.000, respectively, leading to the acceptance of the hypotheses. Moreover, place relationship with WOM is also significant positive with beta value of 0.64 at p-value 0.000 which is supported by the study of Veasna et al. (2013) and with quality perception of 0.18 with p-value 0.000 which is supported by the study of Yaghin (2020). ...
Article
Full-text available
This research intends to study the interface of key concepts of Marketing and Quality in relation to Fast Moving Consumer Goods (FMCG) Customers. Marketing variables i.e. product, price, place and promotion are exogenous variables, quality perception is the endogenous variable whereas Word of Mouth (WOM) is the mediating variable for this study. For achieving the objectives of this research and test the developed hypotheses, a quantitative research strategy has been followed. In order to collect data, on the basis of literature, a questionnaire has been developed by the researcher. This research has significance in terms of its contribution both theoretically and practically as it has developed an instrument for measuring FMCG customers’ quality perception. Moreover, a model has also been developed which is statistically validated. Data have been collected from 466 customers from Lahore using Stratified Random Sampling Technique. AMOS has been used for developing structural model and testing of hypotheses. Findings of the research conclude that all marketing variables i.e. price, place and promotion except product has an interface with perceived quality of FMCG customers and these relationships are mediated through WOM.
... As part of such collaborations, influencers create sponsored content for the brand, often in the form of an incentivized review (Hwang & Jeong, 2016;Stubb, 2018). As the term suggests, incentivized reviews are product reviews that reviewers craft in return for direct monetary (e.g., cash) or indirect (e.g., free products, invitations to events) compensation (Lu, Chang, & Chang, 2014;Pongjit & Beise-Zee, 2015;Stephen, Bart, Du Plessis, & Goncalves, 2012;Uribe et al., 2016). While brands may incentivize regular consumers to write reviews about their products and services (Du Plessis, Stephen, Bart, & Gonçalves, 2016;Pongjit & Beise-Zee, 2015), incentivized product reviews are particularly popular in the blogosphere. ...
... As the term suggests, incentivized reviews are product reviews that reviewers craft in return for direct monetary (e.g., cash) or indirect (e.g., free products, invitations to events) compensation (Lu, Chang, & Chang, 2014;Pongjit & Beise-Zee, 2015;Stephen, Bart, Du Plessis, & Goncalves, 2012;Uribe et al., 2016). While brands may incentivize regular consumers to write reviews about their products and services (Du Plessis, Stephen, Bart, & Gonçalves, 2016;Pongjit & Beise-Zee, 2015), incentivized product reviews are particularly popular in the blogosphere. In Table 1, we present an overview of relevant literature related to incentivized reviews and influencer marketing. ...
Article
Brands often incentivize influencers to review their products. However, such incentivized product reviews may reflect negatively on the influencers’ credibility and authenticity, especially if the reviews are positive. Given the more personal nature of influencer-crafted reviews than other product review formats, we posit that the motives to accept incentives—disclosed by the influencer—determine followers’ reactions to incentivized reviews. In one survey, three experiments, and one field study, we contribute to prior research by showing that intrinsic incentivization acceptance motives can mitigate the negative effects of positive incentivized reviews on credibility and, ultimately, revisit intention and behavior. Moreover, we extend past work by demonstrating that influencer type (review vs. lifestyle) determines followers’ perceptions of influencer authenticity, feelings of betrayal, word of mouth, and revisit intention in reaction to an incentivized review. Specifically, we find that review influencer followers’ reactions are determined by their perceptions of incentivized review commonness, such that motives matter more if incentivization is less common, while motives matter less if incentivized review are perceived to be more common. By contrast, we show that lifestyle influencer followers’ reactions are driven by the communicated incentivization acceptance motives, regardless of the perceived commonness of incentivized reviews.
... Hence, consumers may feel overwhelmed by the large quantity of UGSM, becoming unwilling to spend enough cognitive resources to process such a high volume of UGSM (Bright et al., 2015). In addition, users rewarded for their recommendations sometimes generate UGSM, and the credibility of the information provided is questioned (Pongjit and Beise-Zee, 2015). The implication here is that abundance of UGSM written by users who received rewards may reduce UGSM credibility and create information overload, also reducing its usefulness in building CBBE dimensions. ...
... Inconsistent with the literature (Radder & Huang, 2008), the findings indicate that the effects of UGSM on brand awareness, brand associations and perceived quality were negative and non-significant for high-involvement products. As discussed above, the explanation may relate to the characteristics of UGSM communications, which may be generated by users who received rewards for recommendations drawing information credibility into question, with a potential negative effect on other consumers' attitudes toward the associated brands (Pongjit & Beise-Zee, 2015). Consumers may feel overwhelmed by too much UGSM content for high-involvement products being available on the Internet, result of information overload (Cheung & Thadani, 2012). ...
