Electronic word of mouth is an important influencer in the buying behaviours of consumers of scuba diving services in Hong Kong (Babi? Rosario et al. 2016). Electronic word of mouth ensures allowing the clients to provide their views, opinions and feedback on the websites and social media platforms, which are seen by others and they get influenced too. Electronic word of mouth communication of eWOM is a kind of marketing to interact with the customers and make them know about the various products and services offered along with the reviews, both positive or negative, provided by them to influence the consumer purchasing decision. It basically involves use of various social media platforms where the positive reviews about the services can encourage the clients while negative reviews can also lead to lack of brand image and bad reputation of the organisation. Organisations can utilise eWOM to manage their brand image through careful monitoring and management of this form of customer-to-customer communication (Cheung, Xiao & Liu 2014). This project will explore how eWOM is an important feature in the decision making processes for consumers of scuba services in Hong Kong. It will commence with a comprehensive literature review of the concept of eWOM followed by various aspects of eWOM that has helped in influencing the consumer decisions regarding purchase of services.
Electronic word of mouth or eWOM refers to positive or negative statements made by the customers on social media and other digital platforms about their consumption experiences (Yoo, Sanders & Moon 2013). From the statements provided in the article presented by See-To and Ho (2014), it has been understood that the receiver of the messages and information has been influenced and the purchasing behaviours is also affected positively when the reviews about the scuba diving services are watched by the client. It is evident that the word of mouth promotions involves circulation of messages and information about a specific product or service among the people and the reviews posted by others about the services in the electronic platforms (See-To & Ho 2014). Due to this, the positive features of the products are communicated among the customers, which influence the others in their buying behaviours and purchasing decisions too.
The utilisation of various electronic media or social media platforms like Facebook, Twitter, YouTube, has facilitated the sharing and exchange of information about the products along with its essentialities and features that have helped in meeting the clients’ needs and preferences (Tham, Croy & Mair 2013). The people have got influenced by watching the positive reviews about the service from the company owned website and it has encouraged them to buy products and service from the company. See-To and Ho (2014) believed that the electronic word of mouth promotions are important aspects of innovation management that has not only raised awareness among the clients regarding the products and services, but also has encouraged them to purchase their products from the organization on a regular basis (Luo & Zhong 2015). The research topic considers how the purchasing intentions and buying decisions of the consumers are influenced by electronic word-of-mouth from social media platforms in relation to scuba lessons in Hong Kong.
Studies conducted by Sotiriadis and Van Zyl (2013) have shown that the comments and posts made by people on the social media platforms about their experiences regarding the service have created a strong influence on the purchasing decisions made by the other clients in Hong Kong. Based on the statements provided by Luo and Zhong (2015), the use of social network analysis helped in providing the consumers with not only positive reviews about the kinds of services delivered but also have made them known about the features of services along with whether it can be of value for money or not. It has also strengthened the social networking relationships with the customers and formed stable relationship between the business and its customers (Luo & Zhong 2015).
The traditional ways of communication between customers has been replaced largely by electronic word-of-mouth promotions because more and more people are using the social networking websites to remain connected with people all the time (King, Racherla & Bush 2014). It means that nowadays with the technological advancements, people are becoming more habituate with the social networking websites and thus it has become easy for them to assess the opinions and feedbacks posted by others on the company website and then their behaviours are encouraged. It has been more influential, as stated by Tham, Croy and Mair (2013), which shows that the e-WOM is more convenient, fast and broadcast appealing as well. According to Tham, Croy and Mair (2013),Not only do potential tourists get influenced, but when the positive reviews are posted on the social networking websites, people from all over the world can see those and gain a positive mindset regarding the scuba diving services made available by Hong Kong by the service providers (Tham, Croy & Mair 2013). Though the consumers cannot perceive the quality of the service at first, still the positive reviews have often influenced their buying behaviour and even fostered good interpersonal communications. This, it has been suggested that the service focused eWOM has been connected with the social implications and it has definitely created attention among the people to influence the purchasers of services (Lerrthaitrakul & Panjakajornsak 2014). It has attracted new customers and even retained the existing customers who have provide their positive views and opinions regarding the scuba diving services at Hong Kong to other people through chat messages, social networks and influenced their buying decisions too.
While the eWOM mainly pose positive effects on the consumers’ buying behaviours, there are several negative aspects too like the negative comments posted on the social media networks like Facebook, Twitter, company website, etc. The negative reviews could make the customers feel lack of interest in purchasing the services and at the same time, the brand image and reputation would tend to degrade as well. This would affect the buyer intention and affect their purchasing behaviours, which could even result in making the business experience lack of visitors in the scuba diving activities and face loss in business as well (Martin & Lueg 2013). Thus, the negative reviews and opinions posted online should be revised and mitigated properly, so that the customers’ intentions remain positive and they could feel free to avail the scuba diving services quite comprehensively.
