In search of a definition
The phrase 'word of mouth' has been used in everyday English for a long time. According to the most reliable source of English language etymology, the Oxford English Dictionary, the first written occurrence of the term dates back to 1533. The dictionary defines it as 'oral communication', 'oral publicity', or simply 'speaking', in contrast with 'written and other method[s] of expression'.5 As the etymological notes testify, this meaning has been stable over the centuries.
More recently, in marketing and communication literature word of mouth has taken on a more restricted meaning. It refers only to interpersonal communications about commercial entities. While the phenomenon of people talking about products had clearly been known throughout the first half of the 20th century, the concept of word of mouth only became a scientific term after the rise of positivist communication research in the US after World War II.6 A useful summary of this early research on word of mouth offered the following definition:
Oral, person-to-person communication between a receiver and a communicator whom the receiver perceives as non-commercial, concerning a brand, a product or a service.7
The definition consists of three essential parts. First, and in agreement with the common use of the term, word of mouth is interpersonal communication .This element sets word of mouth apart from mass communication (such as advertising) and other impersonal channels available for consumers (e.g. third-party sources of consumer information such as Consumer Reports). Further, the code of this type of communication is language. So, other, less tangible forms (non-verbal communication, or information exchange arising from the imitation of others) do not qualify for the label 'word of mouth' in themselves.They might accompany word of mouth, but they are not essential to it.
Second, the content of word of mouth communication from a marketing perspective is commercial. The message is about commercial entities, products, product categories, brands and marketers - or even their advertising.8 This restriction in the meaning of the term underscores that word of mouth is a technical term appropriated for marketing, consumer behaviour and mass media. While in everyday language we might use the phrase 'word of mouth' for any kind of interpersonal communication, or in the meanings of 'hearsay' or 'rumour', word of mouth in marketing refers to talk about brands, marketers and advertising.
Third, even though the content of word of mouth communication is commercial, the communicators are not motivated commercially, or at least they are perceived not to be.They don't talk about brands because they are employees of the company, or receive any incentives from it.They talk at their own will. It's important to emphasize that this part of the definition is phrased in perceptual terms. It's enough that the communicator is perceived to be unbiased - (s)he does not necessarily have to be so. In this case, perception is reality.
It's not only theoretically possible but well-known practice for certain marketers or their agents to mask themselves as non-commercial sources of information while being financially motivated. Arndt cites some anecdotal evidence for such marketing tactics dating back to the 1930s ('whispering campaigns' conducted by 'professional rumor mongers').9 Similarly, current trade sources often describe conscious efforts to manage word of mouth.10 While these messages do not come from independent, unbiased sources, they are still labelled as word of mouth, if their communicators are perceived as non-commercial.
The early marketing and communication literatures on word of mouth often use the phrase 'word of mouth advertising', referencing this Janus-face nature of word of mouth. Word of mouth is commercial in content but non-commercial in perception. 'Word of mouth advertising', however, is quite a misnomer, since it seems to imply that word of mouth is always intentional, it fits into someone's marketing plan and it is inherently deceitful.This is simply not the case, nor does the above definition require such an interpretation. Word of mouth is a naturally occurring phenomenon of consumer behaviour, and it may or may not be induced by the conscious efforts of mar-keters.This is a crucial distinction, as we will see in the implications section of this chapter. For now it's enough to say that word of mouth in academic literature is not equated with efforts to manage it. Buzz is not equal to buzz marketing. Word of mouth is simply commercial talk among consumers, none of whom is perceived to be associated with marketers.
The definition analysed above has proved an enduring one. Most of the articles reviewed for this chapter used it almost verbatim. In other words, there is a strong consensus in academic marketing research about what word of mouth means.The phrasing might differ a little, but the definitions are essentially the same. Word of mouth has been defined as 'interpersonal communication between a perceived noncommercial communicator and a receiver concerning a product or service',11 'opinions sought from personal sources',12 'hearing about a product or service from friends',13 'product related conversation',14 'interpersonal interaction that does not involve personal selling',15 'interpersonal information exchange about a product, service or retailer',16 'informal communication directed at other consumers about the ownership, usage or characteristics of particular goods and services and/or sellers',17 'interpersonal communications in which none of the participants are marketing sources',18 and 'the act of telling at least one friend, acquaintance or family member about a satisfactory or unsatisfactory product experience'.19
While there is some apparent variation between those definitions, it is mostly due to omitting one or two parts, and not substantial disagreements. The authors either leave out the requirement that the interaction should be non-commercially motivated or that the content of the messages should be about products, services, or marketers. However, there are no irresolvable logical contradictions between these definitions and no author challenges previous conceptualizations of word of mouth. Even in the cases where some prongs are left out, the context of the definition clarifies that all of the above three parts are required. Further, in a good number of studies (especially among those published more recently) there is no conceptual definition offered whatsoever. One possible reason for this might be that authors have felt that the foundations of the concept are firm. Other studies simply cite earlier definitions verbatim without discussion.
Some articles emphasize the fact that word of mouth is not necessarily positive, it does not necessarily praise the product, service, or marketer. Accordingly, 'negative word of mouth' (NWOM) has been defined as 'interpersonal communication among consumers concerning a marketing organization or product which denigrates the object of communication',20 'complaining to friends and relatives',21 or 'telling friends and relatives about [a] dissatisfying experience [with a product or service]'.22 In contrast,'positive word of mouth' (PWOM) is conceptualized as 'product-related information transmitted by satisfied customers'.23 These definitions are again easy to integrate into the general one discussed above, provided one keeps in mind the limited sphere of applicability. No study explores the possibility that NWOM and PWOM are fundamentally different. Instead, they are thought of as identical, merely varying between negative and positive endpoints. There is some evidence, however, that NWOM is more potent than PWOM.24 (And see Brad Ferguson's case study in Chapter 12)
In short, we can conclude that the definition of word of mouth from a marketing perspective is solid in academic research.There is a widespread consensus that word of mouth is a naturally occurring fact of consumers' lives, who talk about products, brands, marketers, or their advertising among themselves, and by default they do not consciously serve a marketing strategy while doing that. Word of mouth is 'Oral, person-to-person communication between a receiver and a communicator whom the receiver perceives as non-commercial, concerning a brand, a product or a service.'25
Having clarified the conceptual foundations of word of mouth, it's time to investigate how word of mouth communication works, what causes it and what effects it has.
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