... Kotler and Keller (2006) also mention that when consumers show a positive attitude toward a brand, the possibility of using the brand's products increases; conversely, when consumers have a poor attitude toward a brand, the possibility of using the brand's products decreases. When consumers make purchase decisions, they will maximize their perceived interest in a brand and use it as the basis for purchase based on their preferences (Chompunuch and Rian 2000). Wong and Merrilees (2008) define consumer brand attitude as a key factor in measuring whether a brand is successful in the market. ...
Article
Full-text available
This study focuses on the use of we-media by small- and medium-sized enterprises (SMEs) to disclose internal corporate social responsibility (ICSR) under the impact of the 2019 novel coronavirus disease (COVID-19). Study 1 interprets the catalyst effect of COVID-19 on the externalization of SMEs’ ICSR. The fuzzy grading evaluation method is initially verified. Under the impact of COVID-19, SMEs fulfilling their ICSR can enhance consumer brand attitudes. Study 2 uses a structural equation model and empirical analysis of 946 effective samples and finds that consumers perceive the self-sacrifice of corporations during the coronavirus disease period. SMEs can fulfill their ICSR to enhance the internal explanation mechanism of consumer brand attitudes and the moderating role of enterprise losses.
... As the earliest form of marketing communication, WOMC is regarded as an indicator of judgment and selection of a new product or service (De Matos & Rossi, 2008;V azquez-Casielles et al., 2017). Although most WOMC studies were conducted on its effects, limited studies focused on the determinants of WOMC, most of which tend to relate to the consumer's direct experience with a brand, product, or service (Karjaluoto et al., 2016;Pongjit & Beise-Zee, 2015;V azquez-Casielles et al., 2012). In line with brand equity, we believe that WOMC can be considered as an outcome of brand equity that has been established through the enforcement of perceived value and brand trust. ...
Article
Due to high customer switching behavior from one mobile service provider to another and high competition within the market, scholars, and marketers are trying to find and formulate the most appropriate consumer-driven business strategy to stay competitive. Grounded in means-end, value, and brand equity theories, this study proposes an integrative model in the telecom context to establish value → trust→ brand → price tolerance→ word of mouth communication (WOMC) chain. As a primary approach, the survey method is used through which 437 online responses were collected. Applying Structural Equation Modeling (SEM), the findings of this study show that the empirical outcomes tally with the proposed relationships (the chain) and the importance-performance map analysis indicates that both perceived value and brand trust have the highest influence on price tolerance. Brand image and perceived value also demonstrate to be of highest importance in building positive WOMC in the context of the telecoms industry. In addition, this study found that brand equity components have strong mediating effects, while the moderating roles of gender and age across groups varies. Overall, this study contributes to the service marketing, branding, and consumer behavior literature, particularly in the context of telecommunications.
... Como os produtos podem ser ordenados nos e-marketplaces em função das pontuações, os ratings de avaliação têm implicações diretas no preço que, também em função disso, estão em constante dinamismo. Em todo o caso, a perceção por parte do consumidor de que muitas dessas avaliações podem corresponder a reviews incentivados, com oferta, por exemplo, de um pagamento, desconto ou amostras de produtos (Kim, Naylor, Sivadas & Sugumaran, 2015), consciencializa o poder de influência dos pares (Pongjit & Beise-Zee, 2015), embora sejam igualmente considerados no processo de avaliação dos produtos, desde que sejam credíveis (Kudeshia & Kumar, 2017 online, pelo que a perceção de uma plataforma mais sofisticada acaba por ter efeitos na intenção de compra. Em concreto, uma atitude positiva em relação à plataforma digital pode ser alcançada com esforços ao nível do design, usabilidade, facilidade de pesquisa e variedade de escolha, assim como com a possibilidade de interação com outros utilizadores e inovação no processo de atendimento ao cliente (Ghiasi et al., 2018). ...
... Indeed, this type of communication can influence consumers' behaviors by creating awareness, changing or confirming opinions, and encouraging or discouraging repeat purchase (Lee et al., 2018;Pongjit and Beise-Zee, 2015; Bambauer-Sachse and Mangold, 12 2011). In particular, by focusing on the dark side of word-of-mouth, offline NWOM and online complaining can be particularly effective in changing purchase intentions and decision making (Jayasimha et al., 2017;Sweeney et al., 2014). ...
The purpose of this study is to investigate the brand hate phenomenon for service products in a cross-channel setting (offline/online environment). To reach this objective, structural equation modeling was employed on a sample of 265 consumers. Findings reveal that brand hate positively influences offline negative word-of-mouth (NWOM), online complaining, and non-repurchase intention. Furthermore, while offline NWOM has a positive effect on non-repurchase intention, online complaining has a negative one. Finally, a mediated path was identified, which starts from brand hate and ends with non-repurchase intention through online complaining and offline NWOM. The study provides implications for firms’ marketers and practitioners.
