Talk up or criticize? Customer responses to WOM about competitors during social interactions

Popular metrics such as the Net Promoter Score (NPS) highlights many benefits of word of mouth (WOM) to firms. Is WOM all it is claimed to be? Building on social identity theory, this research develops a conceptual model of WOM exchange in social settings and tests the model with customer surveys of three service sectors. The findings show that the effects of (1) positive and negative WOM (P/NWOM) received about competitors and (2) perceived presence of critical incidents (PPCIs) on P/NWOM given about own service provider are far from intuitive. Responses to PWOM received counter the suggestions in the NPS literature. The findings also indicate that the best firms can hope for when receiving NWOM about competitors is that their customers remain silent. It is recommended that firms communicate a message that is consistent with the nuanced views expressed by friends in social circles, rather than a uniformly superior positioning.     

Managing Word-of-Mouth: A Nonprofit Case Study

Word-of-mouth (WOM) is an important influence on the opinions of donors and their donation behaviors. Against a background of more professional donor relationship management, we investigate about how, if at all, nonprofits (NP) manage WOM. We report an in-depth case study of a single NP. We find that there is widespread appreciation that WOM influences NP performance indirectly through its impact on donor acquisition, donor loyalty, and organizational reputation. Whilst the organization employs networking and WOM practices, it stresses the reduction of negative WOM (NWOM) rather than the promotion of positive WOM (PWOM). Crisis management dominates the NP's WOM-related thinking. We find that PWOM emanates from many organizational influences including donor satisfaction, the welfare service itself, networking practices, external suppliers, alliances, its officers and communication practices including both advertising and public relations. We apply a new model, the eight pillars of WOM, to our analysis of WOM management in the case organization.     

Positive and negative word of mouth (WOM) are not necessarily opposites: A reappraisal using the dual factor theory

Prior research has not systematically investigated the enablers and inhibitors in conjunction to measure consumer behavior toward mobile wallets (m-wallets), focusing either on the adoption or the resistance perspective only. Similarly, antecedents and consequences of the dichotomous nature of word of mouth for m-wallets have also remained obscure so far. The present research proposes to address this void in the accumulated learnings by examining both enablers and inhibitors of mobile wallets (m-wallets) as antecedents of valence of word of mouth (positive and negative; PWOM and NWOM, respectively). Grounded in Dual Factor Theory, this study aims to explore consumers’ continued use intentions resulting from the WOM valence. The findings reveal that enablers (perceived information quality, perceived ability, and perceived benefit) drive PWOM, while the inhibitors (perceived cost, perceived risk, and perceived uncertainty) spur NWOM. Furthermore, the results show that only PWOM drives the continuance intentions of m-wallet users. Therefore, the study proves that the antecedents of PWOM are different from those of NWOM.     

To praise or not to praise- Role of word of mouth in food delivery apps

This study examined the determinants of word of mouth, using the dual-factor theory in the context of food delivery apps (FDA) during the ongoing Covid-19 pandemic, which has created unique challenges and opportunities for the hospitality industry. We proposed and tested an integrated model by examining both enablers (i.e., trust, perceived benefit, quality control) and inhibitors (i.e., advertisement overload, perceived threat, quality issues) of FDA usage as antecedents of positive word of mouth (PWOM) and negative word of mouth (NWOM). Our results revealed that trust and perceived benefit drive PWOM, while advertisement overload and quality issues lead to NWOM. We also found some counterintuitive and unique results; for instance, perceived benefit leads to NWOM, the perceived threat does not result in NWOM, and quality control does not necessarily result in PWOM. Through these findings, we provide empirical evidence and recommend managerial interventions to help restaurant owners and FDAs navigate crises like the ongoing pandemic.     

Four decades of negative word-of-mouth and negative electronic word-of-mouth: A morphological analysis

Customers voice their negative brand experiences to their family and friends in the form of negative word-of-mouth (NWOM). Web 2.0 enables the sharing of NWOM in electronic format on various social media sites, online customer review forums, and blogs, which is known as negative electronic word-of-mouth (NeWOM). Researchers need to study the spread of NWOM/NeWOM to prevent adverse consequences for companies and suggest an optimal response for its redressal. Existing literature review studies have focused on word-of-mouth (WOM) and electronic WOM (eWOM) and have considered both positive and negative WOM and eWOM concurrently. Past literature reviews have captured the breadth of the WOM domain, ignoring the depth. This research article contains a review of 282 journal papers capturing the depth of the extant literature by focusing solely on ‘negative’ WOM and eWOM (NWOM and NeWOM), and presents a broad view of the NWOM and NeWOM domains using morphological analysis (MA). This will help to conceptualize and categorize the existing state-of-the-art literature into broad dimensions and identify future research opportunities. The MA framework helps to bifurcate this literature into the following four dimensions: (i) nomenclature of NWOM and NeWOM, (ii) antecedents of NWOM/NeWOM, (iii) impacts of NWOM/NeWOM, and (iv) prevention and recovery response to NeWOM. Further dissection of these four dimensions leads to 15 sub-dimensions and 217 variants. Combinations of the 217 variants enable the identification of 550 novel future research opportunities in the area of NWOM and NeWOM.     

