The idea of understanding consumer behaviour as a sequential decision-making process is one that is common in marketing (Engel et al., 1993; Wilkie, 1994; Solomon, 1993; Assael, 1992; Loudon and Della Bitta, 1993; Kotler, 1997). The decision-making process itself is presented as a logical flow of activities, working from problem recognition to purchase to post-purchase evaluation. This decision-making process is affected by a number of other more complex influences. Some of these influences relate to the wider environment in which the decision is being made while others relate to the individual who makes the decision.
The main part of this paper is divided into two chapters. Chapter 2, that follows an introduction to the work, is a theoretical one. It is a review of the literature on consumer decision-making and the individual and environmental influences on it. Emphasis is being placed on WOM communication and its role in understanding consumer behaviour. Chapter 3 focuses on the choice of WOM recommendation sources. Empirical research is presented which explores the influences on the choice over WOM recommendation sources. Finally, concluding remarks and recommendations for further research can be found in chapter 4.
Table of Contents
Chapter 1 Introduction
Chapter 2 Literature Review
2.1 Consumer Decision-Making
2.1.1 The Decision-Making Process
2.1.1.1 Problem Recognition
2.1.1.2 Information Search
2.1.1.3 Evaluation of Alternatives
2.1.1.4 Purchase
2.1.1.5 Post-Purchase Evaluation
2.1.2 Individual Influences
2.1.3 Environmental Influences
2.1.3.1 Culture
2.1.3.2 Social Class
2.1.3.3 Reference Groups
2.2 Word-of-Mouth Communication
2.2.1 Definition
2.2.2 Scope and Significance
2.2.3 Characteristics of WOM
2.2.4 The Nature of WOM
2.2.4.1 Types
2.2.4.2 Process
2.2.4.3 Conditions
2.2.4.4 Motives
2.2.5 WOM and the Consumer Behaviour Literature
2.2.5.1 Adoption and Diffusion on Innovations
2.2.5.2 Post-Purchase Decision-Making
2.2.5.3 Pre-Purchase Decision-Making
Chapter 3 Empirical Analysis
3.1 The Model
3.1.1 Recommendation Sources
3.1.2 Evaluative Cues
3.1.3 Task Difficulty
3.1.4 Prior Knowledge
3.1.5 Hypotheses
3.2 Research Context
3.3 Method
3.3.1 Research Instrument
3.3.2 Procedure
3.3.3 Sample
3.4 Results
3.5 Discussion
3.6 Limitations
Chapter 4 Conclusion
Research Objectives and Themes
The primary objective of this dissertation is to investigate the factors that influence a consumer's choice of word-of-mouth (WOM) recommendation sources, specifically within the context of the professional services market and package holiday decisions. The work seeks to address gaps in empirical research by exploring how prior knowledge, decision task difficulty, and evaluative cues impact the preference for different types of recommendation sources.
- Consumer decision-making processes and the role of WOM.
- Categorization of recommendation sources (strong-tie vs. weak-tie).
- Influence of perceived risk and task difficulty on source selection.
- Empirical analysis of holiday package selection using scenario-based research.
- The impact of individual prior knowledge and evaluative cues on information search behavior.
Extract from the Book
3.1.1 Recommendation Sources
The study of WOM communications involves mostly, personal sources of information (Duhan et al., 1997). Brown and Reingen (1987) suggested the categorisation of WOM recommendation sources according to closeness of the relationship between them and the consumer who makes the decision. Individuals that know the decision maker personally are strong-tie recommendation sources. Acquaintances or individuals that are unknown to the decision maker, on the other hand, are weak-tie recommendation sources.
Brown and Reingen (1987) found that strong-tie sources are activated in the flow of influence, while weak-tie sources play a more crucial role in the flow of information across groups. Belk (1971) reports that the use of strong-tie sources as providers of information is stimulated by environmental or situational cues. The influence might be greater, compared to that by weak-tie sources, because the more frequent contact and communication with the strong-tie source provides with the opportunity for more situational cues.
Brown and Reingen (1987) argue that this can not be generalised to weak-tie sources because the decision maker actively approaches them for information. Weak-tie sources tend to be approached by the decision maker because of their expertise in a particular area. Strong-tie sources are approached because of the similarity with the decision maker. "Thus, if consumers feel a need for reassurance regarding some personal aspects of the decision, they are likely to seek out strong-tie sources for that kind of information." (Duhan et al., 1997, p. 284)
Summary of Chapters
Chapter 1 Introduction: This chapter outlines the sequential nature of consumer decision-making and introduces word-of-mouth (WOM) as a critical yet fragmented area of research, setting the stage for an empirical investigation into source selection.
Chapter 2 Literature Review: A comprehensive review of existing models of consumer behavior, identifying key environmental and individual influences, with a specific focus on the definitions, characteristics, and significance of WOM communication.
Chapter 3 Empirical Analysis: This section details the research model adapted from Duhan et al. (1997), describing the methodology (scenario-based survey), the hypotheses tested, and the subsequent statistical analysis using path analysis and factor analysis.
Chapter 4 Conclusion: The concluding chapter summarizes the study's findings regarding the influences on WOM source selection and discusses the conceptual and methodological questions raised for future research.
Keywords
Word-of-Mouth, Consumer Behavior, Decision-Making, Recommendation Sources, Strong-Tie, Weak-Tie, Empirical Analysis, Tourism Services, Risk Aversion, Prior Knowledge, Evaluative Cues, Opinion Leadership, Diffusion of Innovations, Service Marketing, Consumer Satisfaction
Frequently Asked Questions
What is the core focus of this research?
This work focuses on understanding how consumers select different sources of word-of-mouth (WOM) recommendations when making purchasing decisions, particularly for services like package holidays.
Which key factors does the author examine?
The author examines factors such as prior knowledge (objective and subjective), perceived difficulty of the decision task, risk aversion, and the importance of affective versus instrumental evaluative cues.
What is the primary research question?
The research asks which specific variables influence the decision to seek recommendations from "strong-tie" sources (friends, family) versus "weak-tie" sources (travel agents, internet).
What methodology was employed for the analysis?
The research utilized a scenario-based self-administered survey involving 200 participants, followed by path analysis and exploratory factor analysis of the collected data.
What topics are covered in the main body of the work?
The main body covers the theoretical framework of consumer decision-making, the nature of WOM communication, and an empirical analysis involving path modeling within the context of the tourism industry.
How is the term "strong-tie" defined?
Strong-tie recommendation sources refer to individuals who have a personal relationship with the decision-maker, such as friends, relatives, colleagues, and neighbors.
How did the scenario method affect the results?
The scenario method provided consistency in decision situations but also limited the generalizability, as winners of a Caribbean holiday may not represent typical consumer behavior.
Did the results confirm the original model?
The study provided limited evidence for the original model of Duhan et al. (1997), finding that while some relationships were supported, others remained inconclusive or required further refinement through factor analysis.
- Citar trabajo
- Dr. Klaus Schöfer (Autor), 1998, Word-of-Mouth: Influences on the Choice of Recommendation Sources, Múnich, GRIN Verlag, https://www.grin.com/document/185687
