September 2007 Word of Mouth Research 2007 Summary version in Japan KUCHI-COMI  Report Research Report concerning purchasi...
Objective One of the leading Japanese advertising agencies, KOKOKUSHA Co. Ltd., (Tokyo) conducted "Word of Mouth Rese...
About TSUZUMI Target Target Aware Interested WOM Purchase WOM Target Target Consumers WOM Motivated Customer The  spread o...
Attribute of Respondents <ul><li>Age </li></ul><ul><li>Sex </li></ul><ul><li>Marriage Status </li></ul>n 800 <ul><li>Occup...
Attribute of Respondents <ul><li>Coverage </li></ul>Ratio 43.4 1.3 2.0 9.3 20.3 2.5 7.9 0.3 ① Hokkai do ② Tohoku ③ Kanto ④...
KUCHI-COMI(WOM) Marketing Structure Analysis Get interested  because of WOM purchase products because of WOM Share own tes...
Chapter 1 Influence and Spread of  WOM  ( KUCHI-COMI ) <ul><li>The way WOM spreads </li></ul><ul><li>The influence of WOM ...
Aspect of Analysis Target Target Aware Interested WOM Purchase WOM Target Target Consumers WOM Motivated <ul><li>Summary 1...
Influence of WOM ( KUCHI-COMI ) Q6 How often did you receive WOM during   past 6 months? Moreover, how large was the influ...
How do you receive WOM the most? <ul><li>Summary 2 </li></ul><ul><li>WOM from friends/family tends to raise brand awarenes...
Who is your WOM giver? Q. Who gives you WOM mostly?  ( ma) WOM from friends is outstanding.
What kind of information does WOM carry? <ul><li>Summary 3 </li></ul><ul><li>“ What was the WOM you received and/or releas...
Chapter   2 Two Phases of WOM Spread
Aspect of Analysis Source of WOM “ I shared my experience with other people by WOM.” First  Spread     64.5% Second Spread...
Two phases of WOM spread <ul><li>Summary 1 </li></ul><ul><ul><li>64.5 %  : the first spread of WOM </li></ul></ul><ul><ul>...
Two phases of WOM spread First Spread 64.5% Second Spread 59.6% ■ Who 1st     Family, relatives 57.2% 2nd    Friends 52.9%...
First Spread of WOM Q11. How often do you WOM your experience to others?(sa) First Spread: to WOM  OWN  experience to othe...
Second Spread of WOM -frequency Q11. How often do you WOM someone else’s  experience to others?(sa) DID: 59.6 % Often Some...
Second Spread of WOM -contents Q15. What do you WOM about?(ma) ■ Overall In the second phase of WOM spread, the subject di...
Second Spread of WOM -source Q17.What was the source of WOM? <ul><li>■ Major source of information in second spread of WOM...
Chapter   3 Positive WOM vs. Negative WOM
Positive WOM vs. Negative WOM Q31. Did you discourage anyone to buy a product/service based on your bad experience with it...
Chapter   4 WOM Influence on Purchasing
Influence of WOM <ul><li>SUM 1:  Cosmetics (which are popular product among female office workers and housewives) with 10....
Products purchased in the past 6 months Q18.What is  the top-ranked product category for all purchase made  in the past 6 ...
Products purchased in past 6 months –WOM influence Q20.  How much did WOM influence on your purchasing  decision?(sa) <ul>...
Chapter   5 Customer Advocacy through WOM
Customer Advocacy through WOM Breakdown of Customer Advocacy through WOM <ul><li>WHO </li></ul><ul><li>1st    Friends    4...
Chapter   6 Relation between  WOM and Media
Outline  TARGET TARGET Potential Customers WOM Customers Loyal customers WOM TARGET TARGET <ul><ul><li>Targets </li></ul><...
Relation between WOM and Mass Media Potential Customers Customer Contribution to brand awareness Contribution to brand  in...
The Influence of Mass Media on the 3 Stages “ Awareness Trigger&quot; “Interest Trigger&quot; “Purchase Trigger&quot; *ord...
The Influence of Media on 3 Stages  ver: Homemakers The Influence of Mass Media on “Housewives ( 216 people) ” TV,  Retail...
Chapter   7 Changes in Lifestyle and Media Consumption
Online Video Consumption Q35. Do you usually watch online videos?(sa) <ul><li>83.7% of all respondents watch online video ...
Changes in Media Consumption last year 84.6% 36.3% 34.4% 67.8% 86.7% 86.5% 83.4% 67.7% 98.8% 78.0% 84.4% 52.6% 80.3% 43.3%...
Changes in Media Consumption last 1 year Frequency increased <ul><li>Online Videos recorded second with increase. </li></u...
Changes in Media Consumption last 1 year <ul><li>free magazines/newspapers </li></ul><ul><li>newspaper </li></ul><ul><li>n...
