Syntax Literate: Jurnal
Ilmiah Indonesia p�ISSN: 2541-0849
e-ISSN:
2548-1398
Vol. 7, No. 4, April 2022
HOW WOM AND EWOM ACTS AS A
DRIVER TO A CUSTOMER�S PURCHASE DECISION. A LITERATURE REVIEW
Joshua Hezekiah
Kairupan, Irmawan Rahyadi
Faculty of Communication, Binus University, Indonesia
Email: [email protected], [email protected]
Abstract
This study aimed at examining the factors that
cause the disparity of punishment in cases of sexual intercourse and
molestation of minors, especially in Salatiga City,
the impact of the occurrence of criminal disparities, and how the policy model
for criminal acts of sexual intercourse and obscenity should be seen from the
decidendi theory. The results of the study showed that the disparity in
criminal penalties in criminal cases with children as victims is the existence
of internal and external factors. Internal factors is
in the form of a judge's own personality. While external factor is the legal
factor or the legislation itself and the situation factor in the person who is
in the perpetrator or defendant. The judge must be careful in seeing, digging,
and observing the facts in the trial. Judges must pay attention to the attitude
of prudence, avoiding carelessness, both formal and material to technical
skills. The judge needs to give reasons or considerations following the values
of truth and justice (ratio decidendi). The judge must also use common sense or
rational thinking by paying attention to the previous judge's decisions to
avoid striking disparity in sentencing. Currently, the judiciary in Indonesia,
especially in the Salatiga District Court, still uses
the method of imposing sentences based on trial examinations only. This causes
court decisions issued by judges to have differences between one decision and
another, which is called criminal disparity. The research method used by the
researcher was a juridical-normative research method equipped with an in-depth
case approach using the ratio decidendi theory. The technique of collecting
legal materials used was a literature study. The legal material analysis
technique used was deductive data analysis.
Keywords:� WOM; eWOM; Word of Mouth; Electronic
Word of Mouth; WOM Valence; eWOM Valence; Purchase
Decision; Online Reviews
Introduction
In marketing, word of mouth (WOM) is the act of consumers providing information about goods, services, brands, or companies to other consumers (Babić Rosario, Sotgiu, De Valck, & Bijmolt, 2016). Word of mouth (WoM) communication, a powerful force in the market place, is revisited by corporates as the new means of marketing communication for improving customer satisfaction and loyalty (Srivastava & Sharma, 2017). Consumers often go online to share their opinions about products with other consumers. The extent that consumers engage in electronic Word of Mouth (eWOM) is known to be affected by personal motivations, such as the need to belong, the desire to help others and self-enhancement (Pezzuti & Leonhardt, 2021). Electronic Word of Mouth (eWOM) may influence perceptions of prices, particularly in a service market. WOM research has a long history and the empirical analyses show that positive (negative) WOM has a positive (negative) impact on the shift in the receiver�s brand-purchase probability. The results also show that positive WOM (eWOM) has a stronger impact on brand purchase probability than negative WOM (eWOM) (Liang & Corkindale, 2019). E commerce platforms has also influenced and has created a high impact on consumer behavior, varying from information acquisition to post-purchase behavior such as dissatisfaction statements or behaviors in the form of feedback and review (Jha, 2019). These interpersonal exchanges provide access to information related to the consumption of that product or service over and above formal advertising, i.e., that goes beyond the messages provided by the companies and involuntarily influences the individual�s decision-making. Consequently, WOM is considered the most important information source in consumers� buying decisions (Huete-Alcocer 2017) Understandably, companies view both types of recommendations � WOM and eWOM � as a new opportunity to listen to customers� needs and adjust how they promote their products or services to better meet them, thereby increasing their return. A negative or positive attitude toward the product or service will influence customers� future purchase intentions by allowing them to compare the product or service�s actual performance with their expectations (Yang, 2017).
Research
Methodology
The
purpose of studying previous literature on WOM is owing to two reasons. One,
though there is ample study on the WOM and eWOM, few studies consolidate these
researches into a comprehensive review of literature. Two, this study makes an
attempt to provide future researches direction and purpose by highlighting the
gaps as well as providing a model for studying the cause�effect relationship
and how big of an impact WOM and eWOM is towards purchase decision. Stages of
research involved searching for relevant research papers in online data base
sources such as sage journals and wiley. Following key words/phrases used in
the search, word of mouth, e-word of mouth, word of mouth on purchase
decision,Manual search of leading journals was also conducted to ensure no
major work has been excluded out of this study.
