Impact of E-Word-of-Mouth on Purchase Decisions
Chapter 1
Introduction
1.1 Research Background
Word-of mouth communication (WOM) is the process which allows consumers to share information and opinions that direct buyers towards and away from specific products, brands, and services. Marketing research on WOM dates to the 1960’s and over time
WOM definitions have evolved In the early years, WOM was defined as face-to-face communication about products or companies between those people who were not commercial entities ( Litwin 2009)
1.11 Internet
Internet is a system architecture that has revolutionized communications and methods of commerce by allowing various computer networks around the world to interconnect. Approximately 360 million people have access to internet. Now a day’s internet has become a primary source of information for a large number of internet users.
To capitalize on growing number of internet users, many websites emerged on internet such as Tripadvisor.com, Booking.com, and agoda.com. These websites provide consumers a convenience of booking hotel accommodation online. All these websites also let the users post about their experience of hotels, rate them on scale and post full reviews.
Owning to increasing number of internet users, marketers have also moved to different approach, they are using internet as a major marketing media. Internet is a virtual market place as well as an advertising media which can reach 6% of the world’s population.
1.12 Brand image
Brand image or corporate image is totality of personality of a brand which includes real as well as imaginary attributes. It is agreed that brand image is formed over time from various sources such as advertisement and word of mouth and is authenticated by experience. A key step in marketing strategy, known as positioning, involves creating and communicating a message that clearly establishes the company or in relation to competitors.
1.13 WOM
Word of mouth (WOM) – interpersonal communication about products and
Introduction
1.1 Research Background
Word-of mouth communication (WOM) is the process which allows consumers to share information and opinions that direct buyers towards and away from specific products, brands, and services. Marketing research on WOM dates to the 1960’s and over time
WOM definitions have evolved In the early years, WOM was defined as face-to-face communication about products or companies between those people who were not commercial entities ( Litwin 2009)
1.11 Internet
Internet is a system architecture that has revolutionized communications and methods of commerce by allowing various computer networks around the world to interconnect. Approximately 360 million people have access to internet. Now a day’s internet has become a primary source of information for a large number of internet users.
To capitalize on growing number of internet users, many websites emerged on internet such as Tripadvisor.com, Booking.com, and agoda.com. These websites provide consumers a convenience of booking hotel accommodation online. All these websites also let the users post about their experience of hotels, rate them on scale and post full reviews.
Owning to increasing number of internet users, marketers have also moved to different approach, they are using internet as a major marketing media. Internet is a virtual market place as well as an advertising media which can reach 6% of the world’s population.
1.12 Brand image
Brand image or corporate image is totality of personality of a brand which includes real as well as imaginary attributes. It is agreed that brand image is formed over time from various sources such as advertisement and word of mouth and is authenticated by experience. A key step in marketing strategy, known as positioning, involves creating and communicating a message that clearly establishes the company or in relation to competitors.
1.13 WOM
Word of mouth (WOM) – interpersonal communication about products and
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