Wordofmouth

Word of mouth, often abbreviated as WOM, refers to the passing of information about products, services, brands, or experiences between consumers through informal conversations and recommendations. It relies on interpersonal communication and can occur in person, over the phone, or through digital channels. WOM can influence attitudes and purchase decisions, and in some contexts is perceived as more credible than traditional advertising because it comes from trusted acquaintances.

Two broad forms are recognized: traditional word of mouth, which happens in face-to-face conversations, and electronic word of mouth (eWOM), which occurs online through reviews, blogs, forums, social media, and messaging.

Historically, WOM circulated locally and informally, serving as a primary source of information about offerings. The rise of the internet and social platforms expanded its reach, enabling rapid dissemination and a greater role for online ratings and user feedback in decision making.

Research finds that WOM can be highly influential because it comes from peers and is perceived as credible. Mechanisms include social proof, source credibility, and emotional resonance. Measuring WOM involves surveys and metrics such as net promoter score, as well as digital listening for reviews and mentions.

Businesses seek to encourage positive WOM through product quality, customer service, and experiences that surprise or delight customers. Tactics include referral programs, loyalty incentives, and visible testimonials. Organic WOM arises naturally, while incentivized or amplified WOM may involve compensation.

Limitations include its unpredictable, episodic nature and the potential for negative word of mouth to spread rapidly. Firms must balance efforts to stimulate WOM with authenticity, risk management, and compliance with advertising standards.