What is word of mouth, and how do companies use it?

Consumers often turn to other people, especially friends and family members, for opinions on products and services. The person – the transmitter of such information affects the consumer’s decision. Such people are often called “opinion leaders.” Personal influence is significant, as consumers usually see friends and relatives as more trustworthy sources. What kind of people are these? What motivates them to share their experiences with other people? This article will discuss the concept known as word of mouth and how companies use it.

What is word of mouth?

Word of mouth is interpersonal communication between two or more individuals, such as, for example, members of a reference group or a consumer and a seller. Word of mouth is perhaps the most powerful means of communication of all existing and can be successfully used by marketing specialists. 

Personal influence is very significant, as consumers usually see friends and relatives as sources more trustworthy than commercial sources of information. Moreover, information from a reference or family group is a means of reducing the risk of a purchasing decision.

How do companies use it?

Companies use word of mouth strategy differently. It could include influencer marketing when a particular person in her/his personal Instagram page promotes a product, Facebook ads, and anything that has oral communication in it.

Word of mouth is generally useful in gambling. We have to admit that the opinion of our friend to choose a particular gambling company influences us a great deal. The advertisement might not be such an effective method, as communication proves to be, so gambling industries are very much aware of that fact.

Therefore word of mouth is particularly prevalent in the gambling industry and especially in Canada. As the industry is very popular in the North American country, real money live casino games CA are always looking for innovative ways to incorporate this strategy effectively. They use Instagram as the primary source, and the people who are part of these casinos also advise their friends to join it. Oral communication proves to be a very effective method in convincing people to do something, especially in the gambling industry.

Word of mouth communications can be divided into three types: product news, providing advice, and personal experience. 

Product news is information about a product, such as computer specifications, new solutions in information technology, or product performance attributes. Providing advice includes expressing an opinion on the computer or advice on which model to buy. Personal experience is the consumer’s comments about the operation of his computer or the reasons for the purchase. Product news is straightforward and neutral, but advice and personal experience are either positive or negative.

Information and influence are the two main functions of word of mouth. Communications such as product news inform the consumer, advice, and experience affect the consumer decision. Each type of communication may be most important at different stages of the purchasing decision. Product news is required to inquire about product features or a new product. 

After reaching awareness, acquaintance with the experience of using the product as a friend or relative allows the consumer to judge the comparative merits of the brands. Finally, the advice is most needed to make a final decision, since the opinion of a friend about the purchase can be influential.


Generally, it is considered a very decent strategy for companies to conduct their marketing activities actively. It is particularly widely used by a large company such as Coca-cola. So if a company is looking for attracting consumers, it should definitely try word of mouth.

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