Word of Mouth and Its Impact on Marketing

Essay, 2013

7 Pages, Grade: 17


Table of Contents

1. Introduction

2. Literature review and hypothesis development

3. Methodology
3.1 Research design
3.2 Population and sampling
3.3 Data collection
3.4 Procedures


5. Acknowledgment

6. References

Word of Mouth and Its Impact on Marketing

Naz,F and Tariq,A


In view of growing of the internet users for e-commerce and taking into account the emergent impact of word of mouth phenomenon this research have different aims. The aims of this study was built following dissimilar discussion with teachers and colleagues enlightening that word of mouth information for online purchasing do not have the same effect for everybody. Then they were born following dissimilar researchers together with what was already done in previous researches and what was completed.

As a result different aims were drawn; the initial aim of this research is to study the attention of the customers in word of mouth to power their online purchasing activities. The next aim is to analyze the people influenced by interest of word of mouth. The following aim is to examine the marketing behavior bearing in mind the internet progress and word of mouth, their consideration for word of mouth marketing.

In the form of research questions the aims of study are:

- How community utilizes and multiplies word of mouth information about online purchasing experience?
- How communities perceive word of mouth marketing?
- How marketers take word of mouth phenomenon and how they handle it?

Keywords: Belief, Power, Inspiration, Self expression, Positive attitude to online marketing, Forwarding of contents, Purchasing decision and Standard marketing.

1. Introduction:

Exact from the start, humans have constantly communicated with each other, sharing and talking about everything, everywhere any time. In this mode, it is really easy to share point of views, experiences, disagreements, or constant advices and to build up informal communications. Therefore, people can easily explain their last experience without any trouble and give their experience about the product, the website, the eminence of the service etc. The past thirty years have seen the fast progress of the Internet and the different way to communicate with each other building sharing of information easier and more efficient.

Within a high-speed moving globe and in our modern customer society, where everything is altering rapidly, where products and services are fast becoming out of date, and where firms suggest to the customers an ever more diverse collection of products and services, customers need to face the brutal competition that engages companies to magnetize customers. Consumer buying behavior is becoming more observant what they buy. (Lange& Elliot, 2012). Even if most of the time they will license the cheapest ones with the top quality, it is not actually simple to be sure that it is the good one. People gather concerning information and opinions about product from people before purchasing. (Attia et al, 2012)

‘’Word-of-mouth is defined as any positive or negative statement made by customers experiences about a product or company, which is made available to a mass of people and institutions using the Internet (Hennig- et .al. 2004). Word of Mouth (WOM) can also be clear as the method of communication between two noncommercial people and without benefit in the business they are talking about (Taylor et. al, 2012)

Following consuming the product, more and more consumers are keen to response, creating an exchange of information between consumers and increasing more and more the Word-of-Mouth fact. Appreciation to the Internet, consumers have the widest likely cause of information to be successful in this way. A bundle of blogs, forums and social networking websites in the World Wide Web present customers the means of getting and sharing this kind of information (Chu & Kim, 2011). Thus, the Word-of-Mouth trend developed firstly through Face-to-face communication's way is now also available by means of all the technologies together with the Internet, most important consumers to the e-Word-of Mouth trend (Fakharyan&Elyasi, 2012). The Internet enhanced the technique to be in touch with people around you or around the world. Online word-of-mouth became more admired with better use of online social network tools such as Facebook, MySpace, and Twitter. Communication vehicles such as face-to-face connections, phones, mobile devices, and even e-mails are replaced by social networks (Ho, J. Y., & Dempsey 2010).

Marketing is a significant division of the companies' strategies. These strategies are more and more inventive and disturbing in people lives. Currently, Word-of-Mouth is also a great aspect in marketing and more above all in e-Marketing. The diverse tools used by marketers in order to pass on information to likely customers are present everywhere on the Web, from advertisements to opinion on blogs or forums. (Hung & Li, 2007). Whether companies like it or not, people chat online about a variety of products and services. Companies frequently are not successful in trying to stop public online discussions of their products by limitation the use of their company names and brands in discussion groups (Huang, J. H., & Chen, Y. F, 2006).WOM also called E-WOM (Electronic Word of Mouth) can be originating in effective communities: consumer reviews, blogs, forums, and social networks (Yi-Wen Fan & Yi-Feng Miao 2012). Communal norms or opinions in the effective communities affect approval of eWOM, mainly between regular internet users (Kozinets, et. al. 2010).

