Search results

1 – 10 of over 2000
Article
Publication date: 16 November 2015

Chompunuch Pongjit and Rian Beise-Zee

This study aims to conceptualize and test the effect of monetary and non-monetary incentives for word-of-mouth (WOM) campaigns on the brand attitude of those receiving an…

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Abstract

Purpose

This study aims to conceptualize and test the effect of monetary and non-monetary incentives for word-of-mouth (WOM) campaigns on the brand attitude of those receiving an incentivized brand recommendation. It also studied whether or not the type of relationship between the recommender and the person who receives the recommendation and the expertise of the recommender moderate the impact of incentivization on brand attitude. The results should enable brand management to improve the design of WOM campaigns.

Design/methodology/approach

An experiment was conducted utilizing a sample of about 645 respondents in Thailand. In a 3 × 3 experimental design, three levels of incentivization and three types of social relationships were manipulated. All other variables were measured through a respondent-administered questionnaire. For incentivization of WOM, monetary reward and non-monetary reward are compared to a non-incentivized control state. The three types of social relationships are an authority relationship, a kinship relationship and a market pricing relationship between strangers as the control state.

Findings

The results of the experiment show that the introduction of rewards for recommendations harms the attitude of the receiver of a recommendation toward the brand. The attitude of potential buyers toward the brand can be tainted by the impression that a brand has enticed friends and relatives into profiting from their relationship. The negative effects increase further with the introduction of cash rewards. Contrary to expectations, however, the social relationship between the recommender and the new customer did not moderate the effect of incentivization. Source expertise has a direct as well as moderating effect on brand attitude.

Practical implications

The findings suggest that companies should use referral rewards with caution. Brand managers need to be aware that there is a trade-off between the advantages and the disadvantages of incentivized WOM campaigns. Recommendations have been derived about how to improve the design of incentivized WOM campaigns. Whether the advantages outweigh the disadvantages probably depend to some extent on brand-specific factors such as brand strength and market- or industry-specific factors, such as a credence good quality within the industry. It also emphasized that WOM campaigns need to be carefully monitored by measuring customer attitudes toward the brand.

Originality/value

Although past research provides valuable conceptual and empirical insights into consumer responses in incentivized WOM situations, most research has focused on the immediate effectiveness of WOM by measuring purchasing intentions. There is still a lack of information about how different kinds of incentivization affect customer attitudes toward a brand that incentivizes WOM, and how various relationship types moderate the effects; in particular, authority relationships have not yet been studied in this context.

Details

Journal of Product & Brand Management, vol. 24 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 December 2002

David Stokes and Wendy Lomax

Marketing in entrepreneurial contexts, such as small business, relies heavily on word of mouth (WOM) recommendations for customer acquisition. However, we know little about how WOM

11244

Abstract

Marketing in entrepreneurial contexts, such as small business, relies heavily on word of mouth (WOM) recommendations for customer acquisition. However, we know little about how WOM processes work for small firms, or how owner‐managers can influence them. This case study of an entrepreneurial owner of an independent hotel is used to illustrate the problems associated with WOM, and potential strategies to overcome them. The owner‐manager researched existing hotel customers through face‐to‐face interviews and a questionnaire. The results confirmed the importance of WOM, but found two sets of dissonance. One was between input WOM types and sources, the other between output WOM content and targets. The owner‐manager improved the effectiveness of WOM communications through a variety of interventions, thus demonstrating that WOM can be an effective part of a marketing strategy for a small firm.

Details

Journal of Small Business and Enterprise Development, vol. 9 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 23 August 2023

Grzegorz Zasuwa and Magdalena Stefańska

This paper has a twofold objective: (1) to examine how trust and distrust mediate the relationship between corporate social responsibility (CSR) and irresponsibility (CSI…

Abstract

Purpose

This paper has a twofold objective: (1) to examine how trust and distrust mediate the relationship between corporate social responsibility (CSR) and irresponsibility (CSI) perceptions and word of mouth recommendations; and (2) to show that moral norms moderate this mediating relationship.

Design/methodology/approach

Two experimental studies test the proposed model. Study 1 performs a single-factor experiment with three levels of corporate social responsibility (positive, neutral, negative) to test the mediation hypothesis (N = 180, 66% females, mean age = 22.3). Study 2 validates the mediation findings and examines the role of moral norms as moderators (N = 240, 50% females, mean age = 39.5).

Findings

Study 1 reveals that trust in the company partially mediates the effects of CSR on word of mouth (WOM) recommendations. Study 2 shows that consumers who adhere to higher moral standards follow distinct paths to negative WOM. Specifically, these consumers tend to spread negative comments when they expect the firm to behave irresponsibly. When unsure about future corporate behaviour, they are less likely to spread negative WOM.

