Analysis Of The Factors That Make Up The Electronic Word Of Mouth And Their Influence On Purchasing Decisions At The Kohi Medan Cafe

The Importance of E-WOM in Modern Marketing

In today's digital age, Electronic Word of Mouth (E-WOM) has become a crucial aspect of modern marketing. With the widespread use of social media and the internet, consumers are more likely to share their experiences online, influencing the purchasing decisions of others. E-WOM can take many forms, including reviews, recommendations, and complaints about products or services. In the context of the Medan Kohi Cafe, utilizing E-WOM can be an effective strategy to attract new customers while maintaining old ones.

The Role of E-WOM in Shaping Consumer Behavior

E-WOM plays a significant role in shaping consumer behavior, as it provides social proof and credibility to products or services. When consumers see that others have had positive experiences with a particular product or service, they are more likely to trust the information and make a purchase. On the other hand, negative reviews can deter consumers from making a purchase. Therefore, it is essential for businesses to monitor and manage their online reputation to ensure that their E-WOM is positive and influential.

Analysis of E-WOM Factors

This study identified three key factors that influence purchasing decisions through E-WOM: intensity, valence of opinion, and content.

Intensity

The intensity of E-WOM refers to the frequency and volume of online conversations about a particular product or service. This study found that the intensity of E-WOM has a significant positive influence on purchasing decisions at the Kohi Cafe Medan. The more often the information about this cafe is shared and discussed by consumers, the more likely other people are to be interested and visit. This suggests that the management of the Kohi cafe needs to be active in encouraging customers to share their experiences through social media.

Valence of Opinion

The valence of opinion refers to the positive or negative values of the opinions given by consumers. Unlike intensity, the valence of opinion does not show a significant effect on purchasing decisions. Although positive reviews can strengthen the decision to buy, not all consumers are directly influenced by other people's opinions. This can be caused by distrust of information circulating or because they already have a certain perception of the Kohi cafe.

Content

The content presented in E-WOM is also proven to have a significant positive influence on purchasing decisions. Interesting, informative, and relevant content can attract the attention of consumers and increase their desire to try or return to the Kohi cafe. Therefore, the Kohi Cafe needs to focus on making quality content for their e-WOM campaigns.

Conclusion and Recommendations

From the analysis above, it can be concluded that the strategy of utilizing E-WOM is very potential to improve purchasing decisions in the KOHI Medan Cafe, especially through attractive intensity and content. Therefore, the management of the Kohi cafe must consider the following steps:

• Encourage Customers to Share: By providing incentives or appreciation to customers who actively share their experiences, the Kohi cafe can significantly increase the intensity of E-WOM.
• Focus on Quality Content: Developing interesting and useful content, such as attractive food images, interesting stories behind every dish, or satisfying customer testimonials, can increase the attractiveness of the cafe.
• Managing Reviews Well: Overseeing incoming reviews and giving a fast and good response to comments from consumers can help maintain the positive image of the cafe.

By implementing these strategies, the Medan Kohi Cafe can not only overcome the decline in sales due to the pandemic but also build a loyal and involved customer community.

The Future of E-WOM in Marketing

As technology continues to evolve, E-WOM is likely to play an increasingly important role in marketing. Businesses must be proactive in managing their online reputation and utilizing E-WOM to attract new customers and maintain old ones. By understanding the factors that influence purchasing decisions through E-WOM, businesses can develop effective marketing strategies that drive sales and growth.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the sample size was relatively small, consisting of 97 customers of the Kohi Cafe. Secondly, the study only focused on the Medan Kohi Cafe and may not be generalizable to other businesses. Finally, the study only examined the influence of E-WOM on purchasing decisions and did not explore other factors that may influence consumer behavior.

Future Research Directions

Future research should aim to build on the findings of this study by exploring other factors that influence purchasing decisions through E-WOM. Additionally, researchers should investigate the role of E-WOM in other industries and contexts to gain a more comprehensive understanding of its impact on consumer behavior. By continuing to explore the complexities of E-WOM, researchers can provide businesses with valuable insights to inform their marketing strategies and drive growth.

Conclusion

In conclusion, this study provides valuable insights into the factors that influence purchasing decisions through E-WOM at the Kohi Medan Cafe. The findings suggest that intensity and content are key factors that influence consumer behavior, while valence of opinion has a limited impact. By understanding these factors, businesses can develop effective marketing strategies that drive sales and growth. As technology continues to evolve, E-WOM is likely to play an increasingly important role in marketing, and businesses must be proactive in managing their online reputation and utilizing E-WOM to attract new customers and maintain old ones.

Q: What is Electronic Word of Mouth (E-WOM)?

A: Electronic Word of Mouth (E-WOM) refers to the online conversations and reviews about a product, service, or brand that are shared through social media, online forums, and other digital channels.

Q: Why is E-WOM important for businesses?

A: E-WOM is important for businesses because it can influence consumer purchasing decisions and shape their perceptions of a brand. Positive E-WOM can increase brand awareness, drive sales, and build customer loyalty, while negative E-WOM can harm a brand's reputation and deter customers.

Q: What are the key factors that influence E-WOM?

A: The key factors that influence E-WOM are intensity, valence of opinion, and content. Intensity refers to the frequency and volume of online conversations about a product or service, while valence of opinion refers to the positive or negative values of the opinions given by consumers. Content refers to the quality and relevance of the information shared through E-WOM.

Q: How can businesses encourage customers to share their experiences through E-WOM?

A: Businesses can encourage customers to share their experiences through E-WOM by providing incentives or appreciation to customers who actively share their experiences, such as offering discounts or rewards.

Q: What is the role of social media in E-WOM?

A: Social media plays a significant role in E-WOM, as it provides a platform for consumers to share their experiences and opinions about products or services. Businesses can use social media to engage with customers, respond to reviews, and share their own content to influence E-WOM.

Q: How can businesses manage their online reputation through E-WOM?

A: Businesses can manage their online reputation through E-WOM by monitoring reviews and comments, responding promptly to customer concerns, and addressing negative feedback in a timely and professional manner.

Q: What are the benefits of E-WOM for businesses?

A: The benefits of E-WOM for businesses include increased brand awareness, improved customer engagement, and increased sales. E-WOM can also help businesses to build trust and credibility with their customers.

Q: What are the challenges of E-WOM for businesses?

A: The challenges of E-WOM for businesses include managing negative reviews, responding to customer complaints, and maintaining a positive online reputation. Businesses must also be proactive in monitoring and responding to E-WOM to ensure that it is positive and influential.

Q: How can businesses measure the effectiveness of E-WOM?

A: Businesses can measure the effectiveness of E-WOM by tracking metrics such as engagement rates, sentiment analysis, and conversion rates. They can also use tools such as social media analytics and customer feedback software to monitor and analyze E-WOM.

Q: What is the future of E-WOM in marketing?

A: The future of E-WOM in marketing is likely to be shaped by the increasing use of artificial intelligence, machine learning, and other technologies that can analyze and respond to E-WOM in real-time. Businesses must be proactive in adapting to these changes and leveraging E-WOM to drive sales and growth.

Q: How can businesses stay ahead of the competition in E-WOM?

A: Businesses can stay ahead of the competition in E-WOM by being proactive in monitoring and responding to E-WOM, providing excellent customer service, and creating high-quality content that resonates with their target audience. They must also be willing to adapt to changing consumer behaviors and preferences.