The Electronic Word-of-Mouth (eWOM) Implications of Mainstream Channel Distribution and Sales by Niche Brands

Abstract

Using a data set on the U.S. craft beer industry that includes more than one million online customer reviews, the authors investigate how mainstream channel distribution and sales by niche brands affects electronic word-of-mouth (eWOM) valence. They argue that eWOM valence is negatively affected by mainstream channel distribution because this marketing decision conflicts with existing brand associations. They also argue that this negative effect can be mitigated, provided that the brand achieves a substantial increase in sales from the mainstream channel. Findings indicate that such a rebound is indeed possible and that most niche brand managers should consider mainstream channel distribution despite the risks. Most brands mitigate the negative effects of mainstream channel distribution on eWOM valence, and some even manage to improve overall valence.