Inclusion
and exclusion criteria
The
search was limited to articles in English published during the period 2010-2021
to ensure accuracy and validity of theories used. Included were only
qualitative and quantitative studies (not limited to designs) focused on any
form of purchase intention nor decision that is influenced or based of Word Of
Mouth (WOM) and Electronic Word Of Mouth (eWOM) as one of the essential main
factor that drives customers or consumers into a purchase decision.
Retrieval
of studies and methodological characteristics
A
total of 138 papers were retrieved. Overall, 75 studies were identified and removed
due to not being able to support this study; 63 studies were examined against
excluded/inclusive criteria by author independently. Based on this, 43 articles
were removed. Only 20 studies met the inclusion criteria. These 20 papers were
examined by the author independently to evaluate relevance, studies collected
came from the America, India, Hong Kong, Australia and Nigeria. Within these 20
Papers they had a diversity of different businesses. Such as Hotels,
Restaurants, E-commerce sites, Online and Offline Retail stores, Facebook
market place and also various marketplace sites such as Ebay according to their
countries and regions.
Data
extraction
Data
from the papers included in the review were extracted by author. The data was
pooled within the application Microsoft Excel. The 20 papers used within this
study were listed into Microsoft Excel, the methods and results were also
listed and examined closely to determine whether or not Word of Mouth (WOM) and
Electronic Word of Mouth (E-WOM) had a big impact on purchase decisions. Also
whether both not Word of Mouth (WOM) and Electronic Word of Mouth (E-WOM) were
able to act as a driver to make a consumer come to a purchase decision.
Results and Discussion
All 20 papers came to a conclusion that WOM or eWOM had a big or positive effect on any kind of sales. Whether it be in the food industry, e-commerce, retail or any kind of business. When previous customers or online bloggers state a positive review based on experience, it would boost the amount of trust of future or current customers who are considering to purchase something from a certain store that they have been interested in or have been paying close attention to. However in the opposite side, when there has been an engagement of negative WOM or eWOM, the amount of people interested in purchasing something from that store would immediately reconsider or even find somewhere else to purchase the same item that they intended to. With the purpose of feeling safe throughout the whole transaction process.
WOM as a part of the Marketing
Mix, Business Communication and Advertising
A fundamental
development in the marketing landscape of the past two decades is the
realization that word of mouth (WOM) should be viewed as part of the marketing
mix and managed accordingly (Dost, Phieler, Haenlein, & Libai, 2019).
The four Ps of marketing are the key factors that are involved in the marketing
of a good or service. They are the product, price, place, and promotion of a
good or service. Often referred to as the marketing mix, the four Ps are
constrained by internal and external factors in the overall business
environment, and they interact significantly with one another. The 4 Ps are used
by companies to identify some key factors for their business, including what
consumers want from them, how their product or service meets or fails to meet
those needs, how their product or service is perceived in the world, how they
stand out from their competitors, and how they interact with their customers.
Word-of-mouth marketing differs from natural word-of-mouth references to a
company's products and services in how it may come as the result of a
promotion, encouragement, or other influence by a company, otherwise known as
"seeding." When a diner has a wonderful time at a restaurant because
their expectations were exceeded and later tells tweets about it, or when
someone had a great experience using a product in a new way and tells everyone
they know about it, those are examples of word-of-mouth marketing. Also,
word-of-mouth marketing does not stop at the first interaction; it tends to
lead to a cascade of follow-on interactions. The encouragement on the part of a
company may take one of several forms. The best way is to give them a reason to
talk, such as exceeding expectations or providing insider skills or information
about a product. Other strategies include offering consumers new ways to share
information about a company's products and services, and engaging and
interacting with the consumer, such as through exemplary customer service. (Investopedia
2021). WOM is considered the most important information source in
consumers� buying decisions and intended behavior. For example, tourist
satisfaction is of utmost importance because of its influence on behavioral
intentions, WOM and purchasing decisions. In other words, overall satisfaction
leads to the possibility of revisiting and recommending the destination (Huete-Alcocer, 2017).
Due to the power of WOM and eWOM, it�s understandable
that businesses would aim to include them in a marketing strategy. However,
this has also led to dishonest attempts at WOM campaigns. Therefore, the Word of Mouth Marketing.
