ABSTRACT

In the field, word-of-mouth is the sales medium. It is through face-to-face contact that clients and suppliers communicate. Every time a salesman comes to see one of his clients, an opportunity presents itself of surreptitiously slipping a rumor into the conversation that throws into doubt the reliability of competing suppliers. In the business world, every buyer feels abandoned by his salesman. Luxury items have a particularly great need for social recommendation. Although it may be possible to detect the opinion makers in a town, one cannot easily turn them into salesmen. Rumors find particularly suitable ground among frustrated and abandoned buyers: rumors provide a simple explanation for a set of details and situations that have been unpleasant for the buyers, as, for example, the salesman's less frequent visits, fewer invitations, and smaller New Year's gifts. The fact that the slightest event can be negatively exploited by rumors influences company decisions.