... Electronic Word of Mouth (e-WOM) can be defined as "any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet" Hennig-Thurau, et al. (2004), p.39. e-WOM communications are considered a credible, reliable, and persuasive source of information (Chatterjee, 2001;Bickart & Shindler, 2001;Godes & Mayzlin, 2004;Mayzlin, 2006). The importance of e-WOM as a source of information can be due to the reasoning that consumers tend to trust it, as they perceive it free from any commercial or marketing intent (Pongjit & Beise-Zee, 2015). Therefore, it was inevitably bound to have a strong influence on consumers and brands. ...
Article
Full-text available
Electronic communication has become an essential part of consumers' everyday lives. Consumers rely on the internet as an alternative source of information pertaining to brands that can be accessed easily. As a result, electronic word of mouth (e-WOM) has become a force to be reckoned with that needs to be understood in order to be properly managed. This research investigates how the credibility of the brand as a source of information might be influenced by consumers' engagement in e-WOM and whether this influence subsequently reflects on their purchase intentions. The research findings indicate that indeed there is a relationship between e-WOM and brand credibility that reflects both directly and indirectly on the consumer's purchase intentions. Based on this, several recommendations are developed to help managers navigate their online presence in a way that specifically suits their consumers' internet usage patterns, in order to effectively manage available e-WOM on their brands.
... Pongjit and Beise-Zee [30], investigated how the incentives for the WOM can impact the brand attitude for the consumers. Their research aimed to understand how monetary and non-monetary incentives affect the various dimensions of brand image within various types of relationship. ...
Article
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Purpose: The purpose of this paper is to understand, summarize and highlight the current research work in the area of word-of-mouth (WOM) along with the existing gaps in the literature. Design/methodology/approach: This study is a qualitative analysis of 20 research articles from peer-reviewed sources covering a span of 14 years from 2002 till 2016 addressing WOM, its antecedents, the effects and its role in the overall larger context. Findings: WOM strongly impacts consumer behavioral attitudes. Tie strength, stickiness, loyalty, monetary influence can moderate the WOM influence. However it remains to be seen the how various personality traits gets affected. Practical implications: The findings of this review may help potential marketers to understand WOM and its intricacies and follow the best approach to maximize the WOM effect. Originality/value: Given the limited amount of the literature focused, this paper summarized the existing work so that researchers and organizations can use this knowledge and focus on their WOM activities. It also highlights the research opportunities for scholars interested in pursuing further studies in this area.
... (2) With weak ties, receivers and recommenders are in market norms, so our conclusions are consistent with existing results [8,12,53]. Compared with unrewarded referrals, rewarding referrals evoke less favorable responses to the referral [54], which is contrary to our results. The reason is that receivers of strong ties tend to help recommenders avoid feeling guilty in online social networks. ...
Article
Full-text available
Because online circumstances allows communication remotely and out of synchronization, along with a better communication capacity, online referral reward programs in social networks may have different characteristics compared with traditional referral reward programs. This paper studied the effects of reward allocation, tie strength and brand relationships on receivers’ responses in referral reward programs and confirmed the mediating effects of social cost. It investigates the impact of online referral reward programs on receivers’ responses from the perspectives of social norms and market norms. We identify the moderating conditions that are expected to affect when and how a reward leads the receiver to infer social norms, thereby increasing the referral’s effectiveness. In study 1, because receivers with different tie may have relationships based on market norms or social norms (Wentzel et al. in J Serv Res 17(2):119–133, 2014), we examine the effect of tie strength and reward allocation on receivers’ responses in online referral reward programs. Furthermore, we extended the analysis of study 1 in two ways through the introduction of brand relationships and reward characteristics. In study 2, we introduced brand relationships to analyze the effect of tie strength and reward allocation on receivers’ responses. In study 3, we studied the effects of reward type and tie strength on receivers’ responses in online referral reward programs. To capture the underlying process, we also examined the participants’ perceptions of social cost in three studies. Finally, we conclude by discussing the theoretical and managerial implications of the findings. People with strong ties tended to accept a referral more often than those with weak ties, because people with strong ties gave their friends’ benefits more consideration. However, in strong brand relationships, receivers with strong ties in No Reward conditions tend to respond to referrals more than those with strong ties in the Reward Recommender conditions, because rewarding recommenders makes social norms transfer into market norms. This paper extended the theory on effect of reward on receivers’ responses in online referral reward programs and further verified that social cost was a key element of psychological mechanism that caused reward to strengthen receivers’ responses under market norms or social norms. This paper researched how social norms and market norms affected consumers’ behaviors differently, which helped company design online referral reward programs. This paper researched the relationships between market norms and social norms on receivers’ responses in online social network.