Association (WOMMA)
has laid out some guidelines: Word of mouth marketing should be: honest,
social, able to be repeated, respectful and provide measurable results. It
should be forthcoming about the business� identity, the opinions held as well
as what/who is being represented. In other words, although WOMM ultimately aims
to create a viral effect to reach and convert customers, this should not be
done in any way that is misleading.
eWOM
eWOM has been considered as a major
tool for exchanging information with diverse audiences both online and offline
at the same time (Mahmud, Islam, Ali, & Mehjabin, 2020).
With the spread of social media, a new form of WOM called electronic word of
mouth (eWOM) has emerged. Nowadays, many companies in
different industries are actively using social media as an essential tool for
reaching their potential and existing customers (Zainal et al., 2017).
eWOM represents one of the most significant
developments in contemporary consumer behavior. With more than three billion
consumers and seven billion devices are connected to the Internet, eWOM has become ubiquitous and accessible, turning
consumers into �web-fortified� decision makers (Babić Rosario et al., 2016).
The eWOM valence shows the nature of online review in
the form of positive or negative or mixed-neutral remarks/experience given by
customer in the form of a rating. The eWOM volume
indicates the number of online reviews posted per product/service, The eWOM content is the message in the form of text, image or
video. The relative importance of the types of eWOM
changes with various factors, such as type of products, social ties and
consumption goals (Roy, Datta, & Basu, 2017).
Because of its flexibility, the multidimensional nature of online users and eWOM�s relatively lower costs, marketers are continuously
working on developing and applying sustainable eWOM
strategies to maximize value for their business (Mahmud et al., 2020).
Therefore, with the increase in people�s online behavior, e-WOM has become the
main factor affecting customer decision-making (Bu, Parkinson, & Thaichon, 2021).
Having defined its key components, we further propose that eWOM
consists of three key stages: creation, exposure and evaluation. For eWOM to have an effect in the marketplace, it first needs
to be created. Then, consumers need to be exposed to it, because eWOM that is created but not noticed will not have any
effect. Finally, for the effect to materialize, consumers need to evaluate the eWOM message and take it into account in their
decision-making process. Throughout these three stages consumers take on a dual
role: They are eWOM creators, senders of information,
and when they are exposed or evaluating, they are eWOM
receivers. In our literature review, we focused on what we know about
consumers� motivations, opportunities, and abilities to create, be exposed to,
and evaluate eWOM. We also described what marketers
can do in each of the three eWOM stages to influence
consumer motivations, increase their opportunities, and reinforce their
abilities as senders and receivers of eWOM. The social
web has empowered consumers to generate content that reaches a large audience.
This generated content is alluded to as Electronic Word of Mouth (eWOM). Electronic Word of Mouth (eWOM)
is usually generated by both consumers and marketers and these contents are
referred to as user generated content and marketer generated content
respectively. Marketers disseminate information through organization-controlled
websites whereas consumers share their product experience through SNSs (Social
Network Sites). This information exchange is referred to as word of mouth
(WOM). WOM is the opinion of other consumers resulting from their experience
using certain products and services. The interaction between consumers could
happen physically or virtually and given its potential in marketing it is
believed to be the next big thing to easily influence consumers (Ali, Hussin, & Dahlan, 2020).
By nature Electronic Word of Mouth (eWOM) takes from as a written type of communication, in
this manner Electronic Word Of Mouth (eWOM) is to be
written and spread easily, not to mention the presence of the internet has
taken it up to a whole new level, whether it be on social media, E-Commerce
sites, review sites basically the Internet has powered the growth and spread of
Electronic Word of Mouth (eWOM). Although it might
seem that Electronic Word of Mouth (eWOM) has an edge
or leverage against its more traditional counterpart Electronic Word of Mouth (eWOM) is an asynchronous process is a process that the
Workflow Engine cannot complete immediately because it contains activities that
interrupt the flow. Examples of activities that force an asynchronous process
include deferred activities, notifications with responses, blocking activities,
and wait activities. Meaning there is a lot of noise and in between processes
that could interrupt the flow of information before it reaches the end target
or receiver. Although Electronic Word of Mouth (eWOM)
is an asynchronous process it has some certain perks such as, a very vast and
fast diffusion process. It will spread in a very short amount of time as long
as done in a correct way and accordingly to the algorithm of the internet. This
also means that the range of its spread is wide and unlimited, when a post
shared to a group or a friend, that post will be shared again over and over and
will eventually cover all the possible targeted receivers of the information.