It is ever harder to make a choice to purchase a computer or even a coffee machine. Many people take friend’s advices and remain alert of all the substitutes given to them. Many analysts say that the person can make the accurate and stable decision (Ren et al, 2013). Most persons found that social set-ups have a greater influence on others than themselves, and that third person influence undesirably on individual’s behavioral aim related to word of mouth communication (Cengiz& Yayla,2007). Online word of mouth occurs just among few people, but a message is sent by people on various discussion platforms where many other users notice it directly.

2. Literature Review & Hypothesis Development:

Early studies on WOM have shown that it has an important impact on customer decisions (Allsopet al.2007), and helps to present a good post-purchase wakefulness. Word-of-Mouth might have different kinds of special effects in the present world. Initially, it could be optimistic or unconstructive effects. Secondly, it could have an effect on the product, the brand, the service or even the employees' performance within the company (McGriff, J. A, 2012). Word-of-Mouth's effects might have dissimilar targets. A successful product sharing could be affected by positive word of mouth and lack of negative word of mouth (Mcgriff, J. A, 2012). An additional target could be the entrance of a brand in a fresh market. If the brand has not a good representation by the Word-of-Mouth distribution, it will be really hard for the company to set off its products and services in this fresh market.

In the earlier period, online shopping has crossed the space to become primarily well-known, particularly among the little and wealthy (Chai, S., & Kim, M, 2010). Nonetheless, due to the quality concerns and other customer supposed risks (Thorson &Rodgers, 2006), the challenges of e-shopping, mostly with respect to awareness and doubt, have begun to surface (Sharma &Arroyo, 2012). Consumers who want to purchase products from online markets, they need positive, dependable, and honest evaluation about products. Online systems and electronic-Word-of-Mouth (e-WOM) help customers make such up to date decisions.

At present new technologies are all over the place around us. These new technologies altered our way to communicate and to interconnect with people. People now use more technology platforms such as email, chitchat, phone or social networking websites (Herr et. al. 1991) than previous to, when they used face-to-face communication or mails. Usability of these technologies makes them more eye-catching and facilitates people's communication. The communication's technology, which is the most motivating for Word-of-Mouth, is the social networking websites in World Wide Web. These kinds of websites could be finding in the form of blogs, forums or personal pages such as Facebook or MySpace (Vilpponen et al 2006). They are typically created by some people who broaden the site to their own personal networks and steadily the number of people following and concerned in this site grows up (Thurauet. al. 2009). (Brown et. al.2007) studied the impact for an individual to control another individual by social networking websites. They accomplished in the importance of this technology to share out an idea from individual to individual and then from this individual to one more individual. Furthermore they ended that someone with few friends will have a better impact on his friends when he will pass on a message than someone with a lot of friends (Brown et. al. 2007).

In corporation, a significant effect of Word-of-Mouth is the customer purchase (Osmonbekovet. al. 2009). From short-range effect to lasting effect, Word-of-Mouth communication is a good way for enterprises to catch the attention of new customers. It is achievable to measure it thanks to Word-of-Mouth referrals and to the sign-up processes (Thurauet. al. 2009). If customers never heard about a brand or if they never thought to buy a product or a service by this brand, the actuality that some connections suggest this brand to them will most likely affect their behavior and guide them to choose this brand over another one. A lot of people seek out recommendation from other people before buying something. The first persons that you will talk with are family members, and then you will give more response to someone with experience and information in this field. The persons most affected by this are people in towering uncertainty-avoidance culture (Osmonbekov.et. al. 2010), who need to be more at easiness and who will ask advice from their dependable relatives.

One of the strongest networks of communication in the market is word of mouth (Allsop et al). Word-of-Mouth has a dissimilar impacting people that are without a fundamental knowledge of this part of business .When you do not have any experience in a part of business you will be more biased by someone who will tell you something positive or negative about a picky brand. (Goldsmith, R. E., & Horowitz, D 2006).Alternatively if you have your own standard brand you will be less tempted by another brand that a comparative advises you to purchase. Though Word-of-Mouth communication about the brand that you are usually using is negative you will be perhaps extra affected.


Excerpt out of 7 pages


Word of Mouth and Its Impact on Marketing
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ISBN (eBook)
ISBN (Book)
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communication of marketers with consumers
word, mouth, impact, marketing
Quote paper
Fatima Naz (Author)Ayesha Tariq (Author), 2013, Word of Mouth and Its Impact on Marketing, Munich, GRIN Verlag, https://www.grin.com/document/264435


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