The Effects of Online Negative Word-of-Mouth: An Empirical Study

Abstract

Previous studies on the effects of word-of-mouth (WOM) have rarely distinguished the effect of creating and reading WOM messages. This paper investigates how posting and viewing online negative word-of-mouth (NWOM) affect customers’ subsequent purchase behaviors. We also identify different types of negative emotions expressed in NWOM and examine their impact. Using a dataset that combines customers’ posting and viewing activities on the firm’s online forum and their purchase and redemption histories, we find the interaction effect between posting and redeeming to be positive, and viewing to be negative. Regarding emotions, anger has a negative effect, while concern has a positive effect. We propose an explanation for these findings, and discuss their implications and applications.