The reviews and feedback or any type of Electronic Word of Mouth (eWOM) is mostly anonymous this means that the information
we gain via Electronic Word of Mouth (eWOM) is
unbiased, however within all types of Word of Mouth, whether it be traditional
Word of Mouth (WOM) or Electronic Word of Mouth (eWOM)
the credibility of the information is to be questioned and further researched
even from the most trustworthy sites or sources. Lastly the one of the most
helpful things of Electronic Word of Mouth (eWOM) is
that it is observable which enables quantitative studies and processed data.
WOM
WOM communication is
defined as �informal communications, directed at other consumers, about
ownership, usage, or characteristics about particular goods and services and/or
their producers/sellers (Srivastava & Sharma, 2017).
WOM (receivers, senders, sellers, platforms, and other consumers) each have
their own interests, which are often in conflict. Thus, receivers of WOM are
faced with a judgment task in deciding what information to rely on: They must
make inferences about the product in question and about the players who
pro‐ vide or present WOM. To do so, they use signals embedded in various
components of WOM, such as average star ratings, message content, or sender
characteristics. The product and player information provided by these signals
shapes the impact of WOM by allowing receivers to make inferences about (a)
their likelihood of product satisfaction, and (b) the trustworthiness of WOM
players, and therefore the trust‐ worthiness of their content (Moore & Lafreniere, 2020).
The influence of word-of-mouth has been studied extensively in consumer
decision making. This body of work is characterized by a number of assumptions:
(1) that word-of mouth is a homogenous activity; (2) that electronic word-of
mouth is more influential than traditional word-of-mouth; and (3) that
word-of-mouth is predominantly verbal, not visual (Ring, Tkaczynski, & Dolnicar, 2016).
Word of mouth in marketing is the unpaid spread of information from one person
to another through conversation, specifically advising on a particular business
or product. Word of mouth is used to describe the result of a marketing
strategy that causes customers and a business� target audience to discuss the
product or service in everyday conversation. Word of mouth can occur as the
result of a positive experience, an innovative new product or high-quality
customer service, for example. The aim of word of mouth
marketing is to create a product or experience that will result in customers
sharing the details with their friends, family or colleagues. Lately,
businesses have been looking for new ways to optimize this free source of
promotion and lead generation. WOM has a greater impact than other means of
communication and is seen as a powerful force in the market place (Srivastava & Sharma, 2017).
Word of mouth has an important impact on consumer behavior (Babić Rosario et al., 2016).
Word of Mouth (WOM) as mentioned above is mostly interpreted as an oral or face
to face communication which is done usually among inner circles such as
friends, colleagues, peers and relatives. Word Of Mouth (WOM) is also a
synchronous process meaning, it is a process that can be executed without
interruption from start to finish. Since Word of Mouth (WOM) is an
interpersonal type of communication it can be processed and shared without
interruption from start to finish. Example, an individual will be sharing their
experience with a certain service or product regardless good or bad to their
friends, colleagues, peers and relatives in a conversation as an opening
statement and will be kept as a topic of the conversation until the individual
is done talking about it which make a perfect synchronous process. However within Word Of Mouth there are some disadvantages
such as, Limited Diffusion. Just because an individual has brought up their
experience on a product or service within their inner circle it doesn�t mean
that the receivers of that information will further spread that information
unless brought to light within another conversation. Secondly Word of Mouth
(WOM) is non anonymous which means the information shared is from a known
associate or from an individual�s inner circle which leads to a biased opinion which
can also caused to a shared perspective based on the
information gained by the receiver. And lastly traditional Word of Mouth (WOM)
is non observable, it cannot be tracked or monitored of its growth and spread
which leads to an uncertain quantitative data if to be observed and studied.
Purchase Decision
Consumer behavior
with a special attention to purchase decision making has been of major interest
to marketers for many years, as many approaches and models for the
decision-making process have been used in studies they evolved into the
typologies of decision-making models that are linked with the theories
grounding the model types Among the theories that explain purchase decision�
making processes, the information-processing theory takes almost the central
place (Dikcius, Urbonavicius, Pakalniskiene, & Pikturniene, 2020).
Research interestingly indicates that price fairness may not always drive eWOM intentions and affect purchase decision when people
add unique value to products and services (Jeong & Jang, 2011).
