Journal of Advances in Information Technology, Vol 2, No 4 (2011), 190-198, Nov 2011
doi:10.4304/jait.2.4.190-198

The Utilization of Web2.0 Functionalities on E-Commerce Web Sites

Yong-Mi Kim, Suliman Hawamdeh

Abstract


The advent of Web 2.0 has changed the way people utilize and interact with information. The dynamic and collaborative nature of Web2.0 has made it possible for both retailers and customers to engage in two-way communication and share valuable information about products and services offered online. Current studies have investigated users’ utilization of the technology while neglecting the provider’s part. This study is an attempt to integrates both the users and the providers and examines the utilization level of Web 2.0 technologies.

Retailers utilized Web 2.0 functions that help them improve their marketing strategies, increase traffic to their websites and improve their sales. Some of these functions include data gathering through personalization, product reviews and ratings. Users on the other hand preferred Web 2.0 functions that allow them to better assess product and service quality such as product reviews, ratings, referrals and recommendations that signal product quality and website reliability It is clear from the results that consumers seek knowledge about products and services through various signaling methods such as product reviews, ratings, and expert opinions. Although expert opinions shape purchasing behaviors, only 20% of surveyed retailers offer this functionality.



Keywords


Consumers, Retailer, e-Commerce, Web 2.0, Knowledge transfer functions, Product review, Product rating, Discussion board, Customized display, Recommender system, Expert opinion, FAQs, and Online manuals

References


D. Andrisani, A. V. Gaal, D. Gillette, S. Steward, “Making the most of interactivity online”. Technical Communication, August, 2001.

N. Artz, & A. Tybout, “The moderating impact of quantitative information on the relationship between source credibility and persuasion: A persuasion knowledge model interpretation”. Marketing Letters, Vol. 10. No. 1, 1999, pp. 51-63.
http://dx.doi.org/10.1023/A:1008035107314

P. Carpenter, Ebrands: building an Internet business at breakneck speed. Boston: Harvard Business School Press, 2000.

S. Chen, S. Wu, & J. Yoon, “The impact of online recommendations and consumer feedback on sales”. Twenty-Fifth International Conference on Information Systems, 2004, pp. 711-724.

Y. Chen, & J. Xie, “Online consumer review: word-of-mouth as a new element of marketing communication mix”. Management Science, 54(3), 2008, pp. 477–491.
http://dx.doi.org/10.1287/mnsc.1070.0810

J. Chevalier, & D. Mayzlin, The effect of word of mouth on sales: online book reviews. Journal of Marketing Research, Vol. 43, No. 3, 2004, 345–354.
http://dx.doi.org/10.1509/jmkr.43.3.345

C. Dellarocas, “The digitization of word-of-mouth: promise and challenges of online reputation mechanisms”. Management Science, Vol. 49 No. 10, 2003, pp. 1407-1424.
http://dx.doi.org/10.1287/mnsc.49.10.1407.17308

L. Freeman, “Social shopping study reveals changes in consumers’ online shopping habits and usage of customer reviews”. BusinessWire, 2010 (accessed on May 1 at http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100503005110&newsLang=en)

J. Fuller, M. Bartl, H. Ernst, & H. Muhlbacher, Community based innovation: how to integrate members of virtual communities into new product development. Electronic Commerce Research Journal, Vol. 6, No. 3, 2006, pp. 57–73.
http://dx.doi.org/10.1007/s10660-006-5988-7

D. Godes, & D. Mayzline, “Using online conversations to study word-of-mouth”. Communication Marketing Science, Vol. 23, No. 4, 2004, pp. 545–560.
http://dx.doi.org/10.1287/mksc.1040.0071

D. Gregg, & S. Walczak, “The relationship between website quality, trust and price premiums at online auctions”. Electronic Commerce Research, Vol.10, 2010, pp. 1–25.
http://dx.doi.org/10.1007/s10660-010-9044-2

T. Hennig-Thurau, Gwinner, K., Walsh, Gi., & Gremler, D. (2004). “Electronic word-of-mouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the Internet?” Journal of Interactive Marketing, Vol.18, No 1, 2004, pp.38-52.
http://dx.doi.org/10.1002/dir.10073

S. Y. Ho, “The attraction of Internet personalization to web users”. Electronic Markets, Vol. 16, No. 1, 2006, pp. 41-50.
http://dx.doi.org/10.1080/10196780500491162

N. Hu, P.A. Pavlou, & J. Zhang, J. “Can online reviews reveal a product’s true quality? Empirical findings and analytical modeling of online word-of-mouth communication”. ACM EC’06, Ann Arbor, Michigan, 2006, pp. 324–330.

