Negative Word-of-Mouth, Threat and Opportunity

Feb 1

posted by Dr. Maria Petrescu in Corporate Image | 11 Comments

Consumers’ negative word-of-mouth is a process of problem-solving when they experience a service failure or feelings of injustice towards a company. Negative word-of-mouth usually presents information about an unsatisfactory service, a product complaint and is more dominant among WOM behaviors. Due to the viral capacities of social media communications, it is very easy for negative word-of-mouth to become viral and have a significant impact on a company.

For example, negative perceptions of United Airlines' corporate reputation increased 500 percent after the event regarding the forcible removal of a ticketed passenger on April 9th, 2017, a video that became viral and traveled the world first-class through social media (The Harris Poll 2017). United Airlines’ public problems did not stop there, and only a couple of weeks later Simon, the estimated future record-breaking rabbit as the biggest bunny in the world, died in the same airline's custody. These incidents and the way they were handled publicly have placed the company and other organizations in a cloudy situation.

In a research study, we found that consumers’ online discussions in this viral negative campaign focused on people and customer service, but also on the company’s reaction after the incident. Any negative incident or failure in customer service represents a threat to a company’s image, due to the diffusion potential of any negative messages and especially images from consumers on social media. However, this also represents an opportunity for businesses to show their care for consumers and provide a solution to deal with the crisis.

It is essential to consider the importance of an organization’s brand equity, its customer lifetime value and retention. A better focus on the online brand community can provide an opportunity for an organization to be proactive and manage in a positive manner a negative viral campaign situation.

Reference
The Harris Poll (2017). Equitrend rankings for the airlines industry, http://www.theharrispoll.com/equitrend-rankings/2017 accessed on June 15th 2017.

This entry was posted on February 1, 2018 at 11:04 AM and has received 5216 views. There are currently 11 comments. Print this entry. Download attachment.

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• #1 by Harsh Patel on 2/12/18 - 11:37 PM

  

  People always talk and once the word gets out about something negative, it goes viral. I always viewed negative word-of-mouth as a threat to big companies, but after reading this article I learned that those companies with negative reputations could use it to their advantage.

• #2 by Niyati Patel on 2/13/18 - 10:11 AM

  

  This post was well thought out and brings up very important points in terms of a company's long-lasting success. In today's world, where everything is found on the internet and anyone can post anything without any form of regulation, it is essential to know that a company is always under the scrutiny of its consumers. I think the fact that any consumer has the option of writing a positive or negative rating on a company is beneficial because this keeps even the large companies on their toes and makes sure that their overall quality and customer service quality doesn't decline.

• #3 by Alexa Meiers on 2/13/18 - 7:58 PM

  

  This post was very interesting and made me think more about what I say about companies. People are always leaving reviews online and talking negatively about certain brands and companies, however when something good takes place no one talks about it or leaves a positive comment. I think it is interesting to look at the perspective others take on a product after one negative, or positive situation.

• #4 by Valentina Vita on 2/14/18 - 11:31 AM

  

  Word of mouth can drive a potential customer to buy into a brand or push them away from it. Companies can promote and put a great amount of money into marketing but in the end if customers aren't satisfied they won't come back. They also will remember their experience and tell the people they know not to go. With social media, word of mouth has become vital in shaping a company's image. Companies need to make having personal relationships with their customers a priority and this post proves that. I really enjoyed reading it.

• #5 by Clarmanoora Emile on 2/15/18 - 12:13 AM

  

  There is power in the words we use, whether they are written down, or used verbally. Personally, I try to use my words for edification and building up others. However, there is a time when it’s necessary to express the truth although it may not be pleasing to some. When it comes to businesses, I think that although negative word of mouth could potentially ruin a business, it also saves customers from wasting their time with a poor company. I remember wasting my time at businesses that received poor reviews and wishing that I listened to the reviews. I learned my lesson, but there were a few times that the reviews weren’t correct. I realized that depending on the individual the company could only meet expectations or not. The freedom to express the thoughts and opinions about a company should be done diligently. The company may not be the factor why customers are displeased, it could have just been one of the employees who was having a bad day and gave poor service. My take away from this is to continue to express my personal thoughts, but remember that My words matter, especially when it comes to the reputation of businesses or companies.

• #6 by Darshan Rola on 2/15/18 - 9:27 AM

  

  The internet allows large numbers of people to communicate and interact with each other and this can work to a businesses advantage or disadvantage. In psychology there is a term called group polarization in which and opinion or idea becomes extreme when discusses in large groups. In the case of United Airlines the use of social media allowed users to further promote the negative perception of United. In the modern age businesses need to have good customer relations because every action can be scrutinized and spread to large masses of people.

• #7 by Utoy Wong on 2/16/18 - 5:15 PM

  

  I believe it can be a valuable thing, social media for a business as we do glorify it as times as an easy jumpstarter for business. But we never look at the factors at how it can negatively affect a business when it comes to negative word of mouth or resentful customers who experience bad customer service.

• #8 by Dominic Diana on 2/16/18 - 10:13 PM

  

  This is incredibly apparent in the food service industry because complaints can travel from person to person and friend to friend. There is also many websites that allow you to grade restaurants and leave your opinion which anyone can see. If people see these negative comments they will be skeptical to trying it or not go there because it seems like an untrustworthy business.

• #9 by Abigail George on 2/16/18 - 10:53 PM

  

  Negative word of mouth is definitely something that is and will always be a problem for not only big companies but even small ones. I found that reading this article, its true there really is only so much that can be done once the word has gone out that something had gone wrong for a company. Especially since the truth of the matter can be easily twisted and changed along the road. However, the best possible thing that many big companies I have seen have thrived to react in a calm and positive manner while others have a tough time appealing to their customers. As they always say, "The customer is always right, even when they are wrong." As much as many companies try to stick to this motto even when tough times come around, no one is perfect and many do mess up along the way.

• #10 by Eshan Shah on 2/16/18 - 11:02 PM

  

  I believe consumer word of mouth is a very important factor to consider when determining a companies' potential revenue. Social influence has a great impact on peoples' decisions, so if they hear that a product is not worth purchasing, then people will avoid purchasing the item. It is important that companies take this into account in order to satisfy consumer demand.

• #11 by Sarah on 3/31/18 - 1:02 PM

  

  It's definitely a challenge for companies in such a connected world to maintain a positive brand image. We've seen so many examples of viral videos destroyed a brand's image, such as with United Airlines. First, there was the viral video of the doctor being violently removed from a flight. Now, there's the viral story of the puppy being shoved in an overhead bin and dying from lack of oxygen. People are so much more likely to report negative feedback, so it's important for companies to have a plan to react to incidents and prevent future ones from happening because they can truly make or break a business.