• Title/Summary/Keyword: Positive Word-of-Mouth communication

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The Effect of Word-of-Mouth on Purchase Intention: A Case Study of Low-Cost Carriers in Indonesia

  • SOELASIH, Yasintha;SUMANI, Sumani
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.4
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    • pp.433-440
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    • 2021
  • This study aims at testing word-of-mouth (WOM) by mediating positive and negative perceptions of purchase intention on low-cost carriers (LCC) flights in Indonesia. One of the communications mixes that airlines can carry out is WOM. WOM is a form of communication between passengers after using a flight. The formation of a positive perception of WOM is expected by airlines. If a positive perception of WOM has formed, a purchase intention will arise. The study population included LCC flight passengers in Indonesia, involving 387 respondents. For indicators and variables, validity and reliability tests were conducted using CFA, CR, and AVE tools. Sampling locations were Soekarno-Hatta and Kualanamu airports. Sample collection was obtained through purposive sampling, and the analytical tool used was structural equation modeling (SEM) with Lisrel. The results showed that WOM influenced purchase intention through positive and negative perceptions of WOM. It can be seen that a positive perception of WOM has a direct effect, while a negative perception of WOM has the opposite effect. In conclusion, the mediation of perceptions influences purchase intention, whether it in the same direction or the opposite ones. To conclude, WOM is an antecedent for it influences purchase intention.

The Influence of Cultural Orientation on Electronic Word-of-Mouth in Online Communities (온라인커뮤니티에서 문화적 성향이 구전에 미치는 영향)

  • Park, Seongho;Kim, Pansoo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.41 no.4
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    • pp.228-237
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    • 2018
  • The importance of eWOM (electronic word-of-mouth) communication through online communities is increasing on a daily basis. This study analyzed how the relationship between eWOM (electronic Word-Of-Mouth) factor and eWOM communication depends on the cultural orientation of users in the online community. The research model was developed based on four cultural orientations of individual affect Social tie and usefulness. The model consists of variables such as social tie and perceived usefulness as predecessors of eWOM, four dimensions of cultural orientation (Horizontal Individualism, Horizontal Collectivism, Vertical Individualism, Vertical Collectivism), and eWOM. The model was tested empirically using the PLS (partial least squares) structure equation model. Survey was conducted for online community users in South Korea. Data was statistically validated whether fits on research model. The study results reveal that Social Tie have a positive effect on Perceived Usefulness. Social Tie and Perceived Usefulness have a positive effect on eWOM. 3 of cultural orientations (HC, VI, VC) have a positive effect on Social Tie. Only one of cultural orientations (HC) have an negative effect on Perceived Usefulness. Especially, horizontal collectivism (HC) shows strong correlation with perceived usefulness, whereas vertical collectivism (VC) shows weak correlation with perceived usefulness andvertical individualism (VI) shows strongly correlation with social tie, whereas horizontal individualism (HI) shows weak correlation with social tie. Based on the study results, customized service strategy could be formulated according to the different vertical styles and various eWOM factors.

The Effect of Marketing Communication and Store Loyalty in Traditional Markets: Focusing on Shopping Value and Shopping Experience (마케팅 커뮤니케이션이 점포 충성도에 미치는 영향: 쇼핑가치와 전통시장 이용경험을 중심으로)

