Electronic Word of Mouth (eWOM) in Consumer Communication

Introduction

The emerging growth in digital technologies is affecting marketing strategies in a significant manner (Rosario et al., 2022; Steinhoff & Palmatier, 2020). Organizations can reap the benefits of digital platforms by reaching out to their customers almost immediately and obtaining their rapid feedback through various digital mediums such as e-commerce, social commerce, online review sites and peer-to-peer networking sites (Donthu et al., 2021; Cheung & Thadani, 2012; Gupta & Harris, 2010). These consumers’ critiques and opinions about products and services, which they share through online mediums, are known as electronic word of mouth (eWOM) (Donthu et al., 2021). Current technologies have amplified the reach of word-of-mouth communications. With a wider reach compared to traditional WOM, previous research has shown that eWOM is a credible and influential source of information sharing and seeking among consumers (Cheung & Thadani, 2012).

Consumers use eWOM information to evaluate their purchase decisions (Godes & Mayzlin, 2004; Babic Rosario et al., 2016). Today's consumers are more informed since they look for unbiased reviews from anonymous people on online platforms before making any product-related decisions. The features of comments, likes, video-based eWOM and verified product/service reviewers have enhanced the understanding of potential customers about the marketer's offerings. Consumers feel more secure when scrutinising other consumers' experiences with using the product (Albayrak & Ceylan, 2021). It also tends to reduce their perceived likelihood of making impulsive purchases (Hennig- Thurau et al., 2004).

Gathering, presenting and encouraging consumers to post eWOM about products and services is becoming a priority for companies to exhilarate their sales (Duan et al.,2008; Xiong & Bharadwaj,2014). Previous studies have shown that eWOM impacts sales (Zhou & Duan, 2015; Hyrynsalmi et al., 2015; Sharma et al., 2011) and creates a rippling effect by generating more eWOM which induces higher sales (Ismagilova et al, 2017). Cedric Lacroix, managing director of Nestle, Japan, had claimed that eWOM created by their consumers when the company launched “Pink Kit Kat” made the product a viral sensation and overshadowed all types of paid advertising when the product became sold out within two days of its launch and was even sold through black markets (Indian Express, 2019). India alone has about 749 million active internet users, increasing to about 1.5 billion users by 2040 (Statista, 2021). The connected beauty consumer report by Google (2020) has postulated that nine out of ten Indian customers pass through digital touch points in their buying process journey. They critically analyze product reviews and seek eWOM recommendations for this purpose. Past research has noticed similar findings for countries such as America (Babic Rosario et al., 2019), China (Zhu et al., 2017) and other Asian countries (Mir & Rehman, 2013; Nusier, 2019; Hu & Kim, 2018). It has also been found that eWOM supports commercial advertising by reaching a larger set of audience in a faster and more cost-effective manner (Kim et al., 2017).