Satisfaction is a process by which customers psychologically evaluate the
performance of a product or service (Leung, 2020).
In many cases rather than price reduction, promotional packages (like three
users software license for 3 years at reasonable price) enhance customer
purchase intension and lead to more sales. In Asian countries, when people
purchase some products (such as medical cosmetics and antivirus software) to
fulfil special needs or to prevent some unwanted causes, they spend more time
on online reviews to know about the products Hence, eWOM
(positive, negative and mixed-neutral) affects people with different
consumption goals for online purchase decision (Roy et al., 2017).
This applies as well for WOM as it can also affect online sales or offline
sales (Purchase Decision). Trust is something that a person perceives
personally, and it determines the nature of interaction and kind of information
they will reveal to others; it has been considered as one of the major
influential factors in making a purchasing decision (Alhidari
& Almeshal, 2017). Purchase Decisions are
actually a fruit of the many models based on the consumer behavior,
these models present the purchase decision�making process as a logical flow of
activities that sequentially flow from the problem.
Recognition to
purchase and to the post-purchase evaluation stage. Typically, in the case of
rational decision making, the purchase decision�making process is described as
a sequence of five main stages: (a) problem recognition, (b) information
search, (c) alternative evaluation and selection, (d) purchase decision, and
(e) post-purchase evaluation (Dikcius et al., 2020).
Almost every individual
in this world is exposed to one or more channels of mass media such as
television, radio, newspaper, and outdoors. There are many aspects that
advertisement can affect consumer-buying behavior and these aspects normally
focus on cognition influences and emotional appeals. Understanding the products
utility in consumers� perception and the process of conception are the key for
marketers in understanding consumer purchase decision process. The consumers purchase
action is a forward moving process. It starts before the actual purchase, and
last after the purchase is made (Mustafa & Al-Abdallah, 2020).
From here we can see that a consumer or customers purchase decision is bound to
be affected by various things in which we can also see that Word of mouth (WOM)
and Electronic Word of Mouth (eWOM) plays a part in
as well. If there were to be mostly positive reviews or positive discussions
about a certain product from various circles (such as family & friends) a
customer or consumer won�t have second thoughts about getting into a Purchase
Decision. While on the other hand if the store or product were to have mostly
negative reviews then the consumer or customer will hesitate to come to a
purchase decision. A notable change during the past two decades is the growing
realization that WOM not only is an organic part of customer interactions but
can also be amplified through WOM programs. highlight three types of such WOM
programs: referral programs, which encourage and incentivize current customers
to contribute to customer acquisition by helping to acquire new customers;
online recommendation programs, which encourage individuals to spread the word
to their close social network or a broader network such as in an online review
website; and seeding programs, which aim to get products into the hands of some
individuals (seeds) in the hope that the consequent social influence will help
accelerate and expand the growth process. Seeding programs are our focus here,
specifically SMCs in the FMCG industry. To establish the context, we next
describe the main insights from qualitative interviews regarding major European
providers� planning and setup of SMCs (Dost et al., 2019).
Consumers evaluate their decision and if the product succeeds in meeting the expectations
the consumers will be satisfied, if the product exceeds their expectations the
consumers are delighted. But if the product failed to meet the expectations,
consumers would be dissatisfied and disappointed. Consumer�s dissatisfaction
increases when the gap between performance and expectation is large (Mustafa & Al-Abdallah, 2020).
WOM on Purchase Decision
The definition of WoM is information and/or rumor sharing between
individuals. Literature has highlighted the fact that the influence of
conversations between people is higher than the influence of traditional media
or advertising (Katz & Lazarsfeld, 1955; Ryan
& Gross, 1943) With the birth of the Internet, WoM
is now disseminated without geographical and physical limits (Haikel-Elsabeh, Zhao, Ivens, & Brem, 2019).
Word of mouth is one of the oldest ways of conveying information and it has
been defined in many ways. One of the earliest definitions was that put forward
by Katz and Lazarsfeld (1966), who described it as
the exchanging of marketing information between consumers in such a way that it
plays a fundamental role in shaping their behavior and in changing attitudes
toward products and services.� WOM is a
person-to-person communication tool, between a communicator and a receiver, who
perceives the information received about a brand, product, or service as
non-commercial. Likewise, WOM has been defined as communication between
consumers about a product, service, or company in which the sources are
considered independent of commercial influence (Huete-Alcocer, 2017).
