Contemporary Logistics Word-of-Mouth Re-Spread Based on the Grounded Theory

Contemporary Logistics 04 (2011) 1838-739X
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Contemporary Logistics
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Research on the Influence Factors of Negative Internet
Word-of-Mouth Re-Spread Based on the Grounded Theory
Jidong Bi
School of Business Administration, Shandong University of Finance and Economics, 250014, P.R.China
KEYWORDS
NIWOM,
Grounded theory,
Visual clues,
Re-spread
ABSTRACT
With the popularization of internet, internet word of mouth (IWOM) influence gradually
strengthen, but the research specially on negative internet word of mouth (NIWOM) is less.
Based on literature review, this study used Grounded Theory qualitative method, analyzed
the phenomenon of consumer re-spread. The result indicates characteristics of promulgator,
receiver and IWOM information have impact on consumer re-spread behavior through
perceived risk and truth, and construct the concept model. Research conclusions enrich the
relevant theory research and can be used for the follow-up study for reference.
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1 Statement of Problem and Literature Review
Though the theory and practice circles have paid attention to the spread of IWOM, relatively, the research achievements is not much.
Especially the research on IWOM in China is only in recent years that it up, special NIWOM research is less, and lack of direct
references authoritative theoretical results. In the real world, if a customer does not satisfied, he will tell 5 people (Richins, 1983), but
in Virtual internet environment, the customer will spread the dissatisfied information to six thousand people by internet platform, and
the Number may be underestimated (Hanson, 2000). Previous literature partly relates to comparative analysis of positive
word-of-mouth and negative word-of-mouth (Naylor et al., 2000; Sweeney et al., 2005; Samson, 2006; East et al., 2007; East et al.,
2008). But special research on NIWOM (Charlett et al., 1995; Lau and Ng, 2001; DeCarlo, 2007; Luo, 2009) is very less.
Because of significant differences between the online environment and offline environment, some scholars indicate that many of the
existing interpersonal communication theory are possible not suitable for IWOM behavior, account of the traditional WOM in
face-to-face relationship (Knapp and Daly, 2002). Furthermore, social emotional characteristics research focusing on computermediated communication (Lea and Spears, 1995; Parks and Floyd, 1996; Walther, 1996) and social cognitive and interpersonal
development theory of the social psychology indicate given enough time the individual in the virtual environment can also form
enough for others' impression. So researching on effect of word of mouth (WOM) spread in virtual community is required to abandon
the deductive model, carry on necessary qualitative research. And use inductive method to extract the field's basic theory from
phenomenon, thus gradually establish and perfect the corresponding theoretical system (Chen Beilei, 2008). In order to achieve the
purpose of in-depth understanding of connotation and mining corresponding law, following through the grounded theory (Strauss and
Corbin, 1998) research method to analyze the effect of negative interne word-of-mouth on consumer re-spread behavior.

Corresponding author.
Email: [email protected]
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI:10.5503/J.CL.2011.04.007
33
2 Research Design Based on the Grounded Theory
2.1 Research design
The key of the grounded theory is the choice of object of study; moreover, the importance of study object is the information richness
and representation of the study phenomenon rather than quantity. This paper aimed at the spread effect of negative internet
word-of-mouth, call for the object of study are more familiar with internet and have a rich experience of collection and contact of
IWOM. In the process of data collection, researchers themselves face-to-face interviews, closely around the topic of ―NIWOM
influence on consumer re-spread behavior‖, ensure that the interview content targeted and comparable. In the interview with
consumer, gradually understand some virtual communities consumers paying relatively high attention on that are the representation
source of Consumer IWOM. So this study finally chose six virtual communities (Taobao.com; koubei.com; sina.com.cn; QQ.com;
amazon.cn; vancl.com) as the source of research data supplement, and select some netizen’s post, enriching collected data.
On the basis of comparison and confirmation of research object, this study finally interviewed 36 persons, each interview’s time is
20-40 minutes. There are 19 male and 17 female, the age span is 19-50, among whom there are 17 persons under the age of 30, 16
persons at the age of 30-40, occupation related to college students, workers, civil servants, institution / enterprise managers and
general staff and so on.
