Development of Word-of-Mouth Elasticity Measures for Tourism Product Categories

DOI: 10.4236/psych.2012.39109   PDF   HTML     4,301 Downloads   7,202 Views   Citations


This study examines the influence of word of mouth (WOM) on eight tourism products by applying economic elasticity theory to understand the relationship between behavioral outcomes and target elements to these behavioral outcomes (customer consumption). The elasticity model of economics was developed to conceptualize WOM elasticity (EWOMx) and measure WOM effects on various products. The results of WOM elasticity values show a significant difference between physical and service product categories. In addition, all effective respondents in this research are highly sensitive to WOM relating to specific products. This shows that WOM is not only a key variable of tourism products but also validates that WOM communications are meaningful for tourism customers. The authors contributes to tourism service and WOM marketing effects compared by validating empirical research in eight different product categories and providing empirical support with prior services marketing literature. Theoretical and practical implications and future research issues are discussed.

Share and Cite:

Chen, Y. , Liu, F. , Ho, L. & Lin, T. (2012). Development of Word-of-Mouth Elasticity Measures for Tourism Product Categories. Psychology, 3, 722-728. doi: 10.4236/psych.2012.39109.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Alvarez, M., & Asugman, G. (2006) Explorers versus planners: A study of Turkish tourists. Annals of Tourism Research, 33, 319-338.doi:10.1016/j.annals.2005.12.001
[2] Arndt, J. (1967). Role of product-related conversations in the diffusion of a new product. Journal of marketing Research, 4, 291-229.doi:10.2307/3149462
[3] Assmus, G., Farley, J. U., & Lehmann, D. R. (1984). How advertising affects sales: Meta-analysis of econometric results. Journal of Marketing Research, 21, 65-74. doi:10.2307/3151793
[4] Bansal, H. S., & Voyer, P. A. (2000). Word-of-mouth processes within a services purchase decision context. Journal of Service Research, 3, 166-177. doi:10.1177/109467050032005
[5] Bayus, B. L. (1985). Word of mouth: The indirect effects of marketing efforts. Journal of Advertising Research, 25, 31-39.
[6] Berry, L. L. (1995). Relationship marketing of services—Growing interest, emerging perspectives. Journal of the Academy of Marketing Science, 23, 236-245. doi:10.1177/009207039502300402
[7] Bloch, P. H., Sherrell, D. L., & Ridgway, N. M. (1986). Consumer search: An extended framework. Journal of Consumer Research, 13, 119-126. doi:10.1086/209052
[8] Brown, T. J., Barry, T. E., Dacin, P. A., & Gunst, R. F. (2005). Spreading the word: Investigating antecedents of consumers’ positive word- of-mouth intentions and behaviors in a retailing context. Journal of the Academy of Marketing Science, 33, 123-138.doi:10.1177/0092070304268417
[9] Christiansen, T., & Tax, S. S. (2000). Measuring word of mouth: The questions of who and when? Journal of Marketing Communications, 6, 185-199. doi:10.1080/13527260050118676
[10] Costrell, R. M., & Loury, G. C. (2004). Distribution of ability and earnings in a hierarchical job assignment model. Journal of Political Economy, 112, 1322-1363. doi:10.1086/424741
[11] Crane, F. G., & Lynch, J. E. (1988). Consumer selection of physicians and dentists: An examination of choice criteria and cue usage. Journal of Health Care Marketing, 8, 16-19.
[12] Derbaix, C. (1983). Perceived risk and risk relievers: An empirical investigation. Journal of Economic Psychology, 3, 19-38. doi:10.1016/0167-4870(83)90056-9
[13] Devlin, J. F., Gwynne, A. L., & Ennew, C. T. (2002). The antecedents of service expectations. The Service Industries Journal, 22, 117-152.doi:10.1080/714005102
[14] Dodson, J. A., & Muller, E. (1978). Models of new product diffusion through advertising and word-of-mouth. Management Science, 24, 1568-1578. doi:10.1287/mnsc.24.15.1568
[15] Ennew, C., Bauerjee, A. K., & Li, D. (2000). Managing word of mouth communication: Empirical evidence from India. International Journal of Bank Marketing, 18, 75-83. doi:10.1108/02652320010322985
[16] Fang, C. H., Lin, T. M. Y., Liu, F., & Lin, Y. H. (2011). Product type and word of mouth: A dyadic perspective, Journal of Research in Interactive Marketing, 5, 189-202. doi:10.1108/17505931111187802
[17] File, K. M., Cermak, D. S. P., & Prince, R. A. (1994). Word-of-mouth effects in professional service buyer behaviour. The Service Industries Journal, 14, 301-314. doi:10.1080/02642069400000035
[18] Forsythe, S. M. (2003). Consumer patronage and risk perceptions in internet shopping. Journal of Business Research, 56, 867-875.doi:10.1016/S0148-2963(01)00273-9
