Examining the Role of Social Currency in Word-of-mouth Marketing

This research review explores why social currency can be a driving force in word-of-mouth marketing, as proposed by Jonah Berger in his book Contagious: Why Things Catch On. He argues that despite the importance of traditional marketing factors like price and quality word-of-mouth is essential for driving the popularity of things [1]. Six principles, social currency, triggers, emotion, public visibility, practical value and stories are reasons why people share certain content [1]. Social currency is significant to achieve word-of-mouth marketing as it allows individuals to find their social identity and promote their social status by sharing content that reflects positively on them. Social Identity Theory explains how group affiliations serve as human nature to drive their behaviors and encourage consumers to favor brand that align with their identity. Companies can build brand loyalty, trust and advocacy through leveraging social currency. This research will highlight how SIT, a key component of social currency, demonstrates influence on consumer behavior and shape brand’s success to achieve effective word-of-mouth marketing.