The Impact of Word of Mouth Sources on the Perceived Usefulness of an Innovation

Tomoko Kawakami · Mark E. Parry

43 citations0/0 files storedJournal of Product Innovation Management

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Technology Adoption and User Behaviour Digital Marketing and Social Media Innovation Diffusion and Forecasting

Abstract

This paper examines the role of three indirect mechanisms linking word‐of‐mouth communication with one of the most important innovation attributes influencing the adoption decision: perceived usefulness. The authors hypothesize that word‐of‐mouth (WOM) communication impacts perceived usefulness by influencing potential adopter perceptions of the credibility of innovation information, the size of the adopter population, and the availability of complementary products. To test these hypotheses, the authors analyze the survey responses of over 550 potential adopters of e‐readers and smartphones. In both product samples, the perceived credibility of WOM information is positively related with perceived usefulness, which is positively related with purchase intent. Consistent with theoretical arguments regarding the importance of access to expert information sources, findings indicate that, relative to personal WOM, written and virtual WOM have stronger relationships with consumer perceptions of the credibility of innovation information. In addition, in both samples, perceived usefulness is positively related with the perceived availability of complementary products, which is positively related with both personal and written word‐of‐mouth. Finally, perceived usefulness has (1) a direct relationship with the perceived size of the local adopter population in the e‐reader sample and (2) an indirect relationship with the same variable that is mediated by the perceived availability of complementary products in both samples. In turn, the perceived size of the local adopter population is positively related with exposure to personal word‐of‐mouth.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1989Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology 1988Structural equation modeling in practice: A review and recommended two-step approach.1986Self-Reports in Organizational Research: Problems and Prospects 1963Diffusion of Innovations 2004Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the Internet?1979Mail and Telephone Surveys: The Total Design Method.1987Social Ties and Word-of-Mouth Referral Behavior

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