Large and midsize companies don't leverage word of mouth (WOM) marketing as well as smaller firms do, despite realizing its importance, according to JupiterResearch. "More than 90 percent of large companies believe that consumer recommendations are important in influencing other consumers' purchase decisions," says Emily Riley, JupiterResearch analyst and the lead author of the report "Managing Word of Mouth Online." Nevertheless, many of them "are not focusing efforts on managing the conversation among consumers," she says.

Some 66 percent of small companies monitor WoM regularly, compared with only 33 percent of large companies, which are also more likely to assign WoM management to PR and marketing groups or third-party agencies - a practice that can insulate employees from consumer sentiments, according to JupiterResearch.

"Online consumer dialogue has become both widespread and efficient, allowing consumers to wield enormous power over the buying decisions of their peers," said David Schatsky, president of JupiterKagan. "Companies of all sizes should leverage the tools available today to enhance their ability to monitor and control consumer product discussions that can directly impact their business."