... Pongjit and Beise-Zee [30], investigated how the incentives for the WOM can impact the brand attitude for the consumers. Their research aimed to understand how monetary and non-monetary incentives affect the various dimensions of brand image within various types of relationship. ...
... By creating games that reward inviters' behavior, marketers seek to develop interactive game mechanics that give players a feeling of control. There is, however, still little information about the effect of incentives on word of mouth (Pongjit and Beise-Zee, 2015). Previous studies in psychology suggest that a prize could decrease a person's intrinsic motivation to perform a task (Ryan and Deci, 2000). ...
Article
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To encourage viral spread, companies attempt to create captivating and compelling online games. The current research examines the effects of requiring players to use skills when playing games versus rewarding players who recommend games to others. The authors used two methods: an experiment and a field study. In the initial study, calling on players’ skills during the game experience positively affected the intention to invite friends to join the game. When marketers added a system of incentives, players no longer were motivated to invite friends to join the game. From an existing viral promotional game database, the authors replicated the study and confirmed the results. © 2017, World Advertising Research Center. All rights reserved.
Article
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The rapid development of technology as well as the widespread use of smartphones increasingly creates consumers' demand of practicality in various aspects of life, including in the term of convenience shopping experience. Online shopping is new trend that is preferred by many consumers in this digitalization era. This study aims to analyze the effect of e-service quality towards e-satisfaction and e-loyalty. The results of this research provide a theoretical background for business practitioners to make use of credible e-commerce platform to take advantage of opportunities in this digital era. Keywords: e-service quality, e-satisfaction dan e-loyalty. ABSTRAK : Perkembangan teknologi dan jaringan internet, serta maraknya penggunaan smartphone membuat konsumen semakin menuntut adanya kemudahan dan kepraktisan dalam berbagai aspek kehidupan, termasuk salah satunya adalah kemudahan dalam berbelanja. Berbelanja online (online shopping) merupakan suatu trend yang disukai masyarakat di era digitalisasi ini. Penelitian ini bertujuan untuk menganalisis pengaruh dari equality Service, terhadap e-satisfaction dan e-loyalty. Hasil dari penelitian ini diharapkan dapat menjadi dasar teoritis bagi para para pebisnis untuk platform e-commerce yang kredibel dalam memanfaatkan kesempatan di era digital ini. Kata Kunci : e-service quality, e-satisfaction dan e-loyalty.
Article
"The aim of this paper is to investigate the effect that Word-Of-Mouth (WOM) could have on consumers in different countries, with respect to brand-choice, brand-image, product-category choice, the quantity purchased of a product/brand, and with respect to the likelihood of sharing a product/brand experience depending on a consumer’s level of satisfaction with a specific product-category or brand (Satisfied, Dissatisfied, or Delighted). The hypotheses to be investigated were generated from the literature, and then used to define the variables that were later integrated in a Discriminant-Analysis, to help differentiate between the effects that WOM could have on the product/brand-related decisions stated above, in different countries.The effect of WOM on products categories and brands differs from one country to another on several facets, as illustrated here through the case of England and Russia. The findings of this paper advise marketers on whether to standardize their reliance on WOM to support their brands in different countries, or adapt its extent and manner to each specific country. Ability to predict consumers’ country of origin, merely by analysing their answers to survey questions, and therefore foresee the differentiated effect of WOM on products and brands in each country. Keywords: Word-of-Mouth, Cross-Cultural, Consumer Behaviour, Russian consumers, English consumers "
Chapter
Electronic communication has become an essential part of consumers' everyday lives. Consumers rely on the internet as an alternative source of information pertaining to brands that can be accessed easily. As a result, electronic word of mouth (e-WOM) has become a force to be reckoned with that needs to be understood in order to be properly managed. This research investigates how the credibility of the brand as a source of information might be influenced by consumers' engagement in e-WOM and whether this influence subsequently reflects on their purchase intentions. The research findings indicate that indeed there is a relationship between e-WOM and brand credibility that reflects both directly and indirectly on the consumer's purchase intentions. Based on this, several recommendations are developed to help managers navigate their online presence in a way that specifically suits their consumers' internet usage patterns, in order to effectively manage available e-WOM on their brands.
