Significance of Electronic Word of Mouth (e-WOM) in Opinion Formation

Abstract

In the realm of interconnected digital world, social ranking systems are readily used in different sections of society, for several reasons. The private and public sectors both are making use of social ranking systems as a tool to engineer human behavior, and crafting a digitally stimulated social control. Online reviews and ratings are one of the significant marketing strategies of online sellers to steer out consumers’ opinion and ultimately their purchasing decisions. Buyers usually go through these reviews and ratings while purchasing online product or hiring online services. Online consumer reviews, recommendations for product and services, and peer viewpoints play a significant role in the customer's opinion formation. Different online forums of product reviews, ratings and recommendations differ in their objectives, functions, and characteristics. This paper focuses upon a systematic literature review and comparative study of the influence the positive and negative reviews and ratings of the products, automobile services, movies, restaurants, products and services on OLX & eBay, etc. have on opinion formation. Moreover, how these reviews influence others opinions of buying and using the products, services and apps will be analyzed.