Chapter 2: Word-of-Mouth

• 2 Word-of-Mouth
• 2.1 Theoretical Background
• 2.2 Pre-Purchase Information
• 2.3 Communication Channels
• 2.4 eWord-of-Mouth
• 2.5 Motives

2.1 Theoretical Background

There are a lot of factors that influence consumer decision-making and buying behavior. To name but a few: product characteristics, company characteristics, marketing (e.g., eWOM), individual differences, and environmental influences. Most of these factors have been examined and their influence has been studied. With the rise of the Internet, many researchers have started to conduct studies to examine these existing theories to the context of computer-mediated environments. This thesis follows suit by researching the influence of eWOM on the receiver's purchase intentions to the context of the Internet.

It is a common fact that Internet is a parallel world to our real life environment (e.g., Rheingold, 1993; Bolter, 1996; Strate, Jacobsen and Gibson, 1997; Jones, 1999). Communication and interaction take place through a technological interface (i.e., computer). A problem is that literally the sender and the receiver of information do not have a primary relation but rather with, for instance, a computer (Hoffman and Novak, 1996). Like in many cases, it is rather a case of experience. More experienced users are able to use the technological interface better. Consequently, Internet experience and computer literacy influence someone’s online behavior.

Another point of difference is its textuality. Communication and interaction online is to a large extent based on the written word, stripping away information about tone of voice, tempo, stress, facial expression, and gestures. There are new programs and developments (i.e., Skype, webcam) that will enhance the technological interface making it more face-to-face. If you need information, then the best thing of the Internet is that is out there for the taking; you do not need to show reciprocity in your behavior (i.e., “You scratch my back and I'll scratch yours”). In real life environment this is much harder. One cannot so easily back out from group duties. And if you give false information, then the group might confront you with it. In online networks, it is possible that always the same members that spread information and there are fewer possibilities for disciplining senders of false information.

In general, consumers find it important to hear the opinion of others while (or before) making purchase decisions. They talk and discuss their purchase intentions with family members, relatives, friends, and on the Internet and maybe even ask for their advice. As a result, receivers are most likely influenced in their decision-making because they interact and communicate with others. Research activities that have investigated this process of interpersonal influence in the traditional context address, among other things, reference group influence (Bearden and Etzel, 1982) and the effects of eWOM (Johnson Brown and Reingen, 1987; Herr et al., 1991).