HCBE Faculty Presentations

Title

Negative eWOM in Social Media and Stock Evolution

Event Location / Date(s)

New Orleans, LA

Document Type

Conference Presentation

Presentation Date

5-25-2018

Conference Name / Publication Title

46th Annual Academy of Marketing Science Conference

Description

Negative perceptions of United Airlines' corporate reputation increased 500 percent after the event regarding the forcible removal of a ticketed passenger on April 9th, 2017, a video that became viral and traveled the world first-class through social media. Under these circumstances, the objectives of this study are threefold. We first want to explore the way consumers behave and interact online in the case of what they perceive as a significant negative event for a brand. Second, we want to assess how different brand events, from the same organization or other companies, interact and affect each other regarding social media and the public's attention on NWOM. Third, we focus on the relationship between negative word-of-mouth and fluctuations in the stock market price of the targeted brand. This study can contribute to the word-of-mouth literature by providing a clearer picture regarding consumers' reaction to negative brand events and their reactions in social media. The article also provides more details regarding the relationship between concurrent and consecutive negative word-of-mouth events and underlines the effect of NWOM on the stock market.

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