• Title/Summary/Keyword: Word of Mouth Communication

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Impact of Negative Word of Mouth on Firm Value

  • Jeon, Jaihyun;Kim, Byung-Do;Seok, Junhee
    • Asia Marketing Journal
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    • v.22 no.3
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    • pp.1-28
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    • 2020
  • With the development of information and communication technology and spread of smart devices, online information exchange has become a daily routine. Accordingly, the management and utilization of online word of mouth (WOM) has become an important issue for companies. Numerous studies have examined the impact of online WOM on firm performance. This study analyzes the impact of negative word of mouth (NWOM) on firm value, considering the influence of corporate social responsibility (CSR) activity and research and development (R&D) investment. Using a hierarchical linear model, we find that 1) NWOM has a negative impact on firm value, 2) CSR activities do not significantly influence this impact, and 3) R&D investment reduces this negative impact. This study contributes by demonstrating the effect of NWOM on firm value, examining the influence of CSR activities and R&D investment on the impact of NWOM, and confirming that the hierarchical linear model can be applied effectively to panel data in empirical studies. As a practical implication, companies must prevent and manage NWOM, whose impact, when caused by an unavoidable incident, can be alleviated by proactively announcing that the company is striving for competitiveness, for instance, by investing in R&D.

Factors Influencing Consumer's Purchase Intention on Beauty Products in Youtube

  • ROSARA, Nadia Annisa;LUTHFIA, Amia
    • Journal of Distribution Science
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    • v.18 no.6
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    • pp.37-46
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    • 2020
  • Purpose: This research aims to explain the influence of social media influencer (SMI), electronic word of mouth (EWOM), and perceived quality (PQ) on purchase intention (PI) of beauty products on YouTube. Youtube as the number 1 social media in Indonesia, has an important role as a promotional strategy media for beauty products. Research design, data and methodology: This study used the online survey to 210 female respondents aged 17-30 years who became a subscriber of an Indonesian beauty influencer. Simple regression and multiple regressions were performed to analyze the independent variables towards the dependent variable. Results: The results show that social media influencer, electronic word of mouth, and perceived quality simultaneously have a significant influence on purchase intention. Nevertheless, only two variables individually have a significant influence on purchase intention, which is social media influencer and perceived quality. Conclusions: Perceived quality and social media influencer could be the best strategies to increase consumers when promoting through the influencer's Youtube channel by utilizing a subscriber. While e-WOM can be influential on other social media platforms rather than on the Youtube platform. Therefore, suggested that digital marketer must use multiple social media platforms to increase consumers' purchase intention.

The Effects of Word-of-Mouth Channel Types on Product Attitude (구전정보 채널유형이 소비자 제품태도에 미치는 영향)

  • Yu, Jiaohui;Park, Yoonseo;Kim, Yongsik
    • The Journal of the Korea Contents Association
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    • v.16 no.12
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    • pp.707-723
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    • 2016
  • The purpose of this study is to focus on the effects of different channel types of Word-of-Mouth on the product attitude. Additionally, the product involvement and gender are considered as moderating variables. The results of this study show that different word-of-mouth channel types have different effects on the product attitude, that is, off-line has more influence than on-line does. Also the product involvement moderates the relationship between the channel types of word-of-mouth and the product attitude, while the gender does not. The results imply that while building the word-of-mouth marketing strategy, companies should not only pay attention to the on-line media channel, but lay importance on the off-line communication channel.

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.

The Effects of Educational Service Quality on University Image, Student Satisfaction, and Word of Mouth (교육서비스품질이 대학이미지, 학생만족, 구전에 미치는 영향)

  • Jung, Hyun-Hwa;Chung, Ki-Han
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.18 no.6
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    • pp.103-109
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    • 2017
  • We explored the influence of educational service quality on university image, student satisfaction, and word of mouth, as well as the causal association between university image, student satisfaction, and word of mouth. Second-order structural model testing was conducted with 274 questionnaires being used to analyze the hypotheses. The findings demonstrated, first, that educational service quality positively affected university image, student satisfaction, and word of mouth. The important sub-dimensions of educational service quality were teaching method, followed by lecture content, professor attitude, and communication through the second-order structural analysis. Second, university image positively affected student satisfaction and word of mouth. Third, student satisfaction positively affected word of mouth. Finally, for factor loading, the results of educational service quality indicated that teaching method(0.972) and lecture content(0.934) were the key factors in estimating the quality, revealing their significant and positive impact on university image, student satisfaction, and word of mouth. Thus, service providers should strengthen the teaching method and lecture content of educational service quality to enhance the university image, student satisfaction, and word of mouth of university performance from the perspective of university students.

