The role of individualism, collectivism, and promotional reward type on consumer response to amplified word-of-mouth strategies

• Published in: The Journal of consumer marketing Vol. 41; no. 3; pp. 298 - 313
• Main Authors: Rawal, Monika, Saavedra Torres, Jose Luis, Bagherzadeh, Ramin, Rani, Suchitra, Melancon, Joanna
• Format: Journal Article
• Language: English
• Published: Santa Barbara Emerald Publishing Limited 26-04-2024; Emerald Group Publishing Limited
• Subjects: Collectivism; Consumers; Culture; Incentives; Individualism; Marketing; Product reviews; Purchase intention; Social networks; Promotional rewards; Repurchase intention; Collectivism; Culture; Individualism; eWOM
• ISSN: 0736-3761; 2052-1200; 0736-3761
• DOI: 10.1108/JCM-05-2022-5369

Purpose
This study aims to understand the effect of cultural dimension (individualism/ collectivism) on promotional rewards (social or economic) resulting in incentivizing consumers to engage in electronic word-of-mouth (eWOM), further impacting their repurchase intentions.
Design/methodology/approach
In Study 1, a 2 (culture: individualism vs collectivism) × 2 (promotional rewards: social vs economic) between-subjects design was used. Structural equation modeling was used to test the hypotheses. In Study 2, culture was measured instead of just being manipulated. The authors used regression analysis in this study.
Findings
Owing to the characteristics of collectivistic individuals, consumers in collectivistic cultures were more likely to respond to social rewards as an incentive to engage in eWOM. However, consumers in individualistic cultures were more motivated to engage in eWOM when economic rewards were offered.
Originality/value
Despite the global nature of eWOM, little research has explored the effects of cultural traits on consumer response to amplified eWOM strategy. Additionally, though many organizations now offer various promotional incentives to reviewers, little research has explored the effects of promotional offers on a reviewer’s subsequent behavior, and no research has explored the relationship between cultural dimensions and current and future response to promotional eWOM rewards.