Word Of Mouth Communication On Purchasing Decisions

Word-of-mouth (WOM) affects both business success and consumer purchase decisions. In traditional WOM marketing, studies have suggested that WOM has more influence on consumer decision-making than mass media advertising. With the rapid development of the internet, word of mouth communication in virtual community, under on-line environments, has become a new research focus.The internet provides consumers with a vast amount of product information, on one hand, more and more consumers provide their own product evaluations and use experience, and on the other hand, there is now a proliferation of consumers who search on-line opinions about the products directly in virtual communities or through search engine. It raises several important questions. Do factors that are relevant to recommender selection within traditional word of mouth communication, such as sender's expertise, tie-strength and perceived risk, influence WOM communication within on-line environments? What are the differences of consumer trust formation between traditional and on-line WOM communication?Thereby, by reviewing the general body of word of mouth communication and trust literature, the author constructs the research framework of this article. On the premise that University students searching product information before purchase decision, we examine the influence of electronic word of mouth on consumers' purchase decision, and carry out comparison research on the tradition and online WOM communication.This research focuses on consumer trust as the central construct that mediates the extent to which WOM sender's influences the purchase decision. Utilizing a two-dimensional conceptualization of trust as comprising of cognitive and affective trust, this research examines the sender's and receiver's characteristics that could differently affect these two dimensions. This research examines the difference of trust formation between traditional and on-line WOM communication. Further, the author looks at how the level of trust influences the purchase decision. Also the paper reveals managerial implications based on the final conclusions.The dissertation draws mainly the following conclusions:(1)The sender's expertise has positive influence on receiver's purchase decision both in traditional and on-line WOM communication.(2) In traditional WOM communication the tie-strength has positive influence on receiver's purchase decision. In on-line WOM communication, the tie-strength doesn't have significant effect on WOM's influence.(3)The greater the receiver's trust propensity, the greater the influence of sender's WOM on the receiver's purchase decision.(4) In traditional WOM communication, the sender's expertise, tie-strength positively affects the receiver's cognitive-trust on the sender, and tie-strength, receiver's trust propensity positively affects the receiver's affective-trust. In on-line environments, the sender's expertise, receiver's trust propensity positively affects the receiver's cognitive-trust, the sender's expertise, tie-strength and receiver's trust propensity positively affects the receiver's affective-trust.(5) In traditional WOM communication, the receiver's cognitive and affective trust both positively affects the WOM's influence on purchase decision, and the efficiency of the affective trust is more significant. In on-line environments, the receiver's cognitive trust positively affects the WOM's influence on purchase decision but affective trust doesn't have a significant effect on WOM's influence.