Contacts Masayuki Nakajima  Senior Marketer  KOKOKUSHA  Marketing Dept / WOM Research 2007 team Tel: 03-3775-0085 Fax: 03-...
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Wom research07

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"Word of Mouth Research 2007" collaborated with Prof. Nihei of Asia University in May 2007. The surveys have been taken place since 2003 annually, and this was the 4th execution in series.
The purpose of this survey is to study the impact of word of mouth (WOM) marketing. Based on the Tsuzumi* model that the team has proposed, they had investigations over true figure of WOM such as the way WOM spreads, information carried by WOM, relation between WOM and media, and positive WOM vs. negative WOM. The feature in this edition is the elaborated study in two phases of WOM spreads.

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Wom research07

  1. 1. September 2007 Word of Mouth Research 2007 Summary version in Japan KUCHI-COMI Report Research Report concerning purchasing decisions and influence of &quot;WOM”
  2. 2. Objective One of the leading Japanese advertising agencies, KOKOKUSHA Co. Ltd., (Tokyo) conducted &quot;Word of Mouth Research 2007&quot; collaborated with Prof. Nihei of Asia University in May 2007. The surveys have been taken place since 2003 annually, and this was the 4th execution in series. The purpose of this survey is to study the impact of word of mouth (WOM) marketing. Based on the Tsuzumi* model that the team has proposed, they had investigations over true figure of WOM such as the way WOM spreads, information carried by WOM, relation between WOM and media, and positive WOM vs. negative WOM. The feature in this edition is the elaborated study in two phases of WOM spreads. We call WOM KUCHI-COMI in Japan. In sum, the study proved WOM is the ultimate personalized media, and strategic WOM marketing would be necessary to win the market share. The result of this survey is available at Kokokusha’s website(http://www.kokokusha.co.jp/service/kuchikomi.html). *Tsuzumi is a Japanese hourglass-shaped drum. ■ Execution period May 2007 ■ Research method Internet panel research ■ Coverage          Men and women over 16 years old in Japan (total 800)   ■ Design and analysis Kokokusha., Co Ltd. / Nihei laboratory(Asia University) ■ Cooperation Kishinami advertising office                         CONNECT   YOU   KK The report of this survey is available at: http://www.kokokusha.co.jp/service/kuchikomi.html
  3. 3. About TSUZUMI Target Target Aware Interested WOM Purchase WOM Target Target Consumers WOM Motivated Customer The spread of WOM *TSUZUMI is a Japanese hourglass-shaped drum  鼓 TSUZUMI   is   a traditional musical instrument of Japan. It is a instrument played with KABUKI. The KABUKI is the traditional stage drama in Japan, like your musical. TSUZUMI makes verious sounds depending on the person who play it.
  4. 4. Attribute of Respondents <ul><li>Age </li></ul><ul><li>Sex </li></ul><ul><li>Marriage Status </li></ul>n 800 <ul><li>Occupation </li></ul>Ratio=% 44.4 55.6 Single Married n 800 50.0 50.0 Male Female n 800 16.5 16.8 16.8 16.8 16.8 16.5 10’s 20’s 30’s 40’s 50’s 60 and over n 800 18.5 8.5 2.3 27.8 34.3 Homemaker Homemaker w/ job office worker (Female) Company employee Profession Business Executives Students, others 4.9 3.9
  5. 5. Attribute of Respondents <ul><li>Coverage </li></ul>Ratio 43.4 1.3 2.0 9.3 20.3 2.5 7.9 0.3 ① Hokkai do ② Tohoku ③ Kanto ④ Koshinetsu ⑤ Hoku riku ⑥ Toukai ⑦ Kansai ⑧ Chugoku ⑨ Shikoku ⑩ Kyusyu ⑪ Okinawa n 800 4.9 4.6 3.8 ① Hokkaido 北海道 ② Tohoku 東北 ③ Kanto  関東 ④ Koshinetsu 甲信越 ⑥ Toukai 東海 ⑦ Kansai 関西 ⑧ Chugoku 中国 ⑨ Shikoku 四国 ⑩ Kyusyu 九州 ⑪ Okinawa  沖縄 TOKYO
  6. 6. KUCHI-COMI(WOM) Marketing Structure Analysis Get interested because of WOM purchase products because of WOM Share own testimonials by WOM Chapter 1 Influence and Spread of WOM Tell others Receive WOM Own experience Receive Spread Chapter 4 WOM Influence on purchase Chapter 2 Two phases of WOM Spread Chapter 6 Relation between WOM and Media Chapter 3 Positive WOM vs. Negative WOM Chapter 5 Customer Advocacy through WOM AWARENESS (Trigger for brand awareness) PURCHASE (Trigger to purchase) INTEREST ( trigger to interest ) person person WOM WOM First Spread of WOM person person WOM Second Spread of WOM Prospects Customers Potential customers 56.4%(SA) 59.6%(SA) Targets Consumers Motivated How do WOM transfers from one person to another? Contents of WOM Share someone's testimonials by WOM Third person’s experience Chapter 7 Change of lifestyle and media consumption Spread of WOM How often do consumers receive and/or release WOM?
