IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v67y2014i12p2645-2656.html
   My bibliography  Save this article

Talk up or criticize? Customer responses to WOM about competitors during social interactions

Author

Listed:
  • Ranaweera, Chatura
  • Jayawardhena, Chanaka

Abstract

Popular metrics such as the Net Promoter Score (NPS) highlights many benefits of word of mouth (WOM) to firms. Is WOM all it is claimed to be? Building on social identity theory, this research develops a conceptual model of WOM exchange in social settings and tests the model with customer surveys of three service sectors. The findings show that the effects of (1) positive and negative WOM (P/NWOM) received about competitors and (2) perceived presence of critical incidents (PPCIs) on P/NWOM given about own service provider are far from intuitive. Responses to PWOM received counter the suggestions in the NPS literature. The findings also indicate that the best firms can hope for when receiving NWOM about competitors is that their customers remain silent. It is recommended that firms communicate a message that is consistent with the nuanced views expressed by friends in social circles, rather than a uniformly superior positioning.

Suggested Citation

  • Ranaweera, Chatura & Jayawardhena, Chanaka, 2014. "Talk up or criticize? Customer responses to WOM about competitors during social interactions," Journal of Business Research, Elsevier, vol. 67(12), pages 2645-2656.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:12:p:2645-2656
    DOI: 10.1016/j.jbusres.2014.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296314001337
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2014.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McColl-Kennedy, Janet R. & Patterson, Paul G. & Smith, Amy K. & Brady, Michael K., 2009. "Customer Rage Episodes: Emotions, Expressions and Behaviors," Journal of Retailing, Elsevier, vol. 85(2), pages 222-237.
    2. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    3. Evans, Martin G., 1985. "A Monte Carlo study of the effects of correlated method variance in moderated multiple regression analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(3), pages 305-323, December.
    4. Neil A. Morgan & Lopo Leotte Rego, 2006. "The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance," Marketing Science, INFORMS, vol. 25(5), pages 426-439, September.
    5. Martin, William C. & Lueg, Jason E., 2013. "Modeling word-of-mouth usage," Journal of Business Research, Elsevier, vol. 66(7), pages 801-808.
    6. Gupta, Pranjal & Harris, Judy, 2010. "How e-WOM recommendations influence product consideration and quality of choice: A motivation to process information perspective," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1041-1049, September.
    7. Bone, Paula Fitzgerald, 1995. "Word-of-mouth effects on short-term and long-term product judgments," Journal of Business Research, Elsevier, vol. 32(3), pages 213-223, March.
    8. Lim, Boon C. & Chung, Cindy M.Y., 2011. "The impact of word-of-mouth communication on attribute evaluation," Journal of Business Research, Elsevier, vol. 64(1), pages 18-23, January.
    9. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    10. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    11. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mahnaz Mansoor & Tahir Mumtaz Awan & Buthina Alobidyeen, 2020. "Structure and Measurement of Customer Experience Management," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 6(4), pages 171-182.
    2. Bag, Surajit & Sabbir Rahman, Muhammad & Choi, Tsan-Ming & Srivastava, Gautam & Kilbourn, Peter & Pisa, Noleen, 2023. "How COVID-19 pandemic has shaped buyer-supplier relationships in engineering companies with ethical perception considerations: A multi-methodological study," Journal of Business Research, Elsevier, vol. 158(C).
    3. Karikari, Serwaa & Osei-Frimpong, Kofi & Owusu-Frimpong, Nana, 2017. "Evaluating individual level antecedents and consequences of social media use in Ghana," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 68-79.
    4. Agag, Gomaa & Ali Durrani, Baseer & Hassan Abdelmoety, Ziad & Mostafa Daher, Maya & Eid, Riyad, 2024. "Understanding the link between net promoter score and e-WOM behaviour on social media: The role of national culture," Journal of Business Research, Elsevier, vol. 170(C).
