scholarly journals To Whom Should I Send it? Sender Perspective on Incentivized Word of Mouth

2020 ◽  
Vol 13 (2) ◽  
pp. 127-138
Author(s):  
Christiana Yosevina Tercia ◽  
◽  
Thorsten Teicher ◽  
Keyword(s):  
Experimental Study ◽  
Word Of Mouth ◽  
Monetary Incentives ◽  
Related Activity ◽  
Mobile Coupons

This paper examines how consumers’ WOM-related activity can be steered by marketing measures. By conducting an experimental study using mobile coupons as a novel tool of word of mouth, we specifically investigate how monetary incentives foster senders’ decision in targeting particular receivers. Our results show that senders tend to share incentivized WOM with receivers deemed to be close to them when the amount of the incentive is unequal between sender and receiver, and information on the incentive is revealed to both sides. The different amount of incentive for senders and their receivers also leads senders to target receivers who are deal prone.

Cultural context in word-of-mouth activity

2016 ◽  
Vol 28 (5) ◽  
pp. 827-840 ◽  
Author(s):  
Christiana Yosevina Tercia ◽  
Thorsten Teichert
Keyword(s):  
Cultural Context ◽  
Purchase Intention ◽  
Word Of Mouth ◽  
Main Concern ◽  
Monetary Incentives ◽  
Content Type ◽  
Cultural Perspectives ◽  
Mobile Coupons ◽  
Unfavorable Attitude ◽  
Practical Implications

Purpose The purpose of this paper is to investigate how monetary incentives foster purchase intention in WOM settings. Design/methodology/approach This study investigates offering mobile coupons as an incentive and word-of-mouth (WOM) tool. An empirical study compares achievable effects on WOM behavior in an Eastern cultural context, which an Indonesian sample represents, and in a Western cultural context, which a German sample of incentivized WOM represents. Findings Providing senders and receivers’ with differing incentives leads to German consumers having an unfavorable attitude toward such incentives, but not for Indonesian consumers. Furthermore, Indonesian consumers base their decision to redeem mobile coupons more on their personal judgment and their overall deal proneness, while German consumers rely on their personal judgment and on others’ opinion. Research limitations/implications There is a need to explore more countries to enrich the Western and Eastern cultural perspectives. Practical implications Western firms should consider providing senders and receivers with the same incentives. Alternatively, a non-transparent strategy might be a solution. For firms located in Indonesia, or in other Eastern societies, the transparency of the provided incentives is not a main concern, because inequality is not a big issue in an Eastern society, while senders’ or receivers’ deal proneness character strongly influences their intention to redeem a coupon. Originality/value The use of a mobile coupon as a novel incentive and WOM tool.

scholarly journals Switching Expression or Emotion: Emotional Labor Strategy on Negative Word of Mouth Mediated by Customer Satisfaction

2020 ◽  
Vol 10 (2) ◽  
pp. 162-172
Author(s):  
Resekiani Mas Bakar ◽  
Riska Amaliah ◽  
Nurul Hidayati
Keyword(s):  
Experimental Study ◽  
Customer Satisfaction ◽  
Emotional Labor ◽  
Process Model ◽  
Positive Emotion ◽  
Word Of Mouth ◽  
Negative Word ◽  
Surface Acting ◽  
Deep Acting ◽  
Service Employees

This experimental study aimed to examine the effect of emotional labor strategy towards the negative WOM mediated by customer satisfaction. Research of emotional labor context has widely examined its impacts on service employees. The limitations in several studies proved that the opportunity in the indirect effect of emotional labor strategy on negative word of mouth (WOM) is still available. Sixty-two participants were involved in this study and divided into two groups (deep acting versus surface acting) by using videos. PROCESS model moderation proved that emotional labor strategy indirectly affects the negative WOM, mediated by customer satisfaction. This study showed that deep acting strategy can enhance customer satisfaction, therefore the negative WOM can be diminished. In contrast, surface acting strategy affects the decrease of customer satisfaction and thus it can raise the intention of the negative WOM. Emotion modification would be more effective through the deep acting strategy in transmitting the positive emotion for the customer, than modification the expression. The satisfaction felt by the customer will decrease the intention to spread negative information about the service provider to other customers.

How to motivate opinion leaders to spread e-WoM on social media: monetary vs non-monetary incentives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuela López ◽  
Maria Sicilia ◽  
Peeter W.J. Verlegh
Keyword(s):  
Social Media ◽  
Experimental Design ◽  
Design Methodology ◽  
Word Of Mouth ◽  
Negative Impact ◽  
Monetary Incentive ◽  
Opinion Leaders ◽  
Monetary Incentives ◽  
Content Type ◽  
Source Of Information

PurposeOpinion leaders are increasingly important as a source of information, with consumers judging them to be more credible than other media and more influential than other consumers. Thus, companies have an interest in engaging opinion leaders to post about products and brands, and the authors analyse different incentives for encouraging them to spread the word on social media (via electronic word-of-mouth [e-WoM]).Design/methodology/approachA 2 × 3 between-subjects experimental design was developed in which 359 technological opinion leaders (bloggers) participated. The authors manipulated the monetary incentive (money vs no money) and non-monetary incentives (information only vs return product vs keep product) offered in exchange for a brand post.FindingsVarious techniques for approaching opinion leaders are effective, but to differing degrees. Providing a product free of charge increases the likelihood that opinion leaders will post about it, and the highest intention to post is observed when they are allowed to keep the product. In contrast, giving money to opinion leaders could have an indirect negative impact on their intention to post through the expected negative reaction of followers.Originality/valueIt remains unclear how opinion leaders can best be encouraged to spread e-WoM, as incentives used for consumers may work differently for opinion leaders, who have followers that they want to maintain. The main contribution of this paper lies in its explanation of why opinion leaders react differently to monetary versus non-monetary incentives.

