For companies, intangible assets like their brands are gaining importance. Consequently, it is crucial for marketers and for academia to understand how to build and nourish strong brands. Brands deliver value to the company and are a signal of differentiation in the customer’s mind. The brand equity residing in the mind of a customer can define the strength of a brand. In addition, previous research indicates that word of mouth (WOM) is a strong influencer on the customer’s perception in any purchase situation. Hence, this study was a step forward and brings the concepts of customer-based brand equity (CBBE) and WOM together. Therefore, a model was developed that captures the effects of manipulated WOM on the CBBE, representing the strength of a brand. Further, the researcher was interested if the effects of positive or negative WOM are moderated by the knowledge level of the customer. Using a longitudinal study design, a sample of 36 participants was exposed to either positive or negative WOM. The results of the repeated CBBE measures indicate that negative WOM has a negative impact on CBBE. Additionally, results show that novice customers are with the magnitude and number of effects stronger affected by negative WOM than brand experts. An influence of positive WOM on the CBBE could not be found. The study allows two distinct implications to protect and build a strong brand. First, an increase of the knowledge level of customers via brand education. Second, leverage on social media to encourage customer feedback.
Date of Award | 18 Jul 2016 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Rita Coelho do Vale (Supervisor) |
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- Mestrado em Gestão: Programa Internacional
Empirical investigation of the compact of online word of mouth on customer-based brand equity in the german product market
Eckes, M. J. (Student). 18 Jul 2016
Student thesis: Master's Thesis