The Quality of Firm's Output as Factual Communication: The Role of Word-of-Mouth (Le Prestazioni Dell'Impresa Come Comunicazione "Di Fatto" E Il Ruolo Del Passaparola)

Abstract

Key processes to generate customer retention have been concerned by a large number of studies. The purpose of research in this field was to review, define and evaluate the specific roles played by the various forms, channels and techniques of firm's communication in an economy evolving, interdependent and increasingly innovative. In this challenging context, however, the subject word-of-mouth had received for years little attention indeed. Recently, the growing emphasis given, both by scholars and practicians, to major marketing topics as customer satisfaction and brand equity and the significant improvements achieved in communicational processes by the use of new technologies, have contributed to a new interest in the theme. The article examines firstly the nature and the various aspects of word-of-mouth, putting in evidence the importance of firm's performances, especially in the case of negative effects (poor quality of services), as the origin of interaction among individuals and stressing the need of an absolute coherence of these performances with all the communication policies pursued by the management. The second step of the paper is devoted to focus on the variety of actions that companies may design, adopt, implement and develop in order to face and properly manage the word-of-mouth. Eventually, other major concepts as viral marketing and network marketing are analysed.

Keywords: word-of-mouth, customer satisfaction, brand equity, viral marketing

JEL Classification: M30