What Makes Offline Word-of-Mouth More Influential than Online Word-of-Mouth?

Abstract

In this paper, we examine online and offline WOM communication channels in terms of their effectiveness. We explore the factors that make offline WOM more influential than online WOM. Furthermore, we explore how personal characteristics, culture and product categories and features influence consumer preference of one channel to the other. In addition, we examine the channel characteristics that influence consumer preference of one to the other. This study suggests that the strength of ties and the quality of communication are the antecedents to the effectiveness of WOM communication channel. Moreover, it suggests that the value of information mediates the relationship between the strength of ties and the effectiveness of WOM. The study also argues that consumers trust offline WOM more when they seek information about services. On the other hand, they pay more attention to expertise when they seek information about products with high complexity. The study indicates that mindful consumers tend to engage in online WOM more than less mindful or mindless consumers. Besides, consumers in individualist culture use online communication channel more than those in collectivist culture do in order to obtain information about products.

Keywords: WOM Communication, Online WOM, Offline WOM, Online Reviews

JEL Classification: M31