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Demystifying 
W o rd o f 
Mo ut h 
Er nes t 
Di c ht er 
With 
Marketing 
Legend 
PART TWO 
Who Customers 
Listen To
W o rd O f 
Mo ut h 
Re fer ral s 
are a 
Rec u r ri n g 
3 St e p 
Process
These st eps are : 
Talking 
about 
Listening to
Ac t i n g o n 
t h e Re fer ral 
AND
In this 3 part 
series, find out 
why each step 
happens 
and 
how to use this 
knowledge to 
acquire more 
customers thro...
W hy 
c us tomers 
li s t e n
I n d u s t ry 
E xp er t s
Customers are more 
likely to listen to 
experts from fields 
relating to 
the product.
“Under this header are 
those persons who, on the 
basis of their training 
and/or work, appear to be 
closer to the produ...
McDonald’s addressed its 
image problem by 
answering questions about 
its food (e.g Is there 
horsemeat in the burgers?) ...
T h e c ampaign raised 
quali ty p erc ept io n a nd 
purchase considerat ion 
in t h e sought-aft er 
Mille nnial demogra...
Celebri t ies
Ernest Dichter defines 
celebrities as 
“Included are movie, theater, 
TV, and radio personalities 
whose ‘authority’ is a...
of surveyees between 18 
and 34 were willing to 
try a product promoted 
by an idol they admired. 30% 
SOURCE: 
http://www...
SOURCE: 
http://www.ehow.com/about_538741 
2_air-jordan-shoes.html 
In wi nt er 1984, Nike wa s 
h aving t rouble comp e t...
Michael Jordan.
21 year s lat er, in 2013, 
Jordan product s raked i n 
$2.25 BILLION. 
Air Jorda n s mad e Ni ke 
$2.3 Millio n i n i t s...
Clo se s t T i e s
Cons u mer s are more 
li kely t o li s t en t o 
rec omme ndat io ns from 
t heir fr iend s a nd family 
t h a n a nyo n ...
“What is meant here is the 
influence of mother, father, 
big brother or sister, husband 
wife, boyfriend or girlfriend 
w...
92% of consumers wordwide 
trust recommendations 
from friends and family 
more than any form of 
advertising, up from 74%...
Kn o wl edgeabl e 
Passionat e Fans
Customers listen to 
knowledgable, 
passionate fans (brand 
advocates) because 
they have great 
knowledge about 
the prod...
Ernest 
Dichter 
says: 
“The connoisseur may 
know as much or more 
bout the product and its 
background than the 
expert,...
Offers shared by 
trusted advocates 
convert at 4-10x higher rate than 
offers sent by brands. 
SOURCE: 
http://branderati...
SOURCE: 
http://www.statisticbrain.com/star-wars- 
total-franchise-revenue/ 
You might have 
heard about a 
$27 Billion 
m...
SOURCE: 
http://www.bitrebels.com/wp-content 
/uploads/2011/02/Star-Wars-Franchis 
e-Economics-Infographic-1.jpg 
It has e...
Guessed right, you did.
In Summary 
Customers listen to 
a referral because: 
1. Its backed by 
industry experts 
2. Its endorsed by 
celebrities ...
Coming soon: 
Missed Part 1? 
Click here! 
Check out 
part 3 here! 
Demystifying 
Word of Mouth 
PART 3: 
Why Customers 
A...
Word of mouth has 
been shown to 
improve marketing 
effectiveness by 
up to 54%! 
Visit 
for more tips and 
strategies on...
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Demystifying Word of Mouth (Part 2) – Who Customers Listen To

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Here at Referralcandy, we're advocates of the power of word of mouth in acquiring new customers.

We also believe it could be more effectively utilised with an understanding of how it works.

We love how Brand Autopsy’s article “Ernest Dichter on Word of Mouth Marketing” explains the process, so we distilled the key points of the article with illustrations and statistics. Enjoy!

