Assignment -1
Mouth and Electronic Word of Mouth: Implications for Consumer Behavior
Course: Advance Method of Business Research
Submitted To: Sir Usama Iqbal
Submitted By: Shahroz Saeed Malick
Class Id: 13484
Literature Review
Word of Mouth
Mouth Word is one of the most common methods of communicating knowledge, and is in
several methods established. Some researchers described the sharing of marketing information
between customers as an essential part of shaping the behavior of customers and in shifting
attitudes to goods and services as one of the earliest concepts. Some researchers suggested that
WOM is a contact method for individuals who see brand, product or Service Data as non-profit
between communicators and recipients. Also defined as a customer communication about a
product, service or business in which sources are considered independent of commercial control.
It also means communication between consumers. Such informal exchanges allow for exposure,
in addition to official adverts and beyond the communications of the firms, to information
relating to sales of the product or service, which unintendedly affects the decision-making of the
individual. WOM is known to be a significant factor in consumer behavior. This effect is
especially important for intangible goods, such as tourism or entertainment, which are difficult to
evaluate before consumption. Accordingly, WOM is regarded as the main source of knowledge
in consumer purchasing decisions and expected actions. For instance, because of its control over
behavioral preferences, WOM and buying decisions and tourist satisfaction is extremely
important (Wen-Hai et al., 2013). This means that overall satisfaction contributes to revisits and
suggestions. Latest research indicates that consumers consider Facebook as more trustworthy
media than traditional media (for example, TV, radio, printed ads, etc.). It is also seen as one of
the most relevant sources of knowledge on goods and services. In general, consumers have more
confidence in other customers than sellers. As a result, WOM is able to influence a variety of
receivers and is perceived as a marketing medium of customer supremacy that provides senders
of independent market legitimacy. WOM is more trustworthy and truthful because of this
freedom.
Electronic Word of Mouth
According to Tong Bao & Tung – lung (2013), the latest online WOM contact today is called
electronic word-of-mouth (eWOM). The advent of online channels, which made it a major
source of knowledge on the web, for example in the tourism sector has become a particularly
important communication medium. Because of technological developments, these modern
communications means lead to improvements in consumer behavior, by enabling them to access
or exchange knowledge about businesses, goods and brands. The effect of the new
communication means encourages consumers to exercise on each other. It has suggested one of
the most general definitions of eWOM, defining it as all informal Internet contact directed at the
consumers of products or services, or their sellers in relation to their use, or their features. The
advantage of this tool is that it is open to all customers who can share their views and viewpoints
with other users using on-line platforms. Although consumers once trusted WM from family or
friends, they search for information about a product or service today in online comments
(eWOM). With the aid of ICT, customers worldwide can now leave feedback so other users can
conveniently access information on products and services. This communication medium
(eWOM) is used by both active and passive consumers. Those who share their views with others
online are active customers; those who merely find out about the thoughts or opinions of other
customers are passive customers (Felix John, Justie & Sunny Biobele 2014). Electronic Words of
Mouth provides traditional WOMs with companies to allow people to see how consumers can
bring their views online and determine the effect on individuals. Electronic WOM is also an
advantage over traditional WOM. Therefore, consumers may use the technology to express
opinions regarding goods or services (eWOM) because it is an unable to regulate factor.
Companies are seeking to do this by creating virtual spaces on their own platforms to maximize
the effect of on-line customers' reviews, where consumers can select their product and service
preferences and share their opinions. In the tourism sector, for example, businesses are beginning
to realize that ICT-enabled media influence the purchasing behavior of tourists. Organizations
rightly consider all forms of feedback – WOM and eWOM – to be a new opportunity to respond
to the needs of consumers and to change to better serve them, thereby rising their returns. A
positive or negative attitude to the product or service can affect future purchasing decisions by
making it possible for customers to measure real product or service results to their expectations.
Some previous studies have shown that consumers focused more on negative data than on
positive data in the area of consumer behavior. For instance, a successful eWOM is most
welcome for customers of a product or service, which can bring very competitive benefits for
companies, enterprises or sellers, particularly for smaller ones, with lower resources (Felix John,
Justie & Sunny Biobele 2014). Studies show that conventional WOMs are the most commonly
used sales and commercialization tool among small businesses. In addition, eWOM provides
businesses with a way to recognize consumer needs and expectations and can interact with them
in a cost-effective manner. Currently, eWOM is a big medium for social media marketing in
companies.
Word of Mouth vs. Electronic Word of Mouth
Although several scholars find that eWOM review is a version electronic of traditional WOM
review, the key differences between the two definitions are summarized and clarified (Table 1).
The first such distinction is that the consumer's attitudes to goods or services may be affected by
its reputation as a source of knowledge, for example in terms of purchasing tourism services
perceived to be a high level of risk. Certain researchers, by comparison suggest that customers
are making more use of eWOM to minimize risk when making decisions. Even, as customers use
it with previous experience, eWOM tends towards greater credentials. It is stated by Aslam et al.
(2011), that the privacy of messages is another aspect that differentiates the two media because
conventional WOM data is exchanged through private dialogs and conversations in real time.
The information exchanged by eWOM, on the other hand, is not private. Anonymous people
who don't know one another often see it.