Originality/value

This is the first study, to the authors' knowledge, to demonstrate how moral norms shape the effects of distrust in the corporate culprit on word of mouth recommendations. Accordingly, this research proves that conceptualising trust and distrust as separate constructs is useful in explaining consumer reactions to corporate social irresponsibility.

Details

Corporate Communications: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 12 September 2016

Sonia San-Martín, Jana Prodanova and Blanca López Catalán

This study aims to explore the issue of word of mouth (WOM) about mobile shopping, including activities conducted by consumers using a wireless internet connection to make a…

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Abstract

Purpose

This study aims to explore the issue of word of mouth (WOM) about mobile shopping, including activities conducted by consumers using a wireless internet connection to make a purchase. The objective is to ascertain the determinants of m-shoppers’ WOM.

Design/methodology/approach

This study uses a causal model to examine how satisfaction, perceived control, perceived entertainment and subjective norms affect WOM about mobile commerce. The authors treated a sample of 447 Spanish mobile phone buyers and applied different sound theoretical approaches to support the research.

Findings

Shopping experience, control over the process, group influence and satisfaction with mobile purchasing affect subsequent WOM shopping recommendations by innovative and pioneer mobile shoppers. Besides, entertainment, group influence, shopping experience and perceived control influence customer satisfaction in mobile shopping contexts.

Originality/value

This research provides a better understanding of WOM regarding m-shopping and contributes by outlining important variables for recommending WOM regarding m-shopping, which is key in the m-shopping diffusion. To the best of the authors’ knowledge, this is a pioneer study in Europe focusing on these variables for addressing the ways of achieving m-shopper WOM and one of the few addressing WOM in the m-shopping context. This study is based on information collected from real buyers, who are pioneer in m-shopping.

Details

Journal of Services Marketing, vol. 30 no. 6
Type: Research Article
ISSN: 0887-6045

Keywords

Open Access
Article
Publication date: 19 October 2022

Ismail Juma Ismail and Ismail Abdi Changalima

Over time, the concept of word of mouth (WOM) has spread beyond marketing into other disciplines. This is because WOM is important in decision-making…

1352

Abstract

Purpose

Over time, the concept of word of mouth (WOM) has spread beyond marketing into other disciplines. This is because WOM is important in decision-making at both the individual and organisational levels. Also, people are more likely to trust recommendations from their peers than those from companies. Therefore, the purpose of this study is to investigate the perceived usefulness of WOM messages for small and medium-sized enterprise (SME) suppliers in participating in Tanzanian public procurement opportunities.

Design/methodology/approach

The study collected cross-sectional data from 214 SME suppliers who supply common use items to public procuring organisations in Dodoma City, Tanzania. Structural equation modelling was used to test the direct relationships between study variables, and Hayes' PROCESS macro was used to test for the indirect effect of WOM message delivery on WOM attributes and the perceived usefulness of WOM.

Findings

WOM attributes that include expertise differential, perceptual homophily, and trustworthiness are related to the perceived usefulness of WOM. Also, WOM message delivery mediates the relationship between the WOM attributes and the perceived usefulness of WOM in enhancing public procurement participation. Therefore, the study's findings revealed that WOM is applicable in the public procurement context, under which public buyers act as senders and suppliers act as receivers. The latter finds out about public procurement opportunities and responds to them, while the former gives suppliers whatever information they need to respond to public procurement tenders that have been advertised.

Research limitations/implications

Because the study was cross-sectional, it was difficult to determine whether the opinions gathered over time remained consistent. Furthermore, only suppliers who are parties to framework contracts under Government Procurement Services Agency were included in the study. Therefore, the sample was limited to only suppliers supplying common use items to various public organisations in Dodoma City, Tanzania.

Originality/value

This paper integrates the concept of WOM from the marketing discipline and public procurement. As a result, the study adds to the understanding of the use of information transmission in terms of the contribution of WOM messages from public buyers to suppliers to enhance small and medium enterprises' participation in public procurement opportunities.

Article
Publication date: 10 January 2019

JiHye Park, JaeHong Park and Ho-Jung Yoon

When purchasing digital content (DC), consumers are typically influenced by various information sources on the website. Prior research has mostly focused on the individual effect…

Abstract

Purpose

When purchasing digital content (DC), consumers are typically influenced by various information sources on the website. Prior research has mostly focused on the individual effect of the information sources on the DC choice. To fill the gap in the previous studies, this research includes three main effects: information cascades, recommendations and word of mouth. In particular, the purpose of this paper is to focus on the interaction effect of information cascades and recommendations on the number of software downloads.

