WORD-OF-MOUTH ADVERTISING : WITH FOCUS ON EFFECTS OF MESSAGE SIDEDNESS, SOURCE AND USER-TYPE

Abstract

Word-of-mouth's power to accelerate or retard sales is well recognised by researchers. Ironically, the notion of word-of-mouth has never been systematically researched into. This study attempts to identify the salient areas that have been neglected and incorporates them into research issues to be investigated. A 3 X 2 X 2 factorial experiment in a laboratory simulation was used to examine the main and interaction effects of three independent variables ( message, source and user-type) on credibility and behavioural intention. Two different student samples (secondary students and undergraduates) were selected for participation in the experiments, resulting in a total 1440 subjects involved (720 each for the two samples). In addition, survey questionnaires were distributed to three different (secondary students, undergraduates, working people) separate samples (different students from the experiment) to allow for a general understanding of word-of-mouth as a source of information. A total of 896 respondents were solicited. ANOVA results for the experiments showed that, generally, source and user-type were found to be significant factors affecting the credibility of word-of-mouth. Father as a word-of-mouth source is perceived to be more credible (than close friend). Likewise, past users were found to be more credible when compared to non-past users. Message was, however, found to affect significantly the behavioural intention variable. Negative message was found to generate the strongest negative behavioural intention than positive message and two sided message in generating positive and negative behavioural intention respectively. Two-sided message was, however, found to have a stronger effect on behavioural intention, when compared to positive message. In addition, some significant two and three-way interaction effects between the independent variables were also detected. T-tests results also revealed significant differences in perceptions between the two samples in some instances. Results obtained for the survey concluded that word-of-mouth sources are generally reliable and influential. Significant differences in perceptions were observed among the samples when Oneway ANOVA was applied. This study, in examining both the general and specific issues, was an initial attempt to apply the study of word-of-mouth behaviour in the Singaporean context. Important implications arising from the study, can thus be used by local marketers in their formulation of marketing strategies, especially in the capitalisation of the power of word-of-mouth.