Strengthening Word of Mouth Communication

Oct 13, 2025 by thesweetdesigns.com 94 views

The Influence of Word of Mouth Communication on Purchasing Decisions in the Traditional USU Tax Market Medan

Introduction

The traditional USU Tax Market in Medan, Indonesia, has been facing a decline in reputation due to the rapid development of modern markets in the country. To regain public interest, traditional markets need to increase comfort and facilities, as well as provide competitive prices. One of the strategies in the marketing mix that plays an important role in introducing, informing, and reminding the benefits of a product is promotion. Word of mouth communication (WOM) is a promotional strategy that has gained significant attention in recent years. This phenomenon involves consumers who have bought or used a product/service sharing their experiences with others, aiming to attract the attention of others to buy or use these products/services.

The Importance of Word of Mouth Communication

Word of mouth communication is a powerful tool that can influence purchasing decisions in traditional markets. Consumers tend to trust more recommendations from the closest people compared to advertisements or official information. This is because words of mouth provide more personal and specific information, such as product quality, price, and services provided. Moreover, social effects of word of mouth recommendations can create social influence and improve the positive image of traditional markets in the eyes of consumers.

The Effect of Word of Mouth Communication on Purchasing Decisions

This study aims to find out and analyze the effect of word of mouth communication on purchasing decisions in the USU Tax Traditional Market Jamin Ginting Medan. The study uses quantitative methods with primary and secondary data. The research data was collected for 3 months using a hypothesis test to determine the relationship between the two variables. Data processing is done using SPSS 20 for Windows software.

The results of data analysis using simple linear regression show that the coefficient of mouth-to-mouth communication variables is 0.869. This means that each additional 1 mouth communication value (X), the purchase decision (Y) will increase by 0.869. Based on the hypothesis test, word of mouth communication has a significant effect on purchasing decisions in the USU Tax traditional market Jamin Ginting Medan with a significance value of 0.689. Significant correlation that is known to be less than 0.05 (0.000 <0.05) shows that the two variables are significantly correlated.

Factors Explaining the Effect of Word of Mouth Communication

Several factors can explain the effect of word of mouth communication on purchasing decisions in traditional markets. These factors include:

Trust: Consumers tend to trust more recommendations from the closest people compared to advertisements or official information.
Personal Experience: Words of mouth provide more personal and specific information, such as product quality, price, and services provided.
Social Effects: Encred oral recommendations can create social influence and improve the positive image of traditional markets in the eyes of consumers.

Suggestions for Traditional Tax Market USU Jamin Ginting Medan

To improve the competitiveness of the USU Tax Market Jamin Ginting Medan, the following suggestions can be implemented:

Strengthening Word of Mouth Communication: Traditional markets can encourage consumers to share their positive experiences by offering loyalty programs, gifts, or contests.
Improving the Quality of Products and Services: Providing quality products at competitive prices and friendly and professional services will increase consumer satisfaction and encourage them to provide positive recommendations to others.
Utilizing Social Media: Traditional markets can use social media to spread information, promotions, and testimonials from customers.

Conclusion

Word of mouth communication plays an important role in influencing purchasing decisions in traditional markets. By improving word of mouth communication strategies and product quality and services, the USU Tax Market Jamin Ginting Medan can increase competitiveness and withdraw public interest. Traditional markets need to adapt to the changing market landscape and provide consumers with the comfort and facilities they need to regain public interest.

Recommendations for Future Research

Future research can explore the following topics:

The Role of Social Media in Word of Mouth Communication: This study can investigate the impact of social media on word of mouth communication and its effect on purchasing decisions.
The Effect of Word of Mouth Communication on Consumer Loyalty: This study can examine the relationship between word of mouth communication and consumer loyalty in traditional markets.
The Impact of Word of Mouth Communication on Product Quality and Services: This study can investigate the effect of word of mouth communication on product quality and services in traditional markets.

By conducting further research, we can gain a deeper understanding of the role of word of mouth communication in traditional markets and develop effective strategies to improve competitiveness and regain public interest.
Frequently Asked Questions (FAQs) about the Influence of Word of Mouth Communication on Purchasing Decisions in the Traditional USU Tax Market Medan

Q: What is word of mouth communication?

A: Word of mouth communication is a promotional strategy where consumers who have bought or used a product/service share their experiences with others, aiming to attract the attention of others to buy or use these products/services.

Q: Why is word of mouth communication important in traditional markets?

A: Word of mouth communication is important in traditional markets because it provides personal and specific information about product quality, price, and services provided, which can influence purchasing decisions.

Q: What are the factors that explain the effect of word of mouth communication on purchasing decisions?

A: The factors that explain the effect of word of mouth communication on purchasing decisions include trust, personal experience, and social effects.

Q: How can traditional markets strengthen word of mouth communication?

A: Traditional markets can strengthen word of mouth communication by offering loyalty programs, gifts, or contests to encourage consumers to share their positive experiences.

Q: What is the significance of the coefficient of mouth-to-mouth communication variables in this study?

A: The coefficient of mouth-to-mouth communication variables is 0.869, which means that each additional 1 mouth communication value (X), the purchase decision (Y) will increase by 0.869.

Q: What is the significance value of the hypothesis test in this study?

A: The significance value of the hypothesis test is 0.689, which indicates that word of mouth communication has a significant effect on purchasing decisions in the USU Tax traditional market Jamin Ginting Medan.

Q: What are the suggestions for traditional tax market USU Jamin Ginting Medan to improve competitiveness?

A: The suggestions for traditional tax market USU Jamin Ginting Medan to improve competitiveness include strengthening word of mouth communication, improving the quality of products and services, and utilizing social media.

Q: What are the potential limitations of this study?

A: The potential limitations of this study include the use of a small sample size, the reliance on self-reported data, and the lack of control over external factors that may influence the results.

Q: What are the potential implications of this study for traditional markets?

A: The potential implications of this study for traditional markets include the need to adapt to the changing market landscape, provide consumers with the comfort and facilities they need, and develop effective strategies to improve competitiveness and regain public interest.

Q: What are the potential avenues for future research?

A: The potential avenues for future research include investigating the role of social media in word of mouth communication, examining the effect of word of mouth communication on consumer loyalty, and investigating the impact of word of mouth communication on product quality and services.

Q: What are the potential benefits of word of mouth communication for traditional markets?

A: The potential benefits of word of mouth communication for traditional markets include increased customer satisfaction, improved brand reputation, and increased sales.

Q: What are the potential challenges of implementing word of mouth communication strategies in traditional markets?

A: The potential challenges of implementing word of mouth communication strategies in traditional markets include the need to develop effective communication channels, build trust with customers, and manage the potential risks associated with word of mouth communication.