USER-GENERATED CONTENT AS WORD-OF-MOUTH

Edward Ramirez, Roland Gau, John Hadjimarcou, Zhenning (Jimmy) Xu

Research output: Contribution to journalArticle

6 Scopus citations

Abstract

The objective of this research is to identify two harvestable word-of-mouth (WOM) proxies and test their construct validity. Bivariate measures of association of user-generated content (UGC) data compiled from Facebook.com on sixty-one firms across nine markets suggest the WOM proxies were positively correlated, maintaining varying relationships with firms’ stock market performance. Study two uses time-series analysis to demonstrate that these WOM proxies change in tandem with stock prices, implying that they are sensitive to firm behaviors and that UGC is a leading indicator of stock market performance. As such, the findings provide managers with a tool to more accurately assess impressions of the firm.

Original languageEnglish
Pages (from-to)90-98
Number of pages9
JournalJournal of Marketing Theory and Practice
Volume26
Issue number1-2
DOIs
StatePublished - 2 Mar 2018

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