The relationship between electronic word-of-mouth, customer loyalty and resistance to innovation

Abstract

Purpose

The study aims to construct a model that illustrates the relationship between receiving and sharing negative electronic word-of-mouth (e-WOM), consumer resistance to innovation (CRI), and customer loyalty.

Design/methodology/approach

Utilizing questionnaire surveys and regression model analysis, this study examines the case of smartphones to explore the impact of customer loyalty and CRI on the spread of negative e-WOM.

Findings

The results show that when consumers receive negative e-WOM, it increases their resistance to innovation, consequently raising the probability of them sharing this negative feedback. However, strong customer loyalty mitigates this interaction. Interestingly, customer loyalty increases the likelihood of consumers sharing negative e-WOM upon receiving it. This suggests that loyal consumers tend to be more inclined to share information, regardless of its positivity or negativity.

Originality/value

The paper contributes by examining the mechanisms linking the receipt and dissemination of e-WOM, CRI, and customer loyalty, along with the moderating impact of customer loyalty.