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Drivers of
Drivers of in-group and electronic word-
out-of-group electronic of-mouth
word-of-mouth (eWOM)
1067
José Luı́s Abrantes and Cláudia Seabra
Escola Superior de Tecnologia, Instituto Politécnico de Viseu, Viseu, Portugal Received 9 December 2011
Cristiana Raquel Lages Revised 14 April 2012
Accepted 14 June 2012
Loughborough School of Business and Economics, Loughborough University,
Loughborough, UK, and
Chanaka Jayawardhena
Hull University Business School, University of Hull, Hull, UK

Abstract
Purpose – The purpose of this study is to address a recent call for additional research on electronic
word-of-mouth (eWOM). In response to this call, this study draws on the social network paradigm and
the uses and gratification theory (UGT) to propose and empirically test a conceptual framework of key
drivers of two types of eWOM, namely in-group and out-of-group.
Design/methodology/approach – The proposed model, which examines the impact of usage
motivations on eWOM in-group and eWOM out-of-group, is tested in a sample of 302 internet users in
Portugal.
Findings – Results from the survey show that the different drivers (i.e. mood-enhancement,
escapism, experiential learning and social interaction) vary in terms of their impact on the two
different types of eWOM. Surprisingly, while results show a positive relationship between experiential
learning and eWOM out-of-group, no relationship is found between experiential learning and eWOM
in-group.
Research limitations/implications – This is the first study investigating the drivers of both
eWOM in-group and eWOM out-of-group. Additional research in this area will contribute to the
development of a general theory of eWOM.
Practical implications – By understanding the drivers of different eWOM types, this study
provides guidance to marketing managers on how to allocate resources more efficiently in order to
achieve the company’s strategic objectives.
Originality/value – No published study has investigated the determinants of these two types of
eWOM. This is the first study offering empirical considerations of how the various drivers
differentially impact eWOM in-group and eWOM out-of-group.
Keywords Internet, Word-of-mouth, Social network theory, Uses and gratification theory,
Communication, Marketing strategy, Portugal, Consumer behaviour
Paper type Research paper

The authors gratefully acknowledge the valuable comments from Thorsten Hennig-Thurau,
European Journal of Marketing
Robert East, Caterina Presi, Peter Toh and the members of the Marketing and Retailing group at Vol. 47 No. 7, 2013
Loughborough University on earlier versions of this paper. José Luı́s Abrantes, Cláudia Seabra pp. 1067-1088
q Emerald Group Publishing Limited
and Cristiana R. Lages are also grateful to the Portuguese Foundation for Science and 0309-0566
Technology and the Center for Studies in Education, Technologies and Health. DOI 10.1108/03090561311324219
EJM Introduction
47,7 [While] word of mouth has always been the most effective form of communication,
[nowadays] there is a lost generation of marketeers. . . who do not understand the web and
social networks (Simon Clift, Unilever Head of Marketing, Financial Times, April 6, 2010).
Social networks are a defining feature of today’s electronic landscape (Bruyn and
1068 Lilien, 2008). Within these social networks, it is common for individuals to provide and
receive information and informal advice on products and services. This is usually
referred to as electronic word-of-mouth (eWOM), which is conceptualised as “any
positive or negative statement made by . . . [an individual] . . . which is made available
to a multitude of people and institutions via Internet” (Hennig-Thurau et al., 2004, p. 39).
In contrast, word-of-mouth (WOM), the precursor to eWOM, may be defined as
person-to-person, oral communication between a receiver and a sender (Lee and Youn,
2009). In this communication, the source is perceived as a non-commercial message
that relates to a brand, product or service (Alon and Brunel, 2006; Arndt, 1967). WOM
has been recognised as a key force in the marketplace as it influences overall
consumers’ attitudes, beliefs and behaviour patterns (Bansal and Voyer, 2000;
Hennig-Thurau and Walsh, 2004; see Sweeney et al., 2011; Mazzarol et al., 2007), and
specifically consumers’ product judgements (Bone, 1995; Summers, 1972) and purchase
decisions (Lampert and Rosenberg, 1975; Lau and Ng, 2001).
While most traditional WOM occurs among individuals who know and trust each
other (Gupta and Harris, 2010), the internet facilitates not only communication with
family, friends, and co-workers but also unknown people (Kavanaugh et al., 2005).
Indeed, most eWOM occurs with individuals who are strangers (Gupta and Harris,
2010). Given the dissimilar tie strengths among individuals, two different types of
eWOM develop, namely eWOM in-group (eWOM with close friends or family), and
eWOM out-of-group (eWOM with individuals beyond a person’s social, familial and
collegial circles) (see Brown and Reingen, 1987; Matsumoto, 2000). This study aims to
investigate these two types of eWOM.
Given the “ease of eWOM generation and dissemination” (Gupta and Harris, 2010,
p. 1042) and its impact on consumer buying behaviour (Hennig-Thurau et al., 2004),
researchers have been calling for more research into eWOM for a number of years
(Gupta and Harris, 2010; Hennig-Thurau et al., 2004; Valck, 2006; Zhang et al., 2010).
Thus far, scholars have examined a wide range of eWOM issues, including the value of
eWOM to organisations (e.g. Liu, 2006), its links with purchase decisions and purchase
intentions (e.g. Lee and Lee, 2009), its ability to persuade consumers (e.g. Zhang et al.,
2010), its antecedents (e.g. Jayawardhena and Wright, 2009; Gruen et al., 2006;
Mazzarol et al., 2007; Sweeney et al., 2008), and its consequences (e.g. Park and Lee,
2008; Huang et al., 2011; Wangenheim and Bayón, 2004). Despite the considerable
volume of studies on eWOM, it is important to acknowledge that eWOM still remains a
very under-researched area (Zhang et al., 2010). Specifically, what drives individuals to
engage in different types of eWOM characterised by diverse tie strengths remains
underexplored.
Accordingly, this study’s objective is to address this gap in the eWOM literature by
investigating the impact of usage motivations on eWOM In-goup and out-of-group.
This distinction is important because information circulated through weak ties is more
novel than information that flows through strong ties (Granovetter, 2005; see Weenig
and Midden, 1991), and, therefore, the impact of usage motivations on eWOM might Drivers of
differ for in-group and out-of-group. Although some studies distinguish between electronic word-
in-group and out-of-group for the traditional WOM (see Brown and Reingen, 1987;
Granovetter, 1973), to the best of our knowledge, no study has investigated the of-mouth
determinants of these two types of eWOM.
From a managerial perspective, understanding the drivers of eWOM in-group and
out-of-group can help the company as a whole benefit from consumers’ generated 1069
eWOM and marketing managers, in particular, in implementing strategic decisions on
website design and product positioning aligned with our results.
This study draws on the social network paradigm and the uses and gratification
theory (UGT) to propose a conceptual framework of the motivational drivers of eWOM
in-group and out-of-group. In the next section, the theoretical background that
underpins the relationships in this study is presented, and the research hypotheses are
developed. In the following sections, the research methodology is discussed followed
by the analysis and the results. A discussion of the results and their implications for
academics and practitioners is presented. The paper concludes with the study’s
limitations and future research directions.

