How does word of mouth affect customer satisfaction?

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 c...

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Bibliographic Details
Published in:The Journal of business & industrial marketing 2016-01, Vol.31 (3), p.393-403
Main Authors: Shi, Wenhua, Tang, Lingshu, Zhang, Xiaohang, Gao, Yu, Zhu, Yameng
Format: Article
Language:English
Subjects:
Attitudes
Brand loyalty
Consumers
Customer satisfaction
Customer services
Influence
Literature reviews
Product reviews
Quality
Studies
Variables
Word of mouth advertising
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Summary: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.
ISSN:0885-8624
2052-1189
DOI:10.1108/JBIM-07-2014-0139