...products and firms has been widely reported in the popular media. However little is known how consumers use these reviews and if they subsequently have any influence on evaluations and purchase intentions of products and retailers. This study examines the effect of negative reviews on retailer evaluation and patronage intention given that the consumer has already made a product/brand decision. Our results indicate that the extent of WOM search depends on the consumer's reasons for choosing an online retailer. Further the influence of negative WOM information on perceived reliability of retailer and purchase intentions is determined largely by familiarity with the retailer and differs based on whether the retailer is a pure-Internet or clicks-and-mortar firm. Managerial implications for positioning strategies to minimize the effect of negative word-of-mouth have been discussed. Research on word of mouth (WOM) effects provides plenty of evidence that a satisfied customer may tell some people about his experience with a company, but a dissatisfied one will tell everybody he meets. Virtual communities with active members who provide evaluations and opinions on products and firms now provide a venue to tell the world and represent one of the fastest growing phenomena on the Web (Armstrong and Hagel 1996). It is not surprising therefore, that providing consumers a venue to voice their opinions, recommendations and complaints and monitoring this word-of-mouth activity has become a business...
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...Volume 9 Number 2 2010 Influence of Word of Mouth Communication Towards Indonesian Online Shopper Purchase Intention Mustika Sufiati Purwanegara School of Business and Management Institut Teknologi Bandung Eka Yuliana Master of Science in Management, School of Business and Management Institut Teknologi Bandung Abstract Word-of-mouth (WOM) gives the consumer perceptions to engage in retail online shopping can include both utilitarian and hedonic shopping dimensions. To cater to these consumers, online retailers can create a cognitively and esthetically rich shopping environment, through sophisticated levels of communication, as the personal influence, online community, and also by sharing they experience. Since the effect of word of mouth communications on marketing and has proven to stimulate online consumer's perceptions, 374 person of House of Taaj Facebookers in all over Indonesia, in which 280 female (75%) and 94 male (25%) has expressed their perceptions toward online purchase intention, and word of mouth. This research presumes that word of mouth from another online consumers, share information and features can influence online shopping intention and entice them to modify or even transform their original shopping predispositions by providing them with attractive and enhanced interactive features and controls of buying. To achieve the research objectives and the test hypotheses, factor analysis, and linear regression are used to analyze the significant level of each variable...
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...Abstract E-Wallet had been receiving enormous attention globally due to its high innovativeness as a secondary option to leather wallet. Usage of credit cards, cash or checks had been reduced due to the advancement of technology and emergence of e-Wallet. E-Wallet is an easy-to-use, convenient electronic prototype which acts as a secure global payment system by using only a mobile smartphone. This study is directed towards developing a model to explain the consumer's’ intention to adopt e-Wallet in the social context. It adopts Consumer Need for Uniqueness Theory based on the concept of Counter-Conformity Motivation (CCM) also known as Need For Uniqueness. Many researchers had explored the relationship of consumer’s intention to adopt on the technological usage context. However, little research in social context had been carried out. Therefore, this paper aims to examine the factors affecting the consumer adoption intention in social context. This paper found that CCM, self-identity and word-of-mouth (WOM) are the salient determinants in this study of knowledge of consumer adoption intention in e-Wallet. Keywords: e-Wallet, intention to adopt, counter-conformity motivation, need for uniqueness 1.0 Introduction According to the historical evidence, the first use of money is assumed to have started around 600 BC in term of coins (Davies and Davies, 2002). However, the world is evolving, due to the rapid change in technology. Most of the consumers have changed their...
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...industry “What motivates university students to book their travel itinerary online?” 25 November 2014 Management Summary Due to the rise of information technology and especially the Internet, the tourism industry has altered tremendously. Nowadays, signifcantly more consumers, especially young, self-determing, brand loyal and price sensible consumers, prefer to book their travels online instead of visiting a travel agency. However, it is currently unknown which factors are of influence on the intention of booking a trip online. Therefore, the following main problems of issue has been investigated: “Which factors influence the intention of students to purchase travels via online channels? And what is the mediating effect of perceived value of an online service on the relationship between price and students’ online purchase intentions?” The literature study examined several contemporary scientific theories with respect to students’ online purchase intention, and found that preceived value could potentially serve as an mediator on the relationship between price and consumers’ online purchase intentions. Furthermore, trust, convenience, web-design, reference groups, and promotion, are found to be also of influence on the consumers, online purchase intentions. Based on these relations found in the literature study, the conceptual model (i.e. descriptive representation) and hypothesis were developed. Based on the conceptual model a research methodology was designed. The...