Model development and hypotheses

The conceptual framework postulates that motivations to use the Internet are
positively related to eWOM. Figure 1 shows the conceptual framework.

Social network paradigm

It is our contention that the social network paradigm provides a strong theoretical
basis for explaining eWOM. A social network can be defined as a social structure
representation in which people are points, connected by lines that represent
relationships (Granovetter, 1976). This paradigm assumes these ties link “social actors”
(Freeman, 2004, p. 3) in a network formed by one or more “nodes” of individuals in
social networks or using websites (Wellman, 2008). Information is exchanged among
people who have interpersonal ties that differ in strength. The ties’ strength results

Figure 1.
Conceptual framework
EJM from a “combination of the amount of time, the emotional intensity, the intimacy [. . .]
47,7 and the reciprocal services which characterise the tie” (Granovetter, 1973, p. 1361).
Depending on the strength of the ties, these can be classified as weak or strong ties.
Weak ties, also called secondary ties, are those established with people with whom one
rarely has contact with; strong or primary ties are those connections with family
members, close friends and colleagues (Granovetter, 1973; see Brown and Reingen,
1070 1987). Therefore, the social network paradigm is important in an eWOM context, since
weak ties tend to connect members of different groups, and therefore out-of-group
communication emerges. On the other hand, strong ties tend to be established in
specific groups in which in-group communication takes place (Matsumoto, 2000;
Granovetter, 1973). Both strong and weak ties are important to promote eWOM
because, in combination, they allow widespread information diffusion from one tightly
knit group to a bigger, cohesive social segment (Brown and Reingen, 1987;
Granovetter, 1973).

Uses and gratification theory: internet usage drivers

Much of the research on internet usage (e.g. Cuillier and Piotrowski, 2009; Grant, 2005)
suggests that internet usage is driven by different drivers. An underlying theory that
supports this notion is the uses and gratification theory (UGT) (Blumler and Katz,
1974). Employing the UGT in an internet context is not new. In fact, from its early
days, researchers have applied UGT to explain internet usage (Morris and Ogan, 1996;
Newhagen and Rafaeli, 1996; Charney and Greenberg, 2001; Flanagin and Metzger,
2001). The UGT builds upon three basic principles (Blumler, 1979): first, individuals
are goal directed in their behaviour; second, they are active media users; and third,
these active users are aware of their needs and select media to gratify them.
Scholars have long recognised the importance of individual differences in
determining behaviours. Furthermore, it has been shown that individual desires
influenced by personality affects how a person seeks gratification (Conway and Rubin,
1991). An individual’s values, beliefs, needs, and motives affect his or her behaviours,
such as media usage and selection, in order to satisfy a set of psychological needs. As
such, the use of a medium such as the internet is aligned with the three principles of the
UGT.
We rely on both the UGT and the social network paradigm in our conceptual
framework’s hypotheses development.

