A Structural Equation Modeling Approach to Investigate Negative Word of Mouth Impact on Customer-Based Brand Equity: Does Attribution Matter?

There is a shortage in the research which addresses the relationship between negative word of mouth (WOM) communication and customer-based brand equity dilution. This research utilizes attribution theory to demonstrate the negative word-of-mouth impact on the customer-based brand equity. Structural equation modeling was used to investigate the proposed effect of negative WOM on brand equity. The study sample consists of 71 post-graduate students, the object of negative WOM was laptops which considered a highly involvement product. Experimental investigation results reveal that customer exposure to negative word-of-mouth increases the brand equity dilution. Results were discussed in the light of casual attribution theory, and practical implications were provided.