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?
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%
Word-of-Mouth Advertising is the most effective of all advertising media
Agree with this statement 86%
Disagree with this statement 14%
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%
-Free product/ Below market price
-Incentives for opinion leaders
Non Response 34%
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
-Sales for year versus last year
-Old customers bring in new customers
No -Its effectiveness can not be determined 16%
Non Response 21%
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.
Topic Consumer’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.