Why are word of mouth recommendations particularly useful and important in the service industry?

Question

Quizplus · Accepted Answer

Word of mouth recommendations are viewed as a credible source in the service industry, as they come from people who have used the service and can vouch for its quality. Additionally, they have a powerful influence on people's purchasing decisions, as they are based on personal experiences and are often perceived as more trustworthy than traditional advertising. Therefore, options B and D are correct, and the best answer is E. Option A is incorrect, as while word of mouth recommendations may save marketing costs, they may not necessarily save costs overall. Option C is also incorrect since word of mouth recommendations can be either positive or negative.

Why Are Word of Mouth Recommendations Particularly Useful and Important