“Word of mouth” is an important tool for marketing services because it supports and helps to create a strong brand image and attract potential consumers in a short period. As more of the members of a social group purchase an item, it is talked about, “word of mouth” influence increases, more people are exposed to both the good and the talk about its benefits, and a rationale for the purchase develops. Soon the fact that a person does not own the item may become an unsocial act, which has a definite meaning for the individual’s tastes, judgment, and action. Luxuries thus become necessities (McDonald & Christopher 2003).
Publicity, which is an integral part of many promotional campaigns and sometimes precedes the advertising and sales effort, lies outside them. Although it can be important in gaining market acceptance for products and companies, word of mouth is often a relatively low-grade communications channel with a high degree of interference, distortion, and noise. The task of “word of mouth” is to get people or markets to progress from a state of unawareness, or even negative reaction, to one of positive action. The stages in this progression are unawareness, awareness, comprehension, conviction, and action. Opposing the marketing communications in this endeavor are countervailing forces as competitors’ communications, predispositions, noise, brand loyalty, and habit (Fill, 2001).
Services industries are shaped by “word of mouth,” which, in part, is controlled by the seller in the form of advertising and selling. But seller-dominated market communications do not furnish all the information necessary to satisfy the curiosity and needs of buyers. Moreover, advertising and selling may not be fully trusted. Both often fail to furnish the credibility or authoritative information that consumers need. Therefore, buyers turn for information to the external informal groups with whom they are in contact (Fill, 2001). The latter can be more influential than the sellers.
The new power of word of mouth would seem to be a great boon for a manufacturer, distributor, retailer […] Friends and neighbors have become more and more influential in deciding what a person buys and when, and those on the other side of the retail fence […] become increasingly passive (William & Whyte 1994, p. 113).
Much research has been done on the impact of interpersonal sources of information that are not under the control of sellers, particularly those that derive from face-to-face contact with buyers. Often the disinterested person, the owner, and purchaser of products, the gregarious housewife of a large family, are key communicators in influencing buyer behavior. Friends and co-workers are sometimes the most influential communicators (Paley, 2006). He who is the communicator becomes significant. Opinion leaders and their roles in influencing consumer acceptance of products have been studied. Buyer behavior includes reactions to marketing measures.
A reaction may be influenced by opinions and preferences, which, in fact, shape consumption. Both opinions and preferences are acquired and not inherited-they must be learned. The household that shapes the learning of tastes and preferences is a very influential force in personal consumption. It shapes demand by causing changes in buyer preferences and reactions or by bringing products and services into line with customer desires.
A service leader can create unique advertising messages and provide exceptional services for all customers in order to increase “word of mouth.” Advertising, personal selling, sales promotion, product development, pricing, and other marketing decisions endeavor to elicit favorable reactions from customers. They attempt to expand and shift the demand for company products, thus extending market opportunity. On first being subjected to products, individuals may not like them. Gradually, through contact, use, experience, and the effect of information, they may grow to accept and like the shapes, textures, designs, and products that were previously rejected.
This part of the buying process is concerned with learning. As a result of past experience, customers have preconceived notions or attitudes that shape their view of reality and hence their decisions. For example, experience with brands that meet expectations results in future purchasing actions since learning takes place. Reinforcement, which is part of the learning process, encourages repetition and perhaps an automatic response-purchase by habit (Smith & Vogt 1995).
The company can manage “word of mouth,” creating a strong brand image in the local community or the virtual environment. It can introduce bonus programs for repeat buyers and introduce “tell-a-friend” programs. In this case, “word of mouth” activates, stimulates, and shapes demand by influencing consumer reactions. Since demand for products can, to a great extent, be generated and intensified, companies can shape their own market destinies. This is the corporate justification for the expenditure of resources in marketing. Marketing executives are faced with the challenge of reinforcing, changing and converting customer reactions in order to stimulate demand.
They try to strengthen attitudes and motives that are disposed to their products and change those that are not. This does not mean that buyers can be readily manipulated. These include personal selling, advertising, product development, pricing, merchandising, distribution channels, packaging, and product quality. Therefore, businesses need not passively accept existing demand situations. Although situations may exist where little can be done about markets for specific goods, demand usually can be altered. Companies can try to change buyers and their reactions and responses to correspond with company needs and desires.
Bibliography
- Fill, C. 2001, Marketing Communication: Contexts, Contents, and Strategies. 2. edn. Upper Saddle River, NJ: Prentice Hall.
- McDonald M., Christopher M. 2003. Marketing: A complete Guide. Palgrave Macmillan.
- Paley, N. 2006. The Manager’s Guide to Competitive Marketing Strategies. Thorogood.
- Smith, R. E., Vogt, Ch. A. 1995, The Effects of Integrating Advertising and Negative Word-of-Mouth Communications on Message Processing and Response. Journal of Consumer Psychology vol. 4, iss. 1 pp. 133-123.
- William H. Whyte, Jr. “The Web of Word of Mouth”. In Lincoln H. Clark, Ed., Consumer Behavior. The Life Cycle of Consumer Behavior. New York: New York University Press, 1994, pp. 113-122.