Word-of-Mouth Effects in Professional Services Buyer Behaviour

An analysis explores word-of-mouth (WOM) in the context of businesses engaged in buying professional services. Businesses are known to rely on Input WOM (obtaining WOM from 3rd parties during the pre-purchase process) and they are known to provide Output WOM (post-purchase WOM to 3rd parties). The analysis explores associations between Input WOM and Output WOM across 3 professional services in the context of other factors, including the nature and extent of prior experience, firm type, firm ownership, and size. Data provided by 324 chief executive officers who were buyers of professional services reveal that Output WOM as a post-purchase behavior varies across services and is affected by Input WOM, company size, prior experience in contracting for professional services, type of company ownership, and satisfaction.