Blog 2: Effectiveness of Electronic Word of Mouth

Introduction 

Word of mouth (WOM) and electronic word of mouth (EWOM) both are always the most effective marketing mediums, and it is one of the most powerful sources of marketplace information for consumers. Hence it is more trustworthy and credible. However, In the modern world, according to Ismagilova, Dwivedi, Slade, & Williams, (2017), the evolution of technology has led to the change of Electronic Word of Mouth efficiently, EWOM is different with traditional WOM in many other ways. For example, EWOM’s boundary of communication is much larger and enable to spread quicker words via various of platforms like blogs, social media, email, messaging, online communities, etc. Additionally, EWOM allows to reach massive of people in the short term, and it leads spreading greater information and awareness to audiences. While traditional WOM communication is just focusing on small individual groups, societies, and face to face conversation. EWOM is one of the most significant evidence online sources as product reviews product feedbacks and discussions to allow consumers to make a purchase decision. Nowadays, More and more people rely on EWOM’s information when making decisions to buy products.

Literature Review

EWOM communication has incredibly impacted companies’ efficiency as company’s sales volume and its reputation. López, & Sicilia, 2014 has indicated that 90% of online consumers consult post purchasers’ opinions online before purchase, and 70% of users rely on EWOM. With positive EWOM, it impacts consumers’ decision making for purchasing items or services, and it affects customers’ loyalty toward. Although, too much positive information might lead audiences confusing about reviewer’s references which may impact the reliable and authenticity of the review. However, indicated negative message through EWOM communications might lead serious negative consequence more than benefit positive messages which brought to a company (Lerrthaitrakul, & Panjakajornsak, 2014). For example, audiences rely more weight on negative information more than positive information during searching evidence and decision processing. Because, they think negative information are more truthful, informative and valuable than positive messages (Wang, Cunningham, & Eastin, 2015). The researchers have explored the effectiveness of two-sided messages might affect consumers’ attitude toward awareness of reliability, purchasing decision making and organizations’’ reputation. (Wang, Cunningham, & Eastin, 2015)

Conclusion and Implications

Electronic word of mouth is the most effective marketing platforms which affect business’s volume of sales and reputation. Because, EWOM is reliable and trustworthiness, so more and more audience rely on that information to make decisions before buying items. However, everything has both sides negative and positive. Positive EWOM communications can improve consumers’ behavior and attitude toward purchasing a product or service and lead a business to increase the quantity of sales and its reputation. However, Negative EWOM is not also affected by consumer purchasing decisions defectively, but it might also cause the serious cost to business as reputation or losing loyalty consumers. As a result, companies need to take it into account before it happens. By examining and managing EWOM communications properly to receive valuable information as costumers’ judgments about the products, service or company’s reputation. Moreover, need to pay attention to EWOM communications for identifying issues and solve the problems quicker before they are spread widely (Ismagilova, Dwivedi, Slade, & Williams, 2017).

References:

Ismagilova, E., Dwivedi, Y., Slade, E., & Williams, M. (2017). Electronic Word of Mouth (eWOM) in the Marketing Context (1st ed.). Cham: Springer International Publishing.

Lerrthaitrakul, W., & Panjakajornsak, V. (2014). The Impact of Electronic Word-of-Mouth Factors on Consumers’ Buying Decision-Making Processes in the Low Cost Carriers: A Conceptual Framework. International Journal Of Trade, Economics And Finance, 5(2), 142-146. http://dx.doi.org/10.7763/ijtef.2014.v5.357

López, M., & Sicilia, M. (2014). Determinants of E-WOM Influence: The Role of Consumers' Internet Experience. Journal Of Theoretical And Applied Electronic Commerce Research, 9(1), 7-8. http://dx.doi.org/10.4067/s0718-18762014000100004

Wang, S., Cunningham, N., & Eastin, M. (2015). The Impact of eWOM Message Characteristics on the Perceived Effectiveness of Online Consumer Reviews. Journal Of Interactive Advertising, 15(2), 151-159. http://dx.doi.org/10.1080/15252019.2015.1091755