Mood enhancement and escapism

Moods are attached to all human activities, and influence a wide range of cognitive
processes and explicit behaviours (Bagozzi et al., 1999; Cohen and Andrade, 2004;
Schwarz, 1998). In fact, researchers focused on the question of how moods influence
behaviour in shopping, information search, and selecting preferential channels, for a
considerable period of time (Puccinelli et al., 2009). Evidence suggests that mood
enhancement is based on the pleasure-seeking principle, according to which
individuals are thought to constantly search for feel good activities to attain a good
mood (Cohen and Andrade, 2004). Indeed, mood enhancement has been found to be one
of the strongest motivations for internet usage, especially among young people (Grant,
2005).
 Escapism, on the other hand, is “a classic motivation associated with most types of Drivers of
media” and particularly with the internet amongst young people (Grant, 2005, p. 612). electronic word-
Escapism has been defined as a state of psychological immersion and absorption
(Mathwick and Rigdon, 2004) in which people escape from their everyday concerns and of-mouth
responsibilities for a period of time. Several internet activities are suited to escapism,
including surfing the news, weblogs, social networking sites, participating in forums
and chat room discussions, as well as spontaneous and constant e-mailing (Charney 1071
and Greenberg, 2001; Grant, 2005).
It is possible to identify motives that reflect such needs and personal goals. Using
UGT, previous research identified escapism (Abelman and Atkin, 1997) as a motive for
using that media. Given that mood enhancement is one of the strongest motivations for
internet usage, and because it encourages individuals to think in a broader, more
abstract fashion (Labroo and Patrick, 2009) thus facilitating an individual’s immersion
and absorption, we postulate that:
H1. The internet’s use for mood enhancement is positively related to the internet’s
use for escapism.

