A look into electronic word-of-mouth(eWOM) for customer acquisition

Abstract

In a highly digitalized environment, that is increasingly shaping purchasing behavior, electronic word-of-mouth (eWOM) has become a central force in influencing consumer decision-making. Particularly for micro enterprises operating with limited resources, eWOM presents a powerful mechanism to acquire customers. This study investigated how micro enterprises perceived the role of eWOM in shaping customers’ attitudes and purchase intentions and how they strategically leveraged it to communicate the product value and relevance.

The theoretical framework incorporated the Theory of Planned Behavior, Signaling Theory, Social Exchange Theory and Diffusion of Innovations to support interpretation. The framework provided a foundation for understanding the eWOM’s influence in consumer behavior, reducing information asymmetry, fostering relational reciprocity and accelerating product adoption, guiding to the main objective. This qualitative research study involved in-depth interviews with four correspondents of micro enterprises that were thematically analyzed to gather data.

The results showed that the micro enterprises viewed eWOM to be significantly influential due to its authenticity and perceived credibility, that shaped potential customers’ attitudes, perceived norms and confidence in decision-making. The findings indicated that the enterprises strategically leveraged eWOM by actively encouraging user-generated content to build more trust amongst prospect customers and advocate the relative strength and unique advantages. Thus, the study concluded that eWOM is much more than a persuasive communication channel, a strategic relational asset that accommodates customer acquisition.