Two important outcomes of consumer WOM are stimulating consumer purchase and
motivating the retransmission of WOM (Baker, Donthu, & Kumar, 2016).� Valences has also been proven to be a drive
within WoM to whether a customer should end up
purchasing that certain product or service. Within this Review it has been
proven over the vast majority of Retail, Restaurants, Hotels all over the world
end up being rented, hired or bought just by listening/reading to another customers previous experience with that product/service.
Reading WoM helps consumers save time and risk thus
decreasing search time (Sharma & Srivastava, 2017).
The valence of WOM is the conversation�s attractiveness (positivity) and
averseness (negativity) of the information about a particular brand. Content
with strong valence typically stimulates more consumer arousal and interest
than neutral content (Berger and Milkman 2012). For instance
made a purchase on an item from a retail store that I heard has the best
quality in town, I came up with the decision to make that purchase because of
the WoM from a close relative or friend. That came to
happen because, these interpersonal exchanges provide access to information
related to the consumption of that product or service over and above formal
advertising, i.e., that goes beyond the messages provided by the companies and
involuntarily influences the individual�s decision-making (Huete-Alcocer, 2017).
WOM is widely regarded as one of the most influential factors affecting
consumer behavior and decision (Leung, 2020).
Research has established that positive word-of-mouth (PWOM) typically motivates
brand purchase or other positive brand outcomes (e.g., referrals) while
negative word-of-mouth (NWOM) generally reduces purchase intentions and
inhibits other brand behaviors (Baker et al., 2016).
However, with the advance of technology, Cialdini (2009) proposed that WOM be
broadly defined as social influences on consumer choices. These social
influences include remote or digital� as opposed to in-person or
face-to-face�communication, such as Facebook comment (Leung, 2020).
eWOM on purchase Decision
Today�s new form of
online WOM communication is known as electronic word-of-mouth or eWOM (Yang, 2017). Since the mobile Internet
began to replace fixed Internet access, the tools used and the ways consumers
search for information have become increasingly mobile (Bu et al., 2021).
This form of communication has taken on special importance with the emergence
of online platforms, which have made it one of the most influential information
sources on the Web (Abubakar and Ilkan, 2016). eWOM also has made it possible for marketing to also evolve
and take form as DCM, DCM is a new marketing concept; it is the most rapidly
growing content marketing strategy in recent years; nevertheless, research on
DCM has mainly looked at customer durables, packaged goods, and services (Bu et al., 2021 providing information about
goods, services, brands, or companies to other consumers. Such information
communicated through the Internet (e.g., through reviews, tweets, blog posts,
�likes,� �pins,� images, video testimonials) is called �electronic word of
mouth� (eWOM). t E-WoM
among consumers can influence brand image and purchase intention but his study
is limited to automobile manufacturers and does not cover other sectors. E-WoM has a strong impact on purchase intentions, especially
when consumers use mobile internet to read online recommendations directly at
the point of purchase (Srivastava & Sharma, 2017).
eWOM represents one of the most significant
developments in contemporary consumer behavior. With more than three billion
consumers and seven billion devices connected to the Internet Inducing,
collecting, and displaying eWOM have become priorities
of many companies as part of their efforts to stimulate sales. According to
Bain & Company (Babić Rosario et al., 2016).
On the e-commerce sites eWOM is defined as �any
positive or negative statement made by potential actual or former customers
about a product or company which is made available to a multitude of people and
institutions via the Internet� (Ali et al., 2020).
The best example for eWOM in this current time would
be as the following: I made a purchase on an online e commerce website based on
how many positive reviews it had. No matter how much I wanted an that Item, if
It was swarmed by bad reviews I wouldn�t even come
close to a purchase decision, The risk-relieving capability of favorable eWOM was found to enhance consumers� subjective
acceptability (Liang 2018). Empirical findings suggest that
online WoM has a strong impact on refraining from
buying a product, followed by generating further WoM
and buying a recommended product. Further, negative WoM
has a greater impact on consumer buying behaviour
than positive WoM (Srivastava & Sharma, 2017).
Advantages, elements and applicable strategies to drive consumers to a purchase
decision
Advantages within the usage of WOM
and eWOM
The first benefit of
word of mouth is that the business doesn�t have to pay because it's free.
Because someone else is doing the promotion without being asked, the business
doesn�t have to give that person anything in return. Therefore, this strategy
is one of the potential strategies that can lower your promotional budget.
