Negative Review On Consumer Relationship

988 Words4 Pages
3.1.1: Negative Reviews Previous studies have shown that the influence of negative eWOM is quite different for Positive eWOM. Not only does it affect purchase intentions but it also impacts negatively on consumer trust [Chatterjee (2001)]. [Ba and Pavlou(2002)] illustrate that negative onlinereviews have much more impact that Posetive reviews, when a customer form his level of trust based on another’s customers’ experience. Not only do negative reviews reduce the number of customers but it also reduces selling prices as a promotional strategy for the company to regain its customers back [ Milnik and Alm (2002)]. Given the greater influence of negative online reviews on purchase intentions, thus offsetting future revenue of businesses as demonstrated…show more content…
To adjust to the risk, customers rely on other customers’ experience to indicate product quality, performance and services when purchasing [Shrimp and Bearden (1982)], so usually before purchasing a product or service people go and research online on the product for a clearer justification. Customers tend to believe that positive online reviews are more credible. While assessing the influence of positive review content on online review sites, this thesis also postulates the extent positive reviews can play an important role in purchase intentions which will impact the revenue of the airline. Every business requires good positive reviews from customers because it can be of a huge benefit for the business as it can increase the revenue and it builds up the reputation of the business as well. Given the strong influence of positive online reviews on purchase intentions, thus promoting an increment in revenue, as demonstrated by previous studies, this thesis will use absolute numbers in order to prove the…show more content…
Gross domestic product's impact on business is generally minor from the angle that GDP is made thus of business activity. Thus, business influences GDP. In any case, GDP is a large scale monetary marker of the quality of business, relative abundance of workers and the general quality of the economy and is utilized by business and financial specialists to decide productive capital arrangement [Murray N. Rothbard and Michael Mandel (2007). Since GDP is the is a large scale monetary maker on the quality of the business it should not be ignored as it helps determines whether there is need for an increment of the number of workers, expansion of operations and purchasing new equipment; which then affects the expenditure by either increasing them of decreasing; thus it will also affect revenue as the increment in expenditure especially towards the improvement of working conditions and increment of salaries of workers can have can have a positive effect on the business as most workers are motivated by the good working conditions and monetary rewards[ Sarachek, B.
Open Document