  • Song, Mu-Yeung;Yang, Hoe-Chang
    • Journal of Distribution Science
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    • v.10 no.11
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    • pp.71-77
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    • 2012
  • Purpose - This study examined marketing communication in traditional markets by assessing consumers demonstrating brand loyalty through repeat purchases despite active marketing by competing brands hence, showing that the brand did not lose customers owing to communication. Specifically, this study examined the effects of marketing communication factors in traditional markets upon consumers' store loyalty and to determine consumers' practical and hedonic values, as moderating variables. Moreover, this study determined that both experienced and inexperienced consumers in traditional markets could similarly assess the market and examined the outcome of traditional market development as well as future strategies. Research design, data, methodology - To verify the relationship between marketing communication and store loyalty, and the moderating effects of shopping value, data were collected from 230 consumers in the Gyeonggi Province to test the theoretical model and its hypotheses. Although the field of distribution management typically uses two research methodologies, this study was conducted using empirical methodology. Specifically, analysis of variance and hierarchical regression analysis were used to test the hypotheses. Results - Consumers who had experienced the traditional market placed a greater emphasis on the physical environment or word-of-mouth marketing. Moreover, other factors apart from advertising had a significantly positive influence upon marketing communication sub-factors and store loyalty. Word-of-mouth marketing was found to be more important than other factors, therefore affirmative word-of-mouth marketing was considered important from various viewpoints. The study investigated the moderating effects of hedonic value and practical use value in the relationship between marketing communication sub-factors and store loyalty: The negative influence of publicity, physical environment, and word-of-mouth marketing was considered to be statistically significant. Conclusions - Consumers who made use of the traditional market did not think of the physical environment in an affirmative way, and consumers who did not make use of the traditional market perceived it as having a poor physical environment. However, consumers who engaged in word-of-mouth marketing experienced the traditional market in an affirmative way. Consumers who made use of the traditional market had significantly high hedonic value and/or practical use value, therefore future strategies should encourage consumers to make more use of the traditional market. Consumers who had experienced the traditional market demonstrated strong market loyalty. For consumers who did not make use of the traditional market, marketing communication was likely to influence store loyalty in a different manner from a practical perspective. In other words, marketing communication was needed to develop the traditional market, and consumers who did not make use of the traditional market should be given the opportunity to do so. Consumers having low hedonic values experienced high publicity to have high store loyalty, and consumers who experienced good facilities of the traditional market had high store loyalty (Nam & Jun, 2011). Consumers with low hedonic values as well as those with high hedonic values on the traditional market could have high store loyalty through affirmative word-of-mouth marketing.Therefore, various types of events and strategies were needed to enable consumers to experience the traditional market in an affirmative way.

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The Moderate Effect of Market Maven to Intention of Word of Mouth on New Product (마켓메이븐이 신제품의 구전의도에 미치는 조절효과에 관한 연구)

  • Song, Yongtae
    • Journal of Digital Convergence
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    • v.14 no.10
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    • pp.241-252
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    • 2016
  • The purpose of this study is to explain the word-of-mouth communication that evolve differently from traditional marketing communications using existing mass media in an environment of the flooding of new products. In particular, people use digital devices as internet users and various communication is activated in blogs and communities. It is expanding that companies use market maven as a facilitator of communication. The role of Market maven due to the spread of the Internet seems to be more meaningful for marketing activities. Market maven is a look at how it should study moderate effect on word of mouth of new products. Empirical results show that perceived curiosity and perceived innovativeness of new product has a positive impact on the word of mouth of new product, and was confirmed in a moderate effect of market maven.

Assessing the Damage: An Exploratory Examination of Electronic Word of Mouth (손해평고(损害评估): 대전자구비행소적탐색성고찰(对电子口碑行销的探索性考察))

