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Market share is correlated with word-of-mouth volume

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  • Uncles, Mark D.
  • East, Robert
  • Lomax, Wendy

Abstract

The volume and impact of positive and negative word of mouth (PWOM, NWOM) are investigated in relation to the market shares of brands. We find that the volumes of PWOM and NWOM are closely related to market share. By contrast, the average impact of instances of PWOM and NWOM shows no direct relationship with market share. When the direct influence of market share is removed, we find that small brands have somewhat more WOM than is warranted by their size, whereas large brands have slightly less, and this effect is stronger in the case of NWOM. The evidence presented here provides norms for evaluating WOM data and assists in the development of WOM metrics.

Suggested Citation

  • Uncles, Mark D. & East, Robert & Lomax, Wendy, 2010. "Market share is correlated with word-of-mouth volume," Australasian marketing journal, Elsevier, vol. 18(3), pages 145-150.
    • Handle: RePEc:eee:aumajo:v:18:y:2010:i:3:p:145-150
    DOI: 10.1016/j.ausmj.2010.03.001
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    References listed on IDEAS

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    1. David J. Reibstein & Paul W. Farris, 1995. "Market Share and Distribution: A Generalization, a Speculation, and Some Implications," Marketing Science, INFORMS, vol. 14(3_supplem), pages 190-202.
    2. Marc Vanhuele & Malcolm Wright & Robert East, 2008. "Consumer Behaviour: Applications in Marketing," Post-Print hal-02454375, HAL.
    3. Uncles, Mark D. & Ehrenberg, Andrew S. C. & Goodhardt, Gerald J., 2004. "Reply to commentary on "Understanding brand performance measures: using Dirichlet benchmarks"," Journal of Business Research, Elsevier, vol. 57(12), pages 1329-1330, December.
    4. East, Robert & Hammond, Kathy & Lomax, Wendy, 2008. "Measuring the impact of positive and negative word of mouth on brand purchase probability," International Journal of Research in Marketing, Elsevier, vol. 25(3), pages 215-224.
    5. F. Thomas Juster, 1966. "Consumer Buying Intentions and Purchase Probability: An Experiment in Survey Design," NBER Books, National Bureau of Economic Research, Inc, number just66-2.
    6. Ehrenberg, Andrew S. C. & Uncles, Mark D. & Goodhardt, Gerald J., 2004. "Understanding brand performance measures: using Dirichlet benchmarks," Journal of Business Research, Elsevier, vol. 57(12), pages 1307-1325, December.
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    Cited by:

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    4. Nguyen, Cathy & Romaniuk, Jenni, 2013. "Factors moderating the impact of word of mouth for TV and film broadcasts," Australasian marketing journal, Elsevier, vol. 21(1), pages 25-29.
    5. Nguyen, Cathy & Romaniuk, Jenni, 2014. "Pass it on: A framework for classifying the content of word of mouth," Australasian marketing journal, Elsevier, vol. 22(2), pages 117-124.

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