The effect of word of mouth on services switching

Wangenheim, Florian von; Bayón, Tomás

doi:10.1108/03090560410548924

Cited by 233 publications

(160 citation statements)

References 29 publications

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“…Consumers may not be familiar with each other, but are essentially alike and have relatively equal intention or desire to give and receive the best information. Wangenheim and Bayon (2004) argue that source of similarity indicates the degree of similarity between the source of a recommendation and potential customers. Because individual consumers implicitly assume that similar people have similar preferences, they consider aggregated evaluations or opinions from others are informative and diagnostic (Chen, 2008).…”

Section: H2mentioning

confidence: 99%

Herd Behavior in the Insurance Market: A Survey

Fan¹

2015

IJEF

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We conduct a survey to examine herd behavior in the insurance market. Following prior studies on consumers' use of information sources in their purchase decision-making processes we develop hypotheses that explore the relationship between selection of information sources and herd behavior among potential insurance buyers in the market. Our results strongly support contentions that insurance buyers are significantly influenced in their choices by recommendations from different information sources and they do use these as herd cues to infer insurance product quality when making their own purchase decisions. In particular, our findings suggest that potential insurance buyers are more likely to be influenced by collective intelligence than by insurance experts.

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Section: H2mentioning

confidence: 99%

Herd Behavior in the Insurance Market: A Survey

Fan¹

2015

IJEF

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“…WOM has extensively been studied in the marketing literature [2,5,20,21,40,62,65,66]. Studies have shown positive WOM to be an outcome of high customer satisfaction [59].…”

Section: Related Literature On Churn and Wommentioning

confidence: 99%

Estimating the effect of word of mouth on churn and cross-buying in the mobile phone market with Markov logic networks

Dierkes

Bichler

Krishnan

2011

Decision Support Systems

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Much has been written about word of mouth and customer behavior. Telephone call detail records provide a novel way to understand the strength of the relationship between individuals. In this paper, we predict using call detail records the impact that the behavior of one customer has on another customer's decisions. We study this in the context of churn (a decision to leave a communication service provider) and cross-buying decisions based on an anonymized data set from a telecommunications provider.Call detail records are represented as a weighted graph and a novel statistical learning technique, Markov Logic Networks, is used in conjunction with logit models based on lagged neighborhood variables to develop the predictive model. In addition, we propose an approach to propositionalization tailored to predictive modeling with social network data. The results show that information on the churn of network neighbors has a significant positive impact on the predictive accuracy and in particular the sensitivity of churn models. The results provide evidence that word of mouth has a considerable impact on customers' churn decisions and also on the purchase decisions, leading to a 19.5% and 8.4% increase in sensitivity of predictive models.

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“…The ubiquity of internet access through, for example, smart phones, enables customers to vocalise their dissatisfaction very quickly after a negative service experience. This poses specific challenges to the management of negative UGC.The influence of WOM in services is well documented (Wangenheim and Bayon, 2004). WOM may help overcome the problem of intangibility of services by providing information from an experienced source (Bansal and Voyer, 2000) and may help shaping expectations of service (Zeithaml and Bitner, 2009).…”

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confidence: 99%

User-generated content behaviour of the dissatisfied service customer

Presi

Saridakis

Hartmans

2014

European Journal of Marketing

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User-generated content behaviour of the dissatisfied service customer Structured Abstract Purpose This study focuses on the motivation of service customers to create user-generated content (UGC) after a negative service experience. In examining this relationship, the moderating role of "extraversion" personality trait is also taken into consideration. Furthermore, the paper examines how differently motivated service customers react to a firm's service recovery strategies, whilst, insights into the relationship between UGC creation and specific online platform usage are also provided. Design/methodology/approachWe use SEM to test our conceptual model, based on an empirical dataset collected from an online survey research of 239 service customers. The dataset pertains to international travellers and their UGC behaviour after a negative travel experience. FindingsAltruistic, vengeance and economic motivations are strong drivers for UGC creation after a negative service experience. Motivations also correlate to participation in specific online platforms. Furthermore, it is shown that highly extraverted customers create more UGC after a negative service experience when motivated by vengeance. Finally, higher levels of altruistic and self-enhancement motivations correlate with a positive attitude towards a firm's response, whereas customers who are motivated by vengeance have a negative attitude towards a firm's response. Practical implicationsCustomers who share their negative service experience by creating UGC in social media, can be segmented according to their motivation. Service providers should inspect the UGC of their customers to understand the motivation behind it. The motivations to create UGC varies across platforms, and hence, customized service recovery strategies are required. Originality/valueThis paper examines UGC creation in relation to motivation, extraversion, and attitude towards a firm's response. This is the first reported application which collectively examines important issues like these in a unified theoretical framework.Keywords: User-generated content, motivation, extraversion, social media, word-of-mouth, service recovery Article Classification: Research paper 2 User-generated content behaviour of the dissatisfied service customer IntroductionThe web 2.0 interface encourages Internet users to produce user-generated content (UGC), which refers to any material created and uploaded to the Internet by non-media professionals, whether it is a comment posted on Amazon.com, a professional-quality video uploaded to YouTube, or a student's profile on Facebook (Interactive Advertising Bureau, 2008). From a service customer's perspective, much of the UGC is directed at fellow Internet users, which include friends, family, fellow service customers and service providers, through personal communication and information exchange in a variety of online platforms (Sigala, 2008). When the delivered service does not meet customers' expectations, service failure occurs which leads to dissatisfaction (Oliver, 1...

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The effect of word of mouth on services switching

Cited by 233 publications

References 29 publications

Herd Behavior in the Insurance Market: A Survey

Herd Behavior in the Insurance Market: A Survey

Estimating the effect of word of mouth on churn and cross-buying in the mobile phone market with Markov logic networks

User-generated content behaviour of the dissatisfied service customer

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