The Diffusion of Price-Related Word-of-Mouth: A Study Exploring the Role of Market Mavens and Social Ties

Abstract

This study sheds light on the process of price-related word-of-mouth by exploring the dissemination of positively and negatively valanced price information as well as the role of social ties and market mavenism. Social ties strengthen the effect of a price change communicated by word-of-mouth on the subsequent dissemination. Market mavens are found to have a higher intention to retransmit price knowledge via word-of-month, which in turn leads to a higher purchase intention. The study extends the accessibility-diagnosticity model, the strength of weak ties, and the theory of group stability to demonstrate that price-related word-of-mouth predominantly represents an opportunity for managers.