Article
Purpose Situated between the literature on internal branding and user-generated content, this study aims to demonstrate the effect of employee-generated content (EGC) on consumers’ purchase intentions and positive word of mouth (WOM). Design/methodology/approach The conceptual model was empirically tested using structural equation modeling based on a sample of 442 participants. Findings The findings support a sequential mediation model in which employee-created social media content impacts perceptions of brand citizenship behavior (BCB) and perceptions of expertise, which in turn increases purchase intention and WOM. Practical implications Based on the findings, this research suggests that employee ambassador programs can work to attract employees with an interest in brand-related social media content creation. Facilitating EGC through support, empowerment and reinforcement rather than traditional control mechanisms is recommended. Originality/value This research introduces the concept of EGC and employee content creators while extending the literature on perceived BCB by empirically demonstrating its relationship with perceived expertise and positive consumer behavior outcomes.
Thesis
With the rise of social media, brands started to market themselves through platforms , such as Facebook, Instagram or YouTube. One type of social media marketing that emerged over the past years and is one of today's marketing hot topics, is influencer marketing. Its purpose is that influencers, also referred to as opinion leaders, share their attitudes and experiences with brands in order to impact con-sumers' opinions about these brands. Considering that brand image and brand equity are important assets of every company , the purpose of this thesis is to figure out how this new form of marketing affects a brand's image and its equity. Therefore, it is necessary to define the fundamental terms such as brand, brand image, brand equity, social media, electronic word-of-mouth and influencer marketing. By combining these concepts, the results show that influencer marketing does affect brand image and brand equity. How it affects them depends on whether the electronic word-of-mouth, meaning the shared opinions and experiences of influ-encers, are positive or negative. Therefore, influencer marketing can be regarded as an important marketing instrument.
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Purpose The purpose of this paper is to investigate how referral reward programs (RRPs) utilizing scarcity messages influence bank credit holders’ referrals to and adoptions by close or distant friends. Design/methodology/approach A 2×2 experiment is implemented with 760 consumers solicited through Amazon’s Mechanical Turk worker panel. Logit transformation and general linear models are used to test the proposed hypotheses. Findings Results showed that offering RRPs with limited available referrals (quantity scarcity) increases the overall number of referrals to and adoptions by close and distant friends. The percent of strong ties also increases with RRPs. As quantity scarcity is relaxed, the percentages of referrals to and adoptions by close friends decrease. Originality/value The inclusion of tie strength with scarcity framing greatly enhances our understanding of the effectiveness of RRPs for bank credit cards. To the authors’ knowledge, this is the first research attempt on this topic.
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The concept of friendship remains important from societal, academic, and practitioner perspectives. We find that there is a proliferation of research in the marketing discipline on the utilization and applicability of the concept of friendship, but the literature is fragmented. By fragmentation, we refer to the fact that the notion of friendship is tapped in multiple, independent research streams. As a result, there is a lack of an organized and holistic view of friendship-related research in the marketing domain. Drawing on an extensive literature review of 130 papers in more than 30 peer-reviewed scholarly journals across a 37-year time span (1980-2017), this paper synthesizes the extant friendship research in the domain of marketing through a taxonomy, which categorizes the different types of friendship conceptualizations based on two underlying characteristics, or dimensions, the formation of friendship, and consumption timeline. The proposed taxonomy shows the differences as well as the interrelationships between the different publications, giving a systematic view of the research landscape. We suggest future research avenues as well, for further research in the area of marketing-related friendships and highlight why the research is relevant from a real-world perspective.
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This paper examines the differential effects of celebrity and expert endorsements on consumer risk perceptions via three studies. Using source model theories, it is hypothesized that for high technology—oriented products there will be stronger effects of expert endorsers than celebrity endorsers in reducing consumer risk perceptions. In addition, for high technology—oriented products, there is likely to be an interaction effect between endorser type and consumer knowledge on respondents' risk perceptions. Such an interaction effect is likely to be absent for products with a low technology orientation. These hypotheses are supported by the first two studies. The third study examines the underlying theoretical processes of internalization versus identification and shows that the stronger effects of expert (versus celebrity) endorsers for high technology-oriented products is somewhat neutralized for certain types of perceived risks when there is high congruency between the celebrity endorser and the product.
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Marketing practitioners and theorists routinely cite the power of the personal referral on customer behaviour. However, relatively few companies have tried to harness the power of word of mouth (WOM). Scholars have been pondering WOM over 2400 years, although modern marketing research into WOM started only relatively recently, in the post-war 1940s. WOM can be characterized by valence, focus, timing, solicitation and degree of management intervention. Most recent WOM research has been conducted from a customer-to-customer perspective, even though WOM is found in other contexts such as influence, employee and recruitment markets. Marketing research into WOM has attempted to answer two questions. What are the antecedents of WOM? What are the consequences of WOM? This paper integrates that research into a contingency model and attempts to identify researchable gaps in our knowledge.
