Forum - Understanding the buzz that matters: negative vs positive word of mouth

Alain Samson

Alain Samson discusses the differing impact and variables of negative and positive word of mouth, how to research them and how to measure their effects.
  

Forum - Understanding the buzz that matters: negative vs positive word of mouth

Alain SamsonLondon School of Economics and Political Science

INTRODUCTION

The correlation between consumer advocacy and business growth is on its way to becoming a well-established fact (e.g. Reichheld 2003; Ferguson 2005; Marsden et al. 2005), carrying implications for marketing, customer relationship management (CRM) and reputation management alike. According to recent studies, negative word of mouth (NWOM) can more accurately and dramatically predict decreases in company revenue than positive word of mouth (PWOM) predicts revenue growth (Marsden et al.2005, Ferguson 2005)....

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