Design/methodology/approach

The authors use the panel generalized least squares estimation to test the hypotheses by using a panel data set of 2,000 pieces of software at download.cnet.com over a month-long period. Product ranking and recommendation status are used as key independent variables to capture the effects of information cascades and recommendations, respectively.

Findings

One of this study’s findings is that information cascades positively interact with recommendations to influence the number of software downloads. The authors also show that the impact of information cascades on the number of software downloads is greater than one of the recommendations from a distributor does.

Originality/value

Information cascades and recommendations have been considered as the primary effects for online product choices. However, these two effects typically are not considered together in one research. As previous studies have mainly focused on each effect, respectively, the authors believe that this study may fill the gap by examining how these effects are interacted to one other to influence customers’ choices. The authors also show that the impact of information cascades on the number of software downloads is greater than one of the recommendations from a system does.

Details

Online Information Review, vol. 43 no. 5
Type: Research Article
ISSN: 1468-4527

Keywords

Article
Publication date: 16 November 2010

Chiun‐Sin Lin, Gwo‐Hshiung Tzeng, Yang‐Chieh Chin and Chiao‐Chen Chang

Few library studies have investigated recommendation classifications for e‐book (electronic book) usage, while none have directly compared what recommendation sources…

3025

Abstract

Purpose

Few library studies have investigated recommendation classifications for e‐book (electronic book) usage, while none have directly compared what recommendation sources (word‐of‐mouth, advertising, and expert recommendation) might influence e‐book usage intentions. To fill this gap in the literature, the main purposes of this study are to: examine how users perceive the influence of recommendations on the intention to use e‐books for academic purposes; and to measure the level of the perception of trust and perceived risk when users receive e‐book recommendations from peers, advertisers, and experts.

Design/methodology/approach

Data for this study were collected from 382 academic digital library users between the ages of 18 and 25. A multiple regression analysis was then conducted to identify the key causal relationships.

Findings

The comparison of three recommendation sources (word‐of‐mouth, advertising, and expert recommendations) revealed that word‐of‐mouth (WOM) played a more important role than other recommendations in determining the intention to use e‐books in an academic digital library. In addition, enhancing the perceived trust and reducing the risk towards the use of e‐books can mediate the relationship between recommendation sources and the behavioural intentions to use e‐books.

Research limitations/implications

This study assessed self‐reported behavioural intention as part of its survey and, as a result, could have introduced unintentional inaccuracies.

Practical implications

Librarians should emphasise e‐book advantages (e.g. easy searching, easily accessible index) to get positive recommendation if users follow all of the recommendations of the source. They can also create online discussion forums to provide usage intention discussions, which can influence users' perceptions of trust and risk and increase the willingness of potential users to read e‐books.

Originality/value

Little has been written on the intentions of using e‐books. Therefore, this conceptual model is novel. This model is also useful in explaining how recommendations stimulate the intentions of using e‐books by enhancing the perceived trust and reducing the perceived risk; these findings may generally be applicable to librarians, current users, and potential users.

Details

The Electronic Library, vol. 28 no. 6
Type: Research Article
ISSN: 0264-0473

Keywords

Article
Publication date: 6 February 2017

Mohammad Reza Jalilvand, Sirous Salimipour, Mehdi Elyasi and Mehdi Mohammadi

Restaurants with limited promotion budgets depend mainly on word of mouth (WOM) among customers. WOM seems particularly important to the marketing of services. This is because…

11881

Abstract

Purpose

Restaurants with limited promotion budgets depend mainly on word of mouth (WOM) among customers. WOM seems particularly important to the marketing of services. This is because services are experiential in nature and difficult to assess before purchase. In the restaurants context there is little research on WOM. The purpose of this paper is to examine the factors that may influence tourists’ WOM about restaurants implying on the critical role of relationship quality.

Design/methodology/approach

A comprehensive literature review is conducted to identify the major factors influencing WOM in the context of restaurant industry. The study utilizes self-administered questionnaire survey and the target population are the customers who have referred to the restaurants of Tehran, Iran. A convenience sampling approach was utilized to collect a sample of 326 customers. A structural equation modeling procedure is applied to the examination of the antecedents of WOM.

Findings

The paper found that food quality, personal interaction quality, physical environment quality, and perceived value influence WOM behavior of customer in an indirect way through relationship quality.

Practical implications

This research conjectured that an understanding of factors that influence the tourist to talk each other about a given restaurant are worthy of additional research. Consequently, the study helps to understand how these factors can provide alternative sources of marketing to attract the long-term economic sustainability of restaurant industry in Iran.