Based on the data and information provided in the literature, the final question that has to be investigated and addressed in the final report is as follows:
Do the electronic word of mouth promotions influence the buying behaviours and purchasing decisions of the consumers in Hong Kong in relation to the Scuba Diving?
The question is prepared considering the various components and information found in the literature review and all the articles that have been assessed to ensure that the objective is met. From the various articles and journals consisting of relevant information and data, it has been found that the word of mouth promotions done electronically are directly related to the ways consumers perceive messages. The question is prepared to ensure whether the two aspects are related or not (Sparks, Perkins & Buckley 2013). To discuss about the two components of the research, it is to be noted that the eWOM not only has created positive mindset among the consumers by making them obtain positive reviews about the scuba diving services, but also has provided them with the service related information and its features along with cost associated with it. In case, there are negative views and responses regarding the same for the services delivered by the scuba diving services provider, the company may experience lack of positive brand image and even bad reputation, which can make the customers unable to keep themselves interested in availing the scuba diving services.
When the consumers posted their views and opinions regarding the services that they availed, other customers who are online in the website have asked certain questions, based on which the company website has provided information about the services (Yoo, Kim & Sanders 2015). It is essential for creating a positive relationship between the business and its customers and furthermore influences them to make purchases consistently from the scuba diving service provider as well as influence others too.
Since the advent of information technology, the way of sharing has undergone noticeable transformations (Cheung & Thadani 2013). Spread of information has resulted in the popularity of electronic word of mouth (eWOM). The itineraries prepared are now shared online among the customers. Social media is one of the sources, which helps the customers in taking decisions regarding availing the services (Cheung & Thadani 2012). Blog entries or online reviews of services like scuba diving are assistance in terms of availing such services during vacation. The reviews with high ratings influence the purchasing intentions of the customers.
The reviews and ratings, provided by the customers regarding experiences on sports like scuba diving, are important determinants towards willingness to pay (WTP). High reviews and ratings make the services like scuba diving at the top of the search engine. Reference can be cited of Urban Diver Limited, which has high review ratings among scuba diving shops. The electronic word of mouth communication can be understood through four main aspects- communicator, stimulus, receiver and response. Transmission of information related to the discounts, offers and schemes on services like scuba diving by the tourism industry develops High Level Nomological Network. This is a continuous process, which helps in maintaining the balance between the supply and demand (Cheung, Xiao & Liu 2014).
From the picture it can be understood that upon receiving the information about the scuba diving services, stimulus is generated within the minds of the customers. This is the response towards the word of mouth communication from the customers, who have already availed the services. This communication increases the trafficking or involvement of the consumers towards the brand. The attributes of stimulus and response can be considered as one of the essential components for the communicators (service marketers) in terms of developing trust among the consumers. Here, belief-attitude-intention framework is of high importance. This is because transmitting wrong information to the consumers can adversely affect their purchase decision, resulting in customer turnover (Liang et al. 2015). Switch over would result in collapse of the services like scuba diving, no matter how enthusiastic the sports might be.
Within the stimulus, four factors can be identified, which increases the bargaining power of the buyers. These are relevance, timeliness, accuracy and comprehensiveness. Relevance in the shared information directly affects the decision-making process of the customers. Through relevance, they can decide the specific services, which they intend for enjoying scuba diving. Blogs and reviews assist the customers in checking whether the information is current and updated. Accuracy is needed in terms of developing perceptions towards the levied information related to the security provided within the scuba dividing service in the tourism sector of Hong Kong. Comprehensiveness assures the completeness of the information related to the levied services (Erkan & Evans 2016). Incomplete information related to the scuba diving events can generate doubts regarding the security and proper oxygen facilities. Presence of all these factors in the levied information enables the customers to undertake decisions about availing scuba diving service online.
The internet is one of the major sources of information not only for the consumers to obtain information about the services to be purchased but also for influencing their purchasing decisions and behaviours (Cheung, Xiao & Liu 2014). As the topic focuses on eWOM, the internet usage has allowed them to access the social networking websites and provide their useful opinions and experiences about the services they availed with a multitude of the other consumers (Moran, Muzellec & Nolan 2014). The reviews provided by the consumers online have been used by the buyers who are interested in gaining more information from the people who have already purchased the services of their interest of the related services of scuba diving in Hong Kong. The word of mouth promotions electronically are considered as the vital sources of information that influence the buying decisions of the consumers. With the advancement in technology and communication, the social media platforms are gaining usage rapidly and have extended the options for the consumers to obtain information about the products and services through inclusion of comments posted on internet (Kietzmann & Canhoto 2013). This has even provided the consumers with more scopes and opportunities to provide their own consuming related advices to others by getting involved in the electronic word of mouth. It is thus considered as an informal communication technique that has been directed at the consumers through internet based technologies based on the usage of various products and services related to the scuba diving at Hong Kong.
