Word‐of‐mouth communication in the service marketplace

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.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. Underlying factorsEvidence indicates that WOM is often related to consumers' satisfaction or dissatisfaction with previous purchasing experiences ( Blodgett et al., 1993; Brown and Beltramini, 1989;Richins, 1983;Wilson and Peterson, 1989). Consumers also appear to engage in WOM to satisfy their personal information needs (Bloch et al., 1986; Burnkrant and Cousineau, 1975; Cohen and Golden, 1972;Howard and Sheth, 1969;Pincus and Waters, 1977). A limited amount of research suggests that WOM lends itself to the communication of subjective information such as quality rather than more Substantial research Vividness of WOMDownloaded by New York University At 08:32 17 June 2015 (PT) pictures received from a particular photography studio. A negative communication occurred after a communicator failed to have his automobile transmission satisfactorily repaired even though he returned it to the repair shop on two different occasions. Someone's observance of the purchase or its outcome served as a stimulant to WOM communication in 6.5 percent of the cases. For example, a positive communication about a tanning salon began with a compliment about the communicator's suntan. Similarly, a negative communication began when the receiver commented on the communicator's new hair style.Interestingly, 6.1 percent of the communications were stimulated when two or more people were collectively trying to select a service. Of the 18 communications that fell into this category, 13 pertained to the selection of restaurants (i.e. people were trying to decide where to ea...

Tapping the grapevine: A closer look at word-of-mouth as a recruitment source.

“…Similar to product-related word-of-mouth, job-related word-of-mouth can vary with respect to its medium (e.g., face-to-face vs. internet), source (e.g., friend vs. acquaintance), motives (e.g., uncertainty reduction of the recipient vs. vengeance of the source), and valence (e.g., positive vs. negative; J. J. Brown & Reingen, 1987;Cable & Turban, 2001;Herr et al, 1991;Mangold et al, 1999;Smith & Vogt, 1995).…”

An Exploratory Study on the Adaptive Word-of-Mouth Communication in Seeker-initiated Context

“…Sundaram et al (1998) conducted 390 critical-incident interviews and identified four motives of consumers to actively spread positive WOM messages; namely, altruism, product involvement, self-enhancement, and helping the company. Mangold, Miller, and Brockway (1999) found that seekers' need for information far more likely initiated WOM communication compared to senders' satisfaction level or the marketing organization's promotional efforts. When consumers lack the ability to evaluate a buying decision before making a purchase, they are likely to request the experience of relatives and friends who have already used the product.…”

“…Especially when individuals experience a high degree of uncertainty about a particular buying situation, they usually ask their friends for product opinions or even delegate the entire purchase decision to their friends (Aggarwal & Mazumdar, 2008). According to Mangold, Miller, and Brockway's (1999) study, the seeker initiated over 50% of the WOM incidents. However, it is somewhat surprising that little research examined the effect of WOM in this situation.…”

Using online search data to forecast new product sales

“…These include Mangold, Miller, and Brockway (1999), Bansal and Voyer (2000), and Harrison-Walker (2001). Haywood (1989) discusses the importance of managing WOM and puts forth guidelines for managers of service businesses.…”