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Customer Behaviour Analysis of E-commerce

What information can we get from customers’ reviews through big data analysis

Written by K. Soen, B. Yin

Paper category

Master Thesis

Subject

Business Administration>Management

Year

2019

Abstract

Master Thesis: E-commerce includes any form of economic activity through electronic connections. Typical but not limited application areas are finance, insurance, tourism, customer service and product distribution (Wigand, 1997). The market is the exchange place where supply and demand are met. It includes companies seeking targets, governments, or individuals who produce or buy goods. Therefore, the exchange of goods or services takes place. Electronic market is a selected system or technology platform for e-commerce (Wigand, 1997). Amazon, Taobao, JD, Alibaba, Etsy, etc. all fall into this category. Word-of-mouth (WOM) communication is “verbal, person-to-person communication between the recipient and the communicator deemed non-commercial by the recipient about the brand, product, service, or supplier” (Arndt, 1967, p. 19) Page). 292). In the emergence of the digital age, communication has found a new medium of communication, that is, the Internet. Information is no longer a commodity controlled by a few people or organizations. Advances in information technology have greatly changed the way information is exchanged. Everyone can share and create their own ideas with billions of people. This has exceeded the limitations of word of mouth (Duan et al., 2008). This word-of-mouth plays an important role in the decision-making of online purchases. Customers who are about to make online purchases usually follow certain stages. The stages involved before placing an order online start with related product search, price comparison, and product quality evaluation (Hu et al., 2008). This is where word of mouth comes into play; decisions related to product selection. They use word of mouth to get advice to reduce uncertainty and finally make a decision (Olshavsky and Granbois, 1979). Potential customers gain an advantage by extending the usability of other consumer assessments, and these assessments help them reach their final decision. These assessments exist in various forms, varying in accessibility, scope, and source (Chatterjee, 2001). A specific difference between traditional WOM and eWOM is that consumers try to become part of the virtual community through their way of expression. What motivates them to join this online community is the opportunity for social integration and the opportunity to identify with others (McWilliam, 2000). A previous study by Chen empirically investigated the impact of online reviews and recommendations on books on Amazon.com. Although recommendations are positively correlated with sales, ratings are not. For less popular books, recommendations are also more important (Chen et al., 2004). Read Less