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"And she told five friends" - Market Study on the Impact of Negative Word of Mouth
Verde Group, April 2004, Pages: 29
The Verde Group, together with Consumer Contact, conducted a study across Canada to better understand the effect of problem experience and negative word of mouth on the shopping experience. The study was conducted in Canada during the early holiday shopping season of 2004 using telephone interviews with over 1000 Canadian households.
It looks at the likelihood of purchasing items from the company over the next year; negative word-of-mouth; and positive referrals. It details include comparisons of Quebec and Ontario, gender differences, and type of item/service purchased. The findings demonstrate the very adverse effects of negative word-of-mouth—and the problems most associated with it. Concludes that a customer service representative’s lack of knowledge about the product or service generates the most negative word-of-mouth—and those who report this as their most important problem tell about five other people about their problem.
- Over 1,000 telephone interviews were conducted nationally between November 30 and December 3, 2004, with Canadian households.
- All respondents were randomly selected and qualified as having purchased items or services either at a store, by telephone, through the Internet, or in some other way in the past month. Respondents were asked to exclude grocery, liquor, beer, restaurant, or prescription drug purchases or items valued at more than $2,500.
- Currently, the study is being replicated in Europe through The Verde Group’s affiliate office, Lighthouse Global, and is planned for the US in late 2005.
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