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Managing negative eWOM in the retail industry : A qualitative study of proactive and reactive strategiesLandgren, Emma, Lidberg, Martina January 2021 (has links)
In the fast pace of the development of the Internet and the increased use of it more and more people use interactive platforms to connect with each other. The increased opportunity and ability to share content with people around the globe has led to the emergence of eWOM. eWOM means that consumers generate content that is consumption-related and mainly directed towards other consumers. Today, social media sites are the biggest source to eWOM. Consumers are actively searching for eWOM in order to gain information and reduce uncertainty, as a part of their purchasing process. In general, consumers tend to trust consumer generated content more than marketer generated content. Therefore, eWOM becomes a crucial component to business performance. Negative eWOM has been shown to affect the purchase intentions, loyalty and trust in a negative way, which eventually affects the turnover for a company. Negative eWOM has further been seen to have a larger impact on consumers, compared to positive eWOM. These consequences emphasize the importance of marketers being aware of negative eWOM and have strategies to manage it. The subject of eWOM has been acknowledged by practitioners and researchers. However, despite the increased interest in eWOM and its effects on business performance, there are still research gaps on how to proactively and reactively avoid and manage negative eWOM. The purpose of this study was to examine and understand what strategies companies use in order to avoid and manage negative eWOM on company owned and external interactive platforms. To fill the identified research gaps, this study took an inductive approach and the authors conducted a qualitative study using semi-structured interviews. The sample was purposively selected to include respondents within different companies that had knowledge about the companies’ strategies and approach towards managing negative eWOM. The sample consisted of companies of different sizes, which provided different perspectives and rich information of how companies can approach negative eWOM. A thematic analysis was conducted in order to analyze the empirical data and present relevant findings from the data collection. As a result of the thematic analysis, two global themes were identified: proactive strategies and reactive strategies. Within the global theme proactive strategies, five sub- themes were found: observation, detect critical potential scenarios and questions, communicate expectations, encourage feedback and facilitate contact. Within the global theme reactive strategies, six sub-themes were found: acknowledge or leave, do not delete, accommodative, defensive, answer in public, drive to private, and humorous and cleverly. These themes laid the foundation for a final conceptual model. The findings of this study suggest that marketers in retail use different proactive strategies to avoid negative eWOM from occurring in the first place. Moreover, the findings of this study show that marketers in retail, depending on the content of the negative eWOM and the platform it is taking place on, also use different reactive strategies to manage negative eWOM. The results also show that what strategy to use is to a large extent dependent on the individual’s subjective ability to interpret the negative eWOM.
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Impact of eWOM source characteristics on the purchasing intentionShabsogh, Nisrein Mohammad Ahmad January 2013 (has links)
The use of e-mail communication between consumers has been growing and companies are seeking to increase their understanding of this type of private communication medium between consumers. The privacy and cost-effectiveness characteristics of e-mail make it an important communication medium for consumers. Consumers use e-mail to exchange a variety of information including electronic word of mouth (eWOM) about products, services and organisations. The travel industry, the context of this study, is increasingly being delivered online. Understanding what influences consumers and how consumers evaluate eWOM will increase the travel industry’s knowledge about its consumer base. This study aims to contribute to existing knowledge on the impact of eWOM on consumer purchase intention. Its focus is on an interpersonal context where eWOM is sent from the source to the receiver in an e-mail about holiday destination. The study, which was undertaken from a positivist perspective, used qualitative and quantitative research techniques to better understand the influence of eWOM on purchase intention. The literature on word of mouth (WOM) and eWOM was initially examined to identify the major factors that have an influence on the receiver of eWOM. Consistent with previous studies, both perceived expertise and similarity were identified as source characteristics that have an influence on the receiver’s purchase intention. The literature also indicated that trustworthiness belief would have a key effect on the influence of eWOM on the attitude of the receiver. Consequently, this study examined each trustworthiness dimension – ability, benevolence, and integrity – with respect to its role in the influence of eWOM on purchase intention. The literature review also revealed that certain receiver characteristics were important in the process of influence, especially consumer susceptibility to interpersonal influence. The relationships between the variables identified were further developed into the research model, which has its roots in the theory of reasoned-action (Fishbein and Ajzen, 1975) and the dual process theory of influence (Deutsch and Gerard, 1955). Methodologically, a scenario-building approach to developing authentic e-mail was used. The qualitative data gathered from eight focus group discussions were analysed using “framework analysis” (Ritchie and Spencer, 1994) to develop eight scenarios. This was then used to manipulate the moderating variables in the scenario. Three manipulations, each with two levels, were included: eWOM direction “positive and negative”; source