Mood enhancement and experiential learning

Experiential learning is related to becoming familiar with a certain subject through
some type of exposure (Braunsberger and Munch, 1998). Muthukrishnan and Kardes
(2001) postulate that individuals often feel that they are learning from experiences
when these experiences are enjoyable. Furthermore, research indicates that visual
elements, such as pictures (McQuarrie and Mick, 2003), colours (Gorn et al., 2004;
Mandel and Johnson, 2002) and aesthetic designs (Veryzer and Hutchinson, 1998)
greatly influence information search and elaborative processing (Loken, 2006). Hence,
if the use of the internet involves websites that contain features such as those described
above (pictures, aesthetic design, etc.), the individual’s mood might be enhanced and
therefore (enjoyable) learning might take place. Grant (2005, p. 611) argues that while
mood enhancement is “a more powerful motivator in absolute terms [. . .], information
searching for learning purposes”, i.e. experiential learning, “may ultimately be the
internet’s real point of difference.”
From a theoretical perspective, we observed that UGT postulates that an individual
uses the internet not only because he/she is goal directed but because they also seek to
gratify their needs. Based on the UGT framework, Abelman and Atkin (1997) observed
the information seeking behaviour of internet users. It is plausible that internet users
find that while experiential learning takes place, a pleasurable experience is also
occurring. This is because, “the primary use of computer-mediated forms of
communication and the Web involves entertainment” (Eighmey and McCord, 1998,
p. 189). Additionally, gratification (such as mood enhancement) can be sought in an
electronic communication medium, such as the internet, through informational
learning and socialisation ( James et al., 1995). Finally, research has demonstrated that a
strong correlation exists between moods and learning (Bagozzi et al., 1999). Given that
individuals can experience experiential learning through the use of the internet and
they also find the use of the internet a pleasurable experience, it is conceivable that:
H2. The internet’s use for mood enhancement is positively related to the internet’s
use for experiential learning.
EJM Escapism and social interaction. Internet activities motivated by escapism are generally
47,7 associated with positive social outcomes (Kraut et al., 2002), namely social connectivity.
This is because online connectivity offers new opportunities to individuals for social
interaction by enabling them to interact with large numbers of others. If not for the
internet, such interactions and resulting relationships would have been unlikely, if not
impossible, to emerge (Bargh and Mckenna, 2004). The internet offers different forms
1072 of social interaction. On one hand, it enables one-to-one relationships with a high level
of privacy and personalisation (Kang, 2000). For instance, the internet supports
long-distance relationships – across regional boundaries and the globe (Wellman et al.,
2001) – and facilitates nearly cost-free, continual communication among family
members, friends, colleagues and acquaintances, long-lost friends and co-workers who
are physically distant. Such social interaction is supported by software programmes
such as Skype which allow individuals to communicate across the world, not only with
text but with real-time voices and images, thus resembling actual, in-person
communication. On the other hand, individuals can send and receive a great deal of
information via social networks, e-mails and blogs, across socially integrated online
communities (Lee and Zaichkowsky, 2006), and consequently achieve escapism.
Research on internet developments, such as Second Life, also confirms the importance
of social interactions (Chesney et al., 2009).
Nevertheless, the strength and quality of online relationships can vary. Some
researchers argue that they are very similar to those developed in person (Parks and
Floyd, 1996) while others indicate that online relationships are less valuable than
offline ones, with their benefits dependent on whether they supplement or substitute
offline social relationships (Cummings et al., 2002). What is not disputed is that the
internet allows users to escape reality. This escapism does not threaten social life and
in fact allows users to enlarge their social networks (DiMaggio et al., 2001; Howard
et al., 2001) and is aligned with the principles of the social network paradigm. Overall,
online tools may promote escapism and will probably expand social contacts (Wellman
et al., 2001). Thus, we propose the following hypothesis:
H3. The internet’s use for escapism is positively related to the internet’s use for
social interaction.
Social interaction and eWOM. WOM in virtual communities is a key marketing issue,
because within these groups information can reach millions of individuals (Brown et al.,
2007). Community is defined as a set of interlinked relationships that meets members’
needs (Kalyanam and McIntyre, 2002). Virtual communities can resemble traditional
primary reference groups, such as friends and family members (Jepsen, 2006), as well
as secondary reference groups, such as colleagues and co-workers. Virtual community
members consider those communities as “places” for contact with people who share
their interests (Maignan and Lukas, 1997; Wellman and Gulia, 1999). These virtual
communities offer many opportunities for developing friendships and nurturing close
relationships, as a consequence of shared interests, values and beliefs (McKenna et al.,
2002).
Membership and participation in a relevant virtual group may indeed become a
central part of an individuals’ social life (Bargh and Mckenna, 2004). The fact that
virtual community members tend to engage in substantial WOM exchanges (Alon et al.,
2002) justifies eWOM’s importance from a marketing perspective. Based on the social
network paradigm, following Brown and Reingen (1987) and Matsumoto (2000), we can Drivers of
observe that eWOM in-group occurs in groups characterised by close relationships or electronic word-
strong ties, such as family and close friends; while eWOM out-of-group generally
occurs between people with weaker ties, such as in social networking groups aimed at of-mouth
reaching the mass public. Since eWOM is a social phenomenon that occurs in group
settings (see Alon and Brunel, 2006; Brown and Reingen, 1987), the more consumers
interact in a group, the more likely they will be to use eWOM to reflect their knowledge 1073
and enhance their reputation as experts about specific products (see Wojnicki, 2006).
Hence, it can be postulated that:
H4a. The internet’s use for social interaction is positively related to eWOM
in-group.
H4b. The internet’s use for social interaction is positively related to eWOM
out-of-group.
Experiential learning and eWOM. E-communication enables people to share
information and opinions with others more easily than ever before (Hennig-Thurau
et al., 2004). The internet has extended consumers’ options for gathering assumedly
unbiased product information from their peers (Hennig-Thurau et al., 2004).
Furthermore, the internet provides consumers the opportunity to offer their unique
consumption-related advice by engaging in eWOM in message boards, internet
forums, chat rooms and social networking sites. In particular, internet forums give
consumers the opportunity and ability to share experiences, opinions and knowledge
with other consumers (Bickart and Schindler, 2002).
When consumers generate information based on their personal experiences, this
information tends to exert more impact on others’ attitudes and holds more credibility
than if it were generated by advertising companies and corporate marketing
departments (Walsh et al., 2009; Bickart and Schindler, 2002; Kempf and Smith, 1998).
Moreover, eWOM’s credibility is justified by the fact that other “consumers are
perceived to have no vested interest in the product and no intentions to manipulate the
reader” (Bickart and Schindler, 2002, p. 428). Hence, consumers find the information
exchanged on internet social networks more relevant and trustworthy, as the
information reflects product consumption in real-world settings by other consumers
and is free from marketeers’ interests (Bickart and Schindler, 2002; Jepsen, 2006). As
Granovetter (1973) noted in his expounding of the social network paradigm, this
information exchange may depend on a combination of the amount of time, the
emotional intensity, and the intimacy of the networks. Based on the UGT framework,
earlier it was argued that internet users use the internet medium for experiential
learning as this was likely to be positively related to mood enhancement. Therefore,
consumers who become familiar with a service or product through experiential
learning are therefore likely to engage in eWOM about that experience with other
consumers as it is a positive experience. Hence, we expect that:
H5a. The internet’s use for experiential learning is positively related to eWOM
in-group.
H5b. The internet’s use for experiential learning is positively related to eWOM
out-of-group.
EJM Research method
47,7 To test the hypotheses, we conducted a survey of internet users in Portugal. We used a
convenience sample of internet users. The individuals in the sampling frame were
university undergraduate students from one faculty within a university who were
invited to participate in the study through an e-mail. In the subsequent lectures
students were made aware of the importance of this study. Three hundred and ten
1074 e-mails were sent to students and 302 students agreed to participate.
This study’s questionnaire was initially developed in English and then translated
into Portuguese. To avoid translation errors, the questionnaire was back-translated
into English by a different researcher (see Douglas and Craig, 1989). The questionnaire
was then given to a pre-test sample of thirty young adults who use the internet
regularly before being distributed to the 302 respondents.
The respondents’ ages ranged from 18 to 35 years old, 25 per cent of the students
were 21 years old or younger, 50 per cent of the students were 22 or 23 years old, and
the remaining students were 24 years old or older. Most students were female (58.9 per
cent). With regard to the internet usage behaviours, 33.1 per cent of our respondents
use the internet on a daily basis for up to 29 minutes, 27.5 per cent use it from 30 to 59
minutes, 22.8 per cent use it from 1 h to 1 h 59 m and the remaining (16.6 per cent) use it
for more than 2 hours daily. These results are in line with the fact that an estimated
97.3 per cent of Portuguese young adults use the internet on a regular basis (Marktest,
2009).
Measures for the constructs were adapted from existing studies (Grant, 2005; Lam
and Mizerski, 2005). The six constructs were mood enhancement, escapism,
experiential learning, social interaction, eWOM in-group and eWOM out-of-group.
Respondents were asked to assess all the items, using a seven-point Likert scale,
ranging from “1 – strongly disagree” to “7 – strongly agree”. A complete listing of the
questionnaire items can be found in Table I. All scales’ internal reliability (Cronbach,
1951) is significant: an average of 0.81 (see Lages et al., 2008). Although all constructs
present Cronbach alphas above the recommended value of 0.70 (Nunnally, 1978), the
construct “Social Interaction” presents a a of 0.67, which may be considered
questionable (Cronbach and Shavelson, 2004). We have decided to include this
construct because this value is near the recommended level of 0.70 considering that this
construct comprises only two variables. Other studies in many contexts present a
values between 0.60 and 0.70 (see Lages and Lages, 2005; Ntoumanis, 2001).

