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Influence of negative Internet word of mouth on consumer brand loyalty

Author: HuangXiaoQing
Tutor: YangWeiWen
School: Central South University
Course: Management Science and Engineering
Keywords: Negative Online Word-of-Mouth Brand Trust Brand Loyalty Internet Involvement
CLC: F713.55
Type: Master's thesis
Year: 2012
Downloads: 23
Quote: 0
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Abstract


Entering the21st century, the rapid development of the Internet provides consumers with a platform,which has no restrictions of time and geography,for the exchange of information. It can be very convenient for consumers to share and search word-of-mouth on the Internet. Online word-of-mouth make stronger influence to consumers because of its new characteristics of spreading fast、wide scope and anonymity. However, it’s found that few researches were on the Positive WOM among the previous studies while a few on the negative.besides. On the other hand, the loyalty of brand is regarded as the most valuable asset of the enterprise; which is also regarded as the bridge between consumers and brand. The brand can bring a lot of advantages for the enterprise, such as reducing marketing cost, improving market share and makeing great market influence. Under the circumstance of internet, only click the other link on the computer consumers can change a brand to another. at the network surroundings, brand loyalty is worth further studying for its some new characteristics. So this study extendly analysis the negative word-of-mouth affect brand loyalty under the network environment.Basis on the of the existed researches conducted by domestic and foreign scholars, this study discusses the influence negative online word-of-mouth has on the the consumer’s brand loyalty from the view of receiving party. Firstly, it develops a comprehensive theoretical model and investigates how online negative word-of-mouth affects brand loyalty(including attitude loyalty and behavior loyalty),while negative word-of-mouth can be specifically studied from these aspects: the strength of negative word-of-mouth, the relation strength between sending and receiving party, the receiver-the site relations,the credibility of the source of negative online word-of-mouth, the mediator variable brand trust(including brand reliability and brand intentionality); and the moderating roles of degree of the Internet Involvement.Secondly after buliding the theoretical model, it designed the research scale based on previous researches, the scale has been revised after a small sample survey. And then through the distribution of the questionnaires on the internet and in the real world,348copies of the effective questionnaires are obtained. Finally,the collected large sample data is analyzed by using the AMOS and SPSS software. In the process of analysis,the study not only tests the hypotheses, but also explores the effect mechanism of how negative online WOM affects brand loyalty. This study found that in internet the strength of negative word-of-mouth make the strongest influence on brand loyalty.But the relation strength between sending and receiving party has no significant influence on brand loyalty; the receiver-the site relations can affect brand loyalty. What’s more, negative online word-of-mouth with credible source will also be able to affect the brand loyalty. This study also found that brand trust plays a mediating role in the influence that the strength of negative word-of-mouth, the relation between the receiver and the site, the credibility of the source has on brand loyalty. Internet involvement also has different degree of regulating function in the influence that the four factors of the negative online word-of-mouth have on brand loyalty.

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CLC: > Economic > Trade and Economic > Domestic Trade and Economic > The circulation of commodities and the market > Market > Business psychology, psychology of the market
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