Electronic word-of-mouth marketing on Amazon: Exploring how and to what extent Amazon reviews affect sales

Abstract

Consumers today base many of their decisions on peer referrals and online reviews. With the omnipresence of social media and online reviews, electronic word-of-mouth marketing (eWOM) has become a priority for many companies for both business growth and reputational management. The objective of this study is to examine the effectiveness of eWOM and its impact on sales. This study also seeks to help organizational leaders understand the significance of eWOM and its role in effective consumer and stakeholder relations, and in overall brand management. The researchers of this project explored eWOM by examining Amazon reviews from two different Kickstarter companies to determine which elements of online reviews impact product sales. By overlaying Amazon review data and sales figures from each Kickstarter company, researchers were able to determine the review factors that companies should focus on to increase their sales and grow their brands. The results of this study show that products with a high volume of positive reviews made by verified purchasers positively correlate to product sales.   Keywords: electronic word-of-mouth marketing, Amazon, online reviews, Kickstarter, sales, reputational management, brand reputation, online reputation management