Secondly, Consumers who recommend the product or brand are satisfied consumers.
The peak proof of consumer satisfaction is when they want to invite others to
the business� product or service. Therefore, this strategy is one of the best
marketing strategies to build a brand name. The more recommenders, the better
our brand is in the eyes of the public. Third the benefit of Word
of Mouth marketing strategy is a reflection of service performance in
the eyes of consumers. As a brand or a business, it is important to hear and
listen to what the customer or consumers have to say about our products,
service or brand. If consumers are recommending us, it means that our service
and performance are that of giving them satisfaction.
Applicable elements within WOM
and eWOM
The first element of
word of mouth is the process of educating consumers about the products you are
selling. In order for the recommendation process to run well, consumers must be
"made aware" of the advantages of the product. The way to make
consumers understand the value of the product is to provide your best service
to them. Secondly, Identifying Potential Consumers that might be able to
Provide Recommendations, The relationship between
seller and buyer does not only end in transactions. You must be able to
establish a relationship with the customer even after the transaction. This
step will help you to identify consumers, in whether they are potential targets
who can provide word of mouth promotions later in the future. Third, Provision
of Promotional Tools for Consumers. The next important element is to provide
this promotional tool to consumers. This will make it easier for consumers to
share information about your business. Some of the most common word of mouth
tools are promotional brochures, leaflets, and so on, both in print or digital
format. However if it were to be done so via
Electronic Word of Mouth, Social media Marketing and also other online sites
would be preferred to help. The next step would be how to research When, Where,
and How Recommendations Are Given By knowing when, where, and how this strategy
occurs, you will have information about the flow of word of mouth in the
consumer network, and use it to create a strategy. This would be a great
strategy if paired with CPI�s, KPI�s and other Digital marketing strategy
options.� For example, it turns out that
all this time your product recommendations have occurred among mothers who are
on social gathering. In order for the recommendation network to continue to
repeat itself, you can provide special services to housewives
consumers. Lastly, Listening and Responding to Consumer Opinions, When a customer voices his or her feelings about the service
or product, The business should respond by listening carefully. These actions
would make the consumer/ customers feel valued. By this way, future
recommendation on the brand are to be expected.
WOMM strategies
Provide the best
service to consumers the first word of mouth strategy is to provide the best
service to consumers. This makes customers or consumers feel cared for and
prioritized. When consumers are satisfied with your service, then without being
asked they will promote your business to others. Ask Consumers to Give
Testimonials, if the brand or business is new and quite unheard by the market,
the first way to run a Word of Mouth marketing
strategy is to ask consumers to provide testimonials. If the testimonials
(feedback) given are good, the business can surely use them as promotional
material to increase trust and assurance to the aimed market. Receive both
positive and negative feedbacks from Consumers, it�s not always that consumers
will give good testimonials or feedbacks, sometimes the feedback that the
business receives can even sound as if they are about to turn against the
business. But that shouldn't be a problem for the business. On the contrary,
the business is obliged to treat consumers who give bad testimonials or
feedbacks better. Listen to their reasons for giving bad testimonials or
feedbacks and take their suggestions for improvement. Provide Content for
Consumers to Share, the next strategy that a business can do is to create
content that consumers can share. The content here doesn't always have to be
hard-selling content. The business can also create content to please consumers,
such as fun fact contents and games or any other form of thing that can promote
or make consumers share the following content. Buildings Interactions with
Consumers on Social Media. Currently, building strong
interactions with consumers on social media is one of the strongest examples of
Electronic word of mouth (eWOM).
Another name for this is engagement. By building consumer engagement on social
media, you can directly demonstrate the intimacy of your interactions with
consumers. Finally, other people who are not consumers will be curious about
the product and become be drawn over to try the service or product of the
business. Lastly, Using Key Opinion Leader (KOL) Strategy. In order for the word of mouth strategies to be successful, we can take
advantage of the services of a Key Opinion Leader (KOL). A Key Opinion Leader
(KOL) is someone who has in-depth knowledge and information related to a
particular field so that they are trusted and respected by many people. An
example of implementing this strategy is for example by hiring the services of
a celebrity or influencer to promote a product.
Differences between WOM and eWOM on Purchase Decision
At this point we know
that both Word of Mouth (WOM) and Electronic Word of Mouth (eWOM)
can act as drivers for consumers / customers to come into a purchase decision.
