Industry Reputation

The importance of industry word of mouth (IWOM) to enterprises is reflected in several aspects. First, corporate reputation is an important factor affecting brand trust and customer loyalty, and is regarded as an intangible asset of the enterprise with far-reaching impact on its development.3 Good word of mouth can increase brand awareness and reputation, and through interaction and recommendation among consumers, the brand can be more widely spread and publicized. In addition, the key to word-of-mouth marketing lies in product and service quality, with the aim of building a loyal customer base and utilizing the spreading value of loyal customers to achieve corporate reputation and awareness.

Positive word-of-mouth effects can significantly influence customer loyalty, and disloyal customers may try out an enterprise's products or services and become loyal customers after receiving positive word-of-mouth information. Digital means accelerate the efficient spread of word-of-mouth, and good word-of-mouth can become an important reason for people to choose a brand and stay. Meanwhile, the reasons why word-of-mouth marketing has an impact on consumers' purchasing decisions include trust, amount of information, social factors, and risk reduction, and companies need to actively participate in word-of-mouth marketing to gain positive feedback from consumers by providing quality products or services.