Measurement analysis
To assess the measures’ validity, the items were subjected to a confirmatory factor
analysis (CFA), using LISREL 8.72 (Jöreskog and Sorbom, 1996). In this model, each
item is restricted to load on its pre-specified factor. Despite the fact that the chi-square
for this model is significant (x 2 ¼ 648:43, df ¼ 174, p , 0:001), fit indices reveal an
acceptable fit: the comparative fit index (CFI) is 0.93, the incremental fit index (IFI) is
0.93 and the Tucker-Lewis fit index (TLI) is 0.92. Since fit indices can be improved by
allowing more terms to be freely estimated, we also assessed the root mean square
error of approximation (RMSEA), which assesses fit and assigns a penalty for lack of
parsimoniousity (Holbert and Stephenson, 2002). The RMSEA of this measurement
model is .095, which indicates a satisfactory fit to the population (Chen et al., 2008). We
 Drivers of
Standardised
Items values t-values electronic word-
Question: “I use the internet . . . ”
of-mouth
Mood Enhancementa (a ¼ 0:85; r ¼ 0:85)
V1 Because it entertains me 0.68 12.70
V2 Because it amuses me 0.77 14.95 1075
V3 Because it is exciting 0.74 14.24
V4 Because it gives me a lift 0.76 14.58
V5 Because it relaxes me 0.71 13.37
Escapisma (a ¼ 0:79; r ¼ 0:78)
V6 So I can get away from what I am doing 0.70 12.57
V7 When there is no one else to talk to or be with 0.68 12.23
V8 So I can forget about school and other things 0.84 15.78
Experiential learninga (a ¼ 0:81; r ¼ 0:82)
V9 Because it helps me to learn about things about myself and others 0.70 12.99
V10 So I can learn how to do things 0.84 16.22
V11 So I can share experiences and ideas with others 0.79 15.10
Social interactiona (a ¼ 0:67; r ¼ 0:70)
V12 So I can be with other members of my family or friends 0.61 10.12
V13 Because it is intimate and personal to me 0.84 13.48
eWOM in-groupb (a ¼ 0:83; r ¼ 0:83)
V14 To obtain advice and information from my closest friends or family
when making purchase decisions 0.75 14.39
V15 To obtain information from my closest friends and family about a
product before buying it 0.80 15.57
V16 Because I like introducing new brands and products only to my close
friends or family 0.71 13.18
V17 Because I only provide information about new brands and products to
my close friends or family 0.70 12.94
eWOM out-of-groupb (a ¼ 0:91; r ¼ 0:90)
V18 Because I like to provide people other than my close friends or family
with information about new brands or products 0.85 17.84
V19 Because I share information about new brands and products with
people other than my close friends or family 0.91 20.16
V20 Because I seek out the advice of people other than my close friends or
family regarding which brand to buy 0.83 17.44
V21 Because I seek out the advice of people other than my close friends or
family before making a purchase decision 0.76 15.06
Table I.
Notes: a ¼ Internal reliability (Cronbach, 1951); r ¼ composite reliability (Bagozzi, 1980) Scale items and
Sources: aGrant (2005); bLam and Mizerski (2005) reliabilities

also assessed the standardised root mean square residual (RSMR), which has a value of
0.069 and thus indicates a good fit (Hu and Bentler, 1999).
All six constructs have acceptable levels of composite reliability, namely 0.7 or
higher (Bagozzi, 1980). Also Fornell and Larcker’s (1981) variance extracted values are
above the recommended level of 0.50 for all six constructs (see Table II).
Discriminant validity is evidenced by all six construct’s inter-correlations differing
significantly from 1, and the shared variance among any two constructs (i.e. the square
EJM
ME EL ESC SI eWOMIG eWOMOG
47,7
a
ME 0.54
EL 0.56 * 0.61a
ESC 0.51 * 0.26 * 0.55a
SI 0.53 * 0.38 * 0.60 * 0.54a
1076 eWOMIG 0.43 * 0.31 * 0.57 * 0.62 * 0.55a
eWOMOG 0.41 * 0.43 * 0.44 * 0.54 * 0.67 * 0.70a
Table II. Notes: n ¼ 302; *p , :01; aDiagonal values represent the “average variance extracted” (Fornell and
Correlation matrix of Larcker, 1981); ME ¼ Mood enhancement, EL ¼ Experiential learning, Esc ¼ Escapism, SI ¼ Social
latent variables interaction, eWOMIG ¼ e-word-of-mouth in-group, eWOMOG ¼ e-word-of-mouth out-of-group

of their intercorrelation) being less than the average variance explained in the items by
the construct (Fornell and Larcker, 1981). The correlations among all constructs and
the average variance extracted for each construct are presented in Table II. Convergent
validity is evidenced by each item’s large and significant standardised loadings on its
intended construct, with an average loading size of 0.76 (see Table I). Hence, none of the
correlations in the final model were sufficiently high to jeopardise discriminant validity
(Anderson and Gerbing, 1988).

