Word-of-mouth Communication in Low-risk Product Decisions

Abstract

Word-of-mouth communication is an elusive but powerful market force. While past studies of word of mouth have concentrated on high-risk products, this study demonstrates the power of word of mouth in influencing low-risk purchase decisions. The results indicate that word of mouth does not operate in isolation but in conjunction with media information sources. They also show that word-of-mouth behaviour is not random but is reinforced by needs of both informers and informees.