Consumer behaviour group assignment
- 1. Facebook check-in: A new form of e-word-of-mouth By Tom Wilson, Tegan Speers and Emma Jarman
- 2. Why is word-of-mouth particularly relevant to service marketers of goods? Identify five popular service providers of retailers in your area where consumers check-in on Facebook then discuss how word-of-mouth spread in this way is important for these businesses particularly. Word of mouth (WOM) refers to the communication process by which one person informally influences the actions or attitudes of another (Schiffman et al. 2014, pp. 297-300) WOM is particularly relevant to service marketers of goods, as consumers have found to rely on WOM to reduce the level of perceived risk and uncertainty that can often be associated with the purchase of services (Mangold, Miller & Brockway 1999). An example of this could be a consumer looking to obtain the services of a builder.
- 3. eWOM Electronic word of mouth (eWOM) is an electronic form of WOM that is expressed through online blogs and other social media sites like Facebook. Facebook allows consumers to check-in to businesses online and leave a comment of their choice. Once a consumer checks-in online the post is available to all of their friends to view. This makes it easier then ever for a consumer to express their feelings about a product/service to others. Five popular service providers (Facebook Check-In): Launceston AMF Bowling Launceston Aquatic Centre Launceston Airport Launceston Phone Repairs Launceston Indoor Rock Climbing
- 4. How can service providers manage and influence the positive and negative word-of-mouth communication that is spread via social networking sites? Provide an example. Positive (negative) word of mouth (PWOM/NWOM) refers to the positive and/or negative reactions and communications that consumers share amongst each other after purchasing a good or service. Casiellies, Álvarez, Del Río-Lanza, (2013, pp. 44-48) have come to the hypothesis that ‘Positive (negative) WOM has a positive (negative) impact on the shift in the receiver’s purchase probability’. Making it important for service providers to manage and influence the positive and negative WOM communication that is spread via social networking sites.
- 5. Influencing word-of-mouth communication that is spread via social networking sites Kietzman & Canhoto (2013 p.154) suggests that ‘managers need to pay close attention to eWOM to minimize the risks of harmful comments and to maximize the impact of helpful eWOM’. Managers can do this by prioritizing what, where and when they respond to eWOM on social networking sites and how much time is devoted to each post (Kietzman & Canhoto 2013 p.154).
- 6. What factors do consumers take into account when evaluating firm generated feedback versus peer generated word of mouth? Peer generated WOM is grown through peer discussions and is not initiated by a firm Firm generated WOM is generated by organisations and intended to spread virally amongst consumers The case study highlights that consumers consider peer generated over firm generated when evaluating WOM as the messages spread by other consumers are more trustworthy and unbiased (Lucas 2014). Stern and Gould (1988) emphasize that the informal peer generated WOM is perceived as being more credible than firm sale forces and advertising as they do not represent any commercial interest.
- 7. Opinion leaders can be described as product specialists who provide information about a particular class of product to other consumers. informally influence the attitudes and behaviours of consumers through product related conversations. Reasons marketers should be interested in opinion leaders: They are critical in spreading innovation and information consumers place more reliance on information provided from opinion leaders as opposed to advertisements. In terms of online communities: Marketers need to manage opinion leaders to build positive WOM and create a virtual relationship with consumers.
- 8. What are the pros and cons for marketers of highly connected, smart phone equipped users? Pros The Check in feature of Facebook allows consumers to pass on recommendations to others. Online forums, chat boards and conversation through social media provide marketers with an abundance of explicit and implicit purchase information. Consumers can conduct more research on a product or service, whilst reading testimonials and comments from other consumers, increasing consumer certainty.
- 9. Cons Disgruntled consumers through social media are now able to spread their negative WOM faster and to a wider audience than ever before. Search portals are also making it easier for consumers to compare products and prices with others, resulting in increased competition. Similar to search portals, forums and chat rooms provide consumers with comprehensive information of a product. As consumers tend to listen to peer generated WOM over advertisements, marketers lose control of this element.
- 10. How do consumer reference groups apply in this context? Reference groups share their e-WOM about various experiences Facebook is one of the largest social media sites in the world Facebook allows these groups to give live feedback
- 11. Why are these groups of interest to marketers? Their opinions generate discussions and highlight what the consumer wants They deliver feedback that would not be known without these groups Powerful and credible groups can increase brand awareness and reputation
- 12. Examples of how online consumer reference groups influence the decision making process of a Facebook user Inform the user of a particular brand or product Allows the user to compare their own thinking to the group Encourages the user to adopt similar beliefs to the group through connectivity Provide both negative and positive e-WOM
- 13. Thank- you!
Editor's Notes
- #3: ----- Meeting Notes (18/09/2014 09:39) ----- An example of this could be a consumer looking to purchase the services of a builder, this consumer may ask around friends for a reliable builder as they may have heard about other friends having bad experiences with builders. In this particular example the prospective consumer is likely to rely on what they have been told, as the uncertainty has been taken away. This demonstrates why WOM is particularly important to services marketing.
- #4: ----- Meeting Notes (18/09/2014 09:45) ----- eWOM spread is particuarly important to these businesses because AMF Bowling/Aquatic Centre/Indoor Rock Climbing: With increasing numbers of children using Facebook if they see a friend check-in to either of these businesses it might give them the idea to ask their parents about going. Launceston Phone repairs: Check-ins for this business could be an important WOM tool as consumers are able to express how their services were to all their friends. Therefore it is extremely important for Launceston phone repairs to handle consumers and online feedback well.
- #6: ----- Meeting Notes (18/09/2014 09:51) ----- An example of this would be a service firm responding to a negative comment on Facebook. It is important that the comment is responded to immediately and that a solution is offered. By doing this other consumers or potential consumers will feel better towards the company as good consumer service is been offered.