1. Chuk Cheuk Ka12204560 Lau Ming Sze12202401 Ng Ka Fan12202967 Tsoi Chak Fei14204991 Wan Chun Kit12203033 Wong Tsun Lam12210498 Gruen T.W., Osmonbekov, T., Czaplewski A. J.(2006), eWOM: The impact of customer-to-customer online know-how exchange on customer value and loyalty, Journal of Business Research 59, 449-456

2. 1. Introduction 2. Research Method 3. Findings 4. Conclusion

3.  1.1 Background  1.2 Definitions & Concept  1.3 Objective  1.4 Rationale

4.  eWOM: The impact of customer-to-customer online know-how exchange on customer value and loyalty

5.  Definition  eWOM-> Electronic word-of-mouth  -Any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet.(Hennig-Thurau, T., Qwinner, K.P., Walsh, G., Gremler, 2004)  Customer to Customer(C2C)  -A business model that facilitates an environment where customers can trade with each other.  -C2C transactions generally involve products sold through a classified or auction system. Products sold are often used or second hand.

8. WOM is more effective in influencing consumer purchase than advertising or personal selling Positive and negative effects of WOM

9.  2.1 Model  2.2 Questionnaire  2.3 Sampling Techniques & Statistical Method

11. ●Customer-to-customer know-how exchange ●Outcomes of C2C know-how exchange ●C2C know-how exchange and loyalty intentions ●Overall value of the firm’s offering and loyalty intentions ●MOA- theory

12. Explanation of Customer-to-customer know-how exchange(C2C know-how exhange) Electronic word-of-mouth- know-how exchange Know-how is defined as the accumulated practical skill or expertise that allows one to do something smoothly or efficiently (von Hippel, 1988). Know-how is a type of knowledge that is tacit, complex, and difficult to codify C2C know-how exchange is viewed as the interactions among individuals that serve as an information source that enhances competency and knowledge. Individuals may be involved in such exchange to acquire ‘‘the skills necessary to better understand, use, operate, modify and/or repair a product’ Customer gain direct utilitarian value

13. C2C know-how exchange can provide an additional source of perceived benefits eWOM- provides users a means to gain additional benefits from the product that may not have been realized without the C2C exchange. H1. C2C know-how exchange positively impacts the customer’s perceived overall value of the firm’s offering

14. An individual’s intention for repeat purchase is the plan of the customer to repurchase or upgrade a product. The rationale for the proposed direct effect of know-how exchange on loyalty intentions is supported by the norm of reciprocity.

15. Customers engaged in C2C knowhow exchange may develop affective bonds with other customers, which in turn may influence their loyalty intentions. H2. C2C know-how exchange positively impacts the customer’s loyalty intentions.

16. an individual’s perception of the overall value received from the firm’s offering will have a major bearing on the individual’s loyalty intentions H3. The higher the level of the overall value the customer receives from the firm’s offering, the greater the level of loyalty intentions.

17. Three factors: Motivation, opportunity and ability Motivation: incorporates readiness, willingness, interest, and desire to engage in information processing Opportunity: the extent to which a situation is conducive to achieving a desired outcome or the lack of impediments for achieving a desired outcome

18. Ability: is the extent to which consumers have thenecessary resources to make an outcome happen H4a. The higher the level of the member’s motivation, the higher the level of C2C know-how exchange. H4b. The higher the level of the member’s opportunity, the higher the level of C2C know-how exchange. H4c. The higher the level of the member’s ability, the higher the level of C2C know-how exchange.

19. 1. Motivation 2. Ability 3. C2C know-how exchange 4. Value of the firm’s offering

20.  The topics of discussion in the forum are generally relevant to me. 0.658  I am always interested in the issues being discussed on the forum. 0.743  Being on the forum energizes me. 0.777

21.  I generally find it easy to exchange ideas with other Internet forum participants. 0.770  I can communicate clearly on Internet user forums..0775  I am generally good at navigating within the forum. 0.753  I consider myself very skilled in using the forum. 0.701

22.  Overall, the Forum is an important source of information for me. 0.833  I find the interaction among forum users enhances my knowledge. 0.847  I can depend on the forum to provide answers to my questions. 0.783  In general, the ideas suggested on the forum are reliable. 0.679

24. 3.1. Theoretical and managerial implications 3.2. C2C know-how exchange, overall value, and loyalty Intentions 3.3. MOA and C2C know-how exchange

25. 3.1. Theoretical and managerial implications

26. Goal of the two major contributions: 1.To explore the impact that C2C know-how exchange has on customer perceived value and loyalty intentions 1.To find a theoretical and practical explanation that would assist researchers and managers as they seek to understand and manage the exchange of know-how among customers

27. Study found in the major contribution: ∗C2C know-how exchange affects managerially relevant outcomes →namely the value of the firm’s offering and the customers’ future intentions

28. Overall: ∗ The MOA theory offers a valid approach to provide theoretical and managerial insight to the phenomenon of C2C know-how exchanges as a specific type of eWOM

29. 3.2. C2C know-how exchange, overall value, and loyalty intentions

30. The study found: 1.C2C exchange activities had significant effects on the overall value of the firm’s offering 2. eWOM communication is perceived to be a reliable source of information by customers 3.C2C know-how exchange had a direct relationship with loyalty intentions 4.C2C know-how exchange had an indirect relationship that was mediated through overall value of the firm’s offering

31. ∗ The effect of C2C exchange on future purchase intention is completely mediated by overall value of the firm’s offering

32. 3.3. MOA and C2C know-how exchange

33. ∗ Motivation & Ability → Expected ∗ Opportunity on C2C know how exchange → X significant Why there is a lack of significant effect?

34. It is because… The nature of the context where the ‘‘opportunity’’ to participate in C2C exchange is ongoing

35. ∗ This research paper used a similar approach used by McAlexander et al. (2002) ∗ Ran the analysis using the 30% (n=184) of the respondents with the lowest composite opportunity scores (mean = 4.90, std. dev. = 0.78)

36. It shows that: ∗ The analysis for this group did show a significant (p < 0.05) positive effect of opportunity on C2C know- how exchange ∗ But, the standardized effect on C2C exchange was relatively small (0.10),compared with the standardized effect of motivation (0.49) and ability (0.42) → Opportunity plays a minor role in the Internet context

37. ∗ Once a minimum threshold level of opportunity is provided, increasing levels of opportunity no longer have an impact on C2C exchange

38.  4.1 Limitations  4.2 Further Research

39. Only a portion of items selected from pretesting were used for estimating the final model Only a cross-sectional snapshot – reduces the ability to make definitive causal statements about the findings