Effects of CSR Messages on Apparel Consumers’ Word-of-Mouth: Perceived Corporate Hypocrisy as a Mediator

2021 ◽  
pp. 0887302X2110559
Author(s):  
Gargi Bhaduri ◽  
Sojin Jung ◽  
Jung E. Ha-Brookshire
Keyword(s):  
Experimental Study ◽  
Corporate Social Responsibility ◽  
Word Of Mouth ◽  
Corporate Sustainability ◽  
Negative Word ◽  
Injunctive Norm ◽  
The Difference ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

This study focused on understanding how (mis)match between a company's corporate social responsibility claims as indicated in their mission and the activities it actually undertakes to meet its CSR goals leads to consumers’ corporate hypocrisy and how consumers’ CSR-CA beliefs moderate the relationship between the two. Using the Moral Responsibility Theory of Corporate Sustainability as a framework, this research analyzed the difference in corporate hypocrisy between consumers with high versus low CSR-CA tradeoff beliefs. In addition, we examined the impact of consumers’ corporate hypocrisy on their negative word-of-mouth intention and how participants’ injunctive norm impacts the relationship between the two. A sample of 538 adult US consumers were recruited for an online experimental study. The study extends the findings of MCRS and also provides implications for apparel businesses.

scholarly journals What Makes Law to Change Behavior? An Experimental Study

2016 ◽  
Vol 12 (2) ◽  
Author(s):  
Rustam Romaniuc
Keyword(s):  
Experimental Study ◽  
Public Goods ◽  
Price Change ◽  
Tort Law ◽  
Monetary Incentives ◽  
Public Goods Game ◽  
Change Behavior ◽  
Normative Expectations ◽  
Positive Effect ◽  
Desirable Behavior

AbstractThe use of mild laws to affect people’s behavior is pervasive – from environmental regulation to tort law – but little is known about how the law changes human behavior and social outcomes when it uses non-deterrent monetary incentives. We find that when low monetary incentives are framed so as to indicate what is group desirable behavior, people behave more cooperatively in a public goods game than when no-incentives exist. However, we find that the effect is transitory. Surprisingly, the effect is long lasting when low monetary incentives are presented as payments for some neutral behavior – that is, when the fine is presented as a mere price change. Our findings suggest that the indication of what is group desirable behavior makes salient the conflict between people’s normative expectations and what others effectively do. This undermines conditional cooperators’ own motivation to contribute to public goods. Neutrally framed price-incentives have a long lasting positive effect on contribution decisions because it does not indicate what one should do and thus avoids the conflict with what others effectively do.

How does word of mouth affect customer satisfaction?

2016 ◽  
Vol 31 (3) ◽  
pp. 393-403 ◽  
Author(s):  
Wenhua Shi ◽  
Lingshu Tang ◽  
Xiaohang Zhang ◽  
Yu Gao ◽  
Yameng Zhu
Keyword(s):  
Experimental Study ◽  
Customer Satisfaction ◽  
Design Methodology ◽  
Word Of Mouth ◽  
Causal Relation ◽  
Experience Goods ◽  
Content Type ◽  
Customer Expectation ◽  
Managerial Perspective

Purpose Although word of mouth (WOM) affects customers’ purchasing intentions to a large extent, prior research has neglected the role of WOM as a driver of customer satisfaction. Design/methodology/approach Several scholars have suggested that WOM can not only affect customer expectation but also can influence perceived quality. Consistent with existing research results and the expectancy disparity model, this paper established a causal relation between WOM and customer satisfaction and confirmed it was drawing on an experimental study. Findings This paper indicates that positive or negative WOM affects customer satisfaction by promoting or lowering customers’ expectations. This relation is moderated by product type, rather than the source of the WOM. With experience goods, positive (negative) WOM will decrease (increase) customer satisfaction. However, with search goods, positive (negative) WOM will increase (decrease) customer satisfaction. Originality/value The results of this study have implications for academia and management. Academically, this study establishes the causal relation between WOM and customer satisfaction, expanding the research on the relation between WOM and satisfaction. From a managerial perspective, the promotion of WOM also can create certain service risks.

scholarly journals Determinants of Relationship Continuity: A Mediational Study of Relationship Quality and Word of Mouth

2020 ◽  
Vol 3 (3) ◽  
pp. 311-322
Author(s):  
Malka Liaquat ◽  
Fawad Ahmad ◽  
Noreen Safdar ◽  
Aisha Khursheed
Keyword(s):  
Intellectual Capital ◽  
Word Of Mouth ◽  
Knowledge Workers ◽  
Organizational Factors ◽  
Central Position ◽  
Monetary Incentives ◽  
Textile Mills ◽  
Relationship Continuity ◽  
Strategic Assets ◽  
The Individual

Organizations claim employee as one of the most important strategic assets occupying the central position of intellectual capital. Monetary incentives alone cannot serve the function of retaining such employees. The objective of the study was to explore the individual as well as organizational factors, which governs the behavioural and psychological make-up of an employee and contributes to establishing relationship continuity between a firm and its employees. For this purpose, data is collected from 552 employees working in Textile mills in Multan region through purposive sampling and SEM is applied as a research technique. Results provide interesting factors that can be useful for retaining skilled knowledge workers.

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