W9 WOM Communication

W9 WOM Communication

1. product information is transmitted by individuals to individuals

2. What other consumers tell us about products (good and bad) is more influential than formal advertising.

3. Makes consumers aware of products but it can also hurt companies (e.g. rumours or negative WOM)

4. Influences two-thirds of all sales

5. We rely upon WOM in later stages of product adoption

6. Powerful when we are unfamiliar with product category

7. can have a dramatic positive or negative effect on consumers’ product perceptions offering’s marketplace performance.

8. Viral marketing is rapid spread of brand/product information -> Viral marketing refers to the strategy of getting customers to sell a product on behalf of a company that creates it by sending on recommendations

9. top source affecting food and household product purchases

10. Seven times more effective than print media, twice as effective as broadcast media and four times more effective than salespeople in affecting brand switching

11. Research shows that the most persuasive consumer-generated reviews of a good or service offer evidence to support an overall recommendation (Buy X chocolate because it tastes good and is fair trade) and include information about key features (e.g. 70% cocoa content).

12. Marketers who provide consumers with opportunities to comment via social media during product acquisition or consumption, are in effect, facilitating real word-of-mouth.

13. negative WOM

    • Consumers weigh negative W-O-M more heavily than they do positive comments
    • Reduces the credibility of a firm’s advertising and influences consumers’ attitudes towards a product
    • Incredibly easy to spread negative W-O-M online
    • -> Preventing negative word of mouth can be best accomplished by providing quality products and service
    • -> Rectifying negative word of mouth can be accomplished by dealing with consumers’ dissatisfaction before more negative word of mouth occurs. (Hoyer, MacInnis and Pieters, 2013)