Faculty Scholarship
Document Type
Article
Publication Date
2025
Abstract
This research explores how consumer electronic word of mouth (eWOM) influences a firm’s strategic emphasis, focusing on the distinct effects of positive and negative eWOM on value appropriation (e.g., advertising) versus value creation (e.g., R&D). Analyzing over 33 million social media posts covering 39 corporate brands from 2010 to 2020, the authors find that positive consumer eWOM influences firms to prioritize a strategic emphasis on value appropriation, while negative consumer eWOM is associated with a strategic emphasis on value creation. These effects are moderated by product category, market competition, and industry instability. Firms in hedonic categories have attenuated responses to both negative eWOM and positive eWOM, whereas utilitarian product firms have larger strategic emphasis shifts in response to consumer eWOM. Competitive and unstable markets further amplify the effects of eWOM, leading firms to adjust their strategies more aggressively. These findings offer valuable insights for managers to tailor their strategies based on consumer eWOM, product types, and market dynamics.
Recommended Citation
Nguyen, H. T., Holle, B. Z., & Phan, H. V. (2025). Shaping Strategy in the Digital Age: The Impact of Consumer Electronic Word of Mouth on Firm Strategic Emphasis. Journal of Interactive Marketing, 0(0). https://doi.org/10.1177/10949968251352492
Included in
Business Administration, Management, and Operations Commons, Management Sciences and Quantitative Methods Commons, Marketing Commons
