9722620 Stan

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9722620 Stan

  1. 1. Presenter: Stan Chung Instructor: Dr. Pi-Ying Teresa Hsu Date: Nov. 3, 2008
  2. 2. <ul><li>Bolen, W. (1994). The role of word-of-mouth “advertising&quot; in retailing. American Business Review, 12, 11-14. </li></ul>
  3. 3. <ul><li>I. Introduction </li></ul><ul><li>II. Methodology </li></ul><ul><li>III. Findings </li></ul><ul><li>IV. Conclusion </li></ul><ul><li>V. My Research </li></ul>
  4. 4. <ul><li>Definition of “Word-of-Mouth” </li></ul><ul><li>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. </li></ul><ul><li>(Ardnt, 1967) </li></ul>
  5. 5. <ul><li>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. </li></ul><ul><li>(Stauss, 1997) </li></ul>
  6. 6. <ul><li>Advertising, a controlled (paid) form of no personal presentation and promotion of an idea, good, or service by an identified sponsor. </li></ul><ul><li>(Bolen, 1984) </li></ul>
  7. 7. <ul><li>Based on these 3 points: </li></ul>Retailer does not control word-of-mouth. Retailer does not purchase word-of-mouth communications. Word-of-mouth is not mass media.
  8. 8. Monitoring customer praise Seeking customer complaints (Swan & Oliver, 1989)
  9. 9. <ul><li>(Wilson, 1991) </li></ul>Awful Service Good or Adequate Service Great Service Negative Word of Mouth No Word of Mouth Positive Word of Mouth
  10. 10. <ul><li>Do retailers understand the importance of word-of-mouth advertising to the retail business? </li></ul><ul><li>If yes, do they understand how it might be promoted? Funded? Evaluated? </li></ul>
  11. 11. Method Participants need to react to many statements. Duration Over 2 year Participants 57 retail firms
  12. 12. <ul><li>Word-of-Mouth Advertising as defined </li></ul><ul><li>Is limited to positive statements 37% </li></ul><ul><li>Is limited to positive and neutral statements 28% </li></ul><ul><li>Can include negative as positive/ neutral statements 25% </li></ul><ul><li>Non response 10% </li></ul><ul><li>N= 57 </li></ul>
  13. 13. <ul><li>Word-of-Mouth Advertising is the most effective of all advertising media </li></ul><ul><li>Agree with this statement 86% </li></ul><ul><li>Disagree with this statement 14% </li></ul><ul><li>N=57 </li></ul>
  14. 14. Much creditability in person-to-person contact. Especially when this contact is found to be personalized .
  15. 15. <ul><li>Word-of-Mouth Advertising is funded and/or controlled </li></ul><ul><li>Yes/How -Absorbed in overhead 12% </li></ul><ul><li>-Donations/ Goodwill </li></ul><ul><li>-Free product/ Below market price </li></ul><ul><li>-Incentives for opinion leaders </li></ul><ul><li>-After-sale customers </li></ul><ul><li>No 54% </li></ul><ul><li>Non Response 34% </li></ul><ul><li>N=57 </li></ul>
  16. 16. <ul><li>Word-of-Mouth Advertising effectiveness is determined </li></ul><ul><li>Yes/How -Unsolicited customer feedback 63% </li></ul><ul><li>-People tell us how they found out about us </li></ul><ul><li>-Ask customers how they found out about us </li></ul><ul><li>-Listen to customers and observe what they </li></ul><ul><li>purchase </li></ul><ul><li>-Sales for year versus last year </li></ul><ul><li>-Old customers bring in new customers </li></ul><ul><li>No -Its effectiveness can not be determined 16% </li></ul><ul><li>Non Response 21% </li></ul><ul><li>N=57 </li></ul>
  17. 17. <ul><li>Word-of-mouth advertising/communication is believed to be very important to the long run success of a business. </li></ul><ul><li>Most retailers feel that word-of-mouth advertising cannot be funded or controlled. </li></ul>
  18. 18. 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.
  19. 19. <ul><li>Thanks for listening! </li></ul>

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