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The effect of geographic colocation of same-brand outlets on electronic Word-of-Mouth (eWOM) valence: the role of ownership

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  • Butt, Moeen Naseer

Abstract

Prior research has demonstrated that the geographic colocation of outlets significantly affects the individual outlet and overall firm performance. This study extends this body of work and examines the effect of the geographic colocation of same-brand outlets on the consumer-focused outcome of electronic word-of-mouth (eWOM) valence. It also assesses a relevant boundary condition – ownership form – that emerges as a significant moderating factor, substantially influencing how geographic colocation of same-brand outlets affects the eWOM valence. An examination of more than 8,600 restaurants in New York State in 2019, matching review data from Yelp and market data from various public sources, reveal intriguing results. Geographic colocation of same-brand outlets hurts eWOM valence, and franchising as an ownership form helps offset this adverse effect. These findings, with their potential implications for marketing strategies in the retail industry, hold considerable importance for both marketing scholars and practitioners.

Suggested Citation

  • Butt, Moeen Naseer, 2026. "The effect of geographic colocation of same-brand outlets on electronic Word-of-Mouth (eWOM) valence: the role of ownership," Journal of Business Research, Elsevier, vol. 206(C).
    • Handle: RePEc:eee:jbrese:v:206:y:2026:i:c:s0148296325007568
    DOI: 10.1016/j.jbusres.2025.115933
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