Examining the power-law distribution among eWOM communities: a characterisation approach of the Long Tail

Abstract

Nowadays electronic word-of-mouth (eWOM) communities symbolise a significant source of information that helps customers to make informed purchasing decisions. Through eWOM communities, a great audience of users is able to acquire knowledge from reviews concerning products and services that are less popular to the majority. The Long Tail effect is a manifestation of such redistribution of demand from popular products to niche products. In this paper, a new methodology that mathematically fits the relationship between the power-law distribution and the Long Tail from an eWOM community is developed. In addition, this paper defines a tool for finding niche products inaccessible through conventional channels. The results are consistent in showing that not all the categories fitting a power-law distribution are characterised by the Long Tail phenomenon, and conversely some of those having a Long Tail do not fit a power-law distribution.