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Firm-Created Word-of-Mouth Communication: Evidence from a Field Test
Abstract
In this paper, we investigate the effectiveness of a firm's proactive management of customer-to-customer communication. We are particularly interested in understanding how, if at all, the firm should go about effecting meaningful word-of-mouth (WOM) communications. To tackle this problem, we collect data from two sources: (1) we implement a large-scale field test in which a national firm created word of mouth through two populations: customers and noncustomers, and (2) we collect data from an online experiment. We break our theoretical problem into two subproblems. First, we ask: “What kind of WOM drives sales?” Motivated by previous research, we hypothesize that for a product with a low initial awareness level, WOM that is most effective at driving sales is created by less loyal (not highly loyal) customers and occurs between acquaintances (not friends). We find support for this in the field test as well as in an experimental setting. Hence, we demonstrate the potential usefulness of exogenously created WOM: conversations are created where none would naturally have occured otherwise. Then, we ask: “Which agents are most effective at creating this kind of WOM?” In particular, we are interested in evaluating the effectiveness of the commonly used opinion leader designation. We find that although opinion leadership is useful in identifying potentially effective spreaders of WOM among very loyal customers, it is less useful for the sample of less loyal customers.
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“…Journal of Re General Discussion A long stream of research on WOM has demonstrated that onsumer reviews have a significant impact on what people buy Godes and Mayzlin 2004, 2009; Iyengar, Van den Bulte, and alente 2011) and that the volume and valence of online reviews ave an important ability to…”
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Tell it like it is: The effects of differing responses to negative online reviews
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Perrigot, R., Kacker, M., Basset, G., & Cliquet, G. (2012) · Journal of Small Business Management · doi:10.1111/j.1540-627x.2012.00366.x · Cited by 62
Moe, W. W., & Schweidel, D. A. (2014) · Cambridge University Press eBooks · doi:10.1017/cbo9781139381338 · Cited by 62
Connected customer lifetime value: The impact of social media
Weinberg, B. D., & Berger, P. D. (2011) · Journal of Direct Data and Digital Marketing Practice · doi:10.1057/dddmp.2011.2 · Cited by 59
Groeger, L., & Buttle, F. A. (2013) · Journal of Marketing Communications · doi:10.1080/13527266.2013.797736 · Cited by 67
Sun, T., Viswanathan, S., & Zheleva, E. (2014) · Management Science · doi:10.1287/mnsc.2020.3581 · Cited by 58
Domenico, G. D., Nunan, D., Sit, J., & Pitardi, V. (2021) · Psychology and Marketing · doi:10.1002/mar.21479 · Cited by 69
“Moreover, previous studies demonstrate the power of weak ties in driving sales (Godes & Mayzlin, 2009), due to more accurate quality inferences that consumers can make based on information from weak ties (Zhang et al., 2015).”
Social media research: A review
Wu, J., Sun, H., & Tan, Y. (2013) · Journal of Systems Science and Systems Engineering · doi:10.1007/s11518-013-5225-6 · Cited by 60
“Moreover, Godes and Mayzlin (2009) initiate a field study to evaluate the effectiveness of the commonly used opinion leader designation and find that although opinion leadership is useful in identifying potentially effective spreaders of WOM among very loyal customers, it is less useful for the…”
BackgroundThai, T. D.-H., & Wang, T. (2020) · Computers in Human Behavior · doi:10.1016/j.chb.2020.106499 · Cited by 56
Experiential product framing and its influence on the creation of consumer reviews
Gallo, Í., Townsend, C., & Alegre, I. (2019) · Journal of Business Research · doi:10.1016/j.jbusres.2019.01.007 · Cited by 60
Ganiyu, R. A. (2017) · Oradea Journal of Business and Economics · doi:10.47535/1991ojbe013 · Cited by 55
“Aside from the capability to enhance passenger loyalty towards the airline, customer satisfaction leads to other important benefits such as favourable word-of-mouth communication (David and Dina, 2009), likelihood of receiving fewer complaints (Kang, Zhang and Zheng, 2009) which are very important to airline survival.”
Lee, Y., & Tao, W. (2020) · Public Relations Review · doi:10.1016/j.pubrev.2020.101887 · Cited by 55
Metadata
- Authors
- Godes, D., & Mayzlin, D.
- Affiliations
- Harvard University (US)
- Yale University (US)
- Venue
- Marketing Science
- Published
- 2009-07
- Volume
- 28
- Issue
- 4
- Pages
- 721-739
- ISSN
- 0732-2399 (ISSN-L)
- 1526-548X
- OpenAlex
- W2132559268
- Cited by
- 837
- References
- 59
- Citations by year
- 2026: 11 · 2025: 22 · 2024: 24 · 2023: 52 · 2022: 41 · 2021: 46 · 2020: 54 · 2019: 55 · 2018: 52 · 2017: 50 · 2016: 57 · 2015: 72 · 2014: 73 · 2013: 81 · 2012: 53
- FWCI
- 155.67
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Marketing Science (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Digital Marketing and Social Media
- Social Sciences › Business, Management and Accounting › Marketing › Marketing and Advertising Strategies
- Physical Sciences › Physics and Astronomy › Statistical and Nonlinear Physics › Complex Network Analysis Techniques
- Keywords
- word of mouth, opinion leadership, customer loyalty, sales effectiveness, customer awareness
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