Customer reviews are a double-edged sword for new, independent service brands

Customer endorsement in the form of reviews, likes and other forms of support (or criticism) is important for sales. This is true for all organisations. However, the effect of customer endorsement on consumption varies widely, depending on the type of company and the type of product. Research by Kyunghee Lee, Byungtae Lee and Wonseok Oh … Continue reading Customer reviews are a double-edged sword for new, independent service brands

Level vs source of customer (dis)satisfaction

We sometimes think of customer satisfaction and dissatisfaction as two sides of the same coin. If a certain feature is present – say, courteous service – customers leave satisfied; if that same feature is absent, customers leave dissatisfied. So, to have happy customers, all we need to do is keep improving on that feature.   … Continue reading Level vs source of customer (dis)satisfaction

Which branded tweets get most retweets?

Researchers at Western Sydney University in Australia – Alena Soboleva, Suzan Burton, Girijasankar Mallik and Aila Khan – have analysed the characteristics of branded tweets that get the most retweets. They collected tweets posted by the leading brands in the automotive, the luxury and the fast moving consumer goods (FMCG) industries, and adjusted for factors … Continue reading Which branded tweets get most retweets?

Huawei customers more likely to endorse the brand than Apple ones. So what?

Market research recently published by Globalwebindex shows that Huawei customers were the most likely, among technology users, to recommend the brand to others. Should competitors like Samsung or Apple worry?   No.   And why not?   Because when it comes to the impact of word of mouth on consumer behaviour volume of word mouth … Continue reading Huawei customers more likely to endorse the brand than Apple ones. So what?

Handling negative online reviews: speed and voice matter; status and action frame not so much

The question I get asked most often (after whether social media activity helps with sales and profitability) is how to handle negative online reviews. The comments left by other customers, and any responses left by the company, are available for all to see, and can impact on the company’s reputation. So, many companies worry that … Continue reading Handling negative online reviews: speed and voice matter; status and action frame not so much

When good product reviews are bad news for business

  Customer reviews are a very important source of information for buyers when it is difficult to evaluate or test a product before purchase, as in the case of online purchases. Positive reviews can amplify sales by as much as 0.149, and is particularly relevant for high financial risk decisions, services, hedonic products, and new … Continue reading When good product reviews are bad news for business

Twitter conversations have the credibility of friends’ recommendations and the impact of online reviews

While we tend to discuss word of mouth in terms of traditional (i.e., face to face) vs. electronic, this paper by Thorsten Hennig-Thurau, Caroline Wiertz and Fabian Feldhaus indicates that this separation is two simplistic.   The paper looks at the impact of Twitter conversations on the performance of new movies. It finds that customers … Continue reading Twitter conversations have the credibility of friends’ recommendations and the impact of online reviews