Running head: THE POWER OF WORD-OF-MOUTH
The Power of Word-Of-Mouth in the Globalization and Digital Era
Student’s Name
Institution
Date
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Abstract
Word of mouth is a concept that is familiar to many individuals, and because of this, I have
decided to research the influence of word of mouth in the globalization and digital era. The study
examines the significance of WOM in the industry of business, taking into consideration trust,
credibility, and time efficiency, notably in this era of globalization and digital. The research
proposal is distributed into five segments. The first part contains the introduction part which is
made up of the study background, statement of the problem, study’s aim and objectives,
significance, and definition of keywords. The second part of the proposal is the literature review,
followed by the research methodology describing the proposed method to be used in this
research. The fourth part is the rationale of the research methodology explaining the basis for
employing survey methodology. The fifth section of the proposal covers the conclusion, which
summarizes the main ideas as well as the importance of/ conducting this research.
Keywords: word of mouth, globalization, electronic word of mouth, era
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The Power of Word-Of-Mouth in the Globalization and Digital Era
Introduction
Background of the Study
Individuals communicate in several ways, such as face-to-face communication, telephone
calls, emails and blogs, and even letters. Word of mouth is a method in which people get to
communicate, and it is a concept that many people are familiar with, particularly in the industry
of business. People mostly use word of mouth to communicate and share their feelings and
opinions, and also organizations and companies rely on WOM to publicize and sell their
products, services as well as brand. In the past, many companies relied on the influence of wordof-mouth interactions to market goods and services. The reason being they understood that a
customer is a sure and best way to publicize a company’s products. The best ambassador for an
organization in the digital era and possibly in the future days to come is a satisfied customer
(Subramanian, 2018). When a customer wants to procure goods or services from a particular
company they first gather information either from friends or family members seeking their
opinions on that specific product. According to Gildin (2003) “word of mouth is thousands times
as powerful as conventional marketing.”
However, the evolution brought by globalization and the digital era has changed the core
feature of WOM interactions. The reason being nowadays, WOM interactions have been
digitized. Digital platforms have influenced every aspect relating to word-of-mouth interaction
leading to the rise of electronic word-of-mouth interactions, which means that promotion of a
product by a consumer is not limited to face-to-face or one-on-one communication. Online
platforms like Twitter, YouTube, and Facebook, as well as blogs, can be used by a consumer to
promote a product of a particular company, and in doing so, thousands of people are reached.
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Additionally, marketers use these social media sites to reach their customers and attract other
consumers as well. In the digital and globalization era, word of mouth has been transformed to
the “click of a mouse” due to the use of internet when it comes to marketing, and it is an efficient
and reliable tool (Subramanian, 2018). Therefore, WOM in the digital era travels very fast due to
the introduction of internet and growth of various social media platforms like YouTube.
Statement Problem
With the evolution brought by globalization and the digital era, the core features of wordof-mouth interactions have changed. Therefore, there is a need to investigate whether word of
mouth is still influential and essential to companies as a means of communication when it comes
to publicizing a company’s goods and services to their consumers.
Aim
The research aims to examine the relevance and significance of word of mouth in the era
of globalization and digital communication, taking into consideration trust, credibility, and time
efficiency.
Research Objectives
The objectives of the research are to 1) examine the different means of communication
used in companies, notably the modernized companies that rely on technology to carry out their
daily activities. 2) Investigate companies that use WOM as a means of communication and the
level to which they incorporate WOM in their everyday conversations. 3) Compare the other
means of communication with word of mouth in the highly globalized and modernized world to
identify its effectiveness as well as relevance.
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Significance of the Study
The study is critical because it will determine how valid word of mouth is when it comes
to marketing and publicizing goods and services, branding, and building relations with
consumers. The study will establish if WOM is still an appropriate tool for companies taking into
account trust, credibility, and time efficiency, especially during this era of digital and
globalization.
Assumptions of the Research
The participants of the study will answer truthfully since anonymity and confidentiality
will be preserved, which is vital for my research. Because a violation of participants’ privacy can
lead to them withdrawing from the study with no consequences, which can affect the results of
my research. Another assumption is that the sample population of my study is representative of
the populace I would like to make conclusions from.
