Advantages And Disadvantages Of WOM

Word of mouth (WOM) is seen as a persuasive and influential tool when it comes to consumer purchase decision. The traditional marketing efforts seems to be losing influence or the element of persuasion over the consumers as they trust WOM more than these techniques. WOM has more influence over consumer purchase decision as compared to other traditional forms of marketing (Trusov et al. 2006). This form of marketing seems to be successful as cost for this marketing concept is low and has the ability to target large masses at the same time. According to its basic definition WOM is the act of consumer providing information to another consumer who is willing to make a purchase.

The influence of WOM seems to be increasing because of the internet. WOM done over an electronical device is known as eWOM. EWOM is a modern and more evolved form of traditional WOM having more features and advantages (Vilpponen et al. 2006). This concept has seen enormous growth over the years particularly due to social networking sites (SNS) such as Facebook and twitter where feedback and recommendations play an important role in the process.

When consumers

In developed countries eWOM is one of the most commonly used marketing technique. For example, in US people do not have time to go store to store and compare different products. Instead they rely on whatever information was provided to them by a friend or a closed relative and make the purchase decision according to that information. EWOM is quite successful in the developed countries. Retail companies in these countries have joined the SNS through which they promote and advertise their products and services. Here the exchange of information occurs directly between the consumer and the company. A survey conducted by eMarketer (2014) suggested that companies (in developed countries) like eBay and amazon rely more on eWOM marketing than any other form of