Negative Word-of-Mouth on Social Media and Consumer Behavior: Study with Parents of Students of Private Schools in Belo Horizonte

Abstract

Objective: evaluate the influence of social media’s negative WOM communication on consumer behavior.

 Method: This is a quantitative research with a descriptive approach. The sample consisted of parents of students from private schools in Belo Horizonte. Data were analyzed using structural equation modeling, PLS method.

 Originality / Relevance: The relevance of the research is based on the fact that there are many papers addressing word-of-mouth communication, but few specifically addressing negative word-of-mouth, also addressing the moderating effects of switching costs.

 Results: The results confirm that negative word-of-mouth reduces purchase intent and attitudinal loyalty and only procedural switching costs are able to reduce this effect.

 Theoretical Contributions: Although they may seem logical, relationships need to be tested empirically, especially given the proposed monological chain, which included the moderating effects of switching costs, an unusual design in marketing research. Therefore, proving that negative word-of-mouth reduces both purchase intent and attitudinal loyalty is a theoretical contribution. Moreover, attesting that switching costs cannot reduce the effects of negative word-of-mouth also translates into a theoretical contribution.

 Contributions to management: The importance of organizations closely following the comments on social media made by their clients is emphasized. Preventing failures from happening, and especially from customers publicly expressing their dissatisfaction, is critical to businesses today.