Download Negative Word-of-Mouth by Dissatisfied

Negative Word-of-Mouth
by Dissatisfied Consumers: A
pilot Study
Antoine Riprêt
Tom Tenenbaum Lesueur
Monica Tye
Andrea Vindiola
Alexis Alfroy
Baptiste Mulliez
#ViralMarketingQuestions
What is Word of Mouth?
• WOM is the passing of information from person to person
by oral or written communication
• In marketing, WOM is an unpaid form of promotion—oral
or written—in which satisfied customers tell other people
how much they like a business, product, service, or event.
• If customers are dissatisfied they can
create negative WOM, telling others
about their bad experiences with a
company, product or service.
5 principles of WOM
In the case of the WOM, the message has to be:
•
•
•
•
•
Credible
Repeatable
Social
Respectful
The impact must be measurable
• In the case of the NWOM, the rules are the same.
• i.e. : broken bike chain
Your point of view
The dissatisfaction
proccess
Hirschmann (1970)
Various possibilities when a customer is
dissatisfied
– Complain to the supplier (voice)
• Loyal => Voice
• Unloyal => exit
– Exit (to another supplier)
• Exit costs
• Customers loyalty works as a
barrier to exit
– WOM (talk negatively to friends and
relatives)
– Some people don’t do anything
Example of Negative Word-of
Mouth
• British Airways lost
customer luggage
• He spent $1,000 for his
tweets to be promoted
• The tweets could be seen
by more than 300,000
followers of British
Airways
Findings in negative WOM
• WOM and Problem Severity
As the severity of the problem associated with
dissatisfaction increased, the tendency to engage
in negative WOM increased.
• WOM and Attributions
When the greater the blame for dissatisfaction is
placed on marketing institutions than on the
consumer, there will be more WOM.
Findings in negative WOM
• WOM and Retailer Responsiveness
Individuals who have low confidence in the
effectiveness of making complaints are more likely to
tell others about their dissatisfactions than those
expecting remedy
The more negative a customer’s perceptions of
retailer responsiveness to complaints, the more likely
the individual is to engage in negative WOM.
Issues of negative WOM
• A customer would better want to express his dissatifaction
than his satisfaction.
• Words used and implication of the consumer might be
stronger in negative WOM than in positive (strong feelings
involved)
• Negative word of mouth has a bigger impact on the person
that hears it than positive
• Fake WOM (Yelp, Trip Advisor, etc…)
Influence of negative WOM
on diffusion of innovation
• NWOM of innovators and specialists influence followers
Avoid NWOM especially at the begining
• NWOM would be less critical if done during the majority of
difusion
Antecedents to satisfaction with service
recovery from W. Andreassen (1998)
• Managment discovers the organization’s inability to satisfy customers via:
 Exit
customer stops buying
 Voice
complaints
• Service recovery: When companies respond to dissatisfied customers’
complaints.
• Service failure triggers negative affect and emotions in the customer
• Service recovery is needed to change these to positive ones
• FINDINGS:
 Low expectations encourage positive disconfirmation: POSITIVE AFFECT
AND EVEN WOM
 High expectations encourage negative disconfirmation: NEGATIVE
WOM, NO REPURCHASE
Conclusions and Implications
If minor dissatisfaction experienced
• Consumer’s responses are minimal
• Neither complain or spread negative WOM
If dissatisfaction is serious:
• Consumers complain
If complaints are encouraged:
Retailer can remedy the situation
Win back a customer who may also make positive reports to others
Even if complaints are not completely settled, the customer is more likely
to repurchase than if no complaint is made.
Conclusions and Implications
If complaints are discouraged:
- Fewer consumers complain
– These may tell others of their unsatisfactory experience
– May not repurchase in the future
NEGATIVE
WOM
There will be some deffects and dissatisfied customers, but
the way management deals with these dissatisfactions can
have important impacts on brand and store image.
-Detailed warranty
-Complaint procedures information
on labels
-Toll-free telephone numbers to
receive complaints
-Store signs
-Positive employee attitudes
May avert WOM and may even create positive WOM
Conclusions and Implications
Consumer perceptions of institutional responsiveness depended
on which product was the source of dissatisfaction
• Perceived responsiveness for complaints about appliances was
lower than for clothing items
– More expensive to remedy a dissatisfaction concerning an
appliance
– Retailers may be reluctanct to make these expenditures
and make complaint procedures difficult