Published in: Marketing
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Demystifying Word of Mouth (Part 2) – Who Customers Listen To

  1. Demystifying W o rd o f Mo ut h Er nes t Di c ht er With Marketing Legend PART TWO Who Customers Listen To
  2. W o rd O f Mo ut h Re fer ral s are a Rec u r ri n g 3 St e p Process
  3. These st eps are : Talking about Listening to
  4. Ac t i n g o n t h e Re fer ral AND
  5. In this 3 part series, find out why each step happens and how to use this knowledge to acquire more customers through word of mouth referrals... With the help of marketing legend, Ernest Dichter
  6. W hy c us tomers li s t e n
  7. I n d u s t ry E xp er t s
  8. Customers are more likely to listen to experts from fields relating to the product.
  9. “Under this header are those persons who, on the basis of their training and/or work, appear to be closer to the product and more knowing about it than the average consumer.” Ernest Dichter writes
  10. McDonald’s addressed its image problem by answering questions about its food (e.g Is there horsemeat in the burgers?) with “Our food, Your questions.”, a webseries hosted by Ex-Mythbuster Grant Imahara. SOURCES: http://www.reuters.com/article/2014/10/21/us-m cdonalds-results-idUSKCN0IA1BT20141021 http://en.wikipedia.org/wiki/MythBusters The Mythbusters tested 769 Myths across 9 seasons
  11. T h e c ampaign raised quali ty p erc ept io n a nd purchase considerat ion in t h e sought-aft er Mille nnial demographic SOURCE: http://www.reuters.com/article/2014/10/21/us-m cdonalds-results-idUSKCN0IA1BT20141021
  12. Celebri t ies
  13. Ernest Dichter defines celebrities as “Included are movie, theater, TV, and radio personalities whose ‘authority’ is attributed to prominence in show business.” Celebrities are more influential than the average customer in referring a product/service.
  14. of surveyees between 18 and 34 were willing to try a product promoted by an idol they admired. 30% SOURCE: http://www.marketing-interactive.com/does-cele brity-endorsement-actually-work/
  15. SOURCE: http://www.ehow.com/about_538741 2_air-jordan-shoes.html In wi nt er 1984, Nike wa s h aving t rouble comp e t ing wi t h rivals Adida s an d Conver se in t h e basket ball shoe market. So t h ey hired a rooki e t o e ndor se a new li ne o f s h o es.
  16. Michael Jordan.
  17. 21 year s lat er, in 2013, Jordan product s raked i n $2.25 BILLION. Air Jorda n s mad e Ni ke $2.3 Millio n i n i t s f ir s t t wo mo nt h s. SOURCE: http://www.forbes.com/sites/kurtbadenhau sen/2014/02/06/lebron-and-durant-are-the -nbas-top-shoe-salesman/
  18. Clo se s t T i e s
  19. Cons u mer s are more li kely t o li s t en t o rec omme ndat io ns from t heir fr iend s a nd family t h a n a nyo n e e l s e.
  20. “What is meant here is the influence of mother, father, big brother or sister, husband wife, boyfriend or girlfriend which expresses itself not necessarily by means of verbal communication, but by the speaker’s actions.” E r n e s t Dic ht er elab orat e s:
  21. 92% of consumers wordwide trust recommendations from friends and family more than any form of advertising, up from 74% in 2007. SOURCE: http://wommapedia.org/
  22. Kn o wl edgeabl e Passionat e Fans
  23. Customers listen to knowledgable, passionate fans (brand advocates) because they have great knowledge about the product.
  24. Ernest Dichter says: “The connoisseur may know as much or more bout the product and its background than the expert, but he does not make his living in connection with it; he merely enjoys it and his know-how about it.”
  25. Offers shared by trusted advocates convert at 4-10x higher rate than offers sent by brands. SOURCE: http://branderati.com/the-age-of-advocacy-and-in fluence-26-stats-marketers-should-know/
  26. SOURCE: http://www.statisticbrain.com/star-wars- total-franchise-revenue/ You might have heard about a $27 Billion movie franchise fuelled by its passionate fans. It’s 37 years old.
  27. SOURCE: http://www.bitrebels.com/wp-content /uploads/2011/02/Star-Wars-Franchis e-Economics-Infographic-1.jpg It has entertained children across three generations... though much of its fanbase was not born when the movies were first sreened.
  28. Guessed right, you did.
  29. In Summary Customers listen to a referral because: 1. Its backed by industry experts 2. Its endorsed by celebrities 3. It comes from friends/family 4. Its backed by the knowledge of a brand advocate
  30. Coming soon: Missed Part 1? Click here! Check out part 3 here! Demystifying Word of Mouth PART 3: Why Customers Act on Referrals
  31. Word of mouth has been shown to improve marketing effectiveness by up to 54%! Visit for more tips and strategies on using word of mouth to acquire more customers! SOURCE: http://blog.getambassador.com/word-of-mou th-marketing-statistics/ Blog.ReferralCandy.Com

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