1

Effect on Word of Mouth and e Word of Mouth on CB

Rajeev KMBA FTRoll no. 35SMS

2

Word-of-mouth (WOM)

• Person-to-person communication between a receiver and a source whom the receiver perceives as non-commercial, regarding a product, service or brand

• Highly effective method of communicating information

• Particularly effective in communicating negative information– Dissatisfied customer will tell 9 others– 13% of unhappy customers will tell >20 others

3

• WOM can be– In person– Phone– Mail– Internet

• WOM can be– Verbal– Visual

4

E – Word of mouth

• The most well-defined and extensive definition of electronic word-of-mouth (eWOM) to date is by Hennig-Thurau, Qwinner, Walsh and Gremler (2004), who define the complex term as follows:

"Any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet."

5

Opinion leadership

• The process by which one person--the opinion leader--informally influences the actions or attitudes of others who may be opinion seekers or opinion recipients

6

• Who are opinion leaders?• Can they be recognized by any distinctive

characteristics?• Can they be reached through specific media?

7

• Opinion leadership tends to be category specific

• Individual who is an opinion leader in one product category may be an opinion receiver in another product category

• Profile of opinion leaders is likely to be influenced by the specific product category

8

”“

Giving people a reason to talk about your stuff, and making it easier for that conversation to take place.

- Andy Sernovitz

Art and science of building active, mutually beneficial customer-to-customer and customer-to-marketer communication.

What Is Word Of Mouth Marketing?

The trick of getting your customers to talk about you. One of the most inexpensive and effective ways of marketing.

C2C communication happening online/offline by phone conversations, gossips, blogs, social media tools, emails, etc.

9

Word Of Mouth Communication Pattern

10

Traditional Marketing VS WOMMWord Of Mouth Marketing Traditional Marketing

11

U.S WOMM Statistics

Few more facts..•Two thirds of the U.S Economy driven by WOM•Law of FEW: 10% influence purchasing behavior of other 90%•85% prefer buying on WOM recommendation

12

WOM is MORE EFFECTIVE !!!

1955 Word-of-Mouth (WOM) is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertising

1967 36% of surveyed consumers reported learning of an innovation through word-of-mouth, while 48% reported being influenced by WOM when making a purchase decision

2001 Diffusion studies found that WOM is 10x more effective than media advertising

2006 61% trust other people like themselves (as media) - Edelman Trust Barometer, 2006

Data taken from FUTURELAB

13

ADVANTAGES• The Consumer is In Control

•Comparatively Economical Method of Marketing.

• Word Of Mouth is more Credible.

•Strengthens Brand Image

• Ripple Effect On Other Advertising Efforts

14

DISADVANTAGEs

• Marketers fear that message may not be delivered as they desire.

• Untrackable Results

• Informal way of communication

• Negative Customer Feedback

15

THE REASONS FOR POPULARITY OF WORD OF MOUTH

16

1- The consumer doesn’t believe anymore

17

2- Media SaturationBuzz Marketing

More than 4000 Ads impacts per day

18

3-The loss of Mass Media efficiency

19

4- The Pull Strategy

20

5-Social brokers

Trust, referrals play an important role in insurance policy sales, Investments made, Real Estate.

21

6-Stimulates Action

22

7-MOST Trusted

23

MORTEIN CAMPAIGN

24

Mortein Jala Re Jala Re Louie Dahan campaign.

25

“Duniya ka sabse khatarnaak janwar, Louie”.

Louieshasur Kaand

26

KURKURE EXPRESS

27

Nokia N8Nokia Urban Spree and and N8 Mystery Tour

•Explorers with Nokia N8, click pictures and upload on twitter with the hashtag #N8UrbanSpree

•Build anticipation and tempt active picture takers

•Gave an opportunity to Heavy Flickr users and travel enthusiasts to explore the N8 for mobile photography and videos. •Generated positive word of mouth and 8000 referrals.

28

Case Study: Obama Campaign

• Repeatable messages

• Multiple occasions

• 332 electoral votes

29

The WOMM Umbrella Term

8 main types of WOMM:

Buzz marketing Cause Marketing Conversation

Marketing Community

Marketing Evangelist

Marketing Grassroot Marketing Influencer

Marketing Viral Marketing

30

VIRAL MARKETING

•Creating entertaining or informative messages that are designed to be passed along in an exponential fashion, often electronically or by email.

• Kolaveri Di

31

How Does WOMM Work?WOMM is based on the principle that uses influencers to

spread a message- online and offline. Activating online word-of-mouth is not free any more than activating word-of-mouth in the offline media. Key to WOMM is how many important influencers the company reaches not how many people/customers.

32

CREDIBILITYSKEPTICISM

TRUST!

Effective WOMM

Key Ingredients in WOMM

33

Reference

• Consumer Behavior – Leon G. Schiffman, Lesile Lazar Kanuk

• http://wikipedia.org• http://electronic-word-of-mouth.blogspot.in/• www.iiste.org• International Journal of Computer

Applications

34