Word-of-mouth is important for service marketers as consumers rely on it to reduce risk. Electronic word-of-mouth on sites like Facebook allow consumers to check-in and share comments about businesses with friends. This makes it easy to informally influence others. Service providers should pay attention to electronic word-of-mouth to minimize harmful comments and maximize helpful ones by prioritizing response timing and focus. Consumers view peer-generated word-of-mouth as more trustworthy than firm-generated messages.

1. Facebook check-in: A new
form of e-word-of-mouth
By Tom Wilson, Tegan Speers and Emma Jarman

2. Why is word-of-mouth particularly relevant to service marketers
of goods? Identify five popular service providers of retailers in
your area where consumers check-in on Facebook then discuss
how word-of-mouth spread in this way is important for these
businesses particularly.
 Word of mouth (WOM) refers to the communication process by which one
person informally influences the actions or attitudes of another (Schiffman et al.
2014, pp. 297-300)
 WOM is particularly relevant to service marketers of goods, as consumers have
found to rely on WOM to reduce the level of perceived risk and uncertainty that
can often be associated with the purchase of services (Mangold, Miller &
Brockway 1999).
 An example of this could be a consumer looking to obtain the services of a
builder.

3. eWOM
 Electronic word of mouth (eWOM) is an electronic form of WOM that is expressed through online blogs and other
social media sites like Facebook. Facebook allows consumers to check-in to businesses online and leave a comment
of their choice. Once a consumer checks-in online the post is available to all of their friends to view. This makes it
easier then ever for a consumer to express their feelings about a product/service to others.
 Five popular service providers (Facebook Check-In):
 Launceston AMF Bowling
 Launceston Aquatic Centre
 Launceston Airport
 Launceston Phone Repairs
 Launceston Indoor Rock Climbing

4. How can service providers manage and influence the
positive and negative word-of-mouth communication
that is spread via social networking sites?
Provide an example.
 Positive (negative) word of mouth (PWOM/NWOM) refers to the positive and/or negative
reactions and communications that consumers share amongst each other after
purchasing a good or service.
 Casiellies, Álvarez, Del Río-Lanza, (2013, pp. 44-48) have come to the hypothesis that
‘Positive (negative) WOM has a positive (negative) impact on the shift in the receiver’s
purchase probability’. Making it important for service providers to manage and influence
the positive and negative WOM communication that is spread via social networking sites.

5. Influencing word-of-mouth communication that is
spread via social networking sites
 Kietzman & Canhoto (2013 p.154) suggests that ‘managers need to pay close attention to
eWOM to minimize the risks of harmful comments and to maximize the impact of helpful
eWOM’.
 Managers can do this by prioritizing what, where and when they respond to eWOM on
social networking sites and how much time is devoted to each post (Kietzman & Canhoto
2013 p.154).

6. What factors do consumers take into account when
evaluating firm generated feedback versus peer generated
word of mouth?
 Peer generated WOM is grown through peer discussions and is not initiated by a firm
 Firm generated WOM is generated by organisations and intended to spread virally
amongst consumers
 The case study highlights that consumers consider peer generated over firm generated
when evaluating WOM as the messages spread by other consumers are more trustworthy
and unbiased (Lucas 2014).
 Stern and Gould (1988) emphasize that the informal peer generated WOM is perceived as
being more credible than firm sale forces and advertising as they do not represent any
commercial interest.

7.  Opinion leaders can be described as product specialists who
 provide information about a particular class of product to other consumers.
 informally influence the attitudes and behaviours of consumers through product related
conversations.
 Reasons marketers should be interested in opinion leaders:
 They are critical in spreading innovation and information
 consumers place more reliance on information provided from opinion leaders as opposed to
advertisements.
 In terms of online communities: Marketers need to manage opinion leaders to build
positive WOM and create a virtual relationship with consumers.

8. What are the pros and cons for marketers of highly
connected, smart phone equipped users?
 Pros
 The Check in feature of Facebook allows consumers to pass on recommendations to others.
 Online forums, chat boards and conversation through social media provide marketers with an
abundance of explicit and implicit purchase information.
 Consumers can conduct more research on a product or service, whilst reading testimonials and
comments from other consumers, increasing consumer certainty.

9.  Cons
 Disgruntled consumers through social media are now able to spread their negative WOM faster
and to a wider audience than ever before.
 Search portals are also making it easier for consumers to compare products and prices with
others, resulting in increased competition.
 Similar to search portals, forums and chat rooms provide consumers with comprehensive
information of a product. As consumers tend to listen to peer generated WOM over
advertisements, marketers lose control of this element.

10. How do consumer reference groups apply in this context?
 Reference groups share their e-WOM about various experiences
 Facebook is one of the largest social media sites in the world
 Facebook allows these groups to give live feedback

11. Why are these groups of interest to marketers?
 Their opinions generate discussions and highlight what the consumer wants
 They deliver feedback that would not be known without these groups
 Powerful and credible groups can increase brand awareness and reputation

12. Examples of how online consumer reference groups
influence the decision making process of a Facebook user
 Inform the user of a particular brand or product
 Allows the user to compare their own thinking to the group
 Encourages the user to adopt similar beliefs to the group through connectivity
 Provide both negative and positive e-WOM

13. Thank- you!