Word Of Mouth Communication

Abstract:

In this paper we will explain what word-of-mouth communication is and how it can be use positively by companies. Our paper is separated into two main parts: A theoretical part, where we analyze and explain the purpose of word-of mouth communication, first in a general point of view and then focus on an entertainment industry. A practical part to analyze how word-of-mouth plays a role in a company success.

THEORETICAL PART

Maxxie was delighted when she left her boss’s office. She just got a bonus due to the great work and efforts accomplished last month. The first she was thinking about was: what can I buy with this money? Two weeks ago, she lost her phone so suddenly she decided to buy a new one.

Maxxie doesn’t know a lot about phones, her last phone was very old with minimal functionalities. The next days, she tried to get hold of as much information about the latest released phones on the market. The first information source she thought about was: internet. She looks on blogs, forum, and consumers comments and companies website; pretty much anything she could get her hands to ensure that she had the most current and accurate information available to make her choice. However she was still confused. Information found were claiming that XPhone was the best phone but also that Zamsumg Galacci and Bluberry golp were the bests. Others information were saying the opposite for all of three. These three phones have the same price, and for her more or less the functionalities. Maxxie was determinated to make the best choice so spontaneously she decided to ask in her social network BookFace, used by almost all her friends and her family. Many of them replied; send her advices, life experiences with their phones. Through BookFace, on a video posted by a friend she discovered that Xphone can be used under the water! Fascinated about this functionality she asked more information to this friend and decided to meet him. They took a coffee the next day and discussed about this phone. This friend told her that his brother who bought the phone before him was very satisfied about Xphone and this was his main reason of buying it as well. The brother of her friend has been using it for 6 month, and when her friend was talking with his brother or seeing his brother using this phone, he was immediately seduced about the Xphone and bought it. Seduced also about her friend’s life experience and seeing him using his phone, finally the next day she decided to buy the Xphone too.

I- WOM COMMUNICATION

During many years, word-of mouth (WOM) communication was not considering as powerful in the marketing force as today. However, WOM has undoubtedly always played a persuasive role in influencing consumer behaviors and purchase decisions. The point is that it was more difficult to measure it 20 years ago than now.

First’s definitions of WOM were incomplete, they were referencing to only one type of communication: person to person. Nowadays, with the importance of internet in our dally life; direct or real life communication is no longer the only way to create a WOM communication. An updated definition of word-of-mouth communication must include every possible WOM communication methods available. Today, Word-of mouth communication is a form of interpersonal communication among consumers within their networks concerning their personal experiences with a firm or a product/service. In this definition, interpersonal communication is used to differentiate WOM from forms of mass media and networks to demonstrate that everyone is in some way connected to a group of people. Recall, for example, that Maxxie used her social network BookFace to get a maximum opinion from her friends which could help to make her purchase decision.

Maxxie’s story is a representation of how word-of-mouth communication influences the consumer choice. The choice of Maxxie to buy the Xphone was directly initiated by his friend experience with this product. When people seek for information about a product or services, information obtained by someone they know or interact with are more likely to be trusted and be reliable than information obtained through formal channels and advertisements. WOM is an efficient tool for marketers while we know that “Today, 80 per cent of all buying decisions are influenced by someone’s direct recommendations” (Solomon et al.)

A) Actors

Essentially, WOM communication is an action that exists between the pre-consumer: individual who has not experienced the product, here Maxxie and the post-consumer: individual who has experienced the product, here her friend. In WOM post-consumers can broadcast solicited or unsolicited information. We have the opinion leaders who participate in thought experiments, are hypnotized to give unsolicited advice more often than non opinion leader (Engel, 16). Their particularity is that instead of being influenced by mass media or advertisements, opinion leaders will seek out new innovations and product released in order to make their own opinion about a product. In some way they become expert and developed their own knowledge about the product.

WOM situations between actors:

-Post-consumer uses product and gives unsolicited information to a pre-consumer.

-Post-consumer is solicited by a pre-consumer for information on a product.

-Post-consumer uses product and posts review on an online forum or website.

-Pre-consumer is given unsolicited information on a product from a post-consumer.

-Pre-consumer solicits information from a post-consumer.

-Pre-consumer seeks information from an online forum, paper, blog or social network.

B) Others aspects of WOM communication

WOM communication can also be verbal or non-verbal. Verbal WOM communication would be the most frequent one including real or online conversations and online post. However, non-verbal communication is also present in WOM. Through gestures, appearance, behaviors regarding a product when interacting with others, without talking about the product the post-consumers can be influenced. Remind of Maxxie’s story, the fact that she saw her friend on a video using the phone triggered her interest to the Xphone or when she was having a coffee with him, seeing his friend using the phone re-enforce her positive opinion regarding the product.

Another aspect of WOM communication would include the timing. By timing we mean

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