"Consumers prefer word-of-mouth communication over other marketing communication as they believe that while the latter have an ulterior interest in making sales, the former is more credible with no ulterior motives. The other advantages of word-of-mouth communication are: - Word-of-mouth communication reduces the physical and cognitive effort that the consumer has to take to gather information, evaluate alternatives and take the right decision. - It helps an individual seek advice from the right person who has interest, knowledge and experience with a product and service category; especially in cases of high involvement products, a person may be less knowledgeable and less involved and can take advice from someone who is more experienced and knowledgeable for that product category. - Word-of-mouth communication also reduces the level of uncertainty associated with a purchase. People turn to informal sources for information so as to be able to be certain with respect to the purchase decision. This is particularly true for high involvement products, as also for products that need social approval and/or match social class and social status. People often turn to experts and opinion leaders for advice; They also look up to reference groups; While experts provide product knowledge and make consumers feel more certain about a product alternative, reference groups lead to an increase in consumer's confidence about making a product choice that is socially approved and acceptable. Source: http://in.docsity.com/en-docs/Opinion_Leadership_-_Consumer_Behavior_-_Solved_Quiz_"
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