Introduction
Word-of-Mouth is somewhat of a phenomenon in marketing because it cannot be accurately predicted. However it can has major effects on sales. This paper will discuss what this phenomenon is, why people engage in it, its effects on advertising, and a few forms of online word-of-mouth communication.
What is Word-of-Mouth?
Word-of-Mouth (WOM) is person-to-person communication regarding a brand, product, or service (Lam and Mizerski). It is a powerful form of marketing communication that is sometimes undervalued. It is how consumers express their satisfaction, more than likely their dissatisfaction with a product. Complaining is a form of negative WOM and major way that people express how dissatisfied they are with a brand, product, or service (Smith and Vogt, 217). WOM has a significant influence on the product awareness, expectations, perceptions, attitudes, and purchase behaviors of consumers (Lam and Mizerski). According to Smith and Vogt, the markets that are affected most by WOM are movies, automobiles, travel and vacation destinations, and professional services.
Why Engage in Word-of-Mouth?
People engage in WOM for several reasons. Lam and Mizerski give four main motivating factors for engaging in WOM: decision support, decision justification, social status, and social power. An example of decision support and justification would be when after purchasing a product, a family member who has used the same product commends your purchases and comments on their experiences with the product. Your purchase has been supported and justified by that family member. Social status and power as motivating factors are evident in car purchases. People often talk about how peo ...