3. A multi-stage model of WOM influence
In this section, we first review multi-stage models as mechanisms
for understanding the consumer decision-making process. We then
integrate WOM into the model, and discuss how WOM is likely to
influence each stage of the decision-making process and what
antecedents (e.g., characteristics of the source) moderate such
influence.
3.1. WOM influence and the stages of the decision-making process
It has long been argued that it is useful to view a consumer's
purchasing decision as the outcome of a complex, multi-stage process
(Bettman, 1979) whose stages are conceptually distinct although not
necessarily observable. The multi-stage decision-making model
consists of a sequence of mental stages or levels that consumers
experience throughout a purchasing decision (the final stage). The
sequence typically includes at least the following stages:
Awareness. The consumer knows the alternative exists, but may not
have either interest in it or sufficient information to understand its
possible benefits.
Interest. The consumer is aware, develops some interest, and hence
decides to learn more about the product.
Final decision. The consumer has now taken an observable action, a
purchase of a good or service or the sustained adoption of an
innovation.
Note that this process is hierarchical in the sense that each step is
conditional on the positive or favorable outcome of the previous one.
The original sequence proposed by Rogers (1962) included an
evaluation stage and a trial stage that may not be relevant in all
contexts. Other variations of this sequence exist (Hauser & Urban,
1977; Rogers, 1995). For instance, if a consumer becomes aware
through exposure to a very persuasive source (e.g., a very effective ad
or an enthusiastic peer), awareness and interest may occur concurrently
(Van den Bulte & Lilien, 2003). Alternatively, interest and
evaluation may be combined. Nevertheless, most models rely on the
above three-stage decision-making framework in one form or another.
We now consider how WOM communications can influence each
stage of such a process, i.e. we discuss how to identify and measure
WOM influence and its antecedents [e.g., tie strength, demographic
similarity (see below)] during the awareness, interest, and final
decision stages of the consumer decision-making process.
We posit thatWOMplays a role not only in the flow of information
but also in the flow of influence (Lin, 1971; Weimann, 1983), and that
each (conditional) transition probability (i.e., probability of becoming
aware; probability of interest; probability of positive action) may be
influenced by source characteristics. Specifically, the literature
suggests that certain characteristics should play a greater role in
early stages, while others have more influence later. The amplitude
and direction of such antecedents may also depend on the product
category.
3.2. Costs, benefits, and cues throughout the various stages of the
decision-making process
Decisions made by the recipient of an electronic communication
(opening an e-mail, adopting a recommended service) can be
analyzed in light of a cost/benefit analysis framework (Ratchford,
1982), based on available information (or cues). These costs and
benefits as well as available cues vary across decision stages (Hansen &
Helgeson, 1996). Given the purpose of this research, we focus on how
these costs, benefits and cues are affected by the relationship between
the sender and the recipient of the e-mail message.
3.2.1. Awareness stage
The first decision recipients face is whether or not they will open
the e-mail, i.e. whether they will become aware of its content.2 At this
stage, the only cues available to the recipient are the relevance of the
subject line, the familiarity of the sender's name, and the nature of the
relationship between sender and receiver. Potential benefits include
the possible information value of the message content, or the role that
the message could play in strengthening the relationship with the
sender, while potential costs and risks include the possibility of
wasting time, of being a victim of spam, of opening a harmful message
(e.g., that may contain a virus), or of violating the sender's trust or
expectations by ignoring a well-intentioned personal e-mail.
3.2.2. Interest stage
During this stage, recipients are aware of the object and purpose of
the e-mail communication (e.g., to spread the word about a product,
offer, or service), and they may develop further interest and decide to
learn more. In thisway, recipients carry out a cost/benefit analysis that
can be summarized as follows: “based on what I already know, is it
worthmy time to investigate further?” At this stage, the congruence of
the sender's tastes with the recipient's, and the relevance of the
sender's experience and expertise, may serve as additional cues about
the potential benefits of the recommended product or service.