This report will discuss whether Word-of-Mouth (WOM) communication is the most powerful force for change but the least accessible. Therefore, latest research findings will be examined in regard of common patterns of WOM. Additionally, prospective aspects for further research will be defined.
Firstly, the research of Word-of-Mouth reaches 50 years back discussed by Arndt, Dichter and Day. According to Arndt Word-of-Mouth is defined as “oral, person-to-person communication between a receiver and a communicator whom the receiver perceives as non-commercial, concerning a brand, a product or a service.”
The definition includes three important aspects. Firstly, Word-of-Mouth is always interpersonal and can be differentiated from mass communication such as advertisement. It also indicates that Word-of-Mouth is excluded from third-party sources such as consumer reports, rating portals and social media content because it is not transmitted directly from person to person. Secondly, Word-of-Mouth given from a sender to a receiver is free of commercial intention or motivation because the sender is willing to talk about the product or service without being incentivised.
However, the last aspect indicates that the content itself is commercial as the sender speaks about his experience with a particular brand or service. It can be said that the non-commercial transmission of information about a brand is an immense strength of Word-of-Mouth.
Table of Contents
1. Definition of Word-of-Mouth
2. The impact of Word-of-Mouth
3. Patterns of Word-of-Mouth
3.1. The different impact on buyer behaviour of Negative and Positive Word-of-Mouth
3.2. The relative occurrence of Negative and Positive Word-of-Mouth
3.3. Word-of-Mouth occurrence differ within categories
3.4. Positive Word-of-Mouth relates to market share
4. Further research on Word-of-Mouth
Objectives and Topics
The report aims to evaluate the role of Word-of-Mouth (WOM) communication as a powerful influence on consumer behavior while simultaneously addressing its limitations regarding accessibility. It investigates the patterns of both positive and negative WOM, analyzes how these patterns manifest across different categories, and assesses the impact of electronic communication on traditional WOM definitions.
- Definitions and theoretical foundations of traditional and electronic Word-of-Mouth.
- Evaluation of WOM as a primary driver of change in consumer behavior.
- Analysis of the relationship between WOM valence (positive vs. negative) and buyer decision-making.
- Examination of variables influencing WOM occurrence, including market share and category prominence.
- Discussion on the transparency and accessibility of WOM for marketers and researchers.
Excerpt from the Book
3.1. The different impact on buyer behaviour of Negative and Positive Word-of-Mouth
East researched whether Negative Word-of-Mouth (NWOM) or Positive Word-of-Mouth (PWOM) has a greater impact on buyer behaviour. The research showed that “the impact of PWOM is generally greater than NWOM”. The reason is to be find within the greater latitude for Positive Word-of-Mouth based on the level of purchase probability before receiving Word-of-Mouth. On the other hand, respondent’s stated to resist Positive Word-of-Mouth about brands they are not likely to choose. Equally, respondents resist Negative Word-of-Mouth about brands they are likely to choose. Earlier research conducted by Ahluwalia already verified this patter stating “commitment is an important moderator of consumer response to negative information. Specifically, the response patterns of high- and low-commitment consumers are very different” (2000). This means that consumers with high commitment to a brand are likely to counterargue received Negative Word-of-Mouth. Conversely, consumers with low commitment counterargue received Negative Word-of-Mouth although to a lesser degree (Ahluwalia, 2000). Summarising, the preferred brand of the consumer influences the impact of Word-of-Mouth on the buying decisions. It is also strongly related to strength of expression of Word-of-Mouth communicated to the respondent (East, 2008).
Summary of Chapters
1. Definition of Word-of-Mouth: This chapter establishes the historical and modern definitions of WOM, highlighting its interpersonal nature and the transition to electronic forms via digital channels.
2. The impact of Word-of-Mouth: This chapter analyzes how WOM serves as a tool for risk reduction in consumer purchasing decisions and quantifies its significant influence compared to traditional advertising media.
3. Patterns of Word-of-Mouth: This chapter examines the behavioral impact of negative versus positive feedback, the frequency of their occurrence, their category-specific variations, and the correlation between positive WOM and market share.
4. Further research on Word-of-Mouth: This chapter outlines identified gaps in current literature, such as the exclusion of non-users, the need to analyze social contexts, and the influence of cultural variables on WOM dynamics.
Keywords
Word-of-Mouth, Consumer Behaviour, Electronic Word-of-Mouth, Positive WOM, Negative WOM, Market Share, Purchase Probability, Consumer Commitment, Interpersonal Communication, Brand Influence, Digital Marketing, Consumer Referral, Marketing Research, Customer Satisfaction, Social Networks.
Frequently Asked Questions
What is the central focus of this report?
The report focuses on evaluating Word-of-Mouth communication to determine if it is a powerful force for changing consumer behavior and how accessible it is for research and marketing purposes.
What are the primary themes discussed?
The themes include the definition and evolution of WOM, its influence on consumer decision-making, the behavioral impact of negative vs. positive feedback, and how different market factors relate to WOM production.
What is the main objective of this study?
The objective is to examine current research findings on common WOM patterns and identify prospective areas for future scientific investigation.
What research methods are highlighted?
The document reviews academic literature, including multi-category studies and secondary analysis of consumer behavior surveys, such as those by Arndt, East, and De Bruyn.
What does the main body cover?
The main body covers definitions, the impact of WOM on consumer choice, the dynamics between negative and positive reviews, and the challenges regarding the accessibility of WOM data.
Which keywords best characterize the work?
Key terms include Word-of-Mouth, Consumer Behaviour, Electronic WOM, Brand Influence, and Market Share.
How does consumer commitment affect the reception of negative information?
High-commitment consumers tend to counterargue negative information about their preferred brands, whereas low-commitment consumers are less likely to engage in such counter-arguments.
Is positive WOM more common than negative WOM?
Yes, research indicates that PWOM is generally more common than NWOM, often cited with a ratio of 3.1 to 1 across various categories.
Why is WOM considered difficult for marketers to access?
Traditional WOM is interpersonal and private, making it difficult for marketers to monitor directly compared to mass media advertising.
What is the relationship between market share and positive WOM?
There is a positive correlation; higher market share leads to a larger consumer base, which in turn generates a higher frequency of positive recommendations.
- Arbeit zitieren
- Julia Zöllner (Autor:in), 2015, Word of Mouth. Critical Analysis of Impact and Accessability, München, GRIN Verlag, https://www.grin.com/document/301011
