Do we follow the crowd on social media? Experimental evidence on consumer attitudes in the contexts of NeWOM and firm crisis response

Purpose This study applies social network theory to examine the moderating effects of two online social media network characteristics, namely homophily and consensus, on the influence of negative electronic word of mouth (NeWOM) and of firm crisis response on consumer attitude toward a company. Design/methodology/approach Hypotheses were tested using a mixed-model experimental design of three between-subjects factors, including manipulations of homophily (high vs low), consensus (high vs low), and firm crisis response (accommodative vs defensive), and one repeated measure within-subjects factor of attitude toward the company at three different points in time (A(0), A(1), A(2)). Data were collected from 328 Thai participants who were randomly assigned to one of the eight experimental conditions. Findings High homophily and high consensus online social media network conditions worsen the negative impact of NeWOM on consumer attitudes. However, high homophily and high consensus strengthen the positive influence of an accommodative response in regaining favorable attitude toward the company. Low homophily and low consensus negate the impact of the firm's defensive response, preventing any further deterioration of attitude toward the company. Practical implications - Marketers need to understand the relational patterns among members of online social media networks in order to assess the extent to which consumers are influenced by others in the network. In doing so, the firm can better anticipate and manage the impact of NeWOM and can launch an appropriate response strategy that optimizes the recovery, or minimizes the deterioration, of lost company image and reputation. Originality/value This study provides a dynamic view of consumer attitudes and highlights the substantial impact that others in the online social media network have on consumers' evaluation of NeWOM and of firm recovery efforts.