  7. 7. Chapter 1 Influence and Spread of WOM ( KUCHI-COMI ) <ul><li>The way WOM spreads </li></ul><ul><li>The influence of WOM </li></ul><ul><li>Who is your WOM giver?               </li></ul><ul><li>How do you receive WOM the most? </li></ul><ul><li>What kind of information does WOM carry? </li></ul>
  8. 8. Aspect of Analysis Target Target Aware Interested WOM Purchase WOM Target Target Consumers WOM Motivated <ul><li>Summary 1 </li></ul><ul><ul><li>86.3% received WOM during past 6 months. </li></ul></ul><ul><ul><li>72.3% purchased products/service as the result of the WOM influence </li></ul></ul><ul><ul><li>  in the last 6 months. </li></ul></ul>Customer (past 6months) I received/released WOM. (past 6months) I got interested through WOM.   (past 6months) The   WOM become the trigger for purchase. 76.4% (past 6months) The   WOM lead me to purchase eventually. 72.3% 86.3% 84.4% 1 2 3 4
  9. 9. Influence of WOM ( KUCHI-COMI ) Q6 How often did you receive WOM during   past 6 months? Moreover, how large was the influence of WOM on your purchase decision making?(sa) *sa=single answer 21.0 39.5 25.8 13.7 Interested 15.1 39.5 29.8 15.6 Motivated 29.3 37.1 23.6 Purchase 25.8 40.0 27.7 Often Sometimes Rarely Never # 800 800 800 800 10.0 6.5 Aware (past 6months) I received/released WOM. (past 6months) I got interested through WOM.   (past 6months) WOM become the trigger for purchase. 76.4% (past 6months) WOM lead me to purchase eventually. 72.3% 86.3% 84.4% 1 2 3 4 Often Sometimes + Rarely TOTAL %
  10. 10. How do you receive WOM the most? <ul><li>Summary 2 </li></ul><ul><li>WOM from friends/family tends to raise brand awareness and interests. </li></ul>Q. How did you receive WOM mostly in the last 6 months? (ma ) *ma=multiple answer Online WOM Real WOM
  11. 11. Who is your WOM giver? Q. Who gives you WOM mostly?  ( ma) WOM from friends is outstanding.
  12. 12. What kind of information does WOM carry? <ul><li>Summary 3 </li></ul><ul><li>“ What was the WOM you received and/or released about?” </li></ul><ul><li>#1: Feature and content of the brand #2: Testimonials #3:Price </li></ul><ul><li>People wants to receive both negative and positive information by WOM. </li></ul>Aware through WOM Interested through WOM Motivated through WOM Q. What was the WOM you received about?(ma) A B C D E F G H I J K L M N A: Release of the products/service B: Features of the products/service C: Feature which has created buzz D: Price E: Products style and design K: Own experience with the products/service L: Promotion campaign M: Manufacture’s environmental consciousness N: User’s opinion F: Sophistication of the TVCM G: Campaign character(s) H: Celebrity users I: CM music J: CM Storyline
  13. 13. Chapter   2 Two Phases of WOM Spread
  14. 14. Aspect of Analysis Source of WOM “ I shared my experience with other people by WOM.” First Spread     64.5% Second Spread    59.6% WOM from third-party and TV CM Target Target Aware Interested WOM Customer WOM Target Target Consumer WOM Motivated Two phases of WOM spread “ I shared another person’s experience with other people by WOM.” Purchase :
  15. 15. Two phases of WOM spread <ul><li>Summary 1 </li></ul><ul><ul><li>64.5 % : the first spread of WOM </li></ul></ul><ul><ul><li>59.6 % : the second spread of WOM </li></ul></ul><ul><li>Summary 2 </li></ul><ul><ul><li>The spreads of WOM among women are wider and faster than those among men. </li></ul></ul><ul><ul><li>A lot of WOM circulates among teenagers using mobile phones. </li></ul></ul><ul><li>-Source of WOM- </li></ul><ul><li>Summary 3 </li></ul><ul><ul><li>Major media which promotes the second spreads of WOM are WOM and TV. </li></ul></ul><ul><ul><ul><li>1 st WOM from friends 37.1% </li></ul></ul></ul><ul><ul><ul><li>2 nd TV 35.6%   </li></ul></ul></ul><ul><ul><ul><li>3 rd Retail outlet promotion 21.2% </li></ul></ul></ul><ul><ul><ul><li>4 th User’s opinion 20.8% </li></ul></ul></ul><ul><ul><ul><li>5 th Online community 18.4% </li></ul></ul></ul>
