Final answer:
The most accurate statement about word of mouth is that it is a highly credible and powerful information source, more persuasive when the source is considered trustworthy or has expertise. Various media have been used to generate positive word-of-mouth activity, and these tactics can resonate across different demographics, not just Generation Y.
Step-by-step explanation:
The most accurate statement about word of mouth is that it is a highly powerful and credible information source. This is due to the fact that it typically involves personal communication between individuals who are perceived as truthful and trustworthy. People are generally more persuaded by those they consider credible, which can include both expertise on a topic and physical attractiveness, as discussed by Hovland & Weiss (1951) and others. High credibility is essential because it can influence both immediate and long-term effects of persuasion. This is also supported by the principles of peripheral route persuasion, where factors like celebrity endorsements and positive emotions can be more persuasive than factual information in some contexts.
Various forms of media have been utilized to influence public opinion, from radio to television, and now increasingly the Internet and social media. These sources use different strategies, such as teaser campaigns, to shape or even correct consumer beliefs and generate positive word-of-mouth activity. Unlike the assertion that music and humor diminish the effectiveness of word-of-mouth activity, these elements can actually enhance the memorability and spread of a message when used effectively in advertising. Additionally, the statement that word of mouth is perceived as lacking credibility by all but Generation Y consumers is not accurate, as word of mouth historically has been and remains a highly influential source of information across various demographics.