Structural model estimation

In line with recent research (Cinite et al., 2009; Walsh et al., 2009), we estimated the
structural equation model (see Figure 2), using the maximum likelihood (ML)
estimation procedure in LISREL 8.72. The model contains six constructs, which
correspond to 21 observable variables (see Table I). Where covariance based structural
equation modelling is employed, Nunnally (1978) suggests an ad hoc rule of thumb that
requires ten observations per indicator. With 302 observations with 21 variables, our
ratio of observations to the number of variables lies comfortably within the suggested

Figure 2.
Results
guidelines. Although the chi-square is significant (x 2 ¼ 705:30, df ¼ 182, p , 0:001), Drivers of
the fit indices (CFI ¼ 0:93, IFI ¼ 0:93, NFI ¼ 0:91, TLI ¼ 0:92 and RMSEA ¼ :095) electronic word-
reveal that the final model reproduces the population covariance structure, and that the
observed and predicted covariance matrices have an acceptable discrepancy between of-mouth
them. Because the reduced chi-squared statistic (x 2 =df ¼ 3:88) is more than the
recommended threshold of 3 (Hair et al., 2006), we proceeded to examine the Mardia’s
coefficient and found that its value is superior to 3, which suggests that the data might 1077
not be normally distributed. When faced with such a distribution, Satorra and Bentler
(2001) argue that it may be more appropriate to correct the test statistic rather than to
use different estimation methods. The SB chi-square statistic (which incorporates a
scaling correction for the chi-square statistic when distributional assumptions are
violated), corrected for non-normality is calculated at 406.33 (x 2 =df ¼ 2:34). Since this
study comprises a large sample size – of 200 or more – , the “detrimental effects of
nonnormality” are reduced and may even be negligible (Hair et al., 2006, p. 80). Also
Tabachnick and Fidell (2001) highlight that for large samples, variables with
statistically significant kurtosis do not usually have a big impact in the analysis.
Table III contains the estimation of direct, indirect and total effects for the structural
model.
Our results indicate that mood enhancement has a highly positive direct impact on
escapism, as well as on experiential learning, which provides support for H1 and H2.
Mood enhancement explains 29 per cent of escapism’s variance and 32 per cent of
experiential learning’s variance (see Figure 2). H3 was also confirmed, as escapism has
a highly positive impact on social interaction. The percentage of variance in social
interaction, explained by its antecedents, is 49 per cent. Surprisingly, we found that
while experiential learning has a non-significant impact on eWOM in-group, it has a
highly positive impact on eWOM out-of-group. Finally, we proposed that social
interaction has a positive impact on eWOM in-group (H5a) and on eWOM out-of-group
(H5b). Our results therefore support both H5a and H5b. Overall, the variance in eWOM
in-group and eWOM out-of-group, explained by their respective antecedents, is 67 per
cent and 51 per cent, respectively.
With the use of path models, we estimated not only the direct, but also indirect and
total effects among latent variables (Bollen, 1989). Table III shows that all five indirect
effects are highly significant and positive. Mood enhancement has a positive indirect
effect on eWOM in-group (0.35, p , 0:01), and eWOM out-of-group (0.37, p , 0:01).
The total and indirect effect of escapism on eWOM in-group is highly significant and
positive (0.56, p , 0:01); likewise, the indirect effect of escapism on eWOM
out-of-group is positive (0.43, p , 0:01).

Discussion
EWOM is an important tool for all organisations, as it influences consumer behaviour
and attitudes towards products, brands and the organisation itself. WOM, and in
particular eWOM, has an impact on customer loyalty intentions (Gruen et al., 2006),
influences sales (Chevalier and Mayzlin, 2006) and ultimately the firm’s revenue (Liu,
2006). Despite its importance and a considerable amount of research on eWOM, there
have been recent calls for additional research on the topic (Gupta and Harris, 2010;
Zhang et al., 2010).
 47,7
EJM

1078

Table III.

modelling results
Structural equation
Escapism Experiential learning Social interaction eWOM in-group eWOM out-of-group
Effect of/on Direct Indirect Total Direct Indirect Total Direct Indirect Total Direct Indirect Total Direct Indirect Total

