Wenhua Shi, Lingshu Tang, Xiaohang Zhang, Yu Gao and Yameng Zhu
Although word of mouth (WOM) affects customers’ purchasing intentions to a large extent, prior research has neglected the role of WOM as a driver of customer satisfaction.
Abstract
Purpose
Although word of mouth (WOM) affects customers’ purchasing intentions to a large extent, prior research has neglected the role of WOM as a driver of customer satisfaction.
Design/methodology/approach
Several scholars have suggested that WOM can not only affect customer expectation but also can influence perceived quality. Consistent with existing research results and the expectancy disparity model, this paper established a causal relation between WOM and customer satisfaction and confirmed it was drawing on an experimental study.
Findings
This paper indicates that positive or negative WOM affects customer satisfaction by promoting or lowering customers’ expectations. This relation is moderated by product type, rather than the source of the WOM. With experience goods, positive (negative) WOM will decrease (increase) customer satisfaction. However, with search goods, positive (negative) WOM will increase (decrease) customer satisfaction.
Originality/value
The results of this study have implications for academia and management. Academically, this study establishes the causal relation between WOM and customer satisfaction, expanding the research on the relation between WOM and satisfaction. From a managerial perspective, the promotion of WOM also can create certain service risks.
Details
Keywords
José M. Merigó, Anna M. Gil-Lafuente and Jaime Gil-Lafuente
This special issue of the Journal of Business & Industrial Marketing, entitled “Business, Industrial Marketing and Uncertainty”, presents selected extended studies that were…
Abstract
Purpose
This special issue of the Journal of Business & Industrial Marketing, entitled “Business, Industrial Marketing and Uncertainty”, presents selected extended studies that were presented at the European Academy of Management and Business Economics Conference (AEDEM 2012).
Design/methodology/approach
The main focus of this year was reflected in the slogan: “Creating new opportunities in an uncertain environment”. The objective was to show the importance that uncertainty has in our current world, strongly affected by many complexities and modern developments, especially through the new technological advances.
Findings
One fundamental reason that explains the economic crisis is that the government and companies were not well prepared for these critical situations. And the main justification for this is that they did not have enough information. Otherwise, they would have tried any possible strategy to avoid the crisis. Usually, uncertainty is defined as the situation with unknown information in the environment.
Originality/value
From a theoretical perspective, the problem here is that enterprises and governments should assess the information and the uncertainty in a more appropriate way. Usually, they have some studies in this direction, but many times, it is not enough, as it was proved in the last economic crisis.
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Yekun Xu, Yameng Zhang and Jiayu Zhao
This study aims to investigate whether and how the executive military experience influences accrual-based earnings management and real earnings management.
Abstract
Purpose
This study aims to investigate whether and how the executive military experience influences accrual-based earnings management and real earnings management.
Design/methodology/approach
Based on a sample of 4,392 listed firms in China between 2006 and 2022, this study examines the theoretical hypotheses by performing multiple regressions with fixed effects and a battery of robustness tests.
Findings
With a focus on executives’ decisions on the choice between two earning management methods, this paper find military executives reduce accrual-based earnings management but increase real earnings management. The mechanism of risk-aversion is verified in the post hoc analysis.
Originality/value
Most studies argue that military experience, which represents a strong sense of duty and self-discipline, can help to reduce corporate unethical behaviors. The study extends the existing literature on executives’ military experience by identifying risk-aversion rather than ethical values as the potential mechanism through which executives’ military experience affects earnings management.