characteristic of “expert/non-expert”; and source characteristic of “similar/non-similar”. These scenarios formed part of a questionnaire. The questionnaire was used to collect data from a sample of University of Bradford students. The final number of usable questionnaires was 477. Structural equation modelling was used to determine the validity of the conceptual model and test the hypotheses. In particular, multiple group analysis was used to assess both the measurement and structural models, and to identify the impact of the eWOM direction. The theoretical model that describes the relationships between the exogenous variables (source’s and receiver’s characteristics) and the endogenous variables (trustworthiness dimensions, interpersonal influence and purchase intention) was accepted. The research findings provided empirical evidence on the difference in the impact of positive and negative eWOM on purchase intention. The source’s and receiver’s characteristics and related trustworthiness beliefs, (i.e. ability, benevolence, and integrity) are influenced by the direction of eWOM. The findings show that positive and negative eWOM differ with respect to how they impact on consumers’ attitudes and intentions. For instance, consumers have more belief in the credibility of a source who provides negative eWOM. However, the overall influence of the source’s characteristics tends to be stronger with positive than with negative eWOM. The findings of this study provide insights for both academics and practitioners to understand the potential of eWOM. This might be tailored to help develop more private relationships with customers through e-mail marketing strategies that incorporate eWOM. Negative eWOM is more credible but less directly useful to marketers. Nevertheless, it is important for marketers to realise the significance of managing dissatisfaction and to harness the power of negative eWOM. Similarly, positive eWOM is effective especially when the source is both expert and similar. This might be translated into online marketing campaigns that use consumer-to-consumer discussions in addition to viral marketing. Future research might test the model in different contexts, (e.g. financial services), to provide a more comprehensive picture of the influence of eWOM on purchase intention.
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Effekten av negativ elektronisk ”word of mouth” på konsumenters attityder och köpintentioner / The effect of electronic “word of mouth” on consumers’ attitudes and purchase intentionLababidi, Adam, Mboob, Baboucarr January 2020 (has links)
This study examines the effect of electronic Word-of-Mouth (eWOM) on consumers’ purchasing decision process, more specifically: How does consumer attitudes and purchasing intent toward companies and their products affected by negative eWOM on social media. The study is based on three-component model of attitudes which identifies attitude as the awareness, assessment and readiness to act. The purpose of this study was to examine how negative eWOM on social media affects the consumer’s purchasing decision process. The purpose was to improve understanding of eWOM’s role and influence on the consumer’s attitudes and purchasing intent towards the companies and their products. The authors conducted semi-structured interviews with 13 individuals aged 18-20. Results indicate that negative customer reviews on social media have a negative influence on consumers attitudes and purchasing intent. The results also show that the effect varies between different product types. The effect may be stronger for expensive and important purchases than for cheap and routine purchases.
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To Forgive But Never Forget : A qualitative study of why customers choose to return to companies within the fast fashion industry they have previously boycotted due to a scandalÖhrner, Elin, Kerimova, Amina January 2022 (has links)
With the growing role of social media in society today, a more accessible dissemination of information between customers through eWOM is also growing. Especially the negative eWOM can have a huge impact on customers and get devastating results. Scandals in the fast fashion industry are getting more and more attention, which has contributed to consumers boycotting companies. It is still a relatively unexplored area where researchers mainly have been looking at boycott motivations. These purposes can be both social and ethical and customers can take different measures to show that he or she is against the scandal. It is common today that a scandal gets a lot of attention during a limited period of time where the customer chooses to participate in a boycott for a while and then returns to the company. Based on this research gap, the research question was further formulated as to; Why do customers choose to return to companies within the fast fashion industry they have previously boycotted due to a scandal? The study focuses on customers who have been loyal to fast fashion companies and where they have been active in a boycott and then returned. The main purpose of this thesis is to gain a deeper understanding of why boycotting consumers choose to go back to fast fashion retail companies that they have boycotted previously. Based on this, the interviews explored factors in relation to customer loyalty and eWOM that affect customers' view and perception of the company. By conducting this study and examining factors by using a qualitative approach, customer loyalty and eWOM's impact on customers' propensity to repurchase were examined, considering the theoretical framework. The theoretical framework included customer loyalty, boycott and motivations for boycott as well as social media and more specifically eWOM. Based on the framework, eight semi-structured interviews were conducted with people who participated in a boycott and then returned to companies. Furthermore, the empirical data was analysed by using the theoretical framework based on a thematic analysis. The analysis resulted in findings that customers are affected by negative eWOM and a high exposure of information which then decreases, which leads to customers forgetting the scandal and no longer associating the company with a negative feeling.
