The Study Of The Effect Of The Word-of-mouth Based On Customer Satisfaction

It has often been argued that word-of-mouth (WOM) can affect to a firm' success, how to quantify the effect is always a key research avenue to pursue. During the last decades the focus of research on satisfaction and WOM, WOM and new customer acquisition, the moderating effect of some variables and so on. By reviewing word of mouth literature, this study link up customer satisfaction, WOM and customer purchase behavior to analyze how satisfaction translates into positive WOM and how positive WOM converts into the acquisition of new customers.Based on literature interview, this paper investigates the binary logistic regression model and the zero-inflated Poisson model (ZIP), using data from questionnaires about notebook, to test the direct and moderated relationship between satisfaction and WOM, and the relationship between WOM and new customer acquisition, and quantify the effect of WOM. At last, the paper reveals managerial implications based on the final conclusions.First of all, the results indicate that positive WOM is an outcome of high customer satisfaction ratings. Hence, it is clear that the satisfaction-WOM-link exists significantly. Product involvement is a moderator of the effects of customer satisfaction on WOM, and product involvement has positive influence on the number of WOM referrals. Affective commitment is not a moderator of the effects of customer satisfaction on WOM.Secondly, It is also demonstrates that WOM influence customer purchase decisions clearly, sender's expertise and tie strength moderate the relationship between WOM and new customers acquisition, but the moderating effect of perceived risk is not significant.At last, drawing from the empirical finding of this paper, compute the return on satisfaction increase in the form of new customers through WOM.