    5. Weitzl, Wolfgang & Hutzinger, Clemens, 2017. "The effects of marketer- and advocate-initiated online service recovery responses on silent bystanders," Journal of Business Research, Elsevier, vol. 80(C), pages 164-175.
    6. Osei-Frimpong, Kofi & McLean, Graeme, 2018. "Examining online social brand engagement: A social presence theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 10-21.
    7. Ilenia Confente & Ivan Russo, 2018. "Qualitative Comparative Analysis (QCA): A useful methodological tool for research in the social sciences. An example from the online word-of-mouth context," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2018(4), pages 87-108.
    8. Inwon Kang & Haixin Cui & Jeyoung Son, 2019. "Conformity Consumption Behavior and FoMO," Sustainability, MDPI, vol. 11(17), pages 1-18, August.
    9. McLean, Graeme & Osei-Frimpong, Kofi, 2019. "Chat now… Examining the variables influencing the use of online live chat," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 55-67.
    10. McLean, Graeme & Osei-Frimpong, Kofi & Barhorst, Jennifer, 2021. "Alexa, do voice assistants influence consumer brand engagement? – Examining the role of AI powered voice assistants in influencing consumer brand engagement," Journal of Business Research, Elsevier, vol. 124(C), pages 312-328.
    11. Osei-Frimpong, Kofi & McLean, Graeme & Islam, Nazrul & Appiah Otoo, Brigid, 2022. "What drives me there? The interplay of socio-psychological gratification and consumer values in social media brand engagement," Journal of Business Research, Elsevier, vol. 146(C), pages 288-307.
    12. Baumeister, Stefan & Nyrhinen, Jussi & Kemppainen, Tiina & Wilska, Terhi-Anna, 2022. "Does airlines’ eco-friendliness matter? Customer satisfaction towards an environmentally responsible airline," Transport Policy, Elsevier, vol. 128(C), pages 89-97.
    13. Kumar, Sumit & Prakash, Gyan & Gupta, Bhumika & Cappiello, Giuseppe, 2023. "How e-WOM influences consumers' purchase intention towards private label brands on e-commerce platforms: Investigation through IAM (Information Adoption Model) and ELM (Elaboration Likelihood Model) M," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    14. Shuiping Ding & Jie Lin & Zhenyu Zhang, 2021. "The Influences of Consumer-to-Consumer Interaction on Dissatisfactory Consumers’ Repetitive Purchases in Network Communities," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    15. Raassens, N. & Haans, Hans, 2017. "NPS and online WOM investigating the relationship between customers’ promoter scores and eWOM behavior," Other publications TiSEM 931e7761-7c6e-40ee-8976-2, Tilburg University, School of Economics and Management.
    16. McLean, Graeme & Osei-Frimpong, Kofi & Al-Nabhani, Khalid & Marriott, Hannah, 2020. "Examining consumer attitudes towards retailers' m-commerce mobile applications – An initial adoption vs. continuous use perspective," Journal of Business Research, Elsevier, vol. 106(C), pages 139-157.
    17. Sahoo, Debajani & Harichandan, Sidhartha & Kar, Sanjay Kumar & S, Sreejesh, 2022. "An empirical study on consumer motives and attitude towards adoption of electric vehicles in India: Policy implications for stakeholders," Energy Policy, Elsevier, vol. 165(C).
    18. Osei-Frimpong, Kofi & McLean, Graeme & Wilson, Alan & Lemke, Fred, 2020. "Customer coproduction in healthcare service delivery: Examining the influencing effects of the social context," Journal of Business Research, Elsevier, vol. 120(C), pages 82-93.
    19. Arghashi, Vahideh & Yuksel, Cenk Arsun, 2022. "Interactivity, Inspiration, and Perceived Usefulness! How retailers’ AR-apps improve consumer engagement through flow," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Teller, Christoph & Kotzab, Herbert & Grant, David B., 2012. "The relevance of shopper logistics for consumers of store-based retail formats," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 59-66.
    2. Arnold Kamis & Tziporah Stern & Daniel M. Ladik, 2010. "A flow-based model of web site intentions when users customize products in business-to-consumer electronic commerce," Information Systems Frontiers, Springer, vol. 12(2), pages 157-168, April.