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Impact of eWOM Source Characteristics on The Purchasing Intention.Shabsogh, Nisrein Mohammad Ahmad January 2013 (has links)
The use of e-mail communication between consumers has been growing and companies are seeking to increase their understanding of this type of private communication medium between consumers. The privacy and cost-effectiveness characteristics of e-mail make it an important communication medium for consumers. Consumers use e-mail to exchange a variety of information including electronic word of mouth (eWOM) about products, services and organisations. The travel industry, the context of this study, is increasingly being delivered online. Understanding what influences consumers and how consumers evaluate eWOM will increase the travel industry’s knowledge about its consumer base.
This study aims to contribute to existing knowledge on the impact of eWOM on consumer purchase intention. Its focus is on an interpersonal context where eWOM is sent from the source to the receiver in an e-mail about holiday destination. The study, which was undertaken from a positivist perspective, used qualitative and quantitative research techniques to better understand the influence of eWOM on purchase intention. The literature on word of mouth (WOM) and eWOM was initially examined to identify the major factors that have an influence on the receiver of eWOM.
Consistent with previous studies, both perceived expertise and similarity were identified as source characteristics that have an influence on the receiver’s purchase intention. The literature also indicated that trustworthiness belief would have a key effect on the influence of eWOM on the attitude of the receiver. Consequently, this study examined each trustworthiness dimension – ability, benevolence, and integrity – with respect to its role in the influence of eWOM on purchase intention.
The literature review also revealed that certain receiver characteristics were important in the process of influence, especially consumer susceptibility to interpersonal influence. The relationships between the variables identified were further developed into the research model, which has its roots in the theory of reasoned-action (Fishbein and Ajzen, 1975) and the dual process theory of influence (Deutsch and Gerard, 1955).
Methodologically, a scenario-building approach to developing authentic e-mail was used. The qualitative data gathered from eight focus group discussions were analysed using “framework analysis” (Ritchie and Spencer, 1994) to develop eight scenarios. This was then used to manipulate the moderating variables in the scenario. Three manipulations, each with two levels, were included: eWOM direction “positive and negative”; source characteristic of “expert/non-expert”; and source characteristic of “similar/non-similar”. These scenarios formed part of a questionnaire.
The questionnaire was used to collect data from a sample of University of Bradford students. The final number of usable questionnaires was 477. Structural equation modelling was used to determine the validity of the conceptual model and test the hypotheses. In particular, multiple group analysis was used to assess both the measurement and structural models, and to identify the impact of the eWOM direction. The theoretical model that describes the relationships between the exogenous variables (source’s and receiver’s characteristics) and the endogenous variables (trustworthiness dimensions, interpersonal influence and purchase intention) was accepted. The research findings provided empirical evidence on the difference in the impact of positive and negative eWOM on purchase intention. The source’s and receiver’s characteristics and related trustworthiness beliefs, (i.e. ability, benevolence, and integrity) are influenced by the direction of eWOM.
The findings show that positive and negative eWOM differ with respect to how they impact on consumers’ attitudes and intentions. For instance, consumers have more belief in the credibility of a source who provides negative eWOM. However, the overall influence of the source’s characteristics tends to be stronger with positive than with negative eWOM. The findings of this study provide insights for both academics and practitioners to understand the potential of eWOM. This might be tailored to help develop more private relationships with customers through e-mail marketing strategies that incorporate eWOM. Negative eWOM is more credible but less directly useful to marketers. Nevertheless, it is important for marketers to realise the significance of managing dissatisfaction and to harness the power of negative eWOM. Similarly, positive eWOM is effective especially when the source is both expert and similar. This might be translated into online marketing campaigns that use consumer-to-consumer discussions in addition to viral marketing. Future research might test the model in different contexts, (e.g. financial services), to provide a more comprehensive picture of the influence of eWOM on purchase intention.
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