Consumer skepticism and online reviews: an elaboration likelihood model perspective

Social Behavior and Personality: an international journal, Feb, 2009 by Peter J. Sher, Sheng-Hsien Lee

The use of the Internet as a channel for expressing opinions on products has become an important marketing tool to compete for consumer attention and visits (Chatterjee, 2001). With the declining trust in advertising, Word of Mouth (WOM) has become the most influential communication channel. As an electronic form of WOM, online consumer reviews provide a trusted source of product information for consumers--and therefore a potentially valuable sales asset. Positive consumer reviews on product or company are one of the best predictors of business growth (Keller, 2007). However, little is known about how online messages influence the purchasing intention of consumers (Chatterjee). The first purpose of the present study was to broaden understanding about effects of online reviews. By introducing the Elaboration Likelihood Model (ELM) as a referent theory, this study contributes to the online behavior literature.

Obermiller and Spangenberg (1998) suggest a paradox whereby the nature of a free market encourages exaggerations in marketing messages which subsequently induces consumer skepticism. Through socialization and purchasing experiences, consumers come to believe or disbelieve marketing messages. In an empirical study, Calfee and Ringold (1994) found that the majority of consumers believe that advertising is often untrustworthy and accordingly discount claims made by advertisements. Although online reviews provide easy access to information about products and services, they also foster consumer skepticism. The fact that this new form of WOM is information from strangers whom the consumers have never met, and probably never will meet, casts doubt on the trustworthiness of these online messages. Therefore, considerable criticism has been directed at Internet information, especially online reviews. Chatterjee (2001) suggests that some online surfers even get paid for referrals or purchases and/or get advertising income from target firms. The second purpose of this study was to attempt to use consumer skepticism as a moderator to test the ELM hypotheses. Managerial implications are suggested.

Literature review

ELM The Elaboration Likelihood Model (ELM) developed by Petty and Cacioppo (1981, 1986) provides a useful framework for understanding the effectiveness of persuasive communication. Based on the ELM, attitude change may occur via two routes of influence, the central route and the peripheral route. The two alternative routes differ in the amount of thoughtful processing of information or elaboration. Individuals taking the central route think critically about issue-related arguments and scrutinize the merits and relevance of those arguments before forming an attitude about the advertisement or product. Conversely, individuals taking the peripheral route make less cognitive effort and rely on shortcuts such as the number of arguments and physical attractiveness of endorsers when forming an attitude (Petty & Cacioppo, 1986). Petty and Wegener (1999) suggest that individuals in high elaboration likelihood state are more likely to engage in thoughtful processing of information and are also more likely to be persuaded by argument quality. People in low elaboration state tend to base their attitude change on peripheral cues. Elaboration likelihood moderates the effects of argument quality and peripheral cues on attitude change. According to the ELM, elaboration likelihood is determined by an individual's motivation and ability to elaborate. Motivation refers to the individual's personal relevance to the persuasive message while ability is manifest in the individual's cognitive competence or prior expertise with the attitude object. Individuals vary in their ability and motivation to elaborate. Skepticism Skepticism refers to the tendency toward disbelief (Obermiller & Spangenberg, 1998). Consumers come to believe or disbelieve marketing messages through socialization and purchasing experiences. Although the Internet provides easy access to information about products and services, it may foster consumer skepticism. Ford, Smith, and Swasy (1990) reviewed issues about the dimensionality of skepticism. Their study shows that one may have different levels of skepticism toward claims made in advertisements and the motives of advertisers. In other words, skeptical tendency may vary depending on product type or audience personality. Consumer skepticism reflects a marketplace belief held by a consumer. This tendency is a stable, generalizable belief which reflects a consumer's implicit views of how the marketplace works. A scale measuring consumer skepticism was developed by Obermiller and Spangenberg.

Friestad and Wright (1994) developed a framework for examining the moderating influence of consumer persuasion knowledge in responses to marketing communications. Persuasion knowledge was defined as the learning that consumers use to interpret, evaluate and respond to persuasive attempts from advertisers and marketers. It may include knowledge about persuasion techniques and marketer tactics. Advanced persuasive knowledge implies higher levels of skepticism toward advertising claims. Obermiller and Spangenberg (1998) argue that highly skeptical consumers may perceive smaller differences in situational factors (such as quality and quantity of messages) than do less skeptical consumers. Highly skeptical consumers may be more prone to disbelieve certain categories of product information (such as advertisements or online reviews) without considering the source credibility, argument quality or number of arguments. In other words, highly skeptical consumers may be impossible to persuade via argument quality as they would not believe any stated claims. Unlike consumers with high need for cognition, a highly skeptical consumer shows a tendency to stereotype, where "... stereotype is ... [a] set of beliefs about the characteristics or attributes of a group" (Judd & Park, 1993). Stereotypes do not need to be inaccurate or negative. In other words, the highly skeptical consumer takes intrinsic shortcuts, which are based on beliefs, to evaluate information instead of using extrinsic shortcuts, which are based on situational factors such as argument quality, to form attitudes. From the ELM perspective, this response to information implies that one fundamental route to persuasion is closed. Therefore, the following hypothesis is proposed: