How Word of Mouth Works in Advertising

How Word of Mouth works in Advertising

According to Walsh and Mitchell, WOM communication is conceptualized as a general concept of marketplace interpersonal interaction (as cited in Levy & Gvili, 2015) and is perceived as an important means for influencing consumer buying decisions. Steffes and Burgee have stated that in many cases, it has been found to be more effective than advertising or direct personal sales, mainly because it is perceived to be more credible and flexible (as cited in Levy & Gvili, 2015).

According to Harrison Walker, WOM was defined as "informal, person to person communication between a perceived noncommercial communicator and a receiver regarding a brand, a product, an organization or a service" (as cited in Levy & Gvili, 2015). Consumers' tendency to engage in WOM communication and share product or service information typically is generated from direct personal experience. However, people also diffuse this information as indirect experience based on others' experience or part of a personal need for social experience.

The Internet has enabled e-WOM, enhancing both one to one and group communication. Further, a high level of similarity has been found between e-WOM and traditional WOM in consumers' motivation to participate in the communication process. (Levi & Gvili, 2015)

Digital communication encourages individuals and marketers to share information easily and spread electronic word of mouth (e-WOM). Yet, many people may find it difficult to judge message and source credibility. Traditional WOM communication usually know the source and hence easily assess its credibility, e-WOM's electronic nature in most cases eliminates the receiver's ability to judge the credibility of both sender and message. Nabi and Hendricks define "E-WOM credibility" as "the extent to which one perceives other consumers' recommendations or reviews as believable, true, or factual" (as cited in Levy & Gvili, 2015).