Download or read book Countering the Detrimental Influence of Negative Electronic Word of Mouth Brands written by Manu Bhandari and published by . This book was released on 2015 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: An experiment examined information processing of brand feedback to negative electronic word of mouth (eWOM), and the moderating role of stability and controllability of the cause of the problem on brand attitudes and purchase intentions. Brand feedback, the primary concept of this study, is defined as a written response by a business to consumers’ comments or eWOM message that seeks to strengthen or uphold the businesses’ promise to satisfy the needs or desires of the consumers. eWOM, on the other hand, is defined as any informal communication consumers have between each other about products and services online (Liu, 2006) such as online product reviews. The moderating effects of two eWOM content attributes are also examined, namely stability and controllability of the cause of the problem described in the eWOM message. The primary research question for the study is: Does brand feedback affect consumers’ brand attitudes and purchase intentions, and what is the role of stability and controllability of the cause –– conceptualized as characteristics of an eWOM message –– in moderating that effect? It is well known that eWOM influence consumers’ brand attitudes and purchase intentions, but research so far has not examined what influence, if any, brands and advertisers can have in the eWOM process, especially when brands provide feedback to an eWOM message. Previous advertising research has generally conceptualized eWOM as a static form of communication, comprised of a one-way flow of information from consumers providing the eWOM to other consumers who consume the eWOM. But advances in technology and companies’ desire to participate in the eWOM conversation has prompted eWOM that is dynamic; meaning, advertisers are able to join the eWOM conversation particularly when consumers express negative thoughts or dissatisfaction about a brand’s performance. While prior research has examined psychological processes of both positive and negative eWOM messages, the present research chooses to examine brand feedback to negative eWOM only since positive eWOM most likely would not merit a brand to provide feedback. However, not all negative eWOM carry equal cognitive weight in terms of information processing and persuasiveness (Cheung, Leo, Sia, & Chen, 2009; Cheung & Thadani, 2012) and the effect of brand feedback is likely to depend on characteristics of the eWOM message, such as whether the problem is indicated to be of a stable nature (stability) or under the control of the brand (controllability). In sum, the study is a 2 (Brand Feedback: Present/Absent) X 2 (Stability: Stable/Unstable) X 2 (Controllability: Brand-Controlled/Reviewer-Controlled) between-subjects experimental design measuring the effects of brand feedback, stability and controllability on brand attitudes and purchase intentions. In addition to the burgeoning eWOM literature, the current study draws on attribution theory, as well as the service recovery, complaint handling, and hospitality management literatures. Findings suggest that brand feedback is effective in increasing brand attitudes and purchase intentions for addressing unstable rather than stable causes, with the largest net improvement seen in brand-controlled unstable causes. Theoretically, the study adds to scholarly knowledge about the role of brands and advertisers in the eWOM communication process, and whether the effect depends on eWOM attributes such as controllability and stability of the identified cause of the problem. The present research controllability and stability of the identified cause of the problem. The present research also extends the application of attribution theory, developed originally in social psychology, to a relatively new area of online retail shopping. Practically, the study’s findings will allow advertising professionals to better strategize their brand feedback to dissatisfied consumers.