Measuring the Impact of Positive and Negative Word of Mouth: A Reappraisal

Author:

East Robert1,Uncles Mark D.2,Romaniuk Jenni3,Lomax Wendy4

Affiliation:

1. Kingston Business School, London and Ehrenberg-Bass Institute, UNISA, Australia

2. UNSW Business School, UNSW, Australia

3. Ehrenberg-Bass Institute, UNISA, Australia

4. Kingston Business School, London, UK

Abstract

Negative information normally has more impact on attitude and cognition than positive information, but there is evidence that positive word of mouth (PWOM) usually has more effect on purchase intention than negative word of mouth (NWOM). We explain how this apparent inconsistency may come about when measures of attitude and intention are used as indicators of behavior. We argue that on/off behaviors, such as purchase, should be predicted better by a measure of intention, rather than attitude, and that consideration should be given to a measure of intention that is proportional to the maximum change that could occur as this reflects the movement toward or away from purchase. A large database is analyzed to show the differences between proportional and absolute measures. In addition, we examine the proportions of respondents reaching certainty (i.e. 0% or 100% probability of purchase) after NWOM and PWOM. Findings from these new analyses show that PWOM has more impact than NWOM on purchase intention (both proportional and absolute), but a higher proportion of respondents reach certainty after NWOM.

Publisher

SAGE Publications

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