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...______________________________________________________ Abstract Consumer purchasing decision making has been of great interest to researchers and practitioners for improving strategic marketing policies and gaining a competitive advantage in the market. Traditional market models generally concentrate on single individuals rather than taking social interactions into account. However, individuals are tied to one another with invisible bonds and the influence an individual receives from others, affects her purchasing decision which is known as word of mouth (WOM) effect. In this process, some people have greater influence on other consumers’ buying decisions that are known as opinion leaders. A new evolving modeling approach, agent-based modeling enables researchers to build models where individual entities and their interactions are directly represented. In this paper, we aim to build an agent-based simulation model for a technological product in a monopolistic artificial market. In particular, we will try to assess the efficiency and profitability of different marketing strategies consisting of different price, promotion, quality levels and different number of targeted opinion leaders where consumers are subject to WOM effects . In the presence of WOM, product’s quality is found to be the most significant factor affecting the profit of the company due to the positive WOM effect...
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...__________________________________________________________________________________________________________________ Abstract Consumer purchasing decision making has been of great interest to researchers and practitioners for improving strategic marketing policies and gaining a competitive advantage in the market. Traditional market models generally concentrate on single individuals rather than taking social interactions into account. However, individuals are tied to one another with invisible bonds and the influence an individual receives from others, affects her purchasing decision which is known as word of mouth (WOM) effect. In this process, some people have greater influence on other consumers’ buying decisions that are known as opinion leaders. A new evolving modeling approach, agent-based modeling enables researchers to build models where individual entities and their interactions are directly represented. In this paper, we aim to build an agent-based simulation model for a technological product in a monopolistic artificial market. In particular, we will try to assess the efficiency and profitability of different marketing strategies consisting of different price, promotion, quality levels and different number of targeted opinion leaders where consumers are subject to WOM effects . In the presence of WOM, product’s quality is found to be the most significant factor affecting the profit of the company due to...
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... 1. Problem Recognition 5 2. Information Search 6 3. Evaluation of Alternatives 8 4. Purchase 9 5. Post-Purchase Evaluation 10 2. Individual Influences 12 3. Environmental Influences 15 1. Culture 15 2. Social Class 16 3. Reference Groups 16 2. Word-of-Mouth Communication 20 1. Definition 20 2. Scope and Significance 20 3. Characteristics of WOM 22 4. The Nature of WOM 24 1. Types 24 2. Process 24 3. Conditions 28 4. Motives 29 5. WOM and the Consumer Behaviour Literature 29 1. Adoption and Diffusion on Innovations 29 2. Post-Purchase Decision-Making 31 3. Pre-Purchase Decision-Making 33 Chapter 3 Empirical Analysis 34 1. The Model 34 1. Recommendation Sources 34 2....
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...` School of Business, Society and Engineering Bachelor thesis in in Business Administration FOA214 (15 credits) Factors that influence consumer purchasing decisions of Private Label Food Products A case study of ICA Basic Thu Ha, Nguyen 900524 Ayda Gizaw 1/13/2014 830902 ` Abstract Course: Bachelor Thesis in Business Administration Institution: School of Business, Society and Engineering Authors: Thu Ha, Nguyen & Ayda Gizaw Examiner: Eva Maaninen-Olsson Supervisor: Magnus Linderströmd Title: Factors influence consumer purchase decisions of Private Label Food Products Keywords: Private Label Brand, consumer attitudes, intention, perceptions, ICA Basic Abbreviations PLB: Private Label Brand, WOM: word of mouth Research questions: Which factors influence consumers buying decisions of low-price PLBs food products? How consumers perceive low-price PLB food product? Case study of ICA Basic Research purpose: The purpose of this study is to identify and analyze factors that influence consumer purchasing decision of private label food products. Method: In this case study, both secondary data and primary were utilized. Secondary data was obtained from relevant literatures, online journals, articles, blogs, and other electronic sources. The primary data was collected by the combination of quantitative and qualitative approaches. Qualitative data was carried out through interviews with store...