Reviews can also be read at different times. In reality eWOM reviews encourage customers and
businesses to test at any time, as opposed to traditional WOMs, which tend to vanish once the
message reaches the recipient. Another big difference is the pace at which the message is
distributed, eWOM declarations circulating much more quickly than WOM declarations due to
where they are written, i.e. on the Internet. EWOM is what separates eWOM from conventional
WOM online knowledge sharing channels (social news, websites, blogs etc.). They first open
review to more customers. Second, they survive over time as they are written.
Literature Review Chart
Mouth and Electronic Word of Mouth: Implications for Consumer Behavior
S.NO
1
2
Title
Finding
disseminators
via electronic
word of mouth
message for
effective
marketing
communications
Investigating
Electronic
Word-of-Mouth
Effects on
Online
Discussion
Forums: The
Role of
Perceived
Positive
Electronic
Word-of-Mouth
Review
Credibility
Source
Date
2014
2013
Sample
Size
Form sample
is 350,122.
Books,
music, video
and DVD
titles that
have
qualities that
can hardly be
identified
before
consumption,
as experience
products,
make user
reviews
useful
The
population of
the sample is
over
2,360,000
users.
Methods
Variables
(Dependent &
Independent)
(1) the selfreport
method
(2) the key
informant
method
(3) the
network
structure
method
IV = Product
awareness,
customer
satisfaction and
EWOM
DV = Consumer
buying decisions
Concentrating
on customers
who engaged
extensively in
this website
discussion
board. The
survey was
made up of
people who
had read
product or
service
reviews
online.
IV = Product
attitude and
Website attitude.
DV = Purchase
intension.
Result
It is considered
that video is
the most
selling, DVD
the second
most, album
the third
highest, and
book the
lowest, by
contrasting
audio, video
and DVD.
Reports from the
contrast of the
proposed model
with the
alternative
model indicate
that PAs and
WAs mediate in
part the
influence of
PPERC on PIs.
3
The Influence
of Word of
Mouth and the
Attitude of the
Consumers in
the Purchase
Decision
2019
The study
consists of
100
individuals
of both
genders who
took into
account the
participants’
selection
filters, who
live in China
and used
WeChat over
15 years.
WeChat
users will
obtain the
results of the
research
study,
focused on
the impact
IV = WOM
of Word of influence, attitude.
DV = Purchase
Mouth and
decision.
the customer
attitude in
WeChat in
the
procurement
decision.
The findings
will provide
a response
to the
request.
The
consumer's
attitude and
actions as well
as the WOM
and its effect
on mobile
media
networks like
WeChat.
4
Effect of Word
of Mouth
Communication
on Consumer
Purchase
Decision:
Malay upscale
restaurant
5
The Influence of
Word-of-Mouth
Communication
on Consumers’
Choice of
Selected Products
in Nigeria
6
Effect of Word of
Mouth on
Consumer
Buying Behavior
2016
2014
2011
The report
found that the
majority of
respondents
fall between
25 to 34 years
and 18 to 24
years, based
on
examination
of their
profiles. The
report
This analysis
uses sample
sizes of 400
The chosen
sample size
was 100
Method of
Purposive
sampling was
used in this
research
A method of
research
survey has
been used.
For accurate
and detailed
information
collection, a
questionnaire
is sufficient.
IV = Service
quality, food
quality, price and
physical
environment are
independent
variables.
DV = Consumer
purchase decision.
IV = ConsumerOrientation,
Quality-Focus,
Customer
Satisfaction and
Word-Of-Mouth
Communications.
DV = Consumer
purchase behavior
(CPB).
IV = Word of
mouth and Viral
Marketing.
DV = Consumer
behavior.
44.7 percent of
the total
population
dines in a highquality
restaurant in
Malay, which
is only once or
twice a year.
The experiences
between the
customer and
the product have
a major effect on
the consumer's
response and are
influenced
primarily by the
emphasis on
customer
orientation and
word-of-mouth
(WOM) contact.
The findings
showed that
retailers are
more likely to
sell with certain
apps, including
product
availability
References
Eze Felix John, Nnabuko Justie and Beredugo Sunny Biobele (2014). The Influence of Word-ofMouth Communication on Consumers’ Choice of Selected Products in Nigeria. European
Journal of Business and Management. ISSN 2222-1905 (Paper) ISSN 2222-2839
(Online) Vol.6, No.22, 2014
Saad Aslam, Ehtisham Jadoon, Khalid Zaman and Sheryar Gondal (2011). Effect of Word of
Mouth on Consumer Buying Behavior. Mediterranean Journal of Social Sciences.
Tong Bao and Tung – lung Steven Chang (2013). Finding Disseminators via Electronic Word of
Mouth Message for Effective Marketing Communications. College of Management, Long
Island University, Post Campus.
Wen-Hai Chih, Kai-Yu Wang, Li-Chun Hsu, and Su-Chen Huang (2013). Investigating
Electronic Word-of-Mouth Effects on Online Discussion Forums: The Role of Perceived
Positive Electronic Word-of-Mouth Review Credibility.
CYBERPSYCHOLOGY,BEHAVIOR, AND SOCIAL NETWORKING Volume 16, Number
9, 201