  16. 16. Two phases of WOM spread First Spread 64.5% Second Spread 59.6% ■ Who 1st   Family, relatives 57.2% 2nd   Friends 52.9% 3rd   Friends with same interests 45.3% ■ How 1st   Face to face   89.1% 2nd Over the phone   21.1% 3rd   Post messages on online community   20.7% ■ Why (B/C:Because) 1st   B/C I want to introduce good products. 64.7% 2nd B/C the listener wants to look good. 48.6%   3rd   B/C It’s highly novel information. 28.5% ■ What 67.7% of panelists answered features and contents of service/ products.   ■ Source of WOM 1st   WOM from Friends 37.1% 2nd   TV CM 35.6%   3rd   Retail outlet promotions 21.2% 4th   User’s opinion 20.8% 5th   Online community 18.4% “ I have WOMed my experience to others before.” “ I have WOMed someone’s experience to others before.” ■ Who 1st   Family, relatives 57.7% 2nd   Friends 48.2% 3rd   Friends of community 43.4% ■ How 1st   face to face 88.7% 2nd over the phone   18.7% 3rd   post messages in online community   15.7% ■ Why 1st   B/C I want to introduce good products. 53.5% 2nd   B/C the listener wants to look good. 47.8%   3rd   B/C. It’s highly novel information 25.8%
  17. 17. First Spread of WOM Q11. How often do you WOM your experience to others?(sa) First Spread: to WOM OWN experience to others DID: 64.5 % Total 23.5 34.0 35.5 Male Total 21.3 31.3 40.8 10’s. 10.6 22.7 25.8 40.9 20’s 29.9 28.4 34.3 30’s 10.4 20.9 28.4 40.3 40’s 16.4 32.8 46.3 50’s 20.9 31.3 43.3 60 and over 16.7 40.9 39.4 Female Total 25.8 36.8 30.3 10’s 22.7 18.2 53.0 20’s 9.0 31.3 38.8 20.9 30’s 9.0 22.4 43.3 25.4 40’s 9.0 19.4 43.3 28.4 50’s 32.8 43.3 17.9 60 and over 25.8 33.3 36.4 Often Sometimes Rarely Never n 800 400 66 67 67 67 67 66 400 66 67 67 67 67 66 7.0 6.8 7.5 4.5 4.5 3.0 7.2 6.1 6.0 4.5 Often Sometimes + Rarely DID
  18. 18. Second Spread of WOM -frequency Q11. How often do you WOM someone else’s experience to others?(sa) DID: 59.6 % Often Sometimes Rarely 34.0% Second Spread: to WOM THIRD PERSON’s experience to others Total 20.0 34.0 40.4 Male Total 19.0 31.0 45.3 10’s 22.7 25.8 45.5 20’s 29.9 26.9 38.8 30’s 9.0 17.9 25.4 47.8 40’s 13.4 35.8 47.8 50’s 19.4 29.9 49.3 60 and over 10.6 42.4 42.4 Female Total 21.0 37.0 35.5 10’s 18.2 19.7 56.1 20’s 29.9 38.8 26.9 30’s 17.9 41.8 32.8 40’s 9.0 16.4 43.3 31.3 50’s 25.4 46.3 20.9 60 and over 18.2 31.8 45.5 Often Sometimes Rarely Never n 800 400 66 67 67 67 67 66 400 66 67 67 67 67 66 5.6 4.8 6.1 4.5 3.0 1.5 4.5 6.5 6.1 4.5 7.5 7.5 4.5 Often Sometimes + Rarely DID
  19. 19. Second Spread of WOM -contents Q15. What do you WOM about?(ma) ■ Overall In the second phase of WOM spread, the subject discussed the most is about product/service features followed by price, popularity and speaker’s own testimonials. ■ Sex More women tend to tell others about their experience with a product/ service and good deals compared with men. <ul><li>Features of the products/service </li></ul><ul><li>Price </li></ul><ul><li>Release of the products/service </li></ul><ul><li>Feature which has created buzz </li></ul><ul><li>Own experience with the products/service </li></ul><ul><li>User’s opinion </li></ul><ul><li>Promotion campaign </li></ul><ul><li>Products style and design </li></ul><ul><li>Sophistication of the TVCM </li></ul><ul><li>Campaign character(s) </li></ul><ul><li>CM music </li></ul><ul><li>Manufacture is environmentally conscious </li></ul><ul><li>Celebrity users </li></ul><ul><li>CM Storyline </li></ul><ul><li>Others </li></ul>
  20. 20. Second Spread of WOM -source Q17.What was the source of WOM? <ul><li>■ Major source of information in second spread of WOM are WOM from friends and TV. </li></ul><ul><li>Women WOM a lot based on endorsements from friends. </li></ul><ul><li>UGC websites are one of important sources for men. </li></ul><ul><li>Friends </li></ul><ul><li>TV </li></ul><ul><li>Retail Outlet Promotion </li></ul><ul><li>Users </li></ul><ul><li>SNS websites </li></ul><ul><li>Magazines </li></ul><ul><li>Other Websites </li></ul><ul><li>UGC websites </li></ul><ul><li>Online ads </li></ul><ul><li>Newspaper </li></ul><ul><li>Someone familiar w/ the product field </li></ul><ul><li>Search Engines </li></ul><ul><li>Company websites </li></ul><ul><li>Clerk/Salespeople </li></ul><ul><li>News/ news websites </li></ul><ul><li>Collaterals in store </li></ul><ul><li>Newspaper flyers </li></ul><ul><li>Direct Mail </li></ul><ul><li>Radio </li></ul><ul><li>Billboards </li></ul><ul><li>Online Video </li></ul><ul><li>Events/Exhibitions </li></ul><ul><li>Transportation Ads </li></ul><ul><li>Others </li></ul>A B C D E F G H I J K L M N O P Q R S T U V W X