It is believed that the consumers make their purchasing decisions by using the eWOM because it has changed their purchasing behaviours. The purchasing decisions are made by them offline though based on the online information that they have obtained. With the wide usage of internet and social networking websites, the consumers tend to depend more on the opinions and responses provided by the other consumers who have already availed the services and after that they have made decisions about the matters like when, where and how to purchase the scuba diving services at Hong Kong (Hajli et al. 2014). The online market has also provided the customers with enough convenience to write recommendations that can influence the potential customers to purchase the services. Therefore, this is how the customers have utilized eWOM while making the purchase decisions and have chosen the services provider. The eWOM is also considered as a place where sharing, exchange and discussion of network user’s information related to the products and services are possible with the use of social media. Often the customers are misguided by the tour operators and due to this they charge high costs, which make them believe the service providers and purchase the services. With the electronic word of mouth, consumer who have already availed the services can provide useful opinions, feedbacks and recommendations about how to purchase the services (Filieri & zMcLeay 2014). The customers who are willing to visit the place can look those comments online and understand the wide range of prices are which the services may be available. Due to this, the customers would be more cautious and even bargain with the service providers before making a final decision regarding purchase of scuba diving services in Hong Kong (Filieri, Alguezaui & McLeay 2015).
From various reports and Global Online consumer surveys, it has been found that most of the customers, nearly 70 percent of them nowadays have trusted the opinions and reviews posted by other customers online (Erkan & Evans 2016).It is because the electronic word of mouth is considered as one of the major influencers in the electronic or online purchases for the services of scuba diving available at Hong Kong. The online consumer reviews provided by using the electronic word of mouth have provided product and service related information along the recommendations from the perspectives of the clients. The consumers’ online reviews act as major influencers that have made the customers come in large numbers at the place to purchase the scuba diving services (Hutter et al. 2013).
In case the consumers may not be able to judge a product, they become dependent upon the eWOM for mitigating the risks associated with the quality and safety of services and the reliability of the service provider too. Based on the data and information of the surveys from the Opinion Research Corporation, most of the respondents are involved with reported consulting online reviews, blogs and other sources of information including social networking websites and few other online sources of information too (Babi? Rosario et al. 2016). The online feedbacks and reviews made by the customers are assessed by the new clients prior to the purchase of a new product or service and the search engines could be beneficial for conducting the research and ensure meeting the objectives too. The traditional word of mouth still works for many, but with the wide networks formed due to the evolvement of internet technologies and introduction of social networks, the customers can obtain more value to recommendations made by their friends and families than to recommendations made by the professional reviewers (Severi, Ling & Nasermoadeli 2014). The fellow consumers’ opinions and feedbacks are perceived by them, which appear to be less biased and due to this, their buying behaviors are easily influenced too.
In many cases, it could be found that the scuba diving service providers have maintained websites where the various products and services were made available for booking. The related information are provided along with the cost and other features included in the service packages. While the customers surf on the website to obtain information about the services, they could see the other messages posted by customers who have purchased those services previously. The positive responses would automatically influence them and create a sense of interest among them.
By surfing information online and by assessing the reviews and feedbacks provided by the customers online, they could access important information quite easily and at the same time, make a better decision while purchasing the services (Fan et al. 2013). They could even get the services at a much better price, as they would already be acknowledged with the range of reasonable prices at which the other customers already purchased, which should create ease for them to bargain from the suggestions posted on the internet. The search for information about the services available online could be possible by surfing both the company website and by reading the posts shared by the experienced clients.
Electronic word of mouth has become a notable consumer behaviour trend at present, which has evolved with time and has allowed the businesses to attract more customers (Yoo, Sanders & Moon 2013). From various researches, it has been found that the number of times the users of internet have accessed the internet to obtain information about the services related to scuba diving at Hong Kong has been quite higher nowadays than the number of times they actually surfed the internet to obtain information only.
The purchasing behaviours are highly influenced after they look at the recommendations about the products that they wanted to purchase and thus has directly created a huge positive impact on the process of decision making too. Thus, the opinions, feedbacks and recommendations provided by the consumers online have allowed the clients to avail the services from the scuba diving service providers in a more satisfactory way and with much ease and efficiency (Yap, Soetarto & Sweeney 2013). Therefore, it could be stated that the electronic word of mouth usage has created a huge positive impact on the way consumers would purchase the products and services related to the scuba diving activities in Hong Kong.
Conclusion
The literature review assessed various secondary sources of information and data to evaluate the various aspects of electronic word of mouth and how it has influenced the consumer buying habits. Based on the literature review section, it could be understood that the buying intentions were facilitated when the clients viewed the comments and posts made by others on the social networking websites and the company websites. The positive comments helped in enhancing the brand name, image and identity while the negative comments posted could deteriorate the business image and lead to sales decline and loss in business as well. The eWOM facilitated the decision making of clients and even created a sense of interest, which allowed them to purchase the scuba diving services at Hong Kong from the service providers.
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