E Word of Mouth

A Literature Review of Word of Mouth and Electronic Word of Mouth:

Implications for Consumer Behaviour

The rise and spread of the Internet has led to the emergence of a new form of word of

mouth (WOM): electronic word of mouth (eWOM), considered one of the most influential

informal media among consumers, businesses, and the population at large. Drawing on

these ideas, this paper reviews the relevant literature, analysing the impact of traditional

WOM and eWOM in the field of consumer behaviour and highlighting the main differences

between the two types of recommendations, with a view to contributing to a better

understanding of the potential of both.

INTRODUCTION

Consumers increasingly use online tools (e.g., social media, blogs, etc.) to share their opinions about the products and services they consume and to research the companies that sell them. These tools are significantly changing everyday life and the relationship between customers and businesses.

The rapid growth of online communication through social media, websites, blogs, etc., has increased academic interest in word of mouth (WOM) and electronic word of mouth (eWOM). Specifically, the present paper will review the literature on how these two media
have evolved, the main differences between them, and the degree to which they influence both businesses and consumers, now that they have become some of the most influential information sources for decision-making.

BACKGROUND

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, who described it as the exchanging of marketing information between consumers in such a way that it plays a fundamental role in shaping their behaviour and in changing attitudes toward products and services. Other authors have suggested that 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.

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. WOM is widely regarded as one of the most influential factors affecting consumer behaviour. This influence is especially important with intangible products that are difficult to evaluate prior to consumption, such as tourism or hospitality. Consequently, WOM is considered the most important information source in consumers’ buying decisions and intended behaviour. For example, tourist satisfaction is of utmost importance because of its influence on behavioural intentions, WOM and purchasing decisions. In other words, overall satisfaction leads to the possibility of revisiting and recommending the destination.

WOM vs. eWOM

While many authors consider eWOM reviews to be electronic versions of traditional WOM

reviews, this paper aims to summarise and explain the main differences between the two concepts (Table 1). The first such difference is credibility as an information source, since it can influence consumers’ attitudes toward products or services, for example, with regard to the purchase of tourism services, which are considered to be high-risk have suggested that the anonymity of online messages could have a negative effect on their credibility. In contrast, other studies have argued that consumers use eWOM more to reduce risk when decision-making. Likewise, eWOM tends to be more credible when the consumer using it has previous experience.

CONCLUSION

This paper has reviewed the literature with a view to providing a clearer understanding of WOM and eWOM in the context of consumer information searches. To this end, the review found that, in keeping with numerous studies, WOM is both the oldest medium for sharing opinions about products or services and the one most likely to influence consumer behaviour, due to the high reliability and credibility transmitted by family and friends. In contrast, few studies have examined the interaction between perceived risk and eWOM source credibility.

Best Regards,
Mian Mukarram