S. Kalyanaraman, & S. Sundar, “The psychological appeal of personalized content in web portals: does customization affect attitudes and behavior?” Journal of Communication, Vol. 56, No. 1, 2006, pp.110-132.
http://dx.doi.org/10.1111/j.1460-2466.2006.00006.x

Y-M, Kim, “Validation of psychometric research instruments: the case of information science”. Journal of the American Society for Information Science and Technology, Vol. 60. No. 6, 2009, pp.1178-1191.
http://dx.doi.org/10.1002/asi.21066

Y-M, Kim & J. Abbas, “Adoption of Library 2.0 functionalities by academic libraries and users: a knowledge management perspective”. Journal of Academic Librarianship, Vol. 36, No. 3, 2010, pp. 211–218.
http://dx.doi.org/10.1016/j.acalib.2010.03.003

Y-M, Kim, & S. Hawamdeh, S. “Leveraging customer knowledge: a comparative study of eCRM functionality and its use in e-commerce websites”. International Journal of Electronic Customer Relationship Management, Vol. 1, No. 4, 2008, pp. 327-340.
http://dx.doi.org/10.1504/IJECRM.2008.018806

M. Lee, C. Cheung, K. Lim, & C. Sia, “Understanding customer knowledge sharing in web-based discussion boards: an exploratory study”. Internet Research, 16, No. 3, 2006, pp. 289-303.
http://dx.doi.org/10.1108/10662240610673709

X. Li & L. Hitt, “Self-selection and information role of online product reviews.” Information Systems Research, 19, No. 4, 2008, pp.456–474.
http://dx.doi.org/10.1287/isre.1070.0154

Y. Liu, “Word of mouth for movies: its dynamics and impact on box office revenue”. Journal of Marketing, Vol. 70, No. 3, 2006, pp. 74–89.
http://dx.doi.org/10.1509/jmkg.70.3.74

J. Marquart, G. O’Keefe, & G. Gunther, “Believing in biotech”. Science Communication, Vol. 16, No, 4, 1995, pp. 388-402.
http://dx.doi.org/10.1177/1075547095016004002

R. Ohanian, “Construction and validation of a scale to measure celebrity endorsers' perceived expertise, trustworthiness, and attractiveness”. Journal of Advertising, Vol. 19, No. 3, 1990, pp. 39-52.

P. A. Pavlou, & A. Dimoka, “The nature and role of feedback text comments in online marketplaces: implications for trust building and price premiums”. Information Systems Research, Vol. 17, No. 4, 2006, pp. 392–414.
http://dx.doi.org/10.1287/isre.1060.0106

P. A. Pavlou, H. Liang, & Y. Xue, “Understanding and mitigating uncertainty in online environments: an agency theory perspective”. MIS Quarterly, Vol. 31, No. 1. 2007, pp.105–136.

J. A. Plucker, J. C. Kaufman, J. S. Temple, & Qian, M. “Do experts and novices evaluate movies the same way?” Psychology & Marketing, Vol. 26, No. 5, 2009, pp. 470–478.
http://dx.doi.org/10.1002/mar.20283

J. F. Rayport, & B. J. Jaworski, E-commerce. NewYork: McGraw-Hill/Irwin. 2001.

F. Reichheld, Loyalty-based management. Harvard Business School Review, Vol. 2, 1993, pp. 64–73.

F. Reichheld, & P. Schefter, “E-loyalty”. Harvard Business Review, July-August, 2000, 105-113.

C. Riegner, “Word of mouth on the web: the impact of Web 2.0 on consumer purchase decisions”. Journal of Advertising Research, December, 2007, pp. 436-447.
http://dx.doi.org/10.2501/S0021849907070456

J.B. Schaffer, J. Konstan, & J. Riedl, “E-commerce recommendation applications”. Journal of Data Mining and Knowledge Discovery, 5(1/2), Vol. 5, No. 1-2, 2001, pp. 115-152.

P. Schubert, & M. Ginsburg, M. (2000). “Virtual communities of transaction: the role of personalization in electronic commerce”. Electronic Market, Vol. 10, No. 1, 2000, pp. 45-55.
http://dx.doi.org/10.1080/10196780050033971

M. Slater & D. Rouner, “How message evaluation and source attributes may influence credibility assessment and belief change”. Journalism and Mass Communication Quarterly, Vol. 73, No. 4, 1996, pp. 974-991.
http://dx.doi.org/10.1177/107769909607300415

B. Sternthal, L., Phillips, & R. Dholakia, R. “The persuasive effect of scarce credibility: a situational analysis”. Public Opinion Quarterly, Vol. 42, No. 3, 1978, pp. 285-314
http://dx.doi.org/10.1086/268454
PMid:10297222

D. S. Sundaram, K. Mitra, & C. Webster, “Word of-mouth communications: a motivational analysis”. Advances in Consumer Research, 25, 1998, pp. 527–531.

D. G. Taylor, D. F. Davis & R. Jillapalli, “Privacy concern and online personalization: the moderating effects of information control and compensation”. Electronic Commerce Research, 9, 2009, pp. 203–223.
http://dx.doi.org/10.1007/s10660-009-9036-2

D. Treise, K. Walsh-Childers, M. Weigold, & M. Friedman, “Cultivating the science Internet audience”. Science Communication, Vol. 24, No. 3, 2003, pp. 309-332.
http://dx.doi.org/10.1177/1075547002250298

J. Wiener & J. Mowen, “Source credibility: on the independent effects of trust and expertise”. In Advances in consumer research, vol. XIII, edited by R. J. Lutz, 306-10. Provo, UT: Association for Consumer Research, 1986.


Full Text: PDF


Journal of Advances in Information Technology (JAIT, ISSN 1798-2340)

Copyright @ 2006-2012 by ACADEMY PUBLISHER – All rights reserved.