Customer Satisfaction and Word of Mouth

Customer Satisfaction and Word of Mouth

August 1998 | Eugene W. Anderson
Eugene W. Anderson of the University of Michigan examines the relationship between customer satisfaction and word of mouth (WOM). The study develops a utility-based model suggesting an asymmetric U-shaped relationship, where word of mouth increases as either satisfaction or dissatisfaction increases. Empirical data from the United States and Sweden support this model, showing that dissatisfied customers engage in more word of mouth than satisfied ones, though the difference is often exaggerated. The findings indicate that the relationship between customer satisfaction and word of mouth is not strictly linear but rather asymmetric, with dissatisfaction having a greater impact on word of mouth than satisfaction. The study also finds that the relationship is generalizable across the two countries, with similar patterns observed in both the U.S. and Sweden. The results suggest that word of mouth is higher for extremely satisfied or extremely dissatisfied customers compared to those with moderate satisfaction. The study concludes that the CS-WOM relationship is U-shaped and asymmetric, with dissatisfaction leading to greater word of mouth than satisfaction. The findings have implications for marketing research and practice, highlighting the importance of understanding the complex relationship between customer satisfaction and word of mouth. The study also notes that future research should explore how this relationship varies across different goods and services, as well as how it is influenced by other factors such as complaint handling and social influence.Eugene W. Anderson of the University of Michigan examines the relationship between customer satisfaction and word of mouth (WOM). The study develops a utility-based model suggesting an asymmetric U-shaped relationship, where word of mouth increases as either satisfaction or dissatisfaction increases. Empirical data from the United States and Sweden support this model, showing that dissatisfied customers engage in more word of mouth than satisfied ones, though the difference is often exaggerated. The findings indicate that the relationship between customer satisfaction and word of mouth is not strictly linear but rather asymmetric, with dissatisfaction having a greater impact on word of mouth than satisfaction. The study also finds that the relationship is generalizable across the two countries, with similar patterns observed in both the U.S. and Sweden. The results suggest that word of mouth is higher for extremely satisfied or extremely dissatisfied customers compared to those with moderate satisfaction. The study concludes that the CS-WOM relationship is U-shaped and asymmetric, with dissatisfaction leading to greater word of mouth than satisfaction. The findings have implications for marketing research and practice, highlighting the importance of understanding the complex relationship between customer satisfaction and word of mouth. The study also notes that future research should explore how this relationship varies across different goods and services, as well as how it is influenced by other factors such as complaint handling and social influence.
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