The above collected data were collated and integrated, assuring the match of collected information and research theme, and finally
naming the data as ―survey data note of NIWOM influence on consumer re-spread behavior‖.
2.2 Analyses of grounded theory Date
This part carries on open coding, axial coding and selective coding with collected information, according to the grounded theory data
analysis process.
2.2.1 Open coding
In this process the naming of concepts and categories have multiple source, some from literature, some from interview record, some
from researchers study results. In order to find the concepts and categories most reflecting the essence of the collection data, in need
of constantly check of concepts and categories. Through the open coding analyses on ―survey data note of NIWOM influence on
consumer re-spread behavior‖, finally abstract 39 concepts and 13 categories (A1-A13), referring to table 1. The 13 categories are
visual clues of IWOM; quantity of IWOM; brand impression; product involvement; attitude; search behavior of WOM; expertise;
relationship intensity; internet involvement; trust; responsibility; perceived risk; re-spread behavior.
Table1 The results of open coding: concepts and categories
number
categories
concepts
A1
visual clues of IWOM
visual Impact force; Attractive force; Wording
A2
quantity of IWOM
Quantity of Comments; reports of other media; others attitude
A3
brand impression
A4
product involvement
Consumption experience; product knowledge
A5
attitude
Internet anonymity; individual emotion
A6
search behavior of WOM
Ignore; sustained attention
A7
expertise
Authority; expert
A8
relationship intensity
Common interest; familiarity
A9
internet involvement
A 10
trust
Competence; sincere; honesty
A 11
responsibility
Altruism; social responsibility
A 12
perceived risk
Risk aversion; perceived cost; perceived value; product quality
A 13
re-spread behavior
Alternative brand; brand reputation; enterprise figure; store
credit; after-sale service; enterprises treatment attitude
Internet knowledge; number of using internet years、frequency
of using internet
Seek other people opinion; offline spread; support post;
comment; copy and transmit
According to grounded theory method, these concepts may be a word, a phrase, even a brief sentence, but it must be able to
accurately reflect the essence of the corresponding sentence instead of a simple ―abstract‖. For explaining the process of open coding,
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the analysis on ―survey data note of NIWOM influence on consumer re-spread behavior‖ gave an example in table 2 ①.
Table 2 Analysis example for open coding of NIWOM
open coding
Record of NIWOM
Nature of
conceptualization
categorization
Pattern is very clear, and attract
a1 visual Impact
1. categorization
1. nature of
Facet of style:
attention (a1)
force
using
visual clues
writing/picture/video
This film is very interesting, much
a2 Attractive force
a1,a2,a3: visual
of IWOM:
;
more interesting than simple text,
……
clues of IWOM
style,
Facet of definition:
(A1)
definition,
high/low;
typesetting…
Facet of typesetting:
…
orderliness/
and
information
is
also
very
concepts
comprehensive (a2)
I will go to see a transaction record
2. categorization
Quantity
of
using
Dimension of nature
categories
and evaluation, if more than 1/2 of
a4
concepts
the comment say shoes is not good,
Comments
a4,a5,a6:
I still believe that the eyes of the
a5 reports of other
quantity
masses (a4)
media
IWOM (A2)
IWOM:
much/little;
I will go to have a look of other
……
……
summation,
Facet
websites, and assure that other
……
……
distribution
distribution :widespr
……
ead/ centralized;
of
consumers have this view (a5)
The service attitude is very bad,
inorderliness
2.nature
of
……
quantity
of
Facet of summation:
……
13.
tell my friends not to come here to
a36 offline spread
categorization
13. nature of
Facet of object:
buy (a36)
a37 support post
using concepts
re-spread
Strong ties/weak
See the enterprise bad information
a39
a35,a36,a37,
behavior:
ties；
exposure, just support the post , to
transmit
a38,a39:
object,
Facet of frequency:
let more people know resisting
……
re-spread
frequency,
high/low;
behavior (A13)
channel……
Facet of channel:
enterprise's
immoral
copy
and
behavior
(a37)
I
usually
of
online/offline
get
this
kind
of
information to other community
(total 13
(total 39 concepts)
……
categories)
(a39)
2.2.2 Axial coding
Through the above analysis, the abstract concepts and categories temporarily replace of a large amount of information content, and
also gradually refining, downsizing and understanding on data in-depth. Consequently, the tasks of analysis and research on complex
data is simplified to investigate these concepts, especially the relationship and ties between the categories.