Exploring the Effects of Compliance/Non-Compliance Message Framing,Desirability of End States,and Brand Zealotry on Consumers’ Responses to Wearables Advertising

Abstract

An experiment examined the combinatory effects of advertising message framing, desirability of end states, and brand zealotry on consumers’ responses to wearables advertising. The compliance framed ad elicited more favorable ad attitude, purchase intention, and word of mouth (WOM) intention compared with the noncompliance framed ad. Results also showed brand zealotry moderated the interaction between message framing and desirability of end states on WOM intention. Specifically, for low brand zealotry individuals, the compliance-framed ad elicited greater WOM intention than the noncompliance-framed ad regardless of the desirability of end-states. The desirable end-state ad triggered a greater WOM intention than the undesirable end-state ad regardless of message framing. For high brand zealotry individuals, the effect of message framing on WOM intention relied on the desirability of end-states. Theoretical and practical implications were discussed.     

Premium generic brand (PGB) choice vis-à-vis generic and national brands: A scenario comparison for self-use,family consumption and gift giving in a food versus non-food and cross-cultural context

PurposeThe study models factors affecting brand category choice for generic as well as national brands, and next contrasts them to a new brand category: premium generic brands (PGB). PGB are a new occurrence in brand and product management, and consumer reactions to PGB are not yet well understood.Design/methodology/approachThree purchase motivation scenarios were presented to 553 consumers to test for their purchase intentions for self-consumption, family use or gift giving. A quasi-experiment was chosen where respondents were exposed to store-like presentations of actual real life products and asked for their likelihood to choose the national or generic brand over the new PGB. The study applied multivariate testing such as MANOVA.FindingsSeparate models were developed for food and non-food choice through backward deletion regression analyses, and the most parsimonious models revealed strong similarities for self as well as family consumption choices, but distinct drivers for gifts. Value for money, image and satisfaction are key factors in brand choice overall, but for gifts, ‘image’ overpowers all other predictors.Originality/valueThe study identified the Chinese as a distinct consumer segment for brand choice since they are more open to potentially consider PGB as gifts, whereas Caucasians only buy national brands for gift giving.     

Online Damage Control: The Effects of Proactive Versus Reactive Webcare Interventions in Consumer-generated and Brand-generated Platforms

Web 2.0 has empowered consumers to voice complaints with reduced costs (physical and psychological), and to share these with a multitude of other consumers on the Internet. As a public phenomenon, online complaints have a negative impact on consumers' evaluations of brands that are under attack in online complaints. By means of an experiment, we study the most effective means for companies to counter complaints as expressed in negative electronic word of mouth (NWOM). The results show that negative brand evaluations engendered by NWOM can be attenuated by webcare interventions dependent on type of strategy (proactive vs. reactive) and platform used (consumer-generated vs. brand-generated blog). This effect appeared to be mediated by conversational human voice. The findings are discussed in the light of practical implications for online complaint management.     

eWOM and the importance of capturing consumer attention within social media

Word-of-mouth (WOM) is widely regarded as one of the most influential factors impacting consumer behavior, yet traditional models were constructed oblivious to the potential of electronic word-of-mouth (eWOM) and social media. In particular, very little is known about the dynamics affecting consumer attention within two-way many-to-many mediated environments even though attention constitutes a critical step. Thus, we construct a conceptual framework that grounds consumer attention within a larger progression of behavioral responses to eWOM. We then conduct an experiment (n = 28) that isolates contextual antecedents of attention to positive, negative, and neutral WOM for both luxury and non-luxury brands within a social media platform. Using behavioral eye-tracking, we find that WOM message valence interacts with brand type to affect attention differently. Implications of these findings for facilitating eWOM are discussed with future research directions suggested.     

