Electronic Word-of-Mouth Communication and Consumer Behaviour - An Exploratory Study of Danish Social Media Communication Influence

Abstract

The rapid adoption of social media, along with the easy access to peer information and interactions, has resulted in massive online word-of-mouth communication. These interactions among consumers have an increasing power over the success or failure of companies and brands. Drawing upon word-of-mouth communication and consumer behaviour theories, this paper investigates the use of word-of-mouth communication through social media among a group of Danish consumers. The findings suggest that electronic word-of-mouth communication among friends and peers affect consumer behaviour. Additionally, peer communication is perceived as more objective and therefore found more reliable than companies’ brand communication. Furthermore, negative word-of-mouth is perceived as more trustworthy compared to positive messages, which are often believed to be too subjective. The research findings emphasise the importance one has to assign to social media as a source of reputation for companies and brands, which eventually impact consumers’ choices.