  • Funches, Venessa Martin;Foxx, William;Park, Eun-Joo;Kim, Eun-Young
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.188-198
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    • 2010
  • This study attempts to examine the influence that negative WOM (NWOM) has in an online context. It specifically focuses on the impact of the service failure description and the perceived intention of the communication provider on consumer evaluations of firm competence, attitude toward the firm, positive word of mouth and behavioral intentions. Studies of communication persuasiveness focus on "who says what; to whom; in which channel; with what effect (Chiu 2007)." In this research study, we examine electronic web posting, particularly focusing on two aspects of "what": the level of service failure communicated and perceived intention of the individual posting. It stands to reason electronic NWOM that appears to be trying to damage a product’s or firm's reputation will be viewed as more biased and will thus be considered as less credible. According to attribution theory, people search for the causes of events especially those that are negative and unexpected (Weiner 2006). Hennig-Thurau and Walsh (2003) state "since the reader has only limited knowledge and trust of the author of an online articulation the quality of the contribution could be expected to serve as a potent moderator of the articulation-behavior relationship. We therefore posit the following hypotheses: H1. Subjects exposed to electronic NWOM describing a high level of service failure will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM describing a low level of service failure. H2. Subjects exposed to electronic NWOM with a warning intent will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM with a vengeful intent. H3. Level of service failure in electronic NWOM will interact with the perceived intention of the electronic NWOM, such that there will be a decrease in mean response on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention from electronic NWOM with a warning intent to a vengeful intent. The main study involved a2 (service failure severity) x2 (NWOM with warning versus vengeful intent) factorial experiment. Stimuli were presented to subjects online using a mock online web posting. The scenario described a service failure associated with non-acceptance of a gift card in a brick-and-mortar retail establishment. A national sample was recruited through an online research firm. A total of 113 subjects participated in the study. A total of 104 surveys were analyzed. The scenario was perceived to be realistic with 92.3% giving the scenario a greater than average response. Manipulations were satisfactory. Measures were pre-tested and validated. Items were analyzed and found reliable and valid. MANOVA results found the multivariate interaction was not significant, allowing our interpretation to proceed to the main effects. Significant main effects were found for post intent and service failure severity. The post intent main effect was attributable to attitude toward the firm, positive word of mouth and behavioral intention. The service failure severity main effect was attributable to all four dependent variables: firm competence, attitude toward the firm, positive word of mouth and behavioral intention. Specifically, firm competence for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Attitude toward the firm for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Positive word of mouth for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Behavioral intention for electronic NWOM describing high severity of service failure was lower for electronic NWOM describing low severity of service failure. Therefore, H1a, H1b, H1c and H1d were all supported. In addition, attitude toward the firm for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Positive word of mouth for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Behavioral intention for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Thus, H2b, H2c and H2d were supported. However, H2a was not supported though results were in the hypothesized direction. Otherwise, there was no significant multivariate service failure severity by post intent interaction, nor was there a significant univariate service failure severity by post intent interaction for any of the three hypothesized variables. Thus, H3 was not supported for any of the four hypothesized variables. This study has research and managerial implications. The findings of this study support prior research that service failure severity impacts consumer perceptions, attitude, positive word of mouth and behavioral intentions (Weun et al. 2004). Of further relevance, this response is evidenced in the online context, suggesting the need for firms to engage in serious focused service recovery efforts. With respect to perceived intention of electronic NWOM, the findings support prior research suggesting reader's attributions of the intentions of a source influence the strength of its impact on perceptions, attitude, positive word of mouth and behavioral intentions. The implication for managers suggests while consumers do find online communications to be credible and influential, not all communications are weighted the same. A benefit of electronic WOM, even when it may be potentially damaging, is it can be monitored for potential problems and additionally offers the possibility of redress.

The Word-of-Mouth Effects from Purchasers and Non-purchasers (구매자와 비구매자의 구전효과)

  • Lee, Yeong-Ran;Park, Sang-June
    • Korean Management Science Review
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    • v.32 no.4
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    • pp.29-43
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    • 2015
  • Word-of-Mouth (WOM), which is the unpaid spread of a positive marketing message from person to person, has been shown to be even more effective in influencing purchase decisions than traditional advertising channels. The effects of WOM might be different by types of persuaders (purchasers vs. non-purchasers), however, the current body of research has not given attention to the differential effects of WOM. This study focuses on whether or not potential customers are influenced by the WOM from non-purchasers as well as from purchasers, and it investigates if the impacts of WOM from non-purchasers are different with those from purchasers. Based on conjoint analyses, it concludes that potential customers are affected by the communication with non-purchasers as well as with purchasers but the impacts of non-purchasers are not greater than those of purchasers.

Credibility of e-WOM in Travel Industry, and Its Influence in WOM Effect (온라인 구전 여행정보의 신뢰와 구전효과 연구)

  • Chun, Min-Ho
    • The Journal of the Korea Contents Association
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    • v.11 no.5
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    • pp.424-432
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    • 2011
  • Today's wide-spread Internet technology allowed consumers to access much Word-of-Mouth information through an online board. As communication and exchanging information between travelers becomes easier and faster, e-WOM (Electronic Word-of-Mouth) is recognized as one of the most influencing communication methods in today's society. This new trend implies a significant impact to travel industry. This study focuses on interaction between Credibility on e-WOM, brand attitude, WOM acceptance, WOM activity and purchasing intention of travel product. The result of this study suggests: (1) Credibility in e-WOM provides positive effect in brand attitude, (2) Brand Attitude gives positive effect on WOM acceptance, WOM activity and purchasing intention of travel product, (3) WOM acceptance gives positive effect on WOM activity, but it is not effective on purchasing intention of travel product. Regarding e-WOM management of travel agencies through its website or online community, authors would like to argue that travel agencies need to build positive brand attitude based on Credibility in brand, which would lead consumers to positively acknowledge its brand and spread words out to other consumers.

