scholarly journals The Influence Mechanism of Reputation Information on the Formation of Safety Trust in Chinese Infant Milk Powder

Healthcare ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 138
Author(s):  
Yanan Cao ◽  
Cuixia Li

Infant milk powder has always been one of the food categories most sensitive to safety reputation information. The safety reputation of Chinese infant milk powder has been seriously damaged due to the occurrence of safety accidents and the resulting consumers’ still-unrestored confidence is an important factor which restricts the dairy industry revitalization. Therefore, this paper analyzes the impact of reputation information on the formation of safety trust in Chinese infant milk powder, taking reputation information transmission as the starting point and consumer psychological perception as the researching perspective. A questionnaire survey was conducted and 685 valid questionnaires were collected. The structural equation model is adopted to verify the theoretical model and corresponding research hypothesis that reputation information affects the safety trust of Chinese infant milk powder. The reputation information transmitted between relatives and friends has a stronger effect on the formation of safety trust in Chinese infant milk powder than the media. The degree of media pursuit of “news effect” and negative word-of-mouth have a significant negative impact on the formation of safety trust in Chinese infant milk powder, while reputation quality, positive word-of-mouth and relationship strength have a significant positive impact on that. The quality of word-of-mouth perceived by consumers from highly involvement group, rational group, urban group and high-educated group has a stronger influence on the formation of safety trust. The degree of media pursuit of “news effect”, positive word-of-mouth, negative word-of-mouth and relationship strength perceived by consumers from low involvement group, emotional group, rural group and low-educated group have stronger influence on the formation of safety trust.

2020 ◽  
Vol 48 (8) ◽  
pp. 1-14
Author(s):  
Xi Chen ◽  
Qing Fang ◽  
Zhenyuan Wang

Congruity of brand and individual values is the degree of fit or similarity between consumers' personal values and the perceived values of a certain brand. In this study, we took Huawei as the test brand and investigated 525 consumers in 30 countries to examine whether congruity of brand and individual values influences consumer word-of-mouth communication in an international context. The results show that (a) brand commitment played a mediating role in the effect of brand–individual values congruity on word of mouth, (b) the consistency of a brand's practices and its values (brand behavior congruity) moderated the relationship between brand–individual values congruity and the consumers' brand commitment, and (c) brand behavior congruity moderated the mediating role of brand commitment in the relationship between values congruity and positive word of mouth. Our findings provide insight into the impact of values congruity for consumers.


Author(s):  
Haliza Mohd Said ◽  
Ahmad Faizal Md Sukarno ◽  
Zaid Abdul Razak ◽  
Siti Bayaah Ahmad ◽  
Safiah Rashid

2021 ◽  
pp. 212-224
Author(s):  
Lukas Kakalejcik ◽  
Richard Fedorko ◽  
Beata Gavurova ◽  
Radovan Bacik

Companies invest large amounts of funds to support their image as an incentive to make customers purchase the company's products. This paper's main objective is to estimate the impact of negative word-of-mouth on brand/product sustainability. As word-of-mouth represents customers' conversation regarding the quality of the company's products, the customer's voice is often analyzed to avoid negative experience outreach. History has carried several cases in which outreach could endanger a company's bottom line or even existence. The purpose of our study was to find out if this assumption could be supported. Approximately 100000 product reviews were collected in six selected categories in the Slovak market. The quantity of positive and negative word-of-mouth (PWOM/NWOM) was analyzed. It was found that there are approximately 15 times more positive reviews than negative ones. Based on previous studies' results, worst- and best-case scenarios were modeled to determine the possible impact of both PWOM and NWOM. It was found that in both cases, the direct reach of PWOM is higher than that of NWOM. On average, in the worst-case scenario, the reach of PWOM is 3.93 times higher than the reach of NWOM. In the best-case scenario, the reach of PWOM is 8.85 times higher than the reach of NWOM. According to the results, brand managers should focus on getting more positive reviews and thus positive word-of-mouth as it may have a stronger effect on the brand's sustainability. In other words, getting more ambassadors from the pool of customers satisfied with the brand might seem a reasonable strategy to avoid the potential danger from customers who were not satisfied with the products and willing to spread the word about their dissatisfaction.


Author(s):  
Enrico Cinco Mendoza

The rise and development of corporate social responsibility (CSR) as a very significant and influential dogma in current business practice supports the popularly held view that firms cumulatively enjoy substantial power and control over a vast majority of society’s resources. Such enormous power can be at times detrimental to society in general and as such it is just right that these corporate behemoths police themselves unilaterally and be of good service to the community. The objective of this research is to evaluate the bivalent effects as motivator and hygiene factor of CSR on socially responsible customers towards a for-profit social enterprise. This research also evaluates the significance of CSR towards customer relationship and positive word of mouth among Human Nature customers. Respondents in this study were the customers of an independent distributor of Human Nature products in the Philippines. Findings indicated that CSR wields a significant influence towards customer in enhancing customer relationship and CSR helps in encouraging customers to willingly support and endorse Human Nature products. CSR also exhibits bivalently both characteristics of motivator and hygiene factor in moderating the impact of perceived CSR towards relationship quality and positive word of mouth from customers. Results of this study can be used as a reinforcement to the idea that CSR can and could elicit positive attitude and behavior from customers. Furthermore, results of this study can also be used by scholars in further probing the corporate impact of various individual CSR initiatives instead of CSR itself in its totality.


2019 ◽  
Vol 3 (3) ◽  
pp. 148-160 ◽  
Author(s):  
Manuel Grossmann ◽  
Christian Brock ◽  
Marco Hubert ◽  
Thomas Reimer

This paper investigates the importance of positive word-of-mouth (WOM) effects on estimating the customer lifetime value (CLV) in start-up businesses. In line with prior research, we assume that, especially in young companies such as start-ups, managers and investors neglect the impact of WOM and therefore underestimate the CLV. To examine this assumption, self-collected WOM data is integrated into calculation of the CLV of a one-yearold online grocery retailer start-up. The CLV of 632 customers is combined with a survey about positive WOM activities. The study shows the high relevance of WOM for start-ups in a noncontractual as well as service setting, thereby calling for integration of WOM into calculation of the CLV.


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