Retail Equity Perceptions and Consumers’ Processing of Negative Word-of-Mouth Communication

Abstract

AbstractThis paper examines the impact of retail store equity on the cognitive processes employed by consumers receiving negative word-of-mouth communication (WOMC). The general thesis is that retail store equity will alter the effect of negative WOMC on store evaluations. Propositions are developed that integrate attribution theory and retail equity perceptions and predict that negative WOMC may not automatically lead to more negative store evaluations, as suggested in previous research. The resulting evaluations depend upon the attributional processes employed by consumers during their exposure to WOMC. Managerial implications of the propositions are discussed. Additional informationNotes on contributorsRussell N. LaczniakRussell N. Lacmiak (Ph.D.,University of Nebraska-Lincoln) is associate professor of marketing at Iowa State University. He has published articles which have appeared in the Journal of Advertising, Journal of Current Issues and Research in Advertising, Journal of Public Policy and Marketing, Journal of Business Research, Journal of Consumer Affairs, Psychology and Marketing, Journal of Marketing Theory and Practice, Journal of Marketing Communications, and various other conference proceedings.Thomas E. DeCarloThomas E. DeCarlo (Ph.D., University of Georgia) is assistant professor of marketing at Iowa State University. He has published articles in the Journal of Marketing, Journal of Personal Selling and Sales Management, Journal of Services Marketing, and various conference proceedings.Carol M. MotleyCarol M. Motley (ph.D., University of Georgia) is assistant professor of business administration at University of Illinois at Urbana-Champaign. She has putlished articles in the proceedings of the American Marketing Association Summer Educator’s Conference, Marketing Sciences Conference, and Retail Patronage Belwvior Conference.