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...Murray, Kentucky, USA Gary R. Brockway, Chairman and Professor of Marketing, Department of Management & Marketing, College of Business & Public Administration, Murray State University, Murray, Kentucky, USA Abstract Word-of-mouth communication (WOM) is a dominant force in the marketplace for services. However, the current body of research provides little insight into the nature of WOM in the service marketplace. Reports the results of a content-analytic study that provides insight into WOM’s content and the catalysts by which it is stimulated. The goal was to capture a series of “grounded events” from which broader patterns could be discerned. These grounded events were actual incidents of WOM as described by the recipients of a communication. Three content categories and ten catalyst categories are identified. Implications for managers are addressed. Article Type: Research paper Keyword(s): Communications; Consumer behaviour; Customer satisfaction; Interpersonal communications; Services marketing. Journal: JOURNAL OF SERVICES MARKETING Volume: 13 Number: 1 Year: 1999 pp: 73-89 Copyright © MCB UP Ltd ISSN: 0887-6045 Research indicates that word-of-mouth communication (WOM) has a significant effect on consumer purchasing behavior. One study conducted by the US Office of Consumer Affairs indicated that, on average, one dissatisfied customer can be expected to tell nine other people about the experiences that resulted in the dissatisfaction....
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...http://search.proquest.com/docview/1493278555/6428ED186E8C42A8PQ/20?accountid=14693 International Journal of e-Education, e-Business, e-Management and e-Learning, Vol. 4, No. 3, June 2014 Legal Risks in Social Media Marketing Jawahitha Sarabdeen Abstract Social media is an important communication channel for marketers. The research conducted earlier shows that more than 81% of the businesses are using social media or planning to use social media for marketing purposes. The social media is used for engagement marketing, buzz marketing, building customer relationships and to revitalise brand image. As social media marketing facilitates two way communications between the marketers and the users, the content generated in social media is considered trustworthy and reliable by the customers. The marketers while using the social media should be aware of the legal risks involved in social media marketing. This research paper by using content analysis looks at social media marketing and legal risks involved in social media marketing. Index Terms—Social media, marketing, legal risks, regulations. I. INTRODUCTION Social media marketing is a phenomenon where businesses are seeking new ways to create value. The introduction of social media considerably changes the marketing activities and consumers‘ behaviours. With the introduction of various technologies associated with social media the businesses and consumers participate in marketing activities easily without cost. Though...
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...Lobschat, L., Zinnbauer, M. A., Pallas, F., & Joachimsthaler, E. (2013). Why Social Currency Becomes a Key Driver of a Firm's Brand Equity – Insights from the Automotive Industry. Long Range Planning, 46(PLS applications in strategic management: Partial Least Squares modeling in strategy research), 125-148. doi:10.1016/j.lrp.2012.11.004 Introduction In the past decade, managers have endeavored to build brands by creating a strong identity and conveying this identity through consistently managing relevant touch points with customers (e.g., Aaker and Joachimsthaler, 2000; Keller and Lehmann, 2003). To this end, managers are striving to better understand consumer behavior and positively influence consumers' brand perceptions through marketing initiatives (e.g., Keller, 1993). However, the direction of influence on a brand's perception and image has become increasingly bilateral. Today, consumers are no longer simply “receivers” of company- and brand-related information. Instead, they operate as “senders” of this information, e.g., by giving brand recommendations, by expressing criticism, or by sharing information with others (Hennig-Thurau et al., 2010). For this reason, managers no longer have exclusive control over information circulating about a company or brand. Consumers therefore play an important role in forming a company's or brand's perception and value in the marketplace (Keller, 2007). Exchange of information about companies and brands between consumers is not...
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...HOSPITALITY AND TOURISM MANAGEMENT Stephen W. Litvin College of Charleston Ronald E. Goldsmith Florida State University Bing Pan College of Charleston Stephen W. Litvin is Professor of Hospitality and Tourism Management in the School of Business and Economics, at the College of Charleston (South Carolina); Ronald E. Goldsmith is the Richard M. Baker Professor of Marketing at Florida State University; and Bing Pan is Assistant Professor and the Director of the Office of Tourism Analysis at the College of Charleston. Address correspondence to: Steve Litvin, Department of Hospitality and Tourism Management, College of Business and Economics, College of Charleston, 66 George Street, Charleston, SC 29424. Phone 843-953-7317; Email litvins@cofc.edu Submitted June, 20, 2005 to Tourism Management Revised and resubmitted May 09, 2006 Second revision October 1, 2006 ELECTRONIC WORD-OF-MOUTH IN HOSPITALITY AND TOURISM MANAGEMENT Abstract Interpersonal influence and word-of-mouth (WOM) are ranked the most important information source when a consumer is making a purchase decision. This influence may be especially important in the hospitality and tourism industry, whose intangible products are difficult to evaluate prior to their consumption. When WOM becomes digital, the largescale, anonymous, ephemeral nature of the Internet induces new ways of capturing, analyzing, interpreting, and managing online WOM. This paper describes online interpersonal influence, or eWOM, as a potentially...
