The mixed impact of word-of-mouth on technological adoption and promotional length optimization

Purpose The impact of word of mouth on the diffusion of innovation is multifaceted. Researchers have primarily focused on the positive effect of word of mouth on customer decisions, leaving the negative aspect largely unexplored. In this study, the authors have addressed this gap and examined the influence of negative word-of-mouth on current and potential customers, and proposed an innovation adoption process. Design/methodology/approach Promotional activities play a critical role in re-establishing customer trust and fostering a positive brand perception in the presence of customer churning. However, implementing promotions haphazardly, whether for an extended or shorter duration can result in exorbitant costs. Therefore, to strike a balance between the effectiveness of the promotion and associated expenditures, the authors have proposed an optimization model to determine the optimal promotional duration in the presence of negative word of mouth. Findings The proposed model has been validated using a few real-life data sets, ensuring its reliability and accuracy. The obtained results significantly validate and support the proposal's successful implementation. The findings demonstrate the practical feasibility of implementing the adoption modeling. Originality/value Embracing a proactive strategy enables firms to optimize their promotional efforts with greater efficiency, thereby regaining the confidence of potential customers and reviving their brand's reputation in a prudent and economically viable manner.