Mood enhancement
Standardised estimates 0.54 * 0.54 * 0.56 * 0.56 * 0.38 * 0.38 * 0.35 * 0.35 * 0.37 * 0.37 *
t-values 7.46 7.46 7.46 7.46 5.87 5.87 6.42 6.42 7.55 7.55
H1 H2
Escapism
Standardised estimates 0.70 * 0.70 * 0.56 * 0.56 * .43 * .43 *
t-values 7.00 7.00 7.50 7.50 7.08 7.08
H3
Social interaction
Standardised estimates 0.80 * 0.80 * 0.62 * 0.62 *
t-values 7.64 7.64 7.30 7.30
H4a H4b
Experiential learning
Standardised estimates 0.08 0.08 0.24 * 0.24 *
t-values 1.32 1.32 4.16 4.16
H5a H5b
Notes: n ¼ 302; *p , o:01 (two-tailed test); the standardised coefficients indicate how a typical variation in the independent variable leads to, or is
associated with, a typical change or variation in the dependent variable (Goldberger, 1964)
The current study is therefore an attempt to advance our understanding of eWOM, and Drivers of
in particular the drivers of different types of eWOM. In the next sections, the electronic word-
theoretical and practical implications of the research are discussed.
of-mouth
Theoretical implications
This paper provides a number of theoretically grounded contributions to eWOM 1079
literature. First, this study offers insights into eWOM dynamics. In particular, our
results demonstrate that when internet users aim to enhance their mood, namely
through entertainment, amusement, excitement and relaxation, they enter a state of
psychological immersion and absorption, which takes them away from their everyday
worries and responsibilities, setting the ground for social interaction. Simultaneously,
when using the internet to enhance their mood, individuals tend to become more
familiar with certain goods and services by gathering information from other peer
consumers and thus experiencing learning.
Second, in examining the influence of experiential learning on eWOM in-group
and out-of-group, the results demonstrate that experiential learning is not related to
eWOM in-group, but it does have a positive relationship with eWOM out-of-group.
This differential effect of experiential learning on eWOM out-of-group and eWOM
in-group is anchored in the premise that the information circulated through weak
ties is more novel than information that flows through strong ties (Granovetter,
2005; see Weenig and Midden, 1991) as strong-tie individuals tend to validate their
common knowledge when sharing information (see Phillips et al., 2004). The
underlying reason is that an individual’s in-group members move in the same
circles and therefore a substantial overlap of information already exists among
them. On the other hand, an individual’s out-of-group members have contact with
people whom the individual does not know. As such, more novel information is
generated (Granovetter, 2005, 1983) and more experiential learning may occur and
subsequently be shared with out-of-group members. Additionally, weak-tie sources
are more numerous and varied than strong-tie sources strengthening the argument
that information gathered in weak-tie groups is richer and more meaningful to
information seekers (Duhan et al., 1997). Thus, while group members with strong
ties tend to validate their common knowledge when sharing information, unique
knowledge is received from individuals with whom one has weak ties (see Phillips
et al., 2004). Another possible explanation for our results is that when individuals
use the internet for experiential learning, they engage more in eWOM out-of-group,
given that they spend less or no (face-to-face) time with their out-of-group members
(Granovetter, 2005) in comparison to their in-group members. Hence, in line with
socio-psychological studies (e.g. Weenig and Midden, 1991), this study’s results
support Granovetter’s (1983, 1973) “strength-of-weak ties” hypothesis.
Finally, we also respond to a call in the literature for additional research on the
mood enhancement construct (Davis, 2009), by illustrating its central role in
driving other internet usage motivations and ultimately eWOM. Mood
enhancement has been found to be positively related to escapism, which in turn
is positively related to social interaction. This study also found that social
interaction among users will ultimately influence eWOM in-group and eWOM
out-of-group.
EJM Managerial implications
47,7 In line with Kozinets et al.’s (2010) and Ha and Perks’ (2005)work, our results suggest
that when individuals use the internet, they are likely to engage in eWOM. Thus, in
their marketing efforts, companies should design their websites to generate
entertainment and amusement, while providing information about their products
which appeals to consumers. Companies can capitalise on the internet by coordinating
1080 web designers and marketeers’ tasks to provide an ingenious and appealing website
design anchored in rich content, such as videos, aimed at lifting consumers’ moods. For
example, Blendtec (a seller of powerful blenders, mainly to private households), created
a web page containing a video where an iPhone was thrown into a blender soon after
the launch of the iPhone. The light-hearted video was a resounding success with 6.9
million views, and dedicated social media pages with discussions on the virtues of
Blendtec products, which resulted in sales growth of 700 per cent.
It is also apparent that, if websites facilitate social interaction, they will benefit from
consumers engaging in eWOM with both in-group and out-of-group members. Our
results confirm findings of online environment research that asserts that consumers
come together to interact socially (Hennig-Thurau et al., 2004; Jepsen, 2006). As a result,
discussion participants share product information and gain general information about
the company itself. For example, visitors to the website www.clubpenguin.com/puffle/
can play online games, interact with fellow visitors, engage in eWOM about the site
and “puffles”, and ultimately buy “puffles” in a retail store. Companies should therefore
strive to provide opportunities for social interactions on their website and, at the very
least, provide links to Facebook and other social websites, which ultimately promote
eWOM. Dominos Pizza, for example, showed a 10 per cent increase in sales in 2010,
following a Facebook recipe campaign which encouraged users to start an eWOM
campaign (Ohngren, 2012). Another example is Babylicious, a company that relies
solely on eWOM for promotion. Marketing managers should also consider whether
their product lends itself to promotion via eWOM, and if the product is responsive to
eWOM promotion, managers should facilitate it.
We found a differential influence of experiential learning on eWOM in-group and
out-of-group, specifically that experiential learning is important in eWOM
out-of-group. This signifies that individuals are prepared to devote their time and
energy to start conversing with others provided they feel that they are learning and it
is enjoyable. “My Starbucks idea” (http://mystarbucksidea.force.com/ideaHome) is
perhaps an illustration of this. The site allows users to submit suggestions to be voted
on by Starbucks consumers, and the most popular suggestions are highlighted and
reviewed. In effect, Starbucks have managed to get individuals to create content, and
harness the resulting eWOM by adding a feature called “Ideas in Action” blog that
gives updates to users on the status of changes suggested.
Consumers do regard eWOM as reliable information sources, far more so than
advertising and marketing messages (Walsh et al., 2009; Bickart and Schindler, 2002;
Kempf and Smith, 1998). Although companies might be advised to make their websites
entertaining and informative, and to provide opportunities for social interaction (for
example by creating discussion boards about specific brands and products), such
provision can also lead to adverse eWOM, particularly from dissatisfied consumers.
This is the main reason why some companies, such as Ryanair, still do not provide this
service. However, in an environment in which dissatisfied consumers are free and able
to create their own forums, discussion boards, and so on, it might be more prudent to Drivers of
cater to their needs and offer these on the company’s own website, rather than having electronic word-
them setting up their own information channels. If a firm provides customers with an
appropriate forum or discussion board on their website, the firm will benefit from of-mouth
gaining up-to-date information and feedback on consumer dissatisfaction and, as such,
will be able to monitor and address the consumer’s concerns promptly.
In summary, organisations need to develop websites that are simultaneously 1081
entertaining and informative, and that provide social interaction opportunities in order
to generate eWOM. Given that online communities are open to everyone, the firm may
decide to monitor the information exchanged in the most important communities
(e.g. Facebook, MySpace, Twitter and LinkedIn). The firm can then act upon the
eWOM information, whether it is positive or negative, and regard it as a great
opportunity to receive product feedback, and also to reach their consumers in a more
subtle way. For example, the company might post reply messages on online
communities to help “spread” their message. In addition, businesses may also apply
content-management practices to eWOM content and use it to their advantage. Owing
to the interest in social networks and their potential marketing effect, many
organisations around the world have an extremely strong financial incentive to
understand and facilitate information exchange among individuals who engage in
eWOM.

