Consumer-generated media (CGM) on the Internet – such as blogs, discussion groups and emailing – has produced a form of influence very similar to WOM (word-of-mouth), write Robert East, Malcolm Wright and Marc Vanhuele in ‘Consumer Behaviour: Applications in marketing’ (www.sagepublications.com). They add that Internet advice, often called ‘buzz,’ has renewed interest in WOM among ad agencies, market research organisations, and businesses.
“The term ‘viral marketing’ has been coined to describe campaigns where copy is spontaneously propagated by Internet users and we have even seen the emergence of a new medium, ‘direct WOM,’ where agencies such as Tremor and BzzAgent recruit consumers, supply them with products, and ask them to advise their friends about this merchandise.”
The authors note that, in the flurry of enthusiasm for WOM, pundits have come forward to suggest how it works. Examples cited include: Gladwell (2000), whose book ‘The Tipping Point’ gives instances of mass changes via WOM, and argues that WOM is often spontaneous and uncontrollable; Silverman (2001), who suggests that the speed of WOM can help to put a product ahead of competitors; and Rosen (2000), who speaks of the need to identify and use the more influential consumers or hubs.
Companies can facilitate comment on the Internet by providing websites where users can express their views, the authors suggest. “When the product performs well, comment is likely to be predominantly positive and any negative comments can be quickly addressed. Well-managed websites may add to customer satisfaction and make positive comment still more likely.”
Another practical suggestion is that suppliers can use their customer databases to direct information to groups who could be critical. Studies show that about one-fifth of negative advice relates to the communicator’s main brand. Even if it is impossible to detect the minority that criticises the main brand, it may still be possible to deal with common complains by communicating with all customers, the authors counsel. “If this can be done, both NWOM (negative WOM) and defection may be reduced.”
It may even be possible generate PWOM (positive WOM) after successfully counteracting NWOM. How so? By connecting with past customers; because, most cases of NWOM come from them! “When products have improved, those who no longer buy them are unlikely to know about the improvement and may continue to criticise their previous brand on the assumption that it is unchanged. By sending past customers information about brand improvements, suppliers may be able to stop this NWOM.”
The WOM chapter concludes by stating that there seem to be many wrong beliefs about WOM. For instance, “It is not true that NWOM is more common or more powerful than PWOM according to the evidence that has now accumulated. It is not true that most WOM is driven primarily by satisfaction or dissatisfaction, though this is often involved. Nor is it true that long-term customers usually recommend more than short-term customers.” The authors, therefore, call for research to displace such WOM hearsay and to provide a basis for well thought-out marketing strategies.
Talking of research and application, the preface identifies two approaches in the area of consumer behaviour. The first is the tradition that endorses theorising and hypothesis-testing, often within experimental designs – ‘the tradition that dominates in the large conferences of the Association for Consumer Research.’
The second approach, which the book adopts, is of ‘marketing science,’ with an emphasis on behaviour, on measures rather than concepts, drawing generalisations from an accumulation of findings rather than testing hypotheses, and using mathematical models instead of psychological theories for explanation.
Helpful reference.
