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Understanding the buzz that matters: negative vs positive word of mouth

Samson, Alain (2006) Understanding the buzz that matters: negative vs positive word of mouth. International Journal of Market Research, 48 (6). pp. 647-657. ISSN 0025-3618

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Abstract

This article discusses negative and positive consumer word of mouth (NWOM and PWOM) in a mostly quantitative context. Based on the correlations between WOM and business growth found in Marsden, Samson and Upton’s (2005) ‘Advocacy Drives Growth’ study, possible explanations for the superior predictive power of NWOM are presented. It is suggested that, similar to the Net Promoter® Score (NPS), NWOM is a good measure to capture both loyalty and advocacy among existing customers, while negative information may also have a strong effect on purchase decisions by potential customers. The number of brand choices and brand commitment are addressed across industries. It is proposed that brands (particularly services) in high-commitment/low-choice sectors have to be more sensitive to NWOM, while PWOM may be a better predictor for business growth in low-commitment/high-choice industries. Finally, using data from ‘Advocacy Drives Growth’, a new WOM measure in the form of a ‘Net Advocacy Score’ is presented

Item Type: Article
Official URL: http://www.ijmr.com
Additional Information: © 2006 WARC - World Advertising Research Center
Library of Congress subject classification: H Social Sciences > HF Commerce
Journal of Economic Literature Classification System: M - Business Administration and Business Economics; Marketing; Accounting > M3 - Marketing and Advertising > M30 - General
Sets: Research centres and groups > LSE Enterprise
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 07 Jan 2009 12:39
URL: http://eprints.lse.ac.uk/21883/

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