[19] Godes, D., & Mayzlin, D. (2004). Using online conversations to study word-of-mouth communication. Marketing Science, 23, 545-560.doi:10.1287/mksc.1040.0071
[20] Halstead, D., & Droge, C. (1991) Consumer attitudes toward complaining and the prediction of multiple complaint responses. Advances in Consumer Research, 18, 210-216
[21] Harrison-Walker, L. J. (2001). The measurement of word-of-mouth communication and an investigation of service quality and customer commitment as potential antecedents. Journal of Service Research, 4, 60-75. doi:10.1177/109467050141006
[22] Homburg, C., & Furst, A. (2005). How organizational complaint handling drives customer loyalty: An analysis of the mechanistic and the organic approach. Journal of Marketing, 69, 95-114.doi:10.1509/jmkg.
[23] Kiel, G. C., & Layton, R. A. (1981). Dimensions of consumer information seeking behavior. Journal of marketing Research, 18, 233-239.doi:10.2307/3150957
[24] Laczniak, R. N., Decarlo, T. E., & Ramaswami, S. N. (2001). Consumers’ responses to negative word-of-mouth communication: An attribution theory perspective. Journal of Consumer Psychology, 11, 57- 73. doi:10.1207/S15327663JCP1101_5
[25] Lam, D., & Mizerski, D. (2005). The effects of locus of control on word-of-mouth communication. Journal of Marketing Communication, 11, 215-228. doi:10.1080/1352726042000333180
[26] Lan, M. Y., Liu, F. Y., Fang, C. H., & Lin, T. M. Y. (2012) Understanding word-of-mouth in counterfeiting, Psychology, 3, 289-295.doi:10.4236/psych.2012.33041
[27] Libai, B., Muller, E., & Peres, R. (2009). The role of within-brand and cross-brand communications in competitive growth. Journal of Mar- keting, 73, 19-34. doi:10.1509/jmkg.73.3.19
[28] Mahajan, V., Muller, E., & Bass, F. M. (1990). New product diffusion models in marketing: A review and directions for research. Journal of Marketing, 54, 1-26. doi:10.2307/1252170
[29] Mittal, V., Ross, W., & Baldasare, P. (1998). The asymmetric impact of negative and positive attribute-level performance on overall satisfaction and repurchase intentions. Journal of Marketing, 62, 33-47.doi:10.2307/1251801
[30] Murphy, L., Mascardo, G., & Benckendorff, P. (2007). Exploring word-of-mouth influences on travel decisions: Friends and relatives vs other travelers. International Journal of Consumer Studies, 31, 517-527. doi:10.1111/j.1470-6431.2007.00608.x
[31] Murray, K. B. (1991). A test of services marketing theory: Consumer information acquisition activities. Journal of Marketing, 55, 10-25.doi:10.2307/1252200
[32] Oliveira-Castro, J. M., Foxall, G. R., & Schrezenmaier, T. C. (2005). Patterns of consumer response to retail price differentials. The Service Industries Journal, 25, 309-335.doi:10.1080/02642060500050392
[33] Pan, B., MacLaurin, T., & Crotts, J. C. (2007). Travel blogs and the implications for destination. Marketing Journal of Travel Research, 46, 35-45. doi:10.1177/0047287507302378
[34] Rabaglietti, E., Liubicich, M. E., & Ciairano, S (2011). Gender differences in the relationships between physical activity and the psychological and physical self-reported condition of the elderly in a residential care facility. Psychology, 2, 35-41. doi:10.4236/psych.2011.21006
[35] Schmallegger, D., & Carson, D. (2008). Blogs in tourism: Changing approaches to information exchange. Journal of Vacation Marketing, 14, 99-110. doi:10.1177/1356766707087519
[36] Smith, R. E., & Swinyard, W. R. (1982). Information response models: An integrated approach. Journal of Marketing, 46, 81-93. doi:10.2307/1251162
[37] Sweeney, J. C., Soutar, G. N., & Mazzarol, T. (2008). Factors influencing word of mouth effectiveness: Receiver perspectives. European Journal of Marketing, 42, 344-364.doi:10.1108/03090560810852977
[38] Sui, J. J., & Baloglu, S. (2003).The role of emotional commitment in relationship marketing: An empirical investigation of a loyalty model for casinos. Journal of Hospitality & Tourism Research, 27, 470-489.
[39] Taylor, K. A. (1997). A regret theory approach to assessing consumer satisfaction. Marketing Letters, 8, 229-238. doi:10.1023/A:1007966621364
[40] Trusov, M., Bucklin, R. E., & Pauwels, K. (2009). Effects of word-of-mouth versus traditional marketing: Findings from an Internet social networking site. Journal of Marketing, 73, 90-102.doi:10.1509/jmkg.73.5.90
[41] Villanueva, J., Yoo, S., & Hanssens, D. M. (2008). The impact of marketing-induced vs word-of-mouth customer acquisition on customer equity. Journal of marketing Research, 45, 48-59. doi:10.1509/jmkr.45.1.48
[42] Webster, C. (1991). Influences upon consumer expectations of services. The Journal of Services Marketing, 5, 5-17. doi:10.1108/08876049110035440
[43] Wirjanto, T. S. (2004). Exploring consumption-based asset pricing model with stochastic-trend forcing processes. Applied Economics, 36, 1591-1597. doi:10.1080/0003684042000217940

comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.