eWOM refers to any positive or negative statement made by potential, current or former customers about a product or business, made available online to a large number of people and institutions. The huge growth of online shopping, combined with the value consumers place on the experiences of their peers, makes it more important than ever to understand which factors in eWOM are decisive in shaping customers' intentions to buy products and services online.
Since the World Wide Web emerged 30 years ago, the way people communicate has changed enormously. The internet has created a social and cultural environment in which information can be shared easily. On top of being an information source, the internet also became a shopping platform. Countless businesses have opened a webshop, some of which do not sell through physical stores at all but exclusively online. Over time, the internet became an increasingly important information source where individual consumers shared their personal experiences with products and services and/or offered consumption-related advice. This kind of digital communication is called Electronic Word Of Mouth (eWOM). eWOM refers to "any positive or negative statement made by potential, current or former customers about a product or business, made available online to a large number of people and institutions". eWOM is more persuasive and more desired by consumers than information generated by marketers, and it is important in convincing consumers to try products.
Research has shown that eWOM influences both consumers' intentions to buy products online and a product's sales, in both positive and negative directions. Research results have confirmed that product-related eWOM affects buyers' attitudes, intentions and behavior, as well as omnichannel purchases. The effectiveness of eWOM is in line with long-standing theories in the literature on behavior change, such as Fishbein & Ajzen's theory of reasoned action. That theory explains that subjective norms, such as social influence and eWOM recommendations, exert influence on someone's attitude or behavior. Understanding the effect of eWOM messages is therefore highly important, since they affect both business performance and customer relationships.
Now that you know what eWOM is, we hope you get a sense of how important it is to encourage customers to post positive content about your business. Say goodbye to traditional online marketing - eWOM is taking over!