3. Definition : any business action that earns a customer
recommendation is WOM Marketing
4. WOM
Consists of communications where satisfied customers tell other
people about a certain business, product/service that they have
used
5. Why WOM ?
Reliable
Trustworthy
Backed up by social pressure to conform
Influences two-thirds of all sales of goods
Later stages of evaluation and adoption
Powerful when we are unfamiliar with product category
6. What is Opinion Leadership?
Opinion
Leader
Opinion
Receiver
Opinion
Seeker
7. The process by which one person (the opinion
leader) informally influences the consumption
actions or attitudes of others who may be opinion
seekers or opinion recipients.
Opinion Leaders
8. Characteristics of Opinion Leaders
Highly Knowledgeable(Specific)
Make effective recommendations
Follow New Products
Consumer Innovators in their Area of Expertise
Self-confident
Outgoing & Sociable
9. Examples of Opinion Leadership
During a coffee break, a co-worker talks about
the movie he saw last night and recommends
seeing it.
A person shows a friend photographs of his
recent Australian Outback vacation and the
friend suggests that using a polarizing filter
might produce better pictures.
10. Reasons for the Effectiveness of
Opinion Leadership
Credibility
Positive and Negative Product Information
Information and Advice
Opinion Leadership Is Category-Specific
Opinion Leadership Is a Two-way Street
12. SELF-DESIGNATING
METHOD
“Do you influence
other people in their
selection of
products?”
Each respondent is asked a series
of questions to determine the
degree to which he or she
perceives himself or herself to be
an opinion leader.
OPINION LEADERSHIP
MEASUREMENT METHOD
SAMPLE QUESTIONS
ASKED
DESCRIPTION OF METHOD
SOCIOMETRIC METHOD Members of a social system are
asked to identify to whom they
give advice and to whom they go
for advice.
“Whom do you
ask?”“Who asks you
for info about that
product category?”
13. OPINION LEADERSHIP
MEASUREMENT METHOD
SAMPLE QUESTIONS ASKEDDESCRIPTION OF METHOD
KEY INFORMANT METHOD “Who are the most
influential people in the
group?”
Carefully selected key informants in a
social system are asked to designate
opinion leaders.
KLOUT SCORES Measures people’s influence online based
on their abilities to generate engagement
and feedback to what they post.
The more influential you are, the higher
your Klout Score.The Klout Score isn't the
average of your influence across all your
networks, it's the accumulation.
14. Strategic Working Applications of WOM
Social Networks
Brand Communities
Weblogs
Stimulating WOM
Viral Marketing
Managing Negative Rumours
15.
16. Diffusion of Innovation
Diffusion of innovations is a theory that seeks to
explain how, why, and at what rate new ideas and
technology spread.
The process by which the acceptance of an
innovation is spread by communication to members
of the target market over a period of time.
18. Adoption Process
The stages through which an individual consumer
passes in arriving at a decision to try (or not to try),
to continue using (or discontinue using) a new
product.
19. Product Characteristics That Influence
Diffusion
Air travel over train travel, cordless phones
over corded telephones
Relative
Advantage
Gillette MACH3 over disposable razors,
digital telephone answering machines over
machines using tape
Compatibility
Electric shavers, instant puddingsComplexity
Trialability
Observability
Trial size jars and bottles of new products, free
trials of software, free samples, cents-off coupons
Clothing, such as a new Tommy Hilfiger jacket, a
car, wristwatches, eyeglasses,Eureka Forbes
Aquaguard
20. Adopter Categories
A sequence of categories that describes how early (or late) a
consumer adopts a new product in relation to other adopters
22. Presumption : i. All members of a given society would eventually adopt the innovation
ii. Society is defined – as everyone assumed to in the market for the product
shortly,or at some future time , after the introduction of an innovation.