  21. 21. Chapter   3 Positive WOM vs. Negative WOM
  22. 22. Positive WOM vs. Negative WOM Q31. Did you discourage anyone to buy a product/service based on your bad experience with it past 6 months? Moreover, did you tell anyone about someone’s bad experience which were WOMed by third person past 6 month? (sa) First Spread of Positive WOM Second Spread of Positive WOM Q11   POSITIVE Yes =64.5 % Fist Spread of Negative WOM Q. Have you WOMed YOUR bad experience to others? Yes: 37.3 % N=800 Yes: 35.5 % Second Spread of Negative WOM Q. Have you WOMed SOMEONE’s bad experience to others? Often Sometimes Sometimes Rarely Rarely 34.0% n=800 n=800 Yes = 59.6 % Often 4.0% Sometimes 8.0% Rarely 25.3% Never 62.7% Often 3.8% Sometimes 6.6% Rarely 25.1% Never 64.5%
  23. 23. Chapter   4 WOM Influence on Purchasing
  24. 24. Influence of WOM <ul><li>SUM 1: Cosmetics (which are popular product among female office workers and housewives) with 10.3%, gained the largest ratio in the category of purchase frequency. </li></ul><ul><ul><li>9.3% for Food & Beverages including alcohol following cosmetics   </li></ul></ul><ul><ul><li>7.6% for daily commodities, supplemental foods and drugs following foods & beverages </li></ul></ul><ul><ul><li>  </li></ul></ul><ul><li>SUM 2: Purchasing decisions are strongly influenced by WOM: cosmetics; digital camera and video recorder; dairy commodities, supplemental foods, and apparel; vacation related service </li></ul><ul><ul><li>Following products categories were among the top five with regards to purchasing amount. </li></ul></ul><ul><ul><li>Cosmetics; daily commodities, supplements foods and Cloths; and vacation/leisure related products. </li></ul></ul>Condition In Question 18 (see the next page), investigates which was the most important purchase trigger for all products/services bought over the last 6 months.
  25. 25. Products purchased in the past 6 months Q18.What is the top-ranked product category for all purchase made in the past 6 months ? <ul><li>The top ranked product category was cosmetics, which is highly supported by all housewives and female office workers. (OL) </li></ul><ul><li>WOM influenced cosmetics purchases account for 15.2%. </li></ul>Purchase amount   × WOM influence (in Q20)   ×   Occupation *WOM influence herein indicates horizontal % of “very influenced&quot; matrix quoted from Q 20. Total strongly influenced by WOM <ul><li>Cosmetics </li></ul><ul><li>Foods/beverages (inc. Alcohol) </li></ul><ul><li>Daily commodities, supplemental foods, drugs </li></ul><ul><li>PC/Printers for home use </li></ul><ul><li>Clothing </li></ul><ul><li>Cell Phones </li></ul><ul><li>CD's, DVD's </li></ul><ul><li>Books, Magazines </li></ul><ul><li>Game Consoles </li></ul><ul><li>Digital Cameras, video recorders </li></ul><ul><li>AV equipments </li></ul><ul><li>Travel, accommodation, recreation service </li></ul><ul><li>Financial products (ie loan, insurance) </li></ul><ul><li>Consumer electronics </li></ul><ul><li>PC software, games </li></ul><ul><li>PC/Printers for office use </li></ul><ul><li>Cars </li></ul><ul><li>Mail Order products (inc. education service) </li></ul><ul><li>Others </li></ul>
