University of Twente Student Theses

Login

The impact of social media and customer reviews on product choice and customer retention in the Netherlands.

Keizers, R. (2015) The impact of social media and customer reviews on product choice and customer retention in the Netherlands.

This is the latest version of this item.

[img] PDF
1MB
Abstract:Social media platforms, together with customer reviews have become an important mean to search for information or to share information with other customers about a product or company. This study extends previous research by researching the impact of reviews and social media platforms in the Netherlands, from the side of the customers. In particular, this study considers the impact of social media and customer reviews on the product choice and retention of customers and how decisive negative or positive information is. This study uses a grounded theory approach, with semi-structured interviews. By showing that customers are influenced by the information available on these platforms, in making a product choice, but not in retaining them as a customer. Furthermore, people are more influenced by negative information then positive information in making a product choice with social media. People are also more influenced by reviews and social media when they want to buy products that are more expensive. Finally, the findings presented in this study also confirm the uncertainty, transaction cost and agency theory, because people want to reduce uncertainty by searching or sharing information. This suggests that positive word-of-mouth, and preventing negative word-of-mouth is extremely important for companies, to attract customers.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:01 general works, 05 communication studies, 85 business administration, organizational science, 88 social and public administration
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/67304
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page