Definition:
Word-of-mouth (WOM) influence is the informal communication among consumers about
the characteristics, quality, or value of products and services.
Importance in Consumer Behaviour:
● Highly credible as it comes from peers or trusted sources.
● Influences purchase decisions more effectively than advertisements.
● Can enhance or damage brand reputation quickly.
Factors Affecting Word-of-Mouth:
1. Consumer Satisfaction: Satisfied customers are more likely to recommend.
2. Product Type: High-involvement products generate more WOM.
3. Social Networks: Larger and more connected networks amplify WOM.
4. Opinion Leaders: Their recommendations carry more weight.
Types of Word-of-Mouth:
● Positive WOM: Recommending products to others.
● Negative WOM: Complaining or discouraging others from buying.
Applications in Marketing:
● Encouraging customer reviews and testimonials.
● Leveraging influencers to spread positive WOM.
● Creating referral programs to incentivize sharing experiences.