Tell the Truth: the Effects of Disclosure in Word-Of-Mouth Marketing

Lisa Abendroth, University of St. Thomas, USA
James Heyman, University of St. Thomas, USA
We know marketers provide incentives to everyday consumers in exchange for generating buzz about their brand, but what happens when word-of-mouth recipients find out about this relationship? Marketers fear that disclosing this information will undermine the recommendation’s effectiveness. In two experiments, we find that honesty is indeed the best policy.
[ to cite ]:
Lisa Abendroth and James Heyman (2011) ,"Tell the Truth: the Effects of Disclosure in Word-Of-Mouth Marketing", in NA - Advances in Consumer Research Volume 38, eds. Darren W. Dahl, Gita V. Johar, and Stijn M.J. van Osselaer, Duluth, MN : Association for Consumer Research.