Exploring the Influence of Pop-Up Store Experiences on Consumer Word-of-Mouth Intentions: The Mediating Role of Brand Charisma

  • Yitong Jiang;Md. Mukitul Hoque;Bok-Jae Park
    • International journal of advanced smart convergence
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    • v.12 no.4
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    • pp.246-259
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    • 2023
  • This study explores the evolving landscape of consumer experiences in the context of pop-up stores, considering the shifts from product economy to service economy and now the experience economy. It investigates the factors influencing consumer word-of-mouth intentions by examining the interplay of pop-up store experiences, brand equity, brand charisma, and verbal intent. Using Schmitt's strategic experience modules and the Aaker brand equity model, the study employs quantitative methods and data analysis to uncover the relationships among these variables. Surprisingly, it finds limited associations between the aspects of the pop-up store experience and brand equity. However, it highlights the direct impact of brand equity on brand charisma, which subsequently influences consumers' intentions to share brand-related information. This research contributes to our understanding of word-of-mouth marketing for pop-up stores, filling a knowledge gap and offering valuable insights for academics and businesses navigating the evolving marketing landscape. It also emphasizes the significance of brand charisma in the context of transient in-store experiences and evolving consumer preferences.

The Influence of the Logistics Quality on the Customer Satisfaction and the word-of-mouth intention in Chinese Internet Shopping Mall (중국 인터넷 쇼핑 몰의 물류품질이 고객만족과 구전의도에 미치는 영향)

  • Yu, Liu Jia;Choi, Min-Cheol
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.18 no.6
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    • pp.1454-1461
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    • 2014
  • This study analyzes the influence of the logistics quality of Chinese internet shopping mall on the customer satisfaction. This study also analyzes the influence of the customer satisfaction on the word-of-mouth intention. Then this study examines whether there is a difference among the influences of the logistics quality on the customer satisfaction depending on the types of shopping mall and the users' traits. As a result, when it comes to the logistics quality, carriage, after service and kindness influence customer satisfaction and the customer satisfaction influences word-of-mouth intention similarly. And this research reveals that the logistics quality can not differently influence on the customer satisfaction depending on the types of shopping mall and the users' gender and ages.

The Effect of Psychological Control Felt by Overseas Medical Tourists on Service Satisfaction and Word of Mouth Communication (해외 의료관광객이 느끼는 통제력이 서비스 만족 및 구전의도에 미치는 영향)

  • Chengcheng Ma;Jungki Lee
    • Asia-Pacific Journal of Business
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    • v.14 no.3
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    • pp.25-44
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    • 2023
  • Receiving medical services abroad is an event that involves a high level of risk and stress for most people. This study proposes and empirically examines perceived control as a factor that has a potential to reduce the stress associated with overseas medical experience and enhance satisfaction with it. Based on the research findings in environmental psychology, one's perceived control was divided into cognitive control, behavior control, and decision control. A research model and a set of hypotheses were constructed to investigate the effect of each control on satisfaction and word-of-mouth communications among consumers who had overseas medical service experiences. The data collection was conducted through an online survey of 220 Chinese consumers who had visited Korea as plastic medicine tourists. Satisfaction with their service experience was significantly affected by both behavioral control and decisional control, but not by cognitive control. Thus, Chinese medical tourists prefer to maintain the belief that they are in charge of major decisions associated with the medical procedure, and that the results of the medical procedure will have personally desirable consequences. In addition, satisfaction experienced by Chinese consumers with overseas medical services had a significant impact on their word-of-mouth activities. Based on the research results, a set of academic and practical implications were derived.

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.

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'.