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...www.ccsenet.org/ijms International Journal of Marketing Studies Vol. 2, No. 2; November 2010 Customer Satisfaction in the Hotel Industry: A Case Study from Sicily Gandolfo Dominici (Corresponding author) Facoltà di Economia, Dip. S.E.A.F., Università di Palermo viale delle Scienze ed.13, 90128, Palermo, Italy E-mail: gandolfodominici@unipa.it Rosa Guzzo Facoltà di Economia, Università di Palermo, Viale delle Scienze ed.13, 90128, Palermo, Italy E-mail: rosyguzzo@hotmail.it Abstract In order to be successful in the market it is not sufficient to attract new customers managers must concentrate on retaining existing customers implementing effective policies of customer satisfaction and loyalty. In hotel industry customer satisfaction is largely hooked upon quality of service. A management approach focused on customer satisfaction can improve customer loyalty, thus increasing the positive image of the touristic destination. Hence, exploring the importance for customers of hotel attributes in hotel selection is indispensable. Research on the topic of guest satisfaction, which translates into the consideration of whether or not customers will return to a hotel or advise it to other tourists, is pivotal to the success of the hospitality business. Neglecting to pay attention to those hotel attributes considered most important by guests, may lead to negative evaluation of the hotel, thus restricting the chance of repeat patronage. We perform a qualitative analysis of a large...
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...Analysis of Effects of Source Credibility, Electronic Word-Of-Mouth, Website Quality, and Perceived Quality towards Buying Decision Yonatan Suganda, Wibawa Prasetya (Pembimbing) ABSTRAK Penelitian menjelaskan pengaruh electronic word-of-mouth, source credibility, website quality dan perceived quality terhadap buying decision. Metode penelitian yang telah dilakukan adalah metode kuantitatif. Analisis dilakukan dengan mengumpulkan data dari kuesioner dengan responden adalah konsumen Bhinneka.Com. Penelitian ini bersifat deskritif dan verikatif, sedangkan analisis berdasarkan pengolahan data menggunakan metode SEMdisertai implikasi teoritis dan implikasi manajerial. Perkembangan internet di Indonesia telah mendorong berkembangnya e-commerce di Indonesia. Menurut data yang dirilis biro riset Frost & Sullivan, bersama China, Indonesia menjadi negara dengan pertumbuhan pasar e-commerce terbesar di dunia dengan rata-rata pertumbuhan 17 persen tiap tahun. Melalui penelitian ini disimpulkan, bahwa variable electronic word-of-mouth dan variable perceived quality tidak berpengaruh terhadap buying decision. Variabel website quality dan variable source credibility mengukur hal yang sama sehingga membentuk variable baru yaitu variable website credibility yang berpengaruh signifikan terhadap buying decision. Penelitian ini juga menemukan bahwa variable perceived quality memiliki pengaruh negative terhadap buying decision Kata kunci: SEM, Confirmatory Factor Analysis, buying decision...
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...IJCSI International Journal of Computer Science Issues, Vol. 9, Issue 3, No 2, May 2012 ISSN (Online): 1694-0814 www.IJCSI.org 99 The Influence of Service Recovery Strategies on Word Of Mouth: Views of Mobile Phone Users Samsudin Wahab and Nor Sabrina Norizan Center of Applied Management Studies Faculty of Business Management, Universiti Teknologi MARA 42300 Puncak Alam, Selangor Abstract This study explores the relationship between perceived customer dimensions of justice and word of mouth among the selected university students in mobile phone usage. The respondent used for this study was 500 business students of Malaysian university students located in Kelang Valley. Out of 327 questionnaires distributed, there were 181 complainants. Dimensions of justice act as an independent variable consisted of procedural, interactional and distributional justice. In order to determine the relationship between dimensions of justice and customer satisfaction the researcher used multiple regressions. The result showed that distributional justice and interactional justice as a significant unique contribution to the prediction of customer word of mouth. Further research should be carried out to identify the other factors of service recovery strategies that will help in increasing the customer satisfaction towards the organization. As this research was conducted in the telecommunication sector, it would be appropriate if further research can investigate if customers from the other...
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