Electronic Word of Mouth in Retail Sector

Electronic Word of
Mouth in retail sector

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Electronic word of mouth ...........................................................................................................3
Advantage of electronic word of mouth......................................................................................4
Disadvantage of electronic word of mouth ................................................................................5
Connectivism: A Learning Theory for the Digital Age..............................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Electronic work of mouth can be described as positive as well as negative statement
which is made by former, potential or actual customers about products of a company that is
available to different people or institution and can be spread over internet (Chang and Wang,
2019). It is required by customers while buying a product as customers is looking for information
which was provided by other customers. This project report includes descriptive of electronic
word of mouth which is break into different description. It also consist discussion of theory
related to this area and support to this concept.
TASK
Electronic word of mouth
Electronic word of mouth can be described as positive as well as negative statement
which is made by different customers related to a company or any product that is available for
different people and can be spread over internet. It is a concept that is related to application of it
with different user generated content in context of digital advertising mix and can be overlapped
with viral advertising (Chu and Chen, 2019). It is used by customers while buying a product as
customers require these information that is written through other customers on internet. In this,
marketers are taking step in order to generate, support as well as amplify these Electronic Word
of Mouth in order to influence decision making process of customers. Electronic Word of Mouth
provide a road map which helps to marketers to understand working of organisation and also
allow them to enhance effectiveness. Electronic Word of Mouth play important role as it heavily
influence on internet and create impact on ways of a customers make decision related to
purchase of products and service. Customer are not only depended on information provided by
marketer instead they are looking for honest review of other customers (Chu and Kim, 2018).
For instance, while shopping online on a website like Amazon, customers is looking of review of
that products in order to make decision related to purchase of product. So, it is important for
marketer to focus on Electronic Word of Mouth as it create high influence on products and
service of customers. EWOM is consider as important market force for customers as people find
out these as most unbiased as well as trustworthy sources in order to made a decision.

Advantage of electronic word of mouth
EWOM is a creating buzz in field of market which provide various benefits various
benefit to organisation and goes viral if message of company is catchy and address in appropriate
manner in order to attract more attention of customers. It is considered as important factor at in
terms of physical as well as digital channels (García-de los Salmones, Herrero and Martínez,
2021). It provide different benefits to an organisation specially in retail sector as in order to buy a
product and allow customers remain loyal with them. Some of these benefits of EWOM for an
organisation is mentioned below:
Influence information search: People are allowed to share information and experience
on internet related to quality, information of products. EWOM is one of important concept which
is essential in order to eliminate ability of a person to judge to credibility of sender and their
message (Electronic Word-of-Mouth (eWOM) Marketing, 2016). Potential customers are less
interest in order to know the customer who as provided EWOM in e-commerce websites. In this
situation, receiver of EWOM will evaluate more attribute as per quality, authority, attractiveness
and authenticity of information.
Share with people: Reviews website, social media are getting g success in market as it
allow people to share information. People share information on social media due to various
reason as they are interested in expressing experience and also love to networking which allow
them to helps other people. There are some other reason for sharing these information as it allow
people to made connection with people (Hwang and Zhang, 2018). EWOM can be worked as
chain as it allow one person to share information with their friends and also allow their friends to
share information with their other friends (The Importance of Electronic Word-of-Mouth
Marketing, 2022). It make EWOM more important for an retail organisation. For instance, in
order to buy a product from H&M from its online store, a customers is seeing review of it on
social media and also ask to their friends about reviews of products of company. It increase more
positive situation when customers see their friends to wear that brands and also make decision to
buy that products from a specific organisation.
Increase reach of company: EWOM helps an organisation to increase reach of products
and service in many ways. For instance, there are 5 blogger who has network with around 1000
people. That blogger is passionate about a product of company, will share abut company to their
network of people which increase awareness of products of company among thousands of people