Abstract
This study examines how receiving negative and positive word-of-mouth from satisfied and dissatisfied customers influences the potential customer. By explicitly including responses in terms of emotions-which hitherto have been neglected in research on word-ofmouth-it was found that emotional contagion and affect infusion were involved in the response process. The net effect was that receiving positive word-of-mouth as opposed to receiving negative word-of-mouth produced more positive evaluations of the service firm in the word-of-mouth conversation and higher levels of purchase intent vis-a -vis this firm. The results are thereby consonant with implicit assumptions in existing literature that word-of-mouth from the existing customer may have a significant impact on the potential customer, and this study indicates that emotional variables play an important role in the influence process. (C) 2006 Elsevier Ltd. All rights reserved.