search query: @author Goldenberg, J. / total: 5
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| Author: | Goldenberg, J. |
| Title: | The NPV of bad news |
| Journal: | International Journal of Research in Marketing
2007 : SEP, VOL. 24:3 p.186-200 |
| Index terms: | network analysis |
| Freeterms: | word-of-mouth strong ties weak ties |
| Language: | eng |
| Abstract: | The authors study the effects of individual-and network-level negative word-of-mouth on a firm's profits using an agent-based model, concentrating on an extended small-world analysis. The authors include both permanent strong ties within the social network, and varying, often random, weak ties with other networks. The effect of negative word-of-mouth on the Net Present Value (NPV) of the firm was found to be considerable, even when the initial number of dissatisfied customers is relatively small. The authors indicate that the well-known phenomenon of the strength of weak ties has contradictory effects when taking into account negative word-of-mouth: Feeble ties help to spread damaging information through networks and can become a negative force for the product's spread. |
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