  26. 26. Products purchased in past 6 months –WOM influence Q20. How much did WOM influence on your purchasing decision?(sa) <ul><li>71% for numeric value of total WOM influence on consumers </li></ul><ul><li>The ratio of “very influenced” in cosmetics was the highest. </li></ul>36.5 35.1 Daily Commodities, Supplemental foods, and Drugs 39.3 41.0 19.7 PC/printers for private use 29.5 44.3 26.2 Clothing 54.4 38.6 Cell phone 32.1 45.3 22.6 Music, CD, movie and DVDs 25.6 34.9 39.5 Books and magazines 22.5 42.5 35.0 Game Consoles 27.5 50.0 22.5 Digital cameras, video recorders 44.7 31.6 23.7 AV equipments 34.4 46.9 18.8 Travel, accommodation, recreation facility 38.7 48.4 12.9 Financial Products (ie. loan, insurance) 33.3 33.3 33.3 Consumer products 24.1 41.4 34.5 PC Software, Games 32.0 40.0 28.0 PC/Printers for office use 26.1 43.5 30.4 Cars 40.0 53.3 Mail-order products (incl. education service) 21.4 28.6 50.0 Others 32.7 25.0 42.3 Very influenced Influenced Not at all n 800 82 74 61 61 57 53 43 40 40 38 32 31 30 29 25 23 15 14 52 7.0 6.7 Very influenced + influenced =71% Total 30.5 40.5 29.0 Cosmetics 45.1 37.8 17.1 Foods & Beverages (incl. Alcohol) 28.4 Very Influenced 30.5 % Influenced 40.5 % Not at all 29.0%
  27. 27. Chapter   5 Customer Advocacy through WOM
  28. 28. Customer Advocacy through WOM Breakdown of Customer Advocacy through WOM <ul><li>WHO </li></ul><ul><li>1st   Friends   46.2% </li></ul><ul><li>2nd   Friends </li></ul><ul><li>with same interest 44.6% </li></ul><ul><li>3rd   Family/Relatives 41.7% </li></ul><ul><li><Notes> </li></ul><ul><li>Men advocate to friends the most while women do to family/relatives the most. </li></ul><ul><li>Teenagers give advocacy to friends mostly in both gender. </li></ul><ul><li>Men in their 30’s to 50s, tend to give advocacy to co-workers. On the other hand, men in their 10’s, 20’s and 60’ give advocacy to friends the most. </li></ul><ul><li>Women tend to give advocacy to friends and family equally unlike males. </li></ul><ul><li>HOW </li></ul><ul><li>1st   Talk face to face       85.6% </li></ul><ul><li>2nd   Talk over the phone 22.6% </li></ul><ul><li>3rd   Post messages </li></ul><ul><li>on SNS websites 17.8% </li></ul><ul><li><Notes> </li></ul><ul><li>Face-to-face conversation transmission has been dominant since the “WOM research” started. </li></ul><ul><li>Women have more occasions to WOM over the phone compared with men. In addition, women in their 20’s and 30’s, who WOM the most, are frequent user of SNS websites. </li></ul><ul><li>Most of male customers carry product advocacy via face to face conversations. </li></ul>■ WHY 1st   Like to introduce good products 67.0% 2nd   Would make others happy 39.0% 3rd   It’s highly novel information 16.2% <Notes> Women have more desire to tell others about a product/service that they believe in its usefulness compared with men. <ul><li>SUMMARY 1 </li></ul><ul><li>The most common way that customer advocacy spreads is via face-to-face conversation. </li></ul><ul><li>The most common reason why customers spread advocacy is “want to introduce good products to others.” </li></ul><ul><li>One of the notable facts is that women in their 20’s and 30’s, who WOM the most, are frequent users of SNS websites. </li></ul>
  29. 29. Chapter   6 Relation between WOM and Media
  30. 30. Outline TARGET TARGET Potential Customers WOM Customers Loyal customers WOM TARGET TARGET <ul><ul><li>Targets </li></ul></ul>WOM C C B <ul><li>Source of information which made the consumer aware   </li></ul><ul><li>Source of information which made the consumer interested </li></ul><ul><li>Source of information which made the consumer to buy the product </li></ul><ul><li>SUM 1:   WOM from friends is ranked within top 3 at three phase of Awareness, </li></ul><ul><li>Interests and Purchase </li></ul><ul><ul><li>This survey shows that over-the-counter promotion influenced consumers behavior at every phase of </li></ul></ul><ul><ul><li>awareness, interest and purchasing at most. </li></ul></ul><ul><ul><li>WOM from friends heavily influences on brand interest and purchasing. </li></ul></ul><ul><li>SUM 2: Online WOM among 10’s and 20’s remain growing </li></ul><ul><ul><li>Young generation, who are in their 10’s and 20’s, uses UGC websites the most. 41.6% of all respondent make posts on those websites. Daily basis message posters are 10%, and weekly ones are 29.9%. Most teenagers post messages on everyday basis, and most of people in their 20’s and 30’s post on weekly basis. Online videos audience is 85.7% of total respondents of both genders. </li></ul></ul>Consumers Prospective Customers A ware I nterested P urchase M otivated R ecommend S atisfied S pread Phase of Customer Attitude
