Abstract
The study aims to investigate whether a company reputation can be used to reduce the impact of negative electronic word of mouth (eWOM). We conducted experimental research in two studies along with 225 college students, who at least have two accounts in different social media, as participants. We use both qualitative and quantitative methodologies. Qualitative research was carried out with focus group interviews to decide the number of high or low negative reviews as well as the level of credibility. Quantitative research used cross-sectional field design by pilot study and the main study. The model was tested and developed using data collected by questionnaires in paper surveys. The results of study 1 suggest that negative eWOM reduces purchase intentions mediated by the subjective norms and perceived behavior control. High negative eWOM reduces purchase intention more than low ones. Study 2 found out that in a condition of high negative eWOM, good company reputation’s perception affected purchase intention mediated by attitude. Furthermore, purchase intention is higher when a good company reputation’s perception is stronger. Therefor Organizations should convey its company reputation to their customer visually to get a good perception. Further research to investigate another variable that the company has is required.
Highlights
Electronic word of mouth is person-to-person communication online or through social media (Yang, 2017)
To measure whether participants felt they received high or low negative Electronic word of mouth (eWOM), they were asked to respond to two statements (α = .981): “The number of negative reviews is large, more than 5 reviews”, “The number of negative comments online is small, less than 3 reviews”
It is estimated that there are consumers’ concerns that when products are given massive negative reviews, those reviews are true − that the products are negative − compared to low negative eWOM conditions
Summary
Electronic word of mouth (eWOM) is person-to-person communication online or through social media (Yang, 2017). Using eWOM as a source of consumer reference in making decisions has become increasingly important (Hennig-Thurau et al, 2004; Brown et al, 2007; Cheung & Tadani, 2012; Xiaorong et al, 2011). Several studies have shown that eWOM has a great deal of influence on consumers’ purchase decisions (Xiaorong et al, 2011; Yang, 2017; Thomas et al, 2019), and consumer attitudes (Hsu et al, 2013). Information is an important thing that consumers need before deciding to buy a product or service. Research has shown that negative WOM is more influential in purchase decisions, attracts more attention, and reaches more people than positive WOM (Cui et al, 2012; De Carlo et al., 2007; Lau & Ng, 2001). Negative WOM is defined as interpersonal communication about products and services that put them in an unfavorable light (Weinberger et al, 1981). Chevalier and Mayzlin (2006) found that negative eWOM (online reviews) affected book sales more than positive eWOM
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