Definition of Key Terms
Word of mouth - According to Aramendia-Muneta (2017), WOM is described as an
interpersonal communication in which the receiver gets to receive a message from the sender that
is the sender shares information with the receiver.
Electronic word of mouth (eWOM) - Aramendia-Muneta (2017) describes eWOM as an
interpersonal communication in which the receiver gets to receive a message from the sender via
the internet.
Globalization- globalization is the process in which people, government, economy, and society
of diverse nations integrate as well as interact.
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Literature Review
Several studies on word of mouth have been conducted. The numerous research covers
topic like the importance of WOM in the management of marketing, the impact of WOM in
electronic marketing (eMarketing), the advantages of the WOM in marketing, the dynamics of
WOM marketing during the digital era, the phenomenon of WOM in the age of social media, and
developing consumer relationships by ‘word of mouse.’ From these studies, I selected two
studies that have a close relationship with my topic of interest, that is, the importance of WOM
in the globalization and digital era.
Social Media and the Word of Mouth Publicity is a study conducted by Dr. Subramanian
to explore the effects of WOM in marketing. The objectives of the study involved an evaluation
of the environment of marketing and social media role, the way marketers utilize WOM, word of
mouth, and the connection of social network, the role of digital media in accelerating the process
of word of mouth, and recommendations for future salespersons. According to the research, 2050% of purchasing decisions are a result of word of mouth (Subramanian, 2018). The research
used the methodology of a literature survey to conduct the study. Publications, as well as papers
whose focus is on word of mouth, were utilized in this research. The findings of the research
were WOM is reliable can be managed, speeds the process of purchase, expedites the process of
decision making, thus reducing the process of buying, is the answer to the challenges facing
modern marketing, and it is customized to the society of digital network. The researcher
identified that publicity of products and services through WOM is always accurate, and what has
changed is the channels being used to publicize the products. The means of communication has
transformed from traditional WOM to electronic WOM whereby the eWOM uses digital media
like LinkedIn or Instagram to provide information to consumers.
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In the article The Renaissance of Word-of-Mouth Marketing: A' New' Standard in
Twenty-First Century Marketing Management?! By Meiners, Schwarting, and Seeberger, the
significance of WOM in the management of marketing is discussed. The article is divided into
seven sections. The first section is a brief introduction concerning communication and its
relations to suppliers and consumers. The second segment talks about the development of
traditional marketing and its boundary. The third part of the paper defines and discusses WOM
and word of mouth marketing. The fourth part discusses the importance of WOM from the
perspective of consumers and businesses. According to Meiners, Schwarting, and Seeberger
(2010), 90% of internet users primarily trust the recommendation given by other consumers,
while 70% trust opinions of consumers published online. Additionally, the information about a
product provided by friends or colleagues is considered to be more credible compared to the one
being advertised by a company.
The fifth part covered the importance of the internet for WOM. The 21st century is
identified by the use of the internet, and the author recognizes the internet as being the vehicle
for WOM particularly during this era of globalization. The sixth segment is about customer
evangelism as a useful tool for WOM, and the seventh part of the article was the conclusion. The
authors concluded that WOM marketing is a decisive factor for enterprise success because
companies will face the challenge of acquiring genuineness, credibility, as well as honesty via
individual consumer conversation. The researchers recommended for future study to be
conducted on the impact of information technologies like emails, SMS, and blogs on the
behavior of WOM. Additionally, the effectiveness of eWOM in marketing and its value.
Research Methodology
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The methodology to be applied in this research will be a survey method. The survey
method is a technique that gathers data by questioning individuals either face-to-face, telephone,
online, or in the paper. Different survey methods can result to different findings (Zhang et al.,
2017). Hence, I will need to be keen on the survey methods to be used to ensure consistency in
the results produced. With that said, the study will apply the use of online and offline
questionnaires, one-on-one interviews, as well as phone interviews. The information will be
collected from numerous companies throughout the country on the extent to which they utilize
WOM as a means of communication. The participants for the research include companies that
are highly modernized, and they rely heavily on modern technology for their operations. The
selected companies must come from different regions throughout the country.
