current research questions in word of mouth communication

Next Corporate Communication Research Center for Digital Business

RESEARCH REPORT

Current Research Questions

in Word of Mouth Communication

Next Corporate Communication

Research Project: Word of Mouth Marketing

Sept 24, 2013

By Alexander Rossmann


Current Research Questions

in Word of Mouth Communication

Abstract

Word of mouth (WOM) communication, long recognized as a highly influential source of information,

has taken on new importance with the proliferation of online WOM. The rise of online forums and

communities has dramatically increased the scope of word of mouth marketing, allowing consumers

greater access to information from subject matter experts and other key influentials who impact new

purchases. Online WOM data have been widely used in the literature to examine topics such as the

impact of WOM recommendations and reviews, brand community involvement, and product adoption.

For all the valuable contributions made by WOM research, a lot of important questions still remain

unexplored. One is delineating the preconditions for user engagement in WOM communication;

another is exploring the role of WOM content and WOM context on the efficacy of WOM in general.

And there is final area where research is needed, focusing on organizational capabilities firms need in

order to foster the impact of WOM communication on purchasing behavior.

Keywords:

Word of Mouth, Online Word of Mouth, Social Media, Brand Community, Content Marketing,

User Engagement, Organizational Capabilities


Introduction

Word of mouth (WOM) communication, long recognized as a highly influential source of

information, has taken on new importance with the proliferation of online WOM. The rise of online

forums and communities has dramatically increased the scope of word of mouth marketing (Dwyer

2007; Kozinets et al. 2010), allowing consumers greater access to information from subject matter

experts and other key influentials who impact new purchases (Rogers 2003). Online WOM data have

been widely used in the literature (Kozinets 2002; Kozinets et al. 2010) to examine topics such as the

impact of WOM recommendations and reviews (Liu 2006), brand community involvement (Muñiz and

O’Guinn 2001), and product adoption (Algesheimer and Dholakia 2006; Thompson and Sinha 2008).

Consumers may also use online environments to express their dissatisfaction with a brand or its

products (e.g., Grégoire, Laufer, and Tripp 2010; Hennig-Thurau et al. 2004).

For all the valuable contributions made by WOM research, a lot of important questions still

remain unexplored. One is delineating the preconditions for user engagement in WOM

communication; another is exploring the role of WOM content and WOM context on the efficacy of

WOM in general. And there is final area where research is needed, focusing on organizational

capabilities firms need in order to foster the impact of WOM communication on purchasing behavior.

User engagement

One relevant area for further research covers the general question why internet users engage in

WOM behavior. Positive WOM can be considered as a specific kind of value co-creation. Thus, an

engagement in WOM communication might create value for companies and users. Companies and

their brands benefit from positive WOM in many ways. Such a communication driven by online users

might impact purchasing behavior of the WOM recipients (Rogers 2003), customer involvement (Liu

2006), or new product adoption (Algesheimer and Dholakia 2006; Thompson and Sinha 2008). On the

other hand online users might also benefit through their participation in WOM. Engaging in active

WOM communication facilitates the online visibility of users, promotes their status, and impacts

generally positive on their perception as a subject matter expert or thought leader. Therefore, scholars

need to research the specific motives of users and viable strategies in order to stimulate positive

WOM behavior. Summarized, papers in this research tack might concentrate on the following research

questions: (1) Why are online users engaging in WOM behavior?, (2) Which type of value is created

for corporations and users through online WOM?, (3) How can corporations stimulate WOM behavior

in social networks?


Content

Another area of research affects the content of WOM communication. Organizations might drive

WOM communication by rethinking their content strategy in social networks. To date, most

corporations concentrate on their own products and other firm specific content or social ads. However,

current research and practice provides no evidence for the efficacy of these content strategies.

Therefore, it is important to distinguish between specific types of content. Subsequently, scholars

need to evaluate how specific types of content impact on the willingness of online users to engage in

WOM behavior. Finally, different types of content might also impact on the effect of a WOM

communication on uninvolved recipients. This leads to several important research questions: (1) How

might WOM communication in general be separated into different content types?, (2) How effective

are different content types in order to stimulate WOM behavior?, (3) How impact different content

types communicated by WOM on purchasing behavior?

Context

Besides the content of a specific communication thread, the context of online users might also

influence the efficacy of WOM communication. Context is a broad description of the concrete situation

of a single user. Thus, independent of the content of WOM it makes a clear difference if online users

actually search for new products or services or use social networks primary for business or private

purpose. Thus, multiple research questions arise if scholars focus on the specific context conditions of

WOM communication.

Organizational capabilities

Finally, we know little about the specific capabilities organizations need to develop in order to be

successful in WOM communication. Obviously, the stimulation and sustainable implementation of

WOM communication leads to new requirements in terms of structure, processes, and culture. This is

the case, because the theory and practice of WOM communication emphasizes an active part of the

customer in the communication process. However, most marketing and communication departments

still treat the customer as a passive object of corporate communication strategies. If the customer

tends to take a more active role, corporations are forced to set up suitable resources and processes in

order to deal with this engagement. Thus, it seems to be clear that a stronger interaction with the

customer requires a set of new organizational capabilities.


References

Algesheimer, René and Utpal M. Dholakia (2006), “Do Customer Communities Pay Off?” Harvard

Business Review, 84 (November), 26–30.

Dwyer, Paul (2007), “Measuring the Value of Electronic Word of Mouth and its Impact in Customer

Communities," Journal of Interactive Marketing, 21 (2), 63–79.

Grégoire, Yany, Daniel Laufer, and Thomas T. Tripp (2010), “A Comprehensive Model of Customer

Direct and Indirect Revenge: Understanding the Effects of Perceived Greed and Customer

Power,” Journal of the Academy of Marketing Science, 38 (December), 738–758.

Hennig-Thurau, Thorsten, Kevin P. Gwinner, Giafranco Walsh, and Dwayne D. Gremler (2004),

“Electronic Word-of-Mouth via Consumer-Opinion Platforms: What Motivates Consumers to

Articulate Themselves on the Internet,” Journal of Interactive Marketing, 18 (1), 38–52.

Kozinets, Robert V., Kristine de Valck, Andrea C. Wojnicki, and Sarah J.S. Winer (2010), Networked

Narratives: Understanding Word-of-Mouth Marketing in Online Communities,” Journal of

Marketing, 74 (March), 71–89.

——— (2002), “The Field Behind the Screen: Using Netnography for Marketing Research in Online

Communities,” Journal of Marketing Research, 39 (February), 61–72.

Liu, Yong (2006), “Word of Mouth for Movies: Its Dynamics and Impact on Box Office Revenue,”

Journal of Marketing, 70 (July), 74–89.

Muñiz, Albert M. Jr. and Thomas C. O’Guinn (2001), “Brand Community,” Journal of Consumer

Research, 27 (4), 412–432.

Thompson, Scott A. and Rajiv K. Sinha (2008), “Brand Communities and New Product Adoption: The

Influence and Limits of Oppositional Loyalty,” Journal of Marketing, 72 (October), 65–80.


About us

Alexander Rossmann is Professor for Marketing and Sales

at Reutlingen University and Project Director at the Institute

of Marketing, University of St. Gallen. Prior to this, he was

for ten years Managing Director of a leading consultancy

firm. His expertise covers relevant issues of social media

research, digital business, and relationship marketing.

Alexander holds a doctoral degree from the University of

St.Gallen and a masters degree from the University of

Tubingen and the State University of New York. He was

born near Stuttgart and is married with three children.

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