①
The open coding and axial coding of grounded theory involve large numbers of analyses tables, in order to illustrate research
process and save space, only adopt partial table in the paper, given an example in this table.
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Causality condition
Phenomenon
Visual clues of IWOM
Attitude
Quantity of IWOM
Vein
Intermediary
Perceived risk
condition
Responsibility
Trust
Brand impression
Expertise
Relationship intention
Product involvement
Action/interaction strategy
Result
Search behavior of WOM
Re-spread behavior
Figure 1 main category paradigm model
An important analysis tool in axial coding stage of grounded theory is a paradigm model, which including ―causality
condition—phenomenon—vein—intermediary condition—action/interaction strategy—result‖ six parts, and being an effective
measure to link and mine the meaning of categories.
Making use of the condition which causing certain event (mail category), vein (It is the specific dimension index of the category
nature) reckoned on by the event, and the strategies adopt by actors in the event, contribute to more accurately grasp of the event
(mail category). The main category paradigm model of this research is shown in Figure 1.
2.2.3 Selective coding
Through the further study of 13 categories and simultaneously comparison on source material, this research extract three core
categories: characteristic of NIWOM, enterprises impression, characteristic of WOM resource. Outside enterprises impression, the
other core categories of NIWOM spread Show different characteristics with traditional WOM and positive IWOM. Characteristic of
NIWOM mainly indicate visual clues and relatively easy query internet information; enterprises impression indicate consumers
understanding degree to enterprises and their products; characteristic of WOM resource indicate the expertise, authority and
relationship intensity to receiver of NIWOM promulgator.
This research’s route surrounding of core categories can be generalized: on the basis of certain understanding of product knowledge
and brand image, consumers come into contact with NIWOM, which will influence consumer behavior because of perceives risk and
responsibility, and the special influences including three aspects of characteristics of NIWOM, enterprises impression, characteristic
of WOM resource.
3 Influence Factors Model of NIWOM Re-spread Based on the Grounded
Theory
3.1 Construction thinking
According to the literature of concept and spread effect of WOM, IWOM, NIWOM, the current research status on IWOM can be
grasped. First, our country IWOM research start lately, there are more abroad researches than domestic. In view of the fact that our
country has become a big country of be worthy of the name of Internet, IWOM qualitative research specially aiming at our country
consumer has that IWOM is only a way consumer obtain enterprises information, and IWOM Not only influence consumer behavior
on the Internet. So WOM spread will has an interactive diffuse route, traditional WOM and IWOM may influence consumer behavior
interactively. Thus it is more fit reality seeing IWOM as one consumer information resource and paying attention to the effect on
consumer whole behavior (online and offline). Third there is less NIWOM research, and the referential theory is not much. Research
of traditional WOM has confirmed the negative word-of-mouth effect on consumers greater (Lutz, 1975; Miserski, 1982; Richins,
1983; Wrig a significance of theory and Practice. Second, many researches are simply IWOM analysis under the internet
environment (Bickart and Schindler, 2001; Smith, 2002; Kozinets, 2002; Smith et al. 2005; Nelson and Otnes, 2005; Lin yanhong,
2005; Zhang jingjing, 2007; Sun chunhua and Liu yezheng, 2009), or study on IWOM influence on consumer online purchase
(Senecal and Nantel, 2004; Davis and Khazanchi, 2008).
But the reality is ht, 1974; Herr et a1., 1991; Lau and Ng, 2001; Sweeney et al. 2005). Moreover the ―virus‖ feature of NIWOM is
expanded by means of internet; research on NIWOM spread mechanism will provide theoretical reference to follow-up research.