  31. 31. Relation between WOM and Mass Media Potential Customers Customer Contribution to brand awareness Contribution to brand interest Contribution to brand purchase Consumers Targets Over –the-counter 23.5% WOM from friends 17.5% TV ads 22.3% WOM from friends 18.9% Over-the-counter 22.5% WOM from friends 13.1% Company website 11.4% Over-the-counter 26.4% WOM influenced purchasing 71% WOM Influence purchasing decisions Spread of WOM TV ads 18.6% WOM source Each 3 figures in A,B and C indicates the ratio of the products customers who think those information source were lead of &quot;Awareness&quot;, &quot;Interest&quot; and &quot;Purchase&quot; on shopping in the past 6 months. Experience of giving WOM advocacy 54.9% Total WOM*: 39.9% Total WOM: 44.2% Total WOM: 38.0% A) Aware B) Interested C) Motivated Prospective Customers wom wom wom
  32. 32. The Influence of Mass Media on the 3 Stages “ Awareness Trigger&quot; “Interest Trigger&quot; “Purchase Trigger&quot; *ordered by quantity <ul><li>Retail Outlet Promotion </li></ul><ul><li>TV </li></ul><ul><li>Friends </li></ul><ul><li>Company websites </li></ul><ul><li>Other Websites </li></ul><ul><li>Magazines </li></ul><ul><li>Internet Ads </li></ul><ul><li>UGC websites (price comparison) </li></ul><ul><li>Collaterals in stores </li></ul><ul><li>Clerks/Salespeople </li></ul><ul><li>Search Engines </li></ul><ul><li>Newspapers </li></ul><ul><li>SNS websites </li></ul><ul><li>Users </li></ul><ul><li>News/ news websites </li></ul><ul><li>Newspaper flyers </li></ul><ul><li>Someone familiar w/ the product field </li></ul><ul><li>Direct Mail </li></ul><ul><li>Events/Exhibitions </li></ul><ul><li>Billboards </li></ul><ul><li>Radio </li></ul><ul><li>Transportation Ads </li></ul><ul><li>Online Video </li></ul><ul><li>Others </li></ul><ul><li>N/A </li></ul>
  33. 33. The Influence of Media on 3 Stages ver: Homemakers The Influence of Mass Media on “Housewives ( 216 people) ” TV, Retail Outlet Promotion, and WOM from Friends equally bring awareness to housewives. In terms of influence on purchase, the order is as follows: A)ROP;C) Friends; F)Clerk/Salespeople. *ordered by quantity <ul><li>Retail Outlet Promotion </li></ul><ul><li>TV </li></ul><ul><li>Friends </li></ul><ul><li>Company websites </li></ul><ul><li>Clerk/Salespeople </li></ul><ul><li>Other Websites </li></ul><ul><li>Collaterals in stores </li></ul><ul><li>Newspaper flyers </li></ul><ul><li>Magazines </li></ul><ul><li>UGC websites (price comparison) </li></ul><ul><li>Newspaper </li></ul><ul><li>Internet Ads </li></ul><ul><li>Search Engines </li></ul><ul><li>SNS websites </li></ul><ul><li>Someone familiar w/ the product field </li></ul><ul><li>Direct Mail </li></ul><ul><li>Users </li></ul><ul><li>News/ news websites </li></ul><ul><li>Events/Exhibitions </li></ul><ul><li>Transportation Ads </li></ul><ul><li>Billboards </li></ul><ul><li>Radio </li></ul><ul><li>Online Video </li></ul><ul><li>Others </li></ul><ul><li>N/A </li></ul>
  34. 34. Chapter   7 Changes in Lifestyle and Media Consumption
  35. 35. Online Video Consumption Q35. Do you usually watch online videos?(sa) <ul><li>83.7% of all respondents watch online video (sum of frequent, occasional and rare viewers). </li></ul><ul><li>The ratio of “Frequent” viewer is the highest in male teenagers, and 90% of men in each segments of 20’s, 30’s and 40’s are online video audience(frequently, occasional and rare viewers). </li></ul><ul><li>More than 90 % of women in their 20’s and 30’s are online video audience as well. </li></ul>83.7% are online video audience Total 18.3 30.6 34.9 16.3 Male Total 20.0 32.8 33.3 14.0 10’s 39.4 30.3 18.2 12.1 20’s 14.9 44.8 29.9 10.4 30’s 22.4 32.8 34.3 10.4 40’s 17.9 34.3 37.3 10.4 50’s 20.9 25.4 35.8 17.9 60 and over 28.8 43.9 22.7 Female Total 16.5 28.5 36.5 18.5 10’s 31.8 22.7 27.3 18.2 20’s 25.4 37.3 26.9 10.4 30’s 13.4 32.8 44.8 9.0 40’s 11.9 34.3 37.3 16.4 50’s 32.8 40.3 20.9 60 and over 10.6 10.6 42.4 36.4 Frequently occasionally Rarely Never # 800 400 66 67 67 67 67 66 400 66 67 67 67 67 66 6.0 4.5
