E-WOM is described as all informal communications directed at consumers through Internet-based technology related to the usage or characteristics of particular goods and services, or their sellers (Litvin, Goldsmith and Pan, 2008). In contrast with conventional WOM, e-WOM has unique characteristics. For instance, it often occurs in strangers or fellow consumers, and can be and can be anonymous (Goldsmith & Horowitz 2006; Sen & Lerman 2007). In this regard, people feel free to express opinions without identity disclosure (Goldsmith & Horowitz 2006). INTRODUCTION In a word dominated by social media, the diffusion of e-WOM is undoubtedly speeding up. Plus the international trade prevailing, people can experience products from all over the world at home, and they typically collect both positive and negative e-WOM for domestic and foreign brands with the aim of comprehensively evaluating the brands and their products. It is worth mentioning that in reality consumers often adheres to consumer ethnocentrism (CE) to counter the significant effects of imports on domestic economies and defend against foreign products in local markets. So far, there has been relatively little research on the effect of e-WOM on CE. In our study, we employ social media to discover the impacts of e-WOM on CE with respect to domestic and foreign smart phone brands from the Chinese e-WOM receiver’s perspective. Simultaneously, we test consumer pride and prejudice toward mature industries in the home country. Drawing on survey data from 302 consumers, our study reveals several significant findings. First, positive e-WOM regarding local brands may enhance CE, whereas positive e-WOM regarding foreign brands may reduce CE. Second, Negative e-WOM may break the advantage of CE for domestic brand, which result in the dominance of foreign brand. Third, positive e-WOM may enhance brand equity for both domestic and foreign brands. By contrast, negative e-WOM has no significant influence on Chinese consumers’ attitude toward brand equity. Finally, CE has positive influence on brand equity for domestic brand but not effect on foreign brand. To our best of knowledge, our paper is the first to study the effect of e-WOM on CE, which enriches the relevant theory with regard to CE.

With the advent of the Internet in the United States, Japan, and other developed countries, electronic word-of-mouth (e-WOM) consumer reviews have come into vogue. While most studies have shown that negative e-WOM has negative effects on consumer attitude, some recent studies implied that the existence of negative e-WOM on a single website can enhance consumer attitude toward the website. However, no research has not identified the conditions for the positive effects of negative e-WOM. Thus, we investigate the moderating effects of the types of receivers, reviews, and products. Also, we investigate the moderating effects of the order of positive and negative e-WOM reviews posted in a single website. The effects of four factors are investigated —product characteristic (utilitarian vs. hedonic), review characteristic (attribute- vs. benefit-centric), receiver characteristic (expert vs. novice), and the orders of negative e-WOM (top vs. bottom) when the ratios of positive to negative e-WOM reviews are 10:0, 8:2, and 6:4. A laboratory experiment with virtual e-WOM sites is utilized. Four hundred twenty students participate in the experiment. All hypotheses are supported in at least 5% levels. The results of ANOVA show that negative e-WOM has positive effects on consumer attitudes towards products in the case of hedonic products and expert consumers reading attribute-centric review. Moreover, negative e-WOM has a greater positive effect when it is at the top of the website as opposed to at the bottom. This study contributes to our current understanding of e-WOM effects on consumer behavior.