An exploratory study of word‐of‐mouth communication in a hierarchy of effects context

Abstract

Word‐of‐mouth (WOM) communication is introduced within a hierarchy‐of‐effects context. The results of a laboratory experiment suggest that amount of WOM information about products is less important than valence of that information. Counter to previous research implying a disproportionate influence of negative information on product evaluation, negative WOM information in the experiment reported resulted in less familiarity with the mentioned brand. Further, a somewhat surprising finding indicated that brand‐specific negative WOM communication can have the effect of decreasing primary demand for an entire product category.