Word of mouth signaling: A quantitative study on a customer review-based approach to social media ads and the trustworthiness of selective exposure
Abstract
The persuasive power of customer reviews is recognized by marketers and businesses across various industries. Numerous researchers have explored the framework and effects of these reviews, investigating what motivates consumers to read and write them and their broader implications. This topic is particularly intriguing for marketers since these reviews are consumer generated and not directly controlled by businesses. The question arises: how can marketers leverage this potential marketing content? Specifically, can the successful integration of eWOM in social media advertisements enhance brand trust and subsequently increase purchase intentions?
While it is commonly believed that positive reviews boost sales and negative reviews hinder them, the reality is more complex. Factors such as the type of product, the platform where the review is read, the review's content, and the reviewer's identity can all influence the impact. In our study, we analyzed the effects of customer reviews versus business statements on trust and purchase intention. We exposed two groups to an identical Instagram advertisement by the fictional company “Rørlegger AS,” with the only difference being the caption (customer review vs. business statement).
The results did not show a significantly higher direct effect of customer reviews on purchase intention compared to business statements. Additionally, trust had a significant effect on purchase intention, but there was no mediated effect of trust in the overall sample. However, we found a moderated mediation effect of gender. Specifically, female participants reported significantly higher trust levels when exposed to customer reviews, which indirectly influenced their purchase intentions.