What happens to word-of-mouth campaigns when the word is "bad"?

BzzAgent is the organization that sends out "normal people" -- your neighbor, a friendly stranger at the grocery store, someone in your car pool -- to tout the virtues of a product through what appears to be nothing more than a personal enthusiasm for a specific product.  The fact that the BzzAgents are being paid for their activity is invisible.  You can see pictures of actual BzzAgents here (and more information about the organization and how it works).

Brand Autopsy reports on an interesting dilemma this type of advertising can create for  "normal people" BzzAgents:  because they are providing something like a personal endorsement for a product or service, the discussion of the merits of that product isn't like reading a script for hire -- when someone hears Tiger Woods say on TV that he loves Buicks, no one really thinks he is doing this spontaneously because he really loves Buicks; they're more likely to wonder what he got paid to say something nice about Buicks.  Rather, BzzAgents, because they are incognito, are taken at their word.  So, while a "paid endorsement" is saying something about the product, BzzAgents are more likely to be interpreted as saying something about not only the product but also themselves. 

What happens if the BzzAgent doesn't think the product is very good?  "Mixed messages" might be one way to characterize the situation.  Unfortunately.  The Folgers Coffee Home Cafe' Brewing Machine drama provides some interesting insights.

Folgers hired BzzAgent to generate word of mouth for the new machine that brews a single serving.  The BzzAgents were given the machine, asked to use it, and then go forth and spread the word to their friends and contacts.  The "word" that was spread at the BzzAgents site wasn't what Folgers was hoping for:  "Home Café machine leaks water, emits smoke, and brews lukewarm coffee. Some even share that they’ve returned their Home Café machine to Wal-Mart for store credits of over $50."  At the same time, though, the BzzAgents are buzzing the product positively. 

Is this the kind of word-of-mouth a product really wants?  Fake buzzing?  And are these the types of representatives a company wants to represent them?  People who hate the product, return the freebie for a credit and still take money to buzz it?

As Brand Autopsy says, to the credit of BzzAgent this drama is being played out in a very public way.  It's generating word-of-mouth about word-of-mouth campaigns and creating something of a buzz about BzzAgent.  Go read the discussion and Brand Autopsy's comments.