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3.3 The design of questionnaire and data collecting 9
Chapter Four Findings and Discussion 11
4.1 Findings and discussion about the background information of the respondents 11
4.2 Findings and discussion about online purchasing activities 11
4.3 Findings and discussion about three main aspects-product, online sellers and the logistics 12
4.3.1 Findings on the effect of negative online review about the product itself 13
4.3.2 Findings on the effect of negative online review about the online sellers 14
4.3.3 Findings on the effect of negative online review about the logistics 14
Chapter Five Conclusion 16
5.1 Major findings of this study 16
5.2 Implication of the study 17
5.3 Limitations of the study 18
References 19
Appendix 21
An Analysis of the Effect of Negative Online Review on Consumer’s Purchasing Intention
Chapter One Introduction
1.1 Background information of the study
With the advent and development of the internet, nowadays a majority of people have access to the internet. According to the statistics from CNNIC (2015), “the number of citizens who use the internet in china has reached 649 million and the number keeps increasing steadily” (15). E–commerce has taken advantage of the internet to develop rapidly in recent years and more people begin to purchase things online. With the help of internet consumers can have wider choices. Moreover, it saves a lot of time and energy to buy things online compared with going to physical stores. It is also showed in the 35th research report on the internet development in China that the number of online purchasing users has increased to more than 361 million. It is undeniable that online purchasing activities are in vogue. When people are buying things online, most of them tend to browse online review and then make their purchasing decisions because online review sometimes covers information that the seller doesn’t offer and more detailed information is available in the review. In most cases, negative online reviews make consumers hesitate to buy the product and even drive potential consumers away. So online sellers must pay great attention to negative online review in order to increase their sales revenue and it is quite necessary to look into the effect of negative online review on consumer’s purchasing intention.
1.2 Purpose of the study
Online review, as one kind of WOM information, has been studied by many scholars. Actually negative online review has greater effect on consumers than the positive review. According to Arndt (1967), in a food survey, “WOM information indeed affects the consumer’s decision”(291-295). Sales volume decreased by negative review is twice as much as that increased by positive review. This study focuses on the effect of negative online review on consumer’s purchasing intention. This is particularly necessary in today’s world in which so many people are buying things online. Meanwhile, if one consumer has an unhappy purchasing experience and writes that down as online review, it leaves a bad impression of the online store on other potential consumers, which further decreases the sales volume. This study tries to offer online sellers some useful advice and help to understand what kind of online review will easily devastate the reputation of online selling stores in order to effectively manage the online review and improve the overall quality of the online selling stores.
1.3 Overall structure of this paper
This study consists of five chapters. Chapter One gives a general introduction of this study including the background information and the purpose of this study. Chapter Two is Literature Review covering some research related to this topic carried out by some scholars. Chapter Three is Methodology which includes the research questions, the subject of the research and the design of the questionnaire. In Chapter Four, findings and discussion of the questionnaire are involved. Chapter Five is the conclusion of this study with major findings, implication and limitations of the study.