The collected data will be analyzed through the use of qualitative and quantitative
analysis. In the quantitative analysis, there will be an integration of descriptive analysis. The
several tools of communication used by companies will be tallied and quantified in percentage
and the information presented through charts. Such analysis will assist in determining the degree
to which WOM is used in the various companies in comparison to other means of
communication in the highly globalized and modernized world. A mode would also be calculated
to determine the most recurring means of communication. In the qualitative analysis, content
analysis will be used to analyze the data about the response of companies on the extent to which
they incorporate word of mouth in their daily conversations. The analysis will attempt to
establish the access of WOM communication in the wake of increased use of modern
technology.
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Rationale
The nature of the research to be conducted requires traversing across a large geographical
area to obtain information from various companies. Therefore, substantial data for analysis is
required, which makes the survey method the appropriate technique for collecting data. Glasow
(2005) asserts that surveys have the capability of procuring information from an extensive
population sample. Using this method will also help in increasing the efficiency of data
collection. The survey method is moderately inexpensive notably in the use of online surveys
compared to telephone surveys, and even the potential response from the online survey can be in
thousands of participants making the results more conclusive. The method of survey can be used
to illustrate traits of a sample population. This method is appropriate for collecting demographic
data that illustrate the composition of the participants (Glasow, 2005). Such capability guarantees
an accurate sample in which definite results can be drawn from. Additionally, the flexibility of
survey method makes it the basis for using it in my research. Flexibility is due to the various
modes the study can be administered such as via online or offline surveys, face-to-face survey or
even phone surveys.
The survey method allows for anonymity, making the respondents more open resulting in
providing valid answers. To collect the correct data, participants need to feel secure, and this can
be achieved by ensuring their response will remain confidential and anonymous creating an
avenue for them to be candid. Moreover, the rationale of the research methodology is that the
survey method will help in establishing a highly extensive coverage of the intended goals of the
research because it gives detailed coverage of the data, thus increasing the success rate of
objectives of the study. The survey method is appropriate in collecting data from large
organizations, which is the case in my research. The study entails visiting the different
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companies, and tools like questionnaires and interviews will come in handy during the research.
The research consists of two features. The first aspect is the establishment of whether WOM is
still used as a means of communication in the globalization and digital era. The second part is the
determination of how great word of mouth is used. These two aspects will be captured accurately
by the survey methodology.
Conclusion
The research being conducted is on the influence of WOM in the globalization and digital
era. The study focuses on the relevance and effectiveness of WOM, particularly in the business
world, considering trust, credibility, and time efficiency. The research will help in identifying if
the information being provided to consumers via WOM is considered to be credible as well as
trustworthy, and at the same time if it is a time-efficient tool. The reason for conducting this
research is based on the fact that evolution brought by globalization and the digital era has
changed the core features of word-of-mouth interactions, which raises the question: is there need
for companies and organizations to still use WOM in marketing their products and services to
their consumers? The research performs literature review on various studies conducted on this
topic about WOM in the globalization era. The proposed methodology for this research will be
survey method whereby it incorporates several modes like online and offline questionnaires, oneon-one interviews, as well as phone interviews. The rationale for using survey methodology is
provided, and it includes reasons such as the dependability, flexibility, anonymity, cost, and
extensiveness of the survey method. This study is crucial because it will help companies in
realizing whether WOM is a useful tool for the success of their business as well as in their daily
operations.
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References
Aramendia-Muneta, M. E. (2017). 4.2 Spread the Word–The Effect of Word of Mouth in eMarketing.
Gildin, S. Z. (2003). Understanding the power of word-of-mouth. RAM. Revista de
Administração Mackenzie, 4(1), 92-106.
Glasow, P. A. (2005). Fundamentals of survey research methodology. Retrieved January 18,
2013.
Meiners, N. H., Schwarting, U., & Seeberger, B. (2010). The Renaissance of Word-of-Mouth
Marketing: A'New'Standard in Twenty-First Century Marketing
Management?!. International Journal of Economic Sciences and Applied Research, 3(2),
79.
Subramanian, K. R. (2018). Social Media and the Word of Mouth Publicity. Science, 3(2), 95100.
Zhang, X., Kuchinke, L., Woud, M. L., Velten, J., & Margraf, J. (2017). Survey method matters:
Online/offline questionnaires and face-to-face or telephone interviews differ. Computers
in Human Behavior, 71, 172-180.
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