Electronic word of mouth is a cost-effective type of marketing conducted solely through consumers, similar to some aspects of viral marketing. Shamhuyenhanzva et al (2016) state that this form of communication is one of the most influential drivers of purchase decisions.
Although there have been very few efforts on the research of ewom and food retailers in particular, there is plenty of evidence that supports and suggests ewom can positively affect the brand awareness and brand association of a company (Page and Lebpowska-White, 2002).
Electronic Word Of Mouth presents a window of opportunity for businesses
This website offers a definition of ewom as a window of opportunity for a business and states that ewom is probably the oldest method of marketing to this day, being that consumers will exchange information to other consumers on the internet – the largest market. Ewom has become the new version of viral marketing with the ever-growing size of the internet and its users, consisting of interpersonal communication “which sets it apart from mass-communication such as advertising”. This is an interesting concept, as consumers will often trust other consumers and use other experiences, opinions etc. as a base for their decision making on a brand or even a purchase. As the information processed is through either copy, images or video, the content/communication is seen as genuine and unbiased. However, contrastingly to the traditional word of mouth, ewom can be seen as less trusted by consumers as receivers, because the status and networking of the publisher is used to judge the publisher’s trustworthiness and reliability.
Some good examples of digital influencers are seen in the website above, based around their “reach, relevance and resonance” concept.
http://www.newretailblog.com/electronic-word-of-mouth/
This blog poses some interesting theories and paradigms with regards to ewom and retailers, stating that happy consumers will tell three friends as compared to unhappy consumers who will tell ten. This concept has therefore expanded as consumers will no longer need to see eachother in order to share experiences or opinions on a brand or particular retailer, as they can now electronically communicate between blogs, texts and other platforms of social media for masses to see. This blog is a good starting point to understand the quantity difference between the traditional style of word and mouth, ewom and their contrasting effects on retailers.
References
R. Shamhuyenhanzva., Tonder. E., Roberts-Lombard, M. & Hemsworth, D . (2016). Factors influencing Generation Y consumers’ perceptions of eWOM credibility: a study of the fast-food industry. TandFOnline. pp. 433-435.
Page, C., & Lepkowska, W. E. (2002). Web equity: A framework for building consumer value in online companies. Journal of Consumer Marketing, 19(3), 231–248.