The Digitization of Word-of-mouth: Promise and Challenges of Online Feedback Mechanisms
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4296-03.pdf
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Author(s)
Dellarocas, Chrysanthos
Date Issued
April 14, 2003
Series/Report no.
MIT Sloan School of Management Working Paper;4296-03
Abstract
Online feedback mechanisms harness the bi-directional communication capabilities of
the Internet in order to engineer large-scale word-of-mouth networks. Best known so
far as a technology for building trust and fostering cooperation in online marketplaces,
such as eBay, these mechanisms are poised to have a much wider impact on
organizations. Their growing popularity has potentially important implications for a
wide range of management activities, such as brand building, customer acquisition and
retention, product development, and quality assurance. This paper surveys our
progress in understanding the new possibilities and challenges that these mechanisms
represent. It discusses some important dimensions in which Internet-based feedback
mechanisms differ from traditional word-of-mouth networks and surveys the most
important issues related to their design, evaluation, and use. It provides an overview of
relevant work in game theory and economics on the topic of reputation. It discusses
how this body of work is being extended and combined with insights from computer
science, management science, sociology, and psychology in order to take into
consideration the special properties of online environments. Finally, it identifies
opportunities that this new area presents for OR/MS resear
Subjects
Online Feedback Mechanisms
Reputation Systems
E-commerce
Internet
Game Theory
Management Science
Operations Research
Persistent DSpace Link
