Viral Marketing Understanding and managingreferral marketing Group 3
Introduction • I) Opinion Leader & Mass Marketing • II) Intrapersonal Variable • III) Negative & Positive WOM • IV) WOM with Services • V) Cultural Limitation of WOM Table of content
With text messages, emails, wall posts and tweets, it’s easier to communicate than ever before. • The easier it is to talk, the faster information will spread. As you may know, word of mouth (WOM) advertising is the most effective form of consumer persuasion Introduction
Theory of mass communication (< 1940) Vs. Concept of “Opinion Leaders” (late 1940s) Attitudes + behaviors Person 1 Opinion Leader Marketer Person 2 Evolution of Marketing Communication Person 3 Person X
All levels and in all groupings of society • Influential on one or several topics • Three common characteristics: • Social participation • Social status • cosmopolitanism Opinion Leaders
PR strategy use WOM to promote Microsoft Vista notebooks • Opinion leaders High Profile Bloggers Case of …
Scandal in 2006 • MS accused of bribery • Consequences Negative Publicity vs. Positive Buzz … and its PR scandal.
Customer satisfaction is the key of positive WOM • Focus on customers expectations Interpersonal Variable
Negative WOM = unsatisfactory imbalance between expectations and perceptions.It is one form of customer complaining behavior. • Both positive and negative WOM is a force that can influence the purchase behavior of consumers. • 75% of the general population say when they've had a bad experience with a product they advise friends and family. Positive WOM vs Negative WOM
Negative WOM has a stronger impact because the consumers will spread even more the information in order to prevent the others to live the same bad experience.Ex: Theme park customer • Negative WOM has 2.4% more financial impact than positive comments: negative comments increase profits decreased. Positive WOM vs Negative WOM
Ifa customer has a positive experiencewithyourcompanytheywilltellonaverage 3 people, iftheyhave a negativeexperiencetheywilltell12 people. • More thanone-quarter of US consumers (26%) saythey are more likelytotellfamily, friends, and coworkersabout a badexperiencewith a productorservicethan a goodone
Illustrating video: Positive WOM vs Negative WOM
WOM appears more efficientfor a service (someonewhoyou trust in) • But WOM for a productis more effectivethanfor a word of mouthaboutcelebritiesbecausepeopledon’tevenknowtheperson and can’t be relatedtothefamousperson and whojustrecommend a product Theword-of-mouthforservices
“The more people I know that are using a product, the more confident I can be that it will not fall apart, malfunction, or otherwise embarrass me.” Lifestyle
Thankyou for your attention Any Questions?