I agree there is nothing like direct word of mouth to effect sales positively or negatively. But isn't blogging, forums a form of word of mouth? especially when the forums or the blogs become information sources for news media?
The old business rule i was taught was that for every happy customer you have you can expect them to tell 3 people. For every disatisfied customer you have you can expect them to tell 10 people. With the power of the internet and resources such as forums and blogs does this style of rule still hold true? Look at the issue from a Chaos theory perspective. If i read a good review on the Wii from IGN because i'm interested in it and then i buy it based on that review, and then i show 5 of my friends, 3 of which then buy it after seeing mine then follow the chain of events back nd it was the forum or the blog that essentially sold 4 consoles. 1 directly, 3 indirectly. The indirect effect of information sharing on sales is huge IMHO. Much like the chaos theory statement of a butterfly flapping its wings in the amazon causing a typhoon in the pacific.
Essay Pro