  36. 36. Changes in Media Consumption last year 84.6% 36.3% 34.4% 67.8% 86.7% 86.5% 83.4% 67.7% 98.8% 78.0% 84.4% 52.6% 80.3% 43.3% 49.0% Q36. How did you change the consumption of media this year compared with last year?(sa) Watch analog-broadcasted TV 23.6 54.9 15.4 Watch Digital-broadcasted TV 19.9 13.8 63.7 Watch TV subscriptions (BS, CS, cable TV etc) 20.5 65.6 Listen to radio 12.3 47.6 32.3 Read newspapers 12.4 10.9 63.4 13.4 Read magazines 11.4 19.8 55.3 13.6 Check newspaper fliers 11.9 13.9 57.6 16.6 Read free magazines ( R25, Saikei Living City Living etc) 12.8 44.9 32.4 Surf the Internet on PC 46.3 50.0 View SNS website on PC 29.6 39.6 22.0 Watch online videos 36.4 40.5 15.6 Surf the Internet on cell phone 17.3 30.0 47.5 Watch DVD’s 25.4 12.1 42.8 19.8 Play games on home game consoles ( Wii, Playstation etc ) 9.1 14.2 20.0 56.6 Play games on portable game consoles ( Nintendo DS, PSP etc ) 18.5 21.5 51.0 Increased Decreased No change Do not use # 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 6.1 2.6 8.5 5.4 7.9 10.0 2.5 1.3 8.8 7.5 5.3 9.0
  37. 37. Changes in Media Consumption last 1 year Frequency increased <ul><li>Online Videos recorded second with increase. </li></ul><ul><li>Magazines and Analog-broadcasted TVs shows decrease, but more than 50% have not changed. </li></ul>The Comparison of “Increase” and “Decrease” in a year ago. A B C D E F G H I J K L M N <ul><li>Internet browse with PC </li></ul><ul><li>online movie </li></ul><ul><li>online community (blogging, SNS websites) </li></ul><ul><li>game </li></ul><ul><li>DVD </li></ul><ul><li>digital-broadcasted TV </li></ul><ul><li>Internet browse with cell phone </li></ul><ul><li>free magazines/newspapers </li></ul><ul><li>Newspapers </li></ul><ul><li>Newspaper flier </li></ul><ul><li>Magazines </li></ul><ul><li>TV subscription (BS/CS: skyperfecTV, WOWWOW ) </li></ul><ul><li>Radio </li></ul><ul><li>analog-broadcasted TV </li></ul>
  38. 38. Changes in Media Consumption last 1 year <ul><li>free magazines/newspapers </li></ul><ul><li>newspaper </li></ul><ul><li>newspaper flyers </li></ul><ul><li>radio </li></ul><ul><li>magazines </li></ul><ul><li>analog-broadcasted TV </li></ul><ul><li>home game ( PS, Wii ) </li></ul>A B   C      D E    F   G H     I J K      L M   N     O <ul><li>Browse Internet with PC </li></ul><ul><li>online movie </li></ul><ul><li>online community (blogging, SNS websites) </li></ul><ul><li>digital-broadcasted TV </li></ul><ul><li>DVD </li></ul><ul><li>Browse Internet with cell phone </li></ul><ul><li>portable game ( Nintendo DS, PSP ) </li></ul><ul><li>TV subscription ( BS/CS: skyperfecTV, WOWWOW ) </li></ul>Q36. Among the 15 media below, which one exhibits usage change? The graph below indicates the change in amount of time spent on media. It should be noted that TV keeps shifting from analog to digital in Japan. Only newspapers recorded growth among traditional media.
  39. 39. Contacts Masayuki Nakajima Senior Marketer KOKOKUSHA Marketing Dept / WOM Research 2007 team Tel: 03-3775-0085 Fax: 03-3575-0086 E-mail: mnaka@kokokusha.co.jp *translation cooperation Chiyoe Yamamoto KOKOKUSHA Network Sales Dept / WOM Research 2007 team (Proofreader) KOKOKUSHA Co.,LTD KOJUN Building 7F 6-8-7 Ginza,Chuo-ku,Tokyo Japan, 104-8111 http://www.kokokusha.co.jp *Translation supervision Rainer Jeske CONNECTYOU K.K., President AIG Building Suite B1 1-1-3 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan Tel: 03-5288-5227 Fax: 03-5288-5353 Mobile: 090-7247-7959 E-mail: rainer@connectyou.biz
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