Research limitations and future research directions

Despite this study’s theoretical and practical contributions, we acknowledge its
limitations. The first limitation is that the questionnaire might have created common
method variance, which might in turn have inflated the relationships among the
constructs. This could be a threat if the respondents were aware of the conceptual
framework of interest. However, respondents were not informed of the purpose of the
study, and all of the constructs’ items were separated and mixed, making it difficult for
respondents to detect which items measured which factors.
A second limitation relates to the convenience sample characteristics, which limit
the generalisability of the results. In particular, the sample comprises young adults,
who are University students, in Portugal. Future studies with larger samples could
allow for a comparison between young, middle-aged and older internet users. This
research was conducted in a country in which the internet usage rate among young
adults is extremely high (97.3 per cent). Future studies could replicate our study across
a different sample and in diverse cultural contexts, characterised by various levels of
internet access and usage. It may be that the internet usage motivations will differ, as
well as their impact on both eWOM in-group and out-of-group.
Another potential limitation stems from the fact that we used two items to reflect
the social interaction construct. It would be desirable if future studies would use at
least three items to measure this construct. Another key issue to be explored in future
research is the consequences of these two types of eWOM – in-group and out-of-group
– and their relative impact on the firm’s performance. Additionally, there may be
moderator relationships that have not been taken into account in this model.
Nevertheless, given that the proposed hypotheses are new, from a theoretical
viewpoint, it is important to first understand the direct relationships and then, in a later
study, once these relationships are well-established, to explore the role of possible
EJM moderator variables. Suggestions for further research include considering age, gender
47,7 and education level as moderators of the relationships between social interaction and
e-WOM in-group and out-of-group and between experiential learning and e-WOM
in-group and out-of-group. Finally, future studies can investigate the antecedents of
both eWOM in-group and out-of-group by focusing on the volume of eWOM generated
for each type.
1082
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About the authors

José Luı́s Abrantes is Professor in Marketing at Escola Superior de Tecnologia e Gestão of
Instituto Politécnico de Viseu, Portugal. He holds a PhD in Economics and Management Science
from the University of Salamanca, Spain. His research interests are in the fields of international
marketing, tourism marketing and pedagogy. His publications have appeared in the Journal of
Business Research, Tourism Management and International Marketing Review.
Cláudia Seabra is an Assistant Professor in Communication and Tourism at Escola Superior
de Tecnologia e Gestão of Instituto Politécnico de Viseu, Portugal. She holds a PhD in Tourism
from Aveiro University, Portugal. Her research interests are in the fields of international
marketing, tourism marketing and pedagogy. Her publications have appeared in the Journal of
Business Research and Tourism Management.
Cristiana Raquel Lages is a Senior Lecturer in Marketing at Loughborough School of
Business and Economics (UK) and an Advanced Institute of Management Scholar. She holds a
PhD in Marketing from the University of Warwick (UK). Her current research interests include:
eWOM; creativity in services; service recovery strategies and performance; as well as export
EJM performance. Her publications have appeared in the Journal of Business Research, Journal of
Service Research, Journal of International Marketing, and International Marketing Review,
47,7 among others. Cristiana Raquel Lages is the corresponding author and can be contacted at:
[email protected]
Chanaka Jayawardhena is Professor in Marketing at Hull University Business School, UK. He
holds a PhD in Marketing from De Montfort University, UK. His research interests are in the
fields of services marketing and customer relationship management. He has won numerous
1088 research awards including two Best Paper Awards at the Academy of Marketing Conference.
Previous publications have appeared in the Industrial Marketing Management, European
Journal of Marketing, Journal of Marketing Management, Journal of General Management,
Journal of Internet Research, European Business Review, among others.

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