Originality/value

To the authors’ knowledge, this research will be the first attempt to explore influential factors on WOM in restaurant industry focusing on the critical role of relationship quality. It is expected that researchers will find this research a contribution to the WOM literature, particularly in restaurant industry.

Details

Marketing Intelligence & Planning, vol. 35 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 24 January 2024

Hussam Al Halbusi, Khalid Al-Sulaiti, Fadi Abdelfattah, Ahmad Bayiz Ahmad and Salah Hassan

This study aims to investigate the factors influencing the adoption of online pharmacies in Qatar using the unified theory of acceptance and use of technology-2 (UTAUT-2…

Abstract

Purpose

This study aims to investigate the factors influencing the adoption of online pharmacies in Qatar using the unified theory of acceptance and use of technology-2 (UTAUT-2) framework. Specifically, this study examines the impact of performance expectancy, effort expectancy, social influence, hedonic motivation, habit, technology trust, perceived risk and users’ level of awareness of behavioral intention, which in turn affects the adoption of online pharmacies. Furthermore, this study explores the moderating role of word-of-mouth (WOM) recommendations on the relationship between behavioral intention and online pharmacy adaptation.

Design/methodology/approach

This study adopted a descriptive, quantitative approach to investigate the UTAUT-2 model in the context of consumers’ adoption of e-pharmacy in Qatar. Through convenience sampling, 455 responses were collected from regular customers accessing online pharmacy services. The data were analyzed using Smart-PLS 3.2 software to examine the hypothesized relationships.

Findings

The results showed that WOM recommendations significantly enhanced the relationship between behavioral intention and adopting online pharmacies in Qatar. This study identified the factors that may hinder or enable the adoption of online pharmacies, including performance expectancy, effort expectancy, social influence, hedonic motivation, habit, technology trust, perceived risk and users’ level of awareness.

Research limitations/implications

This study contributes to the existing literature on technology acceptance by extending the UTAUT-2 model and recognizing three additional variables (perceived risk, technology trust and technology awareness). These need to be investigated against UTAUT-2 variables to detect the significance of their impact on adapting the e-health concept in Qatar. The potential for cultural change to accelerate the adoption of online pharmacies is highlighted. Future research should explore the role of moral and cultural factors in technology adoption.

Practical implications

The results underscore the economic and social significance of e-pharmacy adoption, particularly within the context of a developing country. Considering the positive intentions expressed by individuals toward e-pharmacy, it becomes crucial for managers and decision-makers to make strategic choices to address any challenges that may arise. Policymakers are encouraged to enhance their services and implement various development initiatives to expand e-pharmacy accessibility and availability.

Originality/value

This study builds upon previous research on e-commerce in the pharmaceutical industry and provides a comprehensive understanding of customers in developing countries. Extending the UTAUT-2 model and identifying additional variables contributes to the knowledge of e-health concepts in Qatar. The findings have practical implications for developing strategies to promote online pharmacy adoption in Qatar and other countries.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 18 September 2017

María Fuentes-Blasco, Beatriz Moliner-Velázquez, David Servera-Francés and Irene Gil-Saura

Despite the importance of innovation in business performance, investigation into innovation in services is scanty and lacking consensus. In retailing, it is a topic that has been…

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Abstract

Purpose

Despite the importance of innovation in business performance, investigation into innovation in services is scanty and lacking consensus. In retailing, it is a topic that has been awakening considerable academic and business interest in recent years. In this study context, this work aims to analyse innovation in retail experiences from two aspects – marketing innovation and technological innovation – to understand the role it exercises in satisfaction and subsequent recommendation.

Design/methodology/approach

The authors’ objective is to investigate the direct and indirect influence of marketing and technological innovation on satisfaction and word-of-mouth (WOM) through three core constructs: store image, consumer value and store brand equity. SEM methodology is applied on a sample of 820 retail customers of grocery, clothing, furniture an electronics store.

Findings

The results show that technological innovation is more important than marketing innovation in shaping image, value and satisfaction. At the same time, store image is the variable that most influences customer satisfaction and that satisfaction is a very significant antecedent of WOM behaviour. Practical implications for retail managers and further research are presented.

Originality/value

The main value of this work has been to go deeper into the study of retail innovation, both in marketing and technologies, and its direct and indirect effects on satisfaction and subsequent recommendation through store image, consumer value and store brand equity. It is a new line of study, which is still fragmented and with little empirical evidence.

Details

Journal of Product & Brand Management, vol. 26 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

1 – 10 of over 2000