Quantifying the Long-Term Impact of Negative Word of Mouth on Cash Flows and Stock Prices

By Xueming Luo. Marketing science (Providence, R.I.), 2009

334 citations recorded by the source corpus.

Subfields: Finance, Management Science and Operations Research, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/6511a059e213554919fd764c1c607a542ce4ad5f

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Citations in the corpus

On the value relevance of customer satisfaction. Multiple drivers and multiple markets (2012, background): “In general terms, customer satisfaction triggers positive customer outcomes such as customer loyalty, customer retention, cross-buying activity, price tolerance, word of mouth, and recommendation behavior (e.g., Anderson et al. 2004; Fornell et al. 2006; Gruca and Rego 2005; Luo 2007; 2009; Luo an”
Does advertising spending really work? The intermediate role of analysts in the impact of advertising on firm value (2010, background): “In a broad sense, our findings contribute to marketingfinance interface research (Gupta et al. 2004; Luo 2009; Hanssens et al. 2009).”
Re-examining the relationships among perceived quality, value, satisfaction, and destination loyalty (2018, background): “satisfied customers is a cost-effective marketing strategy that attracts new customers, and builds brand equity and shareholder value (Luo, 2009).”
Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value (2018, background): “For instance, the valence of the solicited word-ofmouth can also be negative (e.g., Luo 2009; Verhoef et al. 2013), as the examples of McDonald’s and General Motors described earlier show.”
Customer Satisfaction, Analyst Stock Recommendations, and Firm Value (2010, background): “…0022-2437 (print), 1547-7193 (electronic) 1041 Corporate managers are interested in understanding the financial value of customers and the relevance of marketbased assets to the investor community (Gupta, Lehmann, and Stuart 2004; Lehmann and Reibstein 2006; Luo 2009; Srinivasan and Hanssens 2009).”
Halo (Spillover) Effects in Social Media: Do Product Recalls of One Brand Hurt or Help Rival Brands? (2016, methodology): “Prior research has shown that online chatter is a leading indicator of sales (Asur and Huberman 2010; Dellarocas, Zhang, and Awad 2007; Liu 2006; Stephen and Galak 2012) and stock market performance (Luo 2009; Tirunillai and Tellis 2012).”
Group-Buying Deal Popularity (2014, background): “3Prior studies have suggested the direct effects of referral and word of mouth (Liu 2006; Luo 2009; Van den Bulte 2010) and the interactive effect between word of mouth and OL on consumer purchase (Chen, Wang, and Xie 2011; Li and Wu 2013).”
Understanding the Impact of Online Reviews on Hotel Performance (2017, background): “Both positive and negative reviews are a potentially important customer voice (Luo 2009), but prior studies either treat them in isolation, or not fully in terms of hotel performance (Chi and Gursoy 2009).”
Does Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance (2012, methodology): “Fifth, although studies suggest the adverse impact of negative word of mouth on returns (e.g., Luo 2009), no study has shown conclusively a comparison between positive and negative metrics.”
The Debate over Doing Good: Corporate Social Performance, Strategic Marketing Levers, and Firm-Idiosyncratic Risk (2009, positive): “…to be relevant to the world of finance (see the Marketing Science Institute Research Priorities 2006–2008; McAlister 2006), most extant studies have examined whether marketing variables influence the size and growth of stock returns (Luo 2009; Rust et al. 2004; Srinivasan and Hanssens 2009).”
Social Media and Firm Equity Value (2013, positive): “To establish the statistical significance of GFEVD estimates (p = 0005), we obtain standard errors using Monte Carlo simulations with 1,000 runs (Luo 2009).”
Evaluating the Financial Impact of Branding Using Trademarks: A Framework and Empirical Evidence (2009, methodology): “Researchers in marketing have increasingly adopted this forward-looking measure to evaluate the value relevance of marketing activities and consumer brand perceptions (Luo 2009; Mizik and Jacobson 2008).”
Brand crises in the digital age: The short- and long-term effects of social media firestorms on consumers and brands (2018, result): “The chosen period of two years after the end of the firestorm event is consistent with previous research (e.g., Cleeren et al., 2013; Luo, 2009), which often analyzes long-term effects over one to two years.”
The Direct and Indirect Effects of Advertising Spending on Firm Value (2010, background): “Heath and Tversky (1990) find that people prefer to bet in areas in which they feel confident and have knowledge about the uncertainties involved, compared with more ambiguous areas.”