9722620 stan
TRANSCRIPT
Presenter: Stan ChungInstructor: Dr. Pi-Ying Teresa Hsu
Date: Nov. 3, 2008
Bolen, W. (1994). The role of word-of-mouth “advertising" in retailing. American Business Review, 12, 11-14.
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I. Introduction
II. Methodology
III. Findings
IV. Conclusion
V. My Research
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Definition of “Word-of-Mouth” Oral person-to-person communication between
a receiver and a communicator whom the receiver perceives as non-commercial, concerning a brand, a product, or a service.
(Ardnt, 1967)
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Traditional word of mouth is restricted to the small circle of family and friends; Internet word-of-mouth is a boundless dialogue with a potentially unlimited number of Net users.
(Stauss, 1997)
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Advertising, a controlled (paid) form of no personal presentation and promotion of an idea, good, or service by an identified sponsor.
(Bolen, 1984)
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Based on these 3 points:
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Retailer does not control word-of-mouth.
Retailer does not purchase word-of-mouth communications.
Word-of-mouth is not mass media.
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Monitoring customer praise
Seeking customer complaints
(Swan & Oliver, 1989)
(Wilson, 1991)9
Awful Service Good or Adequate Service
Great Service
Negative Word of Mouth
No Word of Mouth Positive Word of Mouth
Do retailers understand the importance of word-of-mouth advertising to the retail business?
If yes, do they understand how it might be promoted? Funded? Evaluated?
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Method Participants need to react to many statements.
Duration Over 2 year
Participants 57 retail firms
Word-of-Mouth Advertising as defined
Is limited to positive statements 37%
Is limited to positive and neutral statements 28%
Can include negative as positive/ neutral statements 25%
Non response 10%
N= 57
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Word-of-Mouth Advertising is the most effective of all advertising media
Agree with this statement 86%
Disagree with this statement 14%
N=57
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Much creditability in person-to-person contact.
Especially when this contact is found to be personalized.
Word-of-Mouth Advertising is funded and/or controlled
Yes/How -Absorbed in overhead 12% -Donations/ Goodwill-Free product/ Below market price-Incentives for opinion leaders-After-sale customersNo 54%
Non Response 34%
N=57
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Word-of-Mouth Advertising effectiveness is determined
Yes/How -Unsolicited customer feedback 63%-People tell us how they found out about us-Ask customers how they found out about us-Listen to customers and observe what they purchase-Sales for year versus last year-Old customers bring in new customers
No -Its effectiveness can not be determined 16%
Non Response 21%
N=57 16
Word-of-mouth advertising/communication is believed to be very important to the long run success of a business.
Most retailers feel that word-of-mouth advertising cannot be funded or controlled.
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TopicConsumer’s attitudes towards online word-of-mouth and their purchasing intention.
Participants People who have the experience of using online word-of-mouth.
Methodology Questionnaire for 250 participants.
Thanks for listening!
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