Dissecting Word-of-Mouth's Effectiveness and How to Use It as a Proconsumer Tool |
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Authors: | Bodo Lang Rob Lawson |
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Institution: | 1. The University of Auckland Business School, The University of Auckland , Auckland , New Zealand b.lang@auckland.ac.nz;3. Department of Marketing , School of Business, University of Otago , Dunedin , New Zealand |
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Abstract: | Companies are increasingly relying on alternative promotional activities, such as word-of-mouth communication (WOM), to reach their target markets. From a consumer protection perspective this may be troubling, as consumers may not always be aware of what is commercially motivated WOM and what is not. Based on a synthesis of the literature, this article develops the first practitioner-friendly model, which explains WOM's effectiveness as an information source for consumers and why it is a powerful tool for nonprofit organizations and government agencies. Then nine recommendations are developed to help nonprofit organizations and government agencies use WOM more effectively as a proconsumer tool. This is the first article to conceptualize proconsumer WOM rather than naturally occurring WOM or commercial WOM and to specifically focus on WOM to protect and educate consumers. The study paves the way to an untapped research area; that of proconsumer WOM by nonprofit organizations and government agencies. |
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Keywords: | word-of-mouth communication consumer protection nonprofit government public sector |
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