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The author explores the information needs of service consumers. In the purchase decision process, search behavior is motivated in part by perceived risk and the consumer's ability to acquire relevant information with which purchase uncertainty can be addressed. Marketing theory suggests that consumers use information sources in a distinctive way to reduce the uncertainty associated with services. Hence, six hypotheses are developed to test the information acquisition of service buyers. An experimental approach is employed to compare, in a prepurchase context, the information sources used by consumers of services and those used by consumers of goods. The resulting data support the predictions offered and extend marketing theory.
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An experiment was conducted to examine the effect of self-interest in a personal communication situation. Self-interest was investigated as a moderator of the effects of argument strength and expertise on personal communication effectiveness. The results suggest that self-interest is an important contingency variable that can alter significantly the effectiveness of personal communication variables.
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Referral reward programs are becoming a popular tool for acquiring new customers and bonding existing ones. Yet their benefits are contentious, since such campaigns are prone to the opportunistic behaviour of customers who merely want to reap the reward. This paper examines how participating in a referral campaign affects opportunistic recommenders. By conducting two experimental studies, this article shows that giving counterattitudinal referrals enhances the communicator׳s attitude and loyalty toward the recommended provider. However, the positive effect depends on the reward size. While referral reward programs with small incentives strengthen the recommender׳s attitude and loyalty, no impact was found for referrals with large rewards. The results show that a stronger focus on reward programs is worth considering, since service providers can benefit from opportunistic customers with regards to the bonding effect.
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Purpose – The purpose of this study is to examine how the nature of consumers' relationship with a brand influences brand evangelism, which represents an intense form of brand support behavior. Specifically, the study investigates the influence of two consumer-brand relational constructs, brand trust and brand identification, on brand evangelism. Brand evangelism, conceptualized as an amalgam of adoption and advocacy behaviors, is operationalized in terms of three supportive behaviors: purchase intentions, positive referrals, and oppositional brand referrals. Design/methodology/approach – Drawing from prior research on consumer-brand relationships, a framework of brand relationships and brand evangelism is developed. To provide a more robust test of theory, consumers' extraversion, gender, and brand experience are included as control variables. Structural equation modeling is used to test the proposed hypotheses. Findings – The findings reveal that consumer-brand relationships influence brand evangelism, albeit in different ways. Whereas brand trust influences purchase intentions and positive referrals, brand identification influences positive and oppositional brand referrals. Overall, the findings reveal the power of consumer-brand relationships in engendering brand evangelism, relative to other factors such as extraversion, gender, and brand experience. Practical implications – In today's consumption society, where it is increasingly easier for consumers to demonstrate extreme devotion and derision toward brands, it is important for marketers to understand the drivers of behaviors directed toward brands. This study suggests that marketers can cultivate brand evangelism by building brand trust and brand identification. Originality/value – Marketing researchers and practitioners are only recently beginning to understand brand evangelism. This study demonstrates that consumer-brand relationships, rather than personality, gender, and usage experience, trigger brand evangelism and offers directions for future researchers to further explicate brand evangelism.
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The advance of the Internet facilitates consumers to share and exchange consumption-related advice through online consumer reviews. This relatively new form of word-of-mouth communication, electronic word-of-mouth (eWOM) communication, has only recently received significant managerial and academic attention. Many academic studies have looked at the effectiveness of positive eWOM communication, examining the process by which eWOM influences consumer purchasing decisions. eWOM behavior is primarily explained from the individual rational perspective that emphasizes a cost and benefit analysis. However, we felt there was a need for an extensive study that examines consumers' motives for eWOM. In this paper, we focus on the factors that drive consumers to spread positive eWOM in online consumer-opinion platforms. Building on the social psychology literature, we identified a number of key motives of consumers' eWOM intention and developed an associated model. We empirically tested the research model with a sample of 203 members of a consumer review community, OpenRice.com. The model explains 69% of the variance, with reputation, sense of belonging and enjoyment of helping other consumers significantly related to consumers' eWOM intention. The results of this study provide important implications for research and practice.
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Despite the recognized influence of word-of-mouth (WOM) in the consumer decision making process, research investigating how listeners of WOM use this communication is limited. In this paper, the authors present a model which integrates factors influencing listeners' usage of WOM (WOMU) and the consequences of WOMU in listeners' purchase decisions. Empirical testing of the model indicates that characteristics of both the WOM speaker (trustworthiness, experience, and evidence) and the WOM listener (self-perceived knowledge and purchase involvement) affect WOMU, as well as whether the WOM is face-to-face or online. The results also show that WOMU strongly relates to attitude toward the recommended product. Implications for retailers and marketing researchers are given along with directions for future research.
