Analysis Of The Effect Of Word Of Mouth Communication On Consumer Decisions Using Doorsmeer Services (Study On BP Doorsmeer Jalan Garuda No.1 Medan Sunggal)

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Introduction

In today's fast-paced business world, communication is a crucial tool for promoting and developing a business. One of the most effective communication methods used by businesses is word of mouth communication, also known as "Word of Mouth" (WOM). This simple form of marketing does not require a large cost, but has a very high effectiveness. The purpose of this study is to examine the effect of Word of Mouth communication on consumer decisions in using the services of BP Doorsmeer located on Jalan Garuda No.1, Medan Sunggal.

The Importance of Word of Mouth Communication

Word of mouth communication is a powerful tool that can make or break a business. It is a form of marketing that is based on personal recommendations and experiences. When a customer has a positive experience with a business, they are more likely to recommend it to their friends and family. This is because word of mouth recommendations are considered more authentic and based on real experience, rather than formal advertising. In fact, studies have shown that word of mouth marketing is 20-50% more effective than traditional advertising.

Research Methods

This research uses a quantitative approach with associative research design. The number of samples studied consisted of 94 respondents, which were taken using the Slovin formula to determine the population. Characteristics of respondents include factors such as gender, age, and source of information about BP Doorsmeer. Data collection techniques are carried out through field research that includes questionnaires, interviews, and literature studies. Data analysis was carried out using the instrument test, simple linear regression test, and hypothesis testing with the help of SPSS software.

Research Result

The results of the study show that Word of Mouth communication has a positive and significant influence on consumer decisions in using the services of BP Doorsmeer. The more positive communication obtained through Word of Mouth, the greater the possibility of consumers to choose the services offered. This shows that word of mouth recommendations can be one of the most effective marketing tools.

Analysis and Explanation

Word of Mouth Communication is often more trusted by consumers compared to formal advertising, because the information conveyed is usually considered more authentic and based on real experience. Consumers who receive recommendations from friends, family, or coworkers are more likely to trust the information and make decisions based on these recommendations. Thus, creating positive experience for previous customers becomes important, so they can recommend these services to others.

In addition, in the current digital era, Word of Mouth is not only limited to direct interactions but also extends through social media and online platforms. Therefore, businesses such as BP Doorsmeer must be active in managing their reputation online and encouraging customers to share their positive experiences on digital platforms. This will strengthen the effect of mouth communication by word of mouth and, in turn, will increase consumer decisions to use the services offered.

The Role of Social Media in Word of Mouth Communication

Social media has become an essential tool for businesses to manage their reputation and encourage customers to share their positive experiences. Platforms such as Facebook, Twitter, and Instagram provide businesses with the opportunity to engage with customers, respond to feedback, and share their story. By being active on social media, businesses can increase their visibility, build trust, and ultimately drive more sales.

Conclusion

From the research conducted, it is clear that Word of Mouth communication plays an important role in influencing consumer decisions in choosing doormeer services. Business that focuses on customer experience and utilizing positive communication by word of mouth will get significant competitive benefits. Therefore, it is very important for BP Doorsmeer and other businesses to continue to strive to improve services and encourage customers to share their good experiences.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • BP Doorsmeer should focus on creating positive experiences for their customers, so they can recommend the services to others.
  • The company should be active in managing their reputation online and encouraging customers to share their positive experiences on digital platforms.
  • BP Doorsmeer should utilize social media to engage with customers, respond to feedback, and share their story.
  • The company should continue to strive to improve services and encourage customers to share their good experiences.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study was conducted in a specific location, which may not be representative of other locations. Secondly, the study only focused on Word of Mouth communication and did not consider other forms of marketing. Finally, the study only used a quantitative approach and did not use a qualitative approach to gather data.

Future Research Directions

Future research should focus on exploring the role of social media in Word of Mouth communication. This can be done by conducting a study that examines the impact of social media on consumer decisions. Additionally, future research should consider using a qualitative approach to gather data, which can provide more in-depth insights into the phenomenon of Word of Mouth communication.

