How e-wom contributes to new product adoption. Testing competitive communication strategies

Communication strategy is a critical element of new product adoption. The decision to adopt a new product is determined by the success of a sequence of two stages: product awareness and product adoption. Previous studies have shown advertising is the tool that best works at the first stage of the introduction, as WOM needs informed individuals to start the process. However, the expansion of new media facilitates firms to develop and manage electronic word of mouth (e-WOM) campaigns. The aim of this paper is to determine which communication strategy is more appropriate at early stages of the diffusion process. Contrary to assertions in the previous literature, results show firms should start new product communication with e-WOM and then continue it with advertising.