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ABSTRACT
This research studies the strategies used by managers to cope with negative word of mouth. We investigated seven different coping strategies across French and North American managers. The results revealed that, for coping with negative word-of-mouth, managers evaluate as the most efficacious strategy that of increasing trust in the negatively discussed product, service, or company. The results also suggest that doing nothing is perceived as less effective than increasing trust or denying negative word of mouth. Finally, we find a high degree of similarity in the perceptions of the utility of negative word-of-mouth redress strategies across the two managerial cultures.
INTRODUCTION
It has long been acknowledged that word-of-mouth (WOM) is an important marketplace phenomenon. Over the past WOM has been intensively in the marketing literature (De and Lilien 2008; Richins 1984; Wangenheim and Bayón 2004; Westbrook 1987). To date, investigators have mostly the antecedents of WOM, such as satisfaction/dissatisfaction (e.g.. An1998; East, Hammond and Wright Godes and Mayzlin 2004; Mangold, and Brockway 1999; Oliver 1980; 1981; Westbrook 1987) and factors that individuals to engage in WOM Sundaram, Mitra and Webster 1998; Chandrashekaran and Christianser 1993). Some have examined the conof WOM, for example, on brand and market share (e.g. Arndt 1967; Chevalier and Mayzlin 2003; East, Hammond and Lomax 2008; Herr, Kardes, and Kim 1991; Mittal, Ross and Baldasare 1998), or companies' growth (Reichheld 2003). It has been shown that negative WOM (NWOM) tends to decrease purchase probability (East et al. 2008) and thus can be financially damaging for a firm (Lau and Ng 2001). In addition, NWOM may affect product or service evaluations (Herr, Kardes and Kim 1991). Therefore, it is in the best interest of companies to take steps to prevent NWOM, as well as to adopt counter strategies to cope with customers' NWOM, once it occurs. However, it is not clear how managers should deal with NWOM. and redress strategies are still largely under-used and under-researched, in spite of the considerable impact customers' negative comments may have (Chevalier and Mayzlin 2003; East et al. 2008; Nyer and Gopinath 2005).
With limited exceptions, the efficacy of specific strategies for coping with NWOM has not been empirically addressed by researchers (cf. Kimmel and Audrain 2002; Nguyen 2008). For example, Ainsworth (2004)...