The impact of Marketing Communication Content Distributed on Social Networks on Electronic Word-of-Mouth

  • VO, Minh Sang;HUYNH, Dung Quoc Vu;NGUYEN, Giang Huong;DANG, Giang Ha Nguyen;HUYNH, Duong Dai;LE, Bao Quang;DANG, Nhut Minh
    • Journal of Distribution Science
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    • v.20 no.5
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    • pp.65-74
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    • 2022
  • Purpose: This paper evaluates which characteristics of marketing communication content distributed on social networks impact electronic word-of-mouth (e-WOM). Research design, data, and methodology: Quantitative research was carried out on 637 Vietnamese people aged from 18, who were exposed to marketing communication programs of fashion brands. Preliminary data were analyzed by the reliability of the scale, multivariate regression analysis, and analysis of variance. Results: The research findings have identified the four characteristics of social media content that positively impact e-WOM, including entertainment, interaction, trendiness, and customization. Participants aged 30 and under have a higher appreciation for media content and e-WOM than those from 31 and over. Conclusion: To promote e-WOM, marketing communication content distributed on social networks should focus on the following characteristics: (1) The entertainment of marketing communication content should involve positive emotions, fun, and enjoyment; (2) With interactive content, focus should be placed on discussion and exchange content, content that encourages sharing, and two-way interactive content; (3) For trending marketing communication content, marketers consider communicating brand-related latest information, up-to-date information, and hot discussion topics; and (4) When creating customized content, brands should be interesting, customized (information, product, price), and unique.

A Correlation Analysis between Word-of Mouth Message Sender Credibility and WOM Effect (외식업소에 대한 구전 메시지 발신자 신뢰도와 구전효과의 상관성 분석)

  • Cha, Sung-Mi;Shin, Seo-Young
    • Journal of the Korean Society of Food Culture
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    • v.21 no.5
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    • pp.536-540
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    • 2006
  • The purposes of this study were 1) to analyze the correlation between Word-of-Mouth(WOM) message sender credibility and WOM effect and 2) to analyze the differences of WOM message sender creadibility and WOM effect in off-line and on-line WOM communication. The messages were created as a form of scenario for this study. Respondents were asked to evaluate the message sender credibility and predict WOM behaviors after reading given scenario. The questionnaires were distributed to 200 customers and a total of 175 questionnaires were used for analysis(87.5%). The statistical analysis was conducted using SPSS Win(12.0) for descriptive analysis, paired t-test, factor analysis, correlation analysis. The positive off-line WOM message sender was considered as more credible(p<.001) than on-line WOM message sender. 'Message sender credibility' is correlated with 'attitude formation' in both channels, but 'reliable' factor of 'credibility' variable is not significantly correlated with 'attitude change'.

The Structural Relationship between On-line Word of Mouth, Value, Satisfaction, Loyalty and Popularization of Yaksun Food (약선음식의 온라인 구전, 가치, 만족, 애호도 및 대중화 간의 구조관계 분석)

  • Jang, Soon-Ok;Lee, Yeon-Jung
    • Culinary science and hospitality research
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    • v.21 no.3
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    • pp.53-67
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    • 2015
  • The purpose of this study is to analyze the relationship between characteristics of online word-of-mouth communication regarding medicinal cuisine on value, satisfaction, loyalty and popularization, as well the interrelationship among them, and ultimately to propose a relationship model. The survey design, empirical analysis, hypothesis examination and model application were found to be suitable. The research results are summarized below. First, regarding the characteristics of online word-of-mouth communication, professionalism and proper timing were found to have a positive influence on value and the satisfaction. Second, the value of medicinal cuisine was found to have a positive effect on satisfaction and popularization, but not on loyalty. Overall, stressing the professionalism and proper timing of online word-of-mouth communication increases the value and customer satisfaction of medicinal cuisine, which in turn increases its popularity. In particular, those interested in increasing the popularity of medicinal cuisine should not only be knowledgeable of it, but also post accurate information that details each dishes unique traits and how to properly manage ingredients and cooking methods.