Group PresentationCase Study 8.1 – p. 642
‘Facebook check-in: A new form of e-word-
of-mouth’
Alex McQueenBrayden Kershaw-DonkersDylan Shea
Case Background: p.642 text • The exchange of information between customers in real-
time via the internet is now a key element of consumer
behaviour
• Facebook users can now generate and share word of
mouth communication in real time by;
• “Liking” brand pages
• “checking-in” to various service locations; or
• Commenting on an experience
What is Word of Mouth:• Word-of-mouth communication is where one person
informally influences the attitudes of others
• Key characteristics include;• Interpersonal
• Non-commercial
• Direct contact
• eWOM is electronic word-of-mouth communications, that is they are conducted online.
• Social networks; Facebook, Twitter, Instagram etc.
WOM’s Relevance to Service Marketing• Services are intangible
• Services cannot be tested before purchase
• Quality of services can fluctuate
• It is difficult to judge price and value in advance
Examples of Facebook Check-in
How to Manage eWOM
• Search for any feedback and reviews already online
• Setup social media accounts
• Create a plan for how to respond to feedback either positive or negative
• Stay consistent with how to respond to feedback either positive or negative
• Stay consistent with responses – have a team or individual responsible for all responses
• The best way to encourage e-WOM is to exceed expectations
Factors affecting consumers evaluating WOM communications:
• The effectiveness of word-of-mouth communication to consumers is related to past satisfaction or dissatisfaction purchase experiences
• These experiences are taken into account from the consumer for both firm generated WOM and peer-generated WOM.
• However, consumers are more receptive to peer-generated WOM
Opinion Leadership
• Opinion leadership is the process by which one person (the opinion leader) influences the actions and attitudes of others.
• The key characteristic of an opinion leader is they have an informal relationship with the end users, and don’t get paid to give advice to consumers.
• Opinion leaders are important to marketers are they can act as buzz agents, and create ‘hype’ to influence customers purchase decisions
Buzz & Viral Marketing• A buzz agent is any person, event, or activity that creates hype
• Viral marketing is an attempt to deliver a marketing message that spreads quickly – like a virus
• Successful viral marketing appeals to any one of the three basic human motivators;• Entertainment
• Greed
• Charity
• Facebook checking-in is a feature businesses utilise to help create viral marketing.
Pros of a highly connected consumer:• Formulation of pull strategies to draw consumer’s in
• Gain unparalleled access into consumer’s daily lives to
better understand the consumer
• Easily share content with the consumer; such as ads,
trivia, coupons, videos, competitions
• Consumer’s can be seen as coming to the marketer
Cons of a highly connected consumer:• Reputational damage from negative eWOM or internet
trolling.
• Marketer’s must understand the technology and the
online environment to be successful
• Online communications can be less credible than those
offline
• eWOM is perceived as less reliable or possibly biased
Reference Groups:
• A reference group is any person or group that acts as a comparison for an individual in evaluating themselves, forming values, attitudes or behaviours.
• Establishment of online brand communities for
consumer to consumer interactions
• Learning of consumers attitudes, needs and desires
• To establish stronger loyalty with the consumer
Example of an online consumer reference group:
Q&A
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