    3. Ismael Barros-Contreras & Héctor Pérez-Fernández & Natalia Martín-Cruz & Juan Hernangómez B., 2023. "Can we make family social capital flourish? The moderating role of generational involvement," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 655-673, September.
    4. Malte Brettel & Andreas Engelen & Thomas Müller & Oliver Schilke, 2011. "Distribution Channel Choice of New Entrepreneurial Ventures," Entrepreneurship Theory and Practice, , vol. 35(4), pages 683-708, July.
    5. King, Robert Allen & Racherla, Pradeep & Bush, Victoria D., 2014. "What We Know and Don't Know About Online Word-of-Mouth: A Review and Synthesis of the Literature," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 167-183.
    6. Nischay Kumar Upamannyu & Sneha Rajput & S. S. Bhakar, 2023. "Antecedents of Customer Loyalty and Word of Mouth: A Study on Consumer Durables in Emerging Economies," FIIB Business Review, , vol. 12(4), pages 439-458, December.
    7. Stefan Hoffmann & Stefan Müller, 2008. "Intention postgradualer Bindung: Warum Studenten der Wirtschaftswissenschaften nach dem Examen dem Alumniverein beitreten wollen," Schmalenbach Journal of Business Research, Springer, vol. 60(6), pages 570-600, September.
    8. Rapp, Adam & Trainor, Kevin J. & Agnihotri, Raj, 2010. "Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology," Journal of Business Research, Elsevier, vol. 63(11), pages 1229-1236, November.
    9. Andreas Engelen & Florian Heinemann & Malte Brettel, 2009. "Cross-cultural entrepreneurship research: Current status and framework for future studies," Journal of International Entrepreneurship, Springer, vol. 7(3), pages 163-189, September.
    10. Cees B. M. Van Riel & Guido Berens & Majorie Dijkstra, 2009. "Stimulating Strategically Aligned Behaviour Among Employees," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1197-1226, November.
    11. Mayr, Kathrin & Teller, Christoph, 2023. "Customer deviance in retailing: Managers’ emotional support and employees’ affective wellbeing," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    12. Elbashir, Mohamed Z. & Collier, Philip A. & Davern, Michael J., 2008. "Measuring the effects of business intelligence systems: The relationship between business process and organizational performance," International Journal of Accounting Information Systems, Elsevier, vol. 9(3), pages 135-153.
    13. Bruhn, Manfred & Schwarz, Jürgen & Batt, Verena, 2012. "Swissness als Erfolgsfaktor – Einsatz des Country-of-Origin zur Stärkung von Marken-Konsumenten-Beziehungen und der Markenbindung," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 66(2), pages 153-179.
    14. van Riel, C.B.M. & Berens, G.A.J.M. & Dijkstra, M., 2008. "Stimulating Strategically Aligned Behaviour among Employees," ERIM Report Series Research in Management ERS-2008-045-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Mütterlein, Joschka & Kunz, Reinhard E. & Baier, Daniel, 2019. "Effects of lead-usership on the acceptance of media innovations: A mobile augmented reality case," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 113-124.
    16. van Riel, C.B.M. & Berens, G.A.J.M. & Dijkstra, M., 2007. "Stimulating Strategically Aligned Behaviour Among Employees," ERIM Report Series Research in Management ERS-2007-029-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Harmancioglu, Nukhet & Grinstein, Amir & Goldman, Arieh, 2010. "Innovation and performance outcomes of market information collection efforts: The role of top management team involvement," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 33-43.
    18. Gupta, Prashant & Seetharaman, A. & Raj, John Rudolph, 2013. "The usage and adoption of cloud computing by small and medium businesses," International Journal of Information Management, Elsevier, vol. 33(5), pages 861-874.
    19. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    20. Panagopoulos, Nikolaos G. & Avlonitis, George J., 2010. "Performance implications of sales strategy: The moderating effects of leadership and environment," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 46-57.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:67:y:2014:i:12:p:2645-2656. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.