Abstract:
For many years word of mouth has been used by companies as an advertising tool which
requires less major investments in mass media yet it was regarded as an ineffective tool
for business sales performance. With the invention of new technologies in
communication the same is increasingly gaining popularity in the context of marketing.
In view of the same this study aimed at assessing its effectiveness in influencing
businesses sales performance. The study was conducted at Chef‟s pride located along
Chagga Street at the centre of the city of Dar es salaam.
The population of the study involved restaurant‟s top managers (the management), non
managers members of staff (receptionists, waiters, waitress and cooks) and customers.
A total of 80 respondents were selected to compose the study sample. The sampling
technique employed in the study involved purposive, simple random and convenient
sampling. The techniques for data collection included interviews, questionnaires, and
observation. Qualitative data were analyzed using content analysis and elements coded
accordingly for analysis and presented. The study data were all analyzed using basic
mathematical calculations that were presented in tabular, bar and pie chart form.
The study reveal WOM advertising is effective in improving company sales in the
following ways; it speeds up customer‟s decision making in buying service and
products, increase number of customers, and increasing sales volume of the company.
The study also revealed that applying WOM in advertising has the following challenges;
negative WOM is more influential than positive WOM, the environment in which WOM
takes places is constantly changing also negative WOM can be used in unfair business
competitive practice.
The study recommend that companies should create positive business environment and
consider providing quality hotel services and allied products, maintaining customer care
and avoiding annoying customers for whatever reasons.