Although, Electronic Word of Mouth (eWOM) is
considered by many to be the more �Modern� version of the Traditional Word of Mouth
(WOM) there are some differences that may be able to separate these two very
different categories. The first of such difference is credibility. Some reviews
that are found on the internet may be biased or accordingly to as how the
algorithm has been set. In certain e commerce sites power merchants or seller
who have payed and are using these so called
�packages� offered by the e commerce site will receive an algorithm in which
will try to conceal as many bad reviews as possible while for other sellers who
don�t use these packages will have 100% transparency right from the get go, the
moment you click on one of their campaigns you will surely be able to see all
the positive and negative reviews also if you go to sites such as food reviews
and other various sites alike you might even be experiencing the same thing as
such written before. While traditional Word of Mouth (WOM) will be more
credible since the sources are surely within you day to day circle such as
family, friends, colleagues etc. this however leads us to the second difference
which is the amount of information shared on both categories. The amount of
information gained from traditional Word Of Mouth (WOM) is limited to a� person�s time and experience which sometimes
fall short of what is expected to be a decent amount of information shared
about an item or store, not to mention the relationship between the person
sharing the information with the receiver which often might lead to a biased
opinion, however this doesn�t always happen and most of the time this sort of
information sharing is relevant and also trustworthy and would lead to
satisfaction after purchase. On the other hand the
amount of information gained from Electronic Word Of Mouth (eWOM)
is vast and only limited by how Keywords and search engine used. Most
information found on the internet like reviews, are reliable and credible. Such
as hotel reviews, restaurant reviews etc. however most of them are also biased
and maybe a blackmail in order to bring down the sales of a certain restaurant
or hotel that they have had a bad experience on. The third difference within
Word of Mouth (WOM) and Electronic Word of Mouth (eWOM)
is Message Privacy, y is another feature that sets the two media apart, since
with traditional WOM information is shared through private, real-time,
face-to-face dialogs and conversations. In contrast, information shared through
eWOM is not private and can sometimes be seen by
anonymous people who do not know each other. Furthermore, reviews can be viewed
at various points in time Indeed, because eWOM
reviews are written, consumers and companies can check them at any time; this
stands in contrast to traditional WOM, where once the message has reached the
receiver, it tends to disappear (Huete-Alcocer, 2017).
Another salient difference between the two media is the speed of diffusion of
the message; eWOM statements spread much faster than
WOM statements because of where they are published, i.e., on the Internet
(Gupta and Harris, 2010). Online platforms and sites are also one of the
factors that set Word of Mouth (WOM) apart from Electronic Word of Mouth (eWOM) because the reviews are accessible by anyone from
wherever they are and also because they are often updated and renewed by new
customers. We consider engagement behavior as it relates to eWOM
activity, in particular seeking and sharing eWOM.
Therefore we define eWOM engagement as customers�
behavioral manifestation to seek and share eWOM with
other customers (Ali et al., 2020).
At the end of the day
although both Word of Mouth (WOM) and Electronic Word of Mouth (eWOM) is considered to be two separate categories. It is
proven to still act as a main driver for consumers to come to a Purchase
Decision regardless of it being used as an interpersonal way of communication
nor via ICT (Information Communication Technology).
Conclusion
This paper has reviewed the literature with
a view to providing a clearer understanding of Word of Mouth (WOM) and
Electronic Word Of Mouth (eWOM)
in the context of how it acts as a driver to help consumers develop a purchase
decision. To this end this review has found that in numerous studies, both
e-WOM and WOM are still one of the biggest drivers in pushing customers into
coming into a purchase decision. No matter how technology advances, the human
touch (or in this case communication or words or valences within oral and or
written reviews) will always play a big role in the marketing mix.
Notwithstanding the above, the review of the
theoretical framework has also revealed a gap in the literature on WOM
credibility in situations involving multiple or many communicators and
receivers, the relationship between the communicator and the receiver and how
this ultimately affects the end consumer in sharing an information. This would
include, for instance, situations in which one person communicates a message to
another, who acts as an intermediary, both receiving the original message and
passing it along to a third party. In such cases, the original message can be
altered or distorted, making the credibility of the WOM review as a source of
information questionable. This gives more leverage to written comments and
reviews, such as eWOM, which can ultimately reduce
risk and increase consumer confidence. As long as the written source of the eWOM is credible and reliable.
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Copyright holder: Joshua Hezekiah Kairupan, Irmawan Rahyadi (2022) |
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