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The finding that extrinsic rewards can undermine intrinsic motivation has been highly controversial since it first appeared (Deci, 1971). A meta-analysis published in this journal (Cameron & Pierce, 1994) concluded that the undermining effect was minimal and largely inconsequential for educational policy. However, a more recent meta-analysis (Deci, Koestner, & Ryan, 1999) showed that the Cameron and Pierce meta-analysis was seriously flawed and that its conclusions were incorrect. This article briefly reviews the results of the more recent meta-analysis, which showed that tangible rewards do indeed have a substantial undermining effect. The meta-analysis provided strong support for cognitive evaluation theory (Deci & Ryan, 1980), which Cameron and Pierce had advocated abandoning. The results are briefly discussed in terms of their relevance for educational practice.
In this paper, we examine effects of negative online product reviews, a specific type of word-of-mouth communication, on consumer-based brand equity in terms of brand equity dilution. The results of our empirical study provide support for the assumed detrimental effect of negative online product reviews on consumer-based brand equity.
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Adopting a qualitative methodology, this exploratory study examined the construct of trust and its factors of trustworthiness as perceived in a Confucian-influenced society. The findings of our study indicated that there are emic differences in the meaning of trust as perceived in a Confucian-influenced setting. Specifically, we found a heavy reliance on affective factors of trustworthiness in the decision to trust. In addition, we found a number of factors unique to the context that facilitates the development of trust: diligence, perseverance, filial piety, thriftiness, respect for authority, a shared value of collective effort, harmonious relationship in the office, humbleness and magnanimous behavior. Implications are drawn and future research directions suggested.
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This research investigates the extent to which a salesperson's presentation and consumer suspicion of ulterior motive affect salesperson evaluations and purchase intentions. Study 1 indicates that a salesperson's presentation plays an essential role in confirming or discontinuing consumer suspicion and that this process has important implications in the formation of salesperson attitudes. Evidence from Study 2 demonstrates that these interaction effects are mediated by persuasion-motive attributions. The findings also support a direct link between attitude toward the salesperson and purchase intentions. Collectively, these results extend the persuasion literature by demonstrating that suspicion of motive is a dynamic state in which consumers entertain rival hypotheses about the salesperson (e.g., is the salesperson truly motivated to help me, or motivated to make his or her commission?) and that, depending on the degree of suspicion, the same salesperson's tactics will be processed very differently by consumers.
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This article critically examines McGraw and Tetlock's (2005) notion of relational framing and offers directions for future development of the conceptual model. I begin by discussing the in- herent limitations of scenario studies and show how the emergence of attribution analysis in real interpersonal interactions may qualify the results obtained in these studies. I then discuss the norm consistency and social identity maintenance mechanisms proposed in the article and advance several alternative mediators of the phenomenon, including affect and anticipated in- teraction. I recommend experimental designs that could be used to isolate the role of the differ- ent mediators and suggest the incorporation of process measures. I end with a discussion of conditions under which relational framing may not matter and propose a research agenda for consumer researchers interested in building on the solid foundation laid by McGraw and Tetlock.
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Research on negative word-of-mouth communication (WOMC) in general, and the process by which negative WOMC affects consumers’ brand evaluations in particular, has been limited. This study uses attribution theory to explain consumers’ responses to negative WOMC. Experimental results suggest that (a) causal attributions mediate the negative WOMC-brand evaluation relation, (b) receivers’ attributions depend on the manner in which the negative WOMC is conveyed, and (c) brand name affects attributions. Results also suggest that when receivers attribute the negativity of the WOMC message to the brand, brand evaluations decrease; however, if receivers attribute the negativity to the communicator, brand evaluations increase.
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Not a lot is known about direct selling and especially the newer forms of direct selling, such as multi-level selling and Internet selling. What drives the effectiveness of these systems? The current study takes up one specific aspect of this question by comparing the effectiveness drivers from an Eastern country (China) and a Western country (Australia). Are these drivers different or similar between countries? To operationalize this question, we use a study of direct selling in China by Luk, Fullgrabe, and Li (1996) as our benchmark. We replicate this study in Australia, making a few minor adaptations and some minor extensions, and we compare the effectiveness drivers in the two countries. The study concludes that in each country both product elements and relationship elements affect direct selling effectiveness, but in relative terms, relationship elements are relatively more important in China. This finding is consistent with other studies comparing Western and Eastern cultures. In China the elements of relationship marketing are more coherent and form a holistic configuration known as guanxi. In Australia there are several separate dimensions (reciprocity, trust, friendliness, and good personal relationship) of direct selling relationship marketing. Cultural differences seem to be the main reason for this contrast between the samples from the two countries.
