Why word of mouth works
Consumers trust friends and fellow customers more than advertisers. Katz and Lazarsfeld (1955) proposed the two-step flow, in which media messages reach the public through opinion leaders, and showed the strong role of personal influence in buying decisions.
Electronic WOM
Reviews, ratings, social posts and forum threads spread quickly to many strangers and remain searchable. Hennig-Thurau and colleagues (2004) found motives such as helping others, social recognition and venting.
Berger's STEPPS
- Social currency: sharing makes people look good
- Triggers: everyday cues that bring the product to mind
- Emotion: high-arousal feelings such as awe or anger
- Public: visible behaviour is easier to imitate
- Practical value: useful information
- Stories: messages carried inside narratives
Negative WOM
Bad experiences tend to spread further and with more impact than good ones, and fake reviews can harm businesses, so quick and sincere responses matter.
Influencers and disclosure
Paid posts that hide sponsorship mislead consumers. The US FTC Endorsement Guides and Korea's Fair Trade Commission guidelines, revised in 2020, require clear disclosure of material connections.
References
- Katz, E., & Lazarsfeld, P. F. (1955). Personal Influence: The Part Played by People in the Flow of Mass Communications. Free Press.
- Hennig-Thurau, T., Gwinner, K. P., Walsh, G., & Gremler, D. D. (2004). Electronic word-of-mouth via consumer-opinion platforms. Journal of Interactive Marketing, 18(1), 38-52.
- Berger, J. (2013). Contagious: Why Things Catch On. Simon & Schuster.
- Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.