Conclusion

In conclusion, this study has shown that Word of Mouth communication plays an important role in influencing consumer decisions in choosing doormeer services. Business that focuses on customer experience and utilizing positive communication by word of mouth will get significant competitive benefits. Therefore, it is very important for BP Doorsmeer and other businesses to continue to strive to improve services and encourage customers to share their good experiences.

Q: What is Word of Mouth Communication?

A: Word of Mouth (WOM) communication is a form of marketing that is based on personal recommendations and experiences. It is a simple form of marketing that does not require a large cost, but has a very high effectiveness.

Q: Why is Word of Mouth Communication Important?

A: Word of Mouth communication is important because it is a powerful tool that can make or break a business. It is a form of marketing that is based on personal recommendations and experiences, which are considered more authentic and based on real experience, rather than formal advertising.

Q: How Does Word of Mouth Communication Affect Consumer Decisions?

A: The results of the study show that Word of Mouth communication has a positive and significant influence on consumer decisions in using the services of BP Doorsmeer. The more positive communication obtained through Word of Mouth, the greater the possibility of consumers to choose the services offered.

Q: What are the Benefits of Word of Mouth Communication?

A: The benefits of Word of Mouth communication include:

  • Increased customer loyalty and retention
  • Improved brand reputation and image
  • Increased sales and revenue
  • Reduced marketing costs
  • Improved customer satisfaction and experience

Q: How Can Businesses Encourage Word of Mouth Communication?

A: Businesses can encourage Word of Mouth communication by:

  • Creating positive experiences for their customers
  • Being active in managing their reputation online and encouraging customers to share their positive experiences on digital platforms
  • Utilizing social media to engage with customers, respond to feedback, and share their story
  • Continuously striving to improve services and encourage customers to share their good experiences

Q: What are the Limitations of Word of Mouth Communication?

A: The limitations of Word of Mouth communication include:

  • It is a subjective form of marketing, which can be influenced by personal biases and opinions
  • It is a slow form of marketing, which can take time to build momentum
  • It is a difficult form of marketing to measure and track
  • It is a form of marketing that can be influenced by external factors, such as social media and online reviews

Q: What are the Future Research Directions for Word of Mouth Communication?

A: Future research should focus on exploring the role of social media in Word of Mouth communication. This can be done by conducting a study that examines the impact of social media on consumer decisions. Additionally, future research should consider using a qualitative approach to gather data, which can provide more in-depth insights into the phenomenon of Word of Mouth communication.

Q: What are the Implications of the Study for Businesses?

A: The implications of the study for businesses are:

  • Businesses should focus on creating positive experiences for their customers, so they can recommend the services to others.
  • The company should be active in managing their reputation online and encouraging customers to share their positive experiences on digital platforms.
  • Businesses should utilize social media to engage with customers, respond to feedback, and share their story.
  • The company should continue to strive to improve services and encourage customers to share their good experiences.

Q: What are the Implications of the Study for Consumers?

A: The implications of the study for consumers are:

  • Consumers should be aware of the importance of Word of Mouth communication in influencing their purchasing decisions.
  • Consumers should be encouraged to share their positive experiences with others, either through social media or word of mouth.
  • Consumers should be aware of the benefits of Word of Mouth communication, such as increased customer loyalty and retention, improved brand reputation and image, and increased sales and revenue.

Q: What are the Implications of the Study for Academics and Researchers?

A: The implications of the study for academics and researchers are:

  • Academics and researchers should continue to explore the phenomenon of Word of Mouth communication and its impact on consumer decisions.
  • Academics and researchers should consider using a qualitative approach to gather data, which can provide more in-depth insights into the phenomenon of Word of Mouth communication.
  • Academics and researchers should examine the role of social media in Word of Mouth communication and its impact on consumer decisions.