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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- 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
- Accessibility of Word-of Mouth
- 4. Further research on Word-of-Mouth
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report aims to investigate whether word-of-mouth (WOM) communication is indeed the most impactful force for change despite its limited accessibility. It examines recent research findings on common WOM patterns and identifies areas for future research.
- Definition and evolution of word-of-mouth communication (traditional vs. electronic)
- The impact of positive and negative word-of-mouth on consumer behavior
- Patterns and frequency of positive and negative word-of-mouth across different product categories
- Relationship between word-of-mouth and market share
- Accessibility and influence of word-of-mouth for marketers and researchers
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory section sets the stage for the report by posing the central question of whether word-of-mouth communication is the most influential yet least accessible force driving change. It outlines the report's objectives: to analyze current research on word-of-mouth patterns and to propose avenues for future research. The introduction establishes the core argument that will be explored throughout the report, highlighting the apparent paradox of WOM's significant influence despite its inherent inaccessibility to direct marketing efforts.
1. Definition of Word-of-Mouth: This chapter meticulously defines word-of-mouth (WOM) communication, tracing its academic history back to the work of Arndt (1967), Dichter (1968), and Day (1971). It highlights the key characteristics of traditional WOM as interpersonal, non-commercial in intent but commercial in content, and distinct from mass communication. The chapter then introduces the concept of electronic WOM, contrasting it with traditional WOM and emphasizing the implications of internet-based communication for the dissemination and accessibility of WOM. The contrasting definitions from Arndt (1967) and Hennig-Thurau (2004) effectively illustrate the evolution of WOM in the digital age.
2. The impact of Word-of-Mouth: This chapter explores the significant influence of word-of-mouth (WOM) on consumer behavior. It cites research demonstrating WOM's role in mitigating perceived risk and uncertainty associated with purchase decisions, particularly within service industries. The chapter emphasizes the substantial impact of both positive and negative WOM, citing evidence from the Harris Poll (2010), which shows that 71% of respondents are influenced by WOM from family and friends. The substantial impact of electronic WOM on product and service success is also highlighted, emphasizing the power of WOM compared to other marketing channels. This chapter successfully establishes WOM as a powerful force in shaping consumer behavior, setting the stage for the subsequent exploration of its patterns and accessibility.
3. Patterns of Word-of-Mouth: This chapter delves into the patterns of WOM, examining the relative impact of positive and negative WOM, their frequency, and how they vary across product categories. It presents findings indicating that the impact of positive WOM generally outweighs that of negative WOM, with consumer commitment levels playing a significant moderating role (Ahluwalia, 2000). The chapter then explores the relative occurrence of positive vs. negative WOM, referencing research suggesting that positive WOM is more prevalent than negative WOM, particularly in highly satisfied customer bases (East, 2007). It analyzes how WOM occurrence varies across categories based on factors such as product prominence, consumer knowledge, social networks, and the accessibility of negative examples. Finally, the chapter examines the correlation between positive WOM and market share, highlighting a positive relationship.
Accessibility of Word-of Mouth: This chapter analyzes the accessibility of word-of-mouth (WOM) communication for both academics and practitioners. It highlights the challenges of accessing traditional WOM due to its interpersonal nature and the limitations of research methods. The discussion shifts to electronic WOM, acknowledging increased transparency and the possibility of monitoring both positive and negative feedback. However, the chapter emphasizes that even with electronic WOM, direct influence remains limited due to the diverse motivations behind consumer sharing and the complexities of the information-seeking process. The chapter concludes by reiterating that attempts to directly manipulate or control WOM are fundamentally incompatible with its non-commercial nature.
4. Further research on Word-of-Mouth: This chapter identifies several areas needing further investigation concerning word-of-mouth communication. It points out the limitations of existing research, such as the focus on aggregated data from broad categories, the exclusion of non-users, and the lack of detailed examination of the social context, intensity of transmission, and cross-cultural variations in WOM patterns. The chapter advocates for future research to address these gaps and provide a more comprehensive understanding of WOM's dynamics.
Schlüsselwörter (Keywords)
Word-of-mouth, electronic word-of-mouth, consumer behavior, positive word-of-mouth, negative word-of-mouth, market share, accessibility, influence, consumer reviews, social networks.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this report?
This report investigates the impact of word-of-mouth (WOM) communication, exploring its influence despite its limited accessibility. It analyzes research on WOM patterns and suggests areas for future research, focusing on the apparent paradox of WOM's significant influence despite its inaccessibility to direct marketing efforts.
What are the key objectives of the report?
The report aims to define and analyze word-of-mouth communication (both traditional and electronic), examine the impact of positive and negative WOM on consumer behavior, identify patterns and frequency of WOM across different product categories, explore the relationship between WOM and market share, and assess the accessibility and influence of WOM for marketers and researchers.
How does the report define word-of-mouth communication?
The report defines word-of-mouth (WOM) communication, tracing its evolution from traditional interpersonal communication to electronic WOM facilitated by the internet. It highlights the differences between traditional WOM (interpersonal, non-commercial in intent but commercial in content) and electronic WOM, emphasizing the implications of digital communication for WOM dissemination and accessibility. The contrasting definitions from various scholars illustrate the evolution of WOM in the digital age.
What is the impact of word-of-mouth on consumer behavior?
The report demonstrates the significant influence of WOM on consumer behavior, highlighting its role in mitigating perceived risk and uncertainty in purchase decisions, particularly in service industries. Both positive and negative WOM have substantial impacts, with positive WOM generally outweighing negative WOM in influence. The report cites research showing a strong correlation between WOM and consumer decisions.
What patterns of word-of-mouth are discussed in the report?
The report analyzes patterns of WOM, including the relative impact and frequency of positive and negative WOM across different product categories. It examines how factors like consumer satisfaction, product prominence, and social networks influence WOM occurrence. A key finding is the positive correlation between positive WOM and market share.
How accessible is word-of-mouth communication?
The report discusses the accessibility challenges of both traditional and electronic WOM. Traditional WOM's interpersonal nature makes it difficult to access and measure. While electronic WOM offers increased transparency, direct influence remains limited due to diverse consumer motivations and the complexity of the information-seeking process. The report emphasizes the inherent difficulty of directly manipulating or controlling WOM.
What areas for future research are identified?
The report identifies several areas needing further research, including the limitations of existing research such as focusing on aggregated data, excluding non-users, and neglecting the social context, intensity of transmission, and cross-cultural variations in WOM patterns. Future research should address these gaps to gain a more comprehensive understanding of WOM dynamics.
What are the key keywords associated with this report?
Key keywords include: Word-of-mouth, electronic word-of-mouth, consumer behavior, positive word-of-mouth, negative word-of-mouth, market share, accessibility, influence, consumer reviews, social networks.
- Citation du texte
- Julia Zöllner (Auteur), 2015, Word of Mouth. Critical Analysis of Impact and Accessability, Munich, GRIN Verlag, https://www.grin.com/document/301011