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The chapter discusses the empirical exploration of intrinsic motivational processes. Intrinsically motivated behaviors, motivated by the underlying need for competence and self-determination, are investigated in a variety of ways at the physiological, psychological, and operational levels. One of the two general approaches; the incongruity theories and the competence and/or self-determination theories generally guides those focused on the psychological level. The chapter presents the performance-contingent rewards that actually enhance intrinsic motivation when administered in a way that places emphasis on effective performance rather than on reward acquisition. The research literature that explored the nature of intrinsic motivation and the effects of rewards and controls on intrinsic motivation highly support the competence and self-determination formulation of intrinsic motivation and also the propositions of cognitive evaluation theory. The results of individual studies provided the basis for greater understanding of the phenomena and greater specificity of the theory. Understanding of motivational processes is critical for explicating and predicting human behavior as well as a variety of interrelated beliefs, attitudes, and affects, the complex referred to as motivational subsystems. The chapter also describes a field study conducted in the fourth, fifth, and sixth grades of four elementary schools.
Article
Purpose This study aims to analyse the influences of prestige, satisfaction, and communication on brand identification and to show how brand identification influences word‐of‐mouth and brand repurchase. Design/methodology/approach A theoretical model is developed and tested with a sample of car owners in the UK of two global car brands. Structural equation modelling was used with LISREL 8.54 and the maximum likelihood (ML) method. Findings This paper draws mainly on the theory of social identity to provide a comprehensive understanding of conditions under which brand owners are likely to identify with their brand and the bases and consequences of such identification. It was shown that prestige, satisfaction, and communication effect brand identification. The study confirms that consumers' development of relationships via brand identification results in word of mouth about the brand and intentions to repurchase the brand. Furthermore, it was found that brand identification fully mediates the influences of prestige, satisfaction, and communication on word of mouth and brand repurchase. Research limitations/implications The focus was on one country and one industry. Practical implications Managers are provided with strategies that enhance the identification of their customers with their brand so that they can strengthen the customers' brand identification. Areas for future research are suggested. For instance, it could be interesting to test the model in a different industry and/or cultural context. Originality/value Very few previous studies have looked at brand identification which is surprising considering it is such an important variable to influence word‐of‐mouth and brand repurchase. The study tests three antecedents to brand identification and two outcomes that have not been investigated previously. Overall, the study adds knowledge in this somewhat neglected area.
Purpose – Based on message source theory, the purpose of this paper is to use positive electronic word‐of‐mouth (eWOM) settings to examine the influence of message source credibility on brand attitude (brand trust, brand affection, and purchase intention). The current study also uses the elaboration likelihood model to examine the moderating effect of product involvement on the relationships between message appeals (rational vs emotional) and brand attitude, as well as between message source credibility and brand attitude. Design/methodology/approach – Data were collected via internet questionnaires. Based on the internet investigation and pretest, this study chose the stimuli for research products, virtual brands, eWOM, and message source credibility. Via a 2 (notebooks vs shampoo) *2 (appeal: rational vs emotional) experimental design, 211 effective samples were collected to verify the hypotheses of this study. Findings – The results, for both notebooks and shampoo, are: the positive eWOM message with higher message source credibility indicates a better brand attitude than the eWOM message with lower message source credibility, and this effect is not moderated by the degree of product involvement, indicating its robustness. Second, with a high degree of product involvement, the rational appeal indicates a better brand attitude than the emotional appeal; no significant difference is found when product involvement drops to a low level. Originality/value – Previous research investigating the moderating effect of involvement on the effects of message‐appeal types and the message source credibility of eWOM is rare. The main contribution of this study is to fill this gap.
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Distinctive forms of business organization have become dominant and successful in Japan, South Korea, Taiwan and Hong Kong over the past 40 years. These different business systems reflect historical patterns of authority, trust and loyalty in Japan, Korea and China. They also vary in their specialization, strategic prefer ences and patterns of inter-firm co-ordination because of significant differences in their institutional environments, especially the political and financial systems. Similar processes exist in western societies but distinctive business systems are not so sharply bounded between nation states and cultures in Europe and North America.
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This paper examines how product and consumer characteristics moderate the influence of online consumer reviews on product sales using data from the video game industry. The findings indicate that online reviews are more influential for less popular games and games whose players have greater Internet experience. The paper shows differential impact of consumer reviews across products in the same product category, and suggests that firms' online marketing strategies should be contingent on product and consumer characteristics. The authors discuss the implications of these results in light of the increased share of niche products in recent years.
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Presents a summary and synthesis of the author's work on attribution theory concerning the mechanisms involved in the process of causal explanations. The attribution theory is related to studies of social perception, self-perception, and psychological epistemology. Two systematic statements of attribution theory are described, discussed, and illustrated with empirical data: the covariation and the configuration concepts. Some problems for attribution theory are considered, including the interplay between preconceptions and new information, simple vs. complex schemata, attribution of covariation among causes, and illusions in attributions. The role of attribution in decision making and behavior is discussed. (56 ref.) (PsycINFO Database Record (c) 2012 APA, all rights reserved)