“Never eat in that restaurant,I did!”: Exploring why people engage in negative word‐of‐mouth communication

What do consumers want to achieve when they engage in negative word‐of‐mouth communication (N‐WOM)? Two studies explore this question and reveal that consumers pursue specific goals when engaging in N‐WOM and that these goals systematically differ between the specific negative emotions that are experienced. For example, the results reveal that consumers who experience anger engage in N‐WOM to vent feelings or to take revenge. However, disappointed consumers engage in N‐WOM to warn others, and consumers who experience regret communicate with others to strengthen social bonds or to warn them. This reveals the functionality of specific emotions to N‐WOM, and how goals for N‐WOM are associated with these emotions. This demonstrates that rather than being uniform, the content and implications of N‐WOM are contingent on the specific emotions that consumers experience. © 2007 Wiley Periodicals, Inc.     

Can unpredictable risk exposure be priced?

We study the link between beta predictability and the price of risk. An investor who desires exposure to a certain risk factor needs to predict what next period’s beta will be. We use a simple model to show that an ambiguity averse agent’s demand is lower when betas are hard to predict, leading to a reduction in risk premiums. We test the implications for downside betas and VIX betas. We find that they have economically and statistically small prices of risk once we account for the fact that an investor cannot observe ex-post realized betas when determining asset demand.     

New evidence on the first financial bubble

The Mississippi Bubble, South Sea Bubble and the Dutch Windhandel of 1720 together represent the world's first global financial bubble. We hand-collect cross-sectional price data and investor account data from 1720 to test theories about market bubbles. Our tests suggest that innovation was a key driver of bubble expectations. We present evidence against the currently prevailing debt-for-equity conversion hypothesis and relate stock returns to innovations in Atlantic trade and insurance. We find evidence consistent with the innovation-driven bubble dynamics documented by Pastor and Veronesi (2009) for new economy stocks. Our evidence seems inconsistent with clientele-based theories that emphasize bubble-riding and short-sales restrictions.     

New technology based firms and the creation of regional growth potential

This paper focuses on the role of New Technology Based Firms (NTBFs) as a vital determinant of regional growth potential. The theoretical framework starts from the relation between innovation and economic development (macro-approach), to show how NTBFs can contribute to the creation of a regional growth potential (micro-approach). Empirical data for Belgium illustrate how NTBFs differ significantly from common starters on a number of fundamental characteristics such as educational level, product/market-orientation, socio-economic networking, delegation, growth strategy and Research and Development. Taking these findings into account, we concentrate on the region-specific technology policies in Belgium. The case of the emerging biotechnology industry is used as an illustration.     

When Satisfied Consumers Do Not Return: Variety Seeking's Effect on Short‐ and Long‐Term Intentions

Even satisfied consumers frequently do not come back, which challenges loyalty theory and marketing practice. It is reasoned that variety‐seeking tendencies will significantly affect short‐term revisit intentions, whereas satisfaction and regret will mostly determine long‐term revisit intentions. Thus, the influence of satisfaction on loyalty is hypothesized to be critically dependent on the time perspective of the intentions, now or later, and variety seeking. A representative survey (N = 400) in eight Spanish cities supported these predictions. Multivariate moderated‐mediation analyses revealed that indeed the influence of satisfaction, regret, and variety seeking critically depends on the time perspective of the behavioral intentions.     

Towards a flexible future? The nature of organisational response in the clothing industry

Quick response behaviour is a necessity in the clothing industry. It was expected that the requirements for this would show a number of dysfunctions in the Taylorist production concept. However, it is concluded that the way in which clothing companies are attempting to reorganise their processes can be termed 'intensification': changes designed to increase productivity without substantial reorganisation of the Taylorist production concept.     

Networks and small business growth: An explanatory model

To date, there has been limited empirical research related to network theory. With this article, we have tried to fill this gap by testing an explanatory model of the impact of networks on small business growth. To analyze this causal relationship, the log-linear technique was used. The results suggest that networks have an influence on the growth of a small business, especially through contacts with national and international entrepreneurs.     

Angry customers don't come back,they get back: The experience and behavioral implications of anger and dissatisfaction in services

This article investigates the specific experience of anger and dissatisfaction and their effects on customers' behavioral responses to failed service encounters across industries. Study 1 demonstrates that anger and dissatisfaction are qualitatively different emotions with respect to their idiosyncratic experiential content. Study 2 builds on these findings and shows how anger and service encounter dissatisfaction differentially affect customer behavior. It provides empirical support for the contention that anger mediates the relationship between service encounter dissatisfaction and customers' behavioral responses. The findings of Study 2 diverge from previous findings in marketing on the interrelationships between customer satisfaction/dissatisfaction, related consumption emotions, and customers' behavioral responses to service failure. The implications of these findings for services marketing theory and practice are delineated. Roger Bougie (J.R.G.Bougie@uvt.nl) is an assistant professor of marketing at Tilburg University, the Netherlands. His research interests are emotions and their impact on consumer behavior, and consumer decision making. Rik Pieters is a professor of marketing at Tilburg University, the Netherlands. His research interests are emotions in consumer behavior, visual attention and memory, and social networks. His work has appeared in, among others, theJournal of Consumer Research, theJournal of Economic Literature, theJournal of Marketing Research, andMarketing Science. Marcel Zeelenberg is a professor of social psychology at Tilburg University, the Netherlands. His research interest is in anticipated emotions and acutal emotional experiences and their impact on behavioral decision making. His work has appeared in, among others, theJournal of Consumer Research, theJournal of Personality and Social Psychology, Organizational Behavior and Human Decision Processes.