A study of antecedents and outcomes of social media WOM towards luxury brand purchase intention

This research develops a conceptualized model that illuminates the role of luxury perceptions in explaining consumer engagement in social media WOM and luxury purchase intention. It also explores the moderating effects of consumer demographic characteristics and perceived social status. The proposed model is validated by using SEM in AMOS against 282 samples, and chi-square difference test is applied to test the moderating effects. The findings demonstrate that social media WOM positively influences consumer luxury purchase intention. Perceived quality highly influences functional and social value, and social media WOM is strongly influenced by personal and functional value. This research 1) highlights the powerful role of social media WOM in enhancing luxury brands purchase intention, 2) extends current body of knowledge of the social media WOM and its focal antecedents, and 3) shows how consumer characteristics (e.g., age, gender, income, education, perceived social status) are important for developing customized marketing strategy to promote luxury brands on SNS. Overall, this study helps firms to understand which aspect of luxury brands to be emphasized to initiate consumers into social media WOM, which in turn, influences purchase intention.     

Why do consumers prefer a hometown geographical indication brand? Exploring the role of consumer identification with the brand and psychological ownership

This research investigates the consumer purchase intention of products with geographic indications (GIs) based on a sample of 351 valid responses in three representative regions that are well known for their GIs of navel orange brands. Drawing on theories of consumer-brand relationship, social identity or consumer identification with the brand, and psychological ownership, our empirical results support our research hypotheses. Specifically, it is found that consumers tend to have a higher purchase intention for hometown GI brands than for non-hometown GI brands. Meanwhile, the impact of brand origin, that is, hometown versus non-hometown GI brand, on consumer purchase intention of GI products is found to be mediated by consumer identification with the GI brands. In addition, psychological ownership moderates the impact of hometown GI brands on purchase intention in that high psychological ownership enhances the impact of brand origin on purchase intention, whereas low psychological ownership negates this effect. Theoretical contributions and managerial implications are provided.     

The influence of price and brand loyalty on store brands versus national brands

Abstract

This article investigates how price and brand loyalty of three frequently purchased product categories can influence the purchase decision process of store brands versus national brands. A multinomial logit model was constructed to analyse the data obtained from a consumer panel. The results confirmed that brand loyalty is the main variable which influences the purchase decision process of both national and store brands. The influence of price on the purchase decision process is product specific. There is a clear distinction between the buyer's profile of store brands and national brands. But there is no evidence of any correlation between demographic variables and national brands or store brands.     

A study on China's time-honored catering brands: Achieving new inheritance of traditional brands

The time-honored brand is the best brand retained from centuries of business and handicraft competition, representing inestimable brand, economic and cultural value. However, it has encountered the issue of heritage in the new era. To address this issue, in view of the critical role of customer word-of-mouth (WOM) in brand inheritance and reputation, this study constructed and examined the WOM path of time-honored catering brands by investigating 606 customers. Its conclusions highlight the positive antecedent of brand authenticity for customers' in-person WOM and EWOM. The path is influenced by the mediation mechanisms of response (awakening of interest), cognition (brand experience) and affection (brand identification). Moreover, the interaction between creative performance and brand authenticity can positively promote customers' brand experience. However, cultural proximity plays different roles in the stages of customers' brand attitudes and behaviors. The results provide managerial implications for how to promote the sustainable inheritance of traditional brands.     

Nostalgia and brands: a sweet rather than a bitter cultural evocation of the past

Abstract

This study focuses on the cultural consumer environment of brands considered as nostalgic. The research questions are thus the following: what is the impact of culture on the consumer relationship with brands considered as nostalgic? In which cases are these relationships positive, and in which cases are they negative? To answer these questions, a longitudinal data collection was conducted, consisting of interviewing the same sample of respondents three times, at more or less one-year intervals. The results were analysed taking into account three dimensions of culture: time, place and social aspects. In the time-based approach, brands are associated with traditional celebrations and rites of passage. Thus, they give rise to ‘traditional purchase’ and consumer loyalty. In the place-based approach, brands evoke original authenticity and myths. They offer protection to reduce perceived risks and therefore facilitate consumers’ trust. In the social approach, brands are associated with symbolic icons and attract communities of fans. Finally, this article shows that culture involves sweeter rather than bitter nostalgic brand relationships. This article brings to light four cases when the consumer cultural environment may induce a rejection of the nostalgic brand: (1) the ‘corrupted’ brand; (2) the ‘immoral’ brand; (3) the ‘precarious’ brand; and (4) the ‘stereotypical’ brand. It shows that only one case – the ‘corrupted’ brand – may be particularly prejudicial due to its unwelcome role in History.     