3.2 Theoretical model
Based on the above analysis, this research discussed on influence factors and correlation about consumer NIWOM re-spread behavior,
which would be affected by characteristics of promulgator, receiver and IWOM information. The theoretical model pay attention to
influence factors on consumer re-spread behavior in face of NIWOM, from the IWOM receiver perspective. This research’s
theoretical model is shown in Figure 2.
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4 Mechanisms of Influence Factors of Consumer NIWOM Re-spread
Combined with the former research results and qualitative research of grounded theory, this paper divides the influence factors on
consumer re-spread behavior into three parts: characteristics of promulgator, receiver and IWOM information. Characteristics of
promulgator influence perceived risk; characteristics of receiver influence trust; characteristics of IWOM information influence
perceived risk and trust. Characteristics of promulgator include expertise and relationship intensity; characteristics of receiver include
responsibility, product involvement, internet involvement and brand impression; characteristics of IWOM information include visual
clues and Quantity. Perceived risk and trust influence consumer behavior as intermediary variable; internet involvement has
regulatory effect on characteristics of IWOM information influencing perceived risk and trust; responsibility has regulatory effect on
perceived risk and trust influencing consumer behavior.
In IWOM spread, promulgator is the main body of behavior, which spread intention and ability, are the major factors influencing
spread effects. Allsop et al. (2007) indicated not all individuals have the same impact on a given social network. The main factor
determining WOM spread capability is expertise.
Expertise
Responsibility
Relationship
intensity
Perceived risk
Visual clues of
IWOM
Internet
Re-spread
involvement
behavior
Quantity of
IWOM
Trust
Brand impression
Responsibility
Product
involvement
Figure 2 Theoretical model of NIWOM influence on consumer re-spread behavior
IWOM information content is related to characteristics of internet media, so research on characteristics of IWOM should consider
attribute of internet media. IWOM quantity, evaluation direction and the degree of dispersion all influence spread effects of WOM
(Davis et al., 2008). The higher degree of dispersion, the more possible meeting consumer, this enlarges the spread influence. The
larger the quantity of IWOM, the more possible being known by consumer. Liu (2006) studied the IWOM influence on movie
consumer decision, choosing the movie information on yahoo website and the research result shows that quantity of IWOM has
significant explanatory power on the box office.
Different receiver may have different understanding on the same contents and spread of WOM. The main factors influencing the
recipient are recipient intention and ability of IWOM receiver. Practice shows that usually WOM spread happens under the situation
of initiative information search by receivers. Compared with the spread ability of promulgator, recipient ability of IWOM receiver
has stronger influence on process and effect of spread, becoming the main dominant factors influencing quality of WOM spread and
consumer purchase decision.
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5 Research Conclusion and Prospects
5.1 Research conclusion
Through grounded theory qualitative analysis, this paper extracts the influence factors and their general relation about consumer
NIWOM re-spread behavior from the phenomenon, thereby improving the relative theory in this field, and providing argument basis
for follow-up empirical study. The relative conclusion has certain realistic directive significance on internet marketing. WOM
marketing and the operation of seller and network operator under internet environment.
On the one hand, this research verified the spread theory opinion that promulgator, receiver and information have effect on recipient;
on the other hand, provided the specific variables of influence factors about consumer re-spread behavior in front of NIWOM. The
research found that the characteristic of NIWOM has effect on consumer perceived risk and trust, and internet involvement has
regulatory effect on them. This is the beneficial complement of the previous research. The internet media makes the IWOM and
traditional WOM showing obvious difference, tangible and communication network expansion. For example, two opinions from
object of grounded theory interview: ―The website giving a detailed text description for the negative impression, and it is true, and
with a picture‖, ―Looking for other websites (3-4) about the computer, product reviews in comparison, then decide, not simply to
accept a site of negative comments‖, the above information indicate visual clues and quality of NIWOM influence consumer
behavior.
5.2 Prospects
Based on grounded theory this paper carried on exploratory research of consumer NIWOM re-spread behavior, mainly from the
qualitative point of view analyzed the data, revealed the influence of each variables of characteristics of promulgator, receiver and
IWOM information on re-spread behavior, and constructed theoretic model. The follow-up study can take a more extensive data to
modify the model, or compare the dissimilarity between the different culture scenes and different virtual communities.
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