This paper explores the relationship between customer-generated word-of-mouth
(WOM) and corporate reputation. After a concise literature review, we present several
insights from case study analysis of three organizations. Our main finding is that
customer dissatisfaction and negative word-of-mouth (NWOM) are thought to have
strong downside consequences for corporate reputation. Yet, positive WOM does not
appear to have equivalent upside significance for corporate reputation. NWOM often
occurs as customers express dissatisfaction because of substandard customer service.
However, it is when these issues or other negatively connoted stories find their way
into the public domain with the potential of wider electronic WOM spread through the
Internet that reputation suffers. Fear of reputational damage causes great anxiety to
the organizations' senior management. Reputations are shown to be fragile. Damage
limitation strategies are implemented in all three organisations.