Desire,need, and obligation: Examining commitment to luxury brands in emerging markets

The availability of a wide variety of luxury brands has resulted in declining commitment toward a single brand. Enhancing brand commitment has, therefore, become a significant challenge for international businesses and marketing managers. We develop a multi–dimensional brand commitment framework underpinned by marketing, organizational, and social psychology literature streams. The simultaneous examination of brand–commitment dimensions based on consumer desire, need, and obligation in our framework offers a novel perspective that advances research on brand commitment. Our findings demonstrate stability of the framework in important emerging markets for luxury brands, namely China, India, Russia, Turkey, and Thailand. The framework, incorporating affective, continuance, and normative brand commitment dimensions, offers a conceptually robust fit. We demonstrate that each brand commitment dimension is influenced by distinct antecedents, and we show the direct and interactional impact of consumers’ emotional attachment, economic motivations, and normative pressures on purchase intentions. Supported by well-established theories in organizational and social psychology, our study offers new insights on how consumers commit to brands. We provide international brand managers with a blueprint for strengthening brand commitment across countries.     

Brothers in blood,yet strangers to global brand purchase: A four-country study of the role of consumer personality

Although personality traits have repeatedly been shown to influence consumer behavior, their impact on willingness to buy global brands has yet to be empirically investigated. Based on a four-country sample (N = 4539) of South East European consumers, we test alternative pathways linking consumer personality traits to global brand purchase intentions. Our findings show that extraversion, neuroticism, conscientiousness and openness to experience impact purchase intentions mediated through consumers' global brand associations, domestic country bias and price sensitivity. Implications of the findings for theory and practice are considered and future research directions identified.     

Hear nothing,do nothing: The role of word of mouth in the decision-making of older consumers

Abstract

In some product categories, older consumers (aged 65+) tend to be more brand loyal, have smaller consideration sets and defer purchase more than younger consumers. This conservative behaviour may arise, in part, because older people are more socially isolated and thus receive less social influence relating to product options. In this multi-study research, the volume of word of mouth (WOM) is used as an indicator of social influence. The WOM received by men and women falls substantially beyond age 65, indicating that a deficit in advice may be part of the explanation for conservative decision-making. To test this proposition, the duration of customer tenure of the current brand (how long the respondent has been a customer) is used as a measure of purchase deferral and, as predicted, tenure is longer when less WOM is received. This evidence indicates that some older consumers experience a degree of social isolation, which affects their decision-making. In marketing and social policy, there is a need to promote procedures, technologies and institutions that help older people to connect with others.     

How Do Price Perceptions of Different Brand Types Affect Shopping Value and Store Loyalty?

This research investigates the relationships among price perceptions for different brand types (national brands, standard store brands, regional store brands, organic store brands), shopping value dimensions (quality, price, social, and emotion value), and store loyalty (retention and word of mouth (WOM)). A comprehensive model depicts determinants of customer store loyalty. Using structural equation modeling, the model test includes 671 consumers intercepted during shopping trips. The data analysis yields several surprising results. In particular, low product price perceptions do not necessarily signal negative store quality evaluations. Shopping value dimensions influence store retention loyalty and WOM behavior differently. Furthermore, different brand types exert distinct effects on the value creation process. Favorable prices for national and standard store brands have comparable positive effects on store price value and emotional value creation; appealing prices of regional store brands instead reduce the emotional value of the store, and low prices for organic store brand products significantly increase social value creation.     

Beyond brand attitude: Individual drivers of purchase for symbolic cobranded products

Cobranding, or the use of two brand names on a single product, generally coincides with higher purchase intentions. Prior research focuses on ingredient co-branding and suggests that attitude toward both the primary and the secondary brands and congruence between the brands are important drivers of cobranded products' success. This research shows that self-congruity with the secondary brand and need for uniqueness have significant positive impacts on symbolic co-branding purchase, in addition to perceived congruence and attitude toward the primary brand. In contrast, attitude toward the secondary brand does not relate to purchase of symbolic cobranded products. Therefore, managers should rely on self-congruity, instead of attitude toward the secondary brand, when choosing a partner for symbolic cobranded products. Moreover, product category involvement enhances the impact of self-congruity on purchase intent.     

Effects of product-specific word-of-mouth communication on product category involvement

Drawing primarily from categorization theory, this paper presents justification for the effects of word-of-mouth (WOM) communication on product category involvement. Results of an empirical test of this relationship are presented showing an enduring effect of positive WOM communication on product category involvement; this effect was not found for negative WOM. These results suggest that positive WOM about one firm's brand may help competitors by increasing involvement, thus generating more sales (not necessarily of one's own brand) in an entire product category. Our findings, coupled with categorization theory, provide support for a series of propositions presented concerning the effects of changes in product category involvement on nondiscussed brand attitudes and purchase intentions.