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September 2007 Word of Mouth Research 2007 Summary version in Japan KUCHI-COMI Report Research Report concerning purchasing decisions and influence of "WOM”

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"Word of Mouth Research 2007" collaborated with Prof. Nihei of Asia University in May 2007. The surveys have been taken place since 2003 annually, and this was the 4th execution in series. The purpose of this survey is to study the impact of word of mouth (WOM) marketing. Based on the Tsuzumi* model that the team has proposed, they had investigations over true figure of WOM such as the way WOM spreads, information carried by WOM, relation between WOM and media, and positive WOM vs. negative WOM. The feature in this edition is the elaborated study in two phases of WOM spreads.

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Page 1: Wom research07

September 2007

Word of Mouth Research 2007Summary version in Japan

KUCHI-COMI ReportResearch Report concerning purchasing decisions and

influence of "WOM”

Page 2: Wom research07

2Objective

One of the leading Japanese advertising agencies, KOKOKUSHA Co. Ltd., (Tokyo) conducted "Word of Mouth Research 2007" collaborated with Prof. Nihei of Asia University in May 2007. The surveys have been taken place since 2003 annually, and this was the 4th execution in series. The purpose of this survey is to study the impact of word of mouth (WOM) marketing. Based on the Tsuzumi* model that the team has proposed, they had investigations over true figure of WOM such as the way WOM spreads, information carried by WOM, relation between WOM and media, and positive WOM vs. negative WOM. The feature in this edition is the elaborated study in two phases of WOM spreads.We call WOM KUCHI-COMI in Japan.In sum, the study proved WOM is the ultimate personalized media, and strategic WOM marketing would be necessary to win the market share. The result of this survey is available at Kokokusha’s website(http://www.kokokusha.co.jp/service/kuchikomi.html).

*Tsuzumi is a Japanese hourglass-shaped drum.

■Execution period May 2007■Research method Internet panel research■Coverage          Men and women over 16 years old in Japan (total 800)  ■Design and analysis Kokokusha., Co Ltd. / Nihei laboratory(Asia University)■Cooperation Kishinami advertising office                        CONNECT YOU KK

The report of this survey is available at: http://www.kokokusha.co.jp/service/kuchikomi.html

Page 3: Wom research07

3About TSUZUMI

Target

Target

Aware

Interested

WOM

Purchase

WOM

Target

Target

Consumers

WOM

Motivated

CustomerThe spread of WOM

*TSUZUMI is a Japanese hourglass-shaped drum

 鼓

TSUZUMI is a traditional musical instrument of Japan. It is a instrument played with KABUKI. The KABUKI is the traditional stage drama in Japan, like your musical.TSUZUMI makes verious sounds depending on the person who play it.

Page 4: Wom research07

4Attribute of Respondents

Age

44.4 55.6

Single Marriedn

800

50.0 50.0

Male Femalen

800

16.5 16.8 16.8 16.8 16.8 16.5

10’s 20’s 30’s 40’s 50’s 60 and over

n

800

Sex

Marriage Status

n

80018.5 8.5 2.3

27.8 34.3

Homemaker

Homemaker w/ job

office worker (Female)

Company employee

Profession

Business Executives

Students, others

4.93.9

Occupation

Ratio=%

Page 5: Wom research07

5Attribute of Respondents

43.4 1.3

2.0

9.3 20.3 2.5

7.9 0.3

①Hokkaido

②Tohoku

③Kanto

④Koshinetsu

⑤Hokuriku

⑥Toukai

⑦Kansai

⑧Chugoku

⑨Shikoku

⑩Kyusyu

⑪Okinawa

n

8004.9 4.6 3.8

Coverage

①Hokkaido北海道

②Tohoku東北

③Kanto  関東

④Koshinetsu甲信越

⑥Toukai東海

⑦Kansai関西

⑧Chugoku中国

⑨Shikoku四国

⑩Kyusyu九州

⑪Okinawa 沖縄

TOKYO

%①Hokkaido 4.9②Tohoku 4.6③Kanto 43.4④koshinetsu 1.3⑤Hokuriku 2.0⑥Kanto 9.3⑦Kansai 20.3⑧Chugoku 3.8⑨ShiKoku 2.5⑩Kyusyu 7.9

Okinawa⑪ 0.3

Ratio

Page 6: Wom research07

Get interested because of WOM

purchase products because of WOM

Share own testimonials by WOM

Chapter 1Influence and Spread of WOM

Tell others

Receive WOM

Own experience

Receive

Spread

Chapter 4

WOM Influence on purchase

How do WOM transfers from one person to another?

Contents of WOM

Chapter 2Two phases of WOM Spread

Chapter 6Relation between WOM and Media

Chapter 3Positive WOM vs. Negative WOM

Chapter 5Customer Advocacy through WOM

AWARENESS(Trigger for

brand awareness)

PURCHASE(Trigger to purchase)

INTEREST( trigger to interest )

person

person

WOM

WOM

First Spread of WOM

person

person

WOM

Second Spread of WOM

Prospects

Customers

Potential customers

56.4%(SA)

59.6%(SA)

KUCHI-COMI(WOM) Marketing Structure Analysis

Targets

Consumers

Motivated

Share someone's

testimonials by WOM

Third person’s experience

Chapter 7Change of lifestyle and media consumption

Spread of WOM

How often do consumers receive and/or release WOM?

Page 7: Wom research07

Chapter 1Influence and Spread of WOM ( KUCHI-COMI )

The way WOM spreads The influence of WOMWho is your WOM giver?               How do you receive WOM the most? What kind of information does WOM carry?

Page 8: Wom research07

8Aspect of Analysis

Target

Target

Aware

Interested

WOM

Purchase

WOM

Target

Target

Consumers

WOM

Motivated

Summary 186.3% received WOM during past 6 months.72.3% purchased products/service as the result of the WOM influence   in the last 6 months.

(past 6months)

I received/released WOM.

(past 6months)I got interested through WOM.  

(past 6months)The WOM become the trigger for purchase.

76.4%

(past 6months)The WOM lead me to purchase eventually.

72.3%

86.3%

84.4%

1

2

3

4

Customer

Page 9: Wom research07

9Influence of WOM ( KUCHI-COMI )Q6 How often did you receive WOM during   past 6 months? Moreover, how large was the influence of WOM on your purchase decision making?(sa) *sa=single answer

21.0 39.5 25.8 13.7

Interested 15.1 39.5 29.8 15.6

Motivated 29.3 37.1 23.6

Purchase 25.8 40.0 27.7

Often Sometimes

Rarely Never

800

800

800

800

10.0

6.5

Aware(past 6months)

I received/released WOM.

(past 6months)I got interested through WOM.  

(past 6months)WOM become the trigger for purchase.

76.4%

(past 6months)WOM lead me to purchase eventually.

72.3%

86.3%

84.4%

1

2

3

4

OftenSometimes

+ Rarely

TOTAL %

Page 10: Wom research07

10How do you receive WOM the most?

81.0

14.8

19.6

10.4

26.7

32.3

1.6

74.5

12.116.6

7.1

25.6

31.1

1.8

71.8

10.1

15.5

6.1

28.6 28.0

2.00.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

WOM resulted in Awareness 81.0 14.8 19.6 10.4 26.7 32.3 1.6

WOM resulted in Interesting 74.5 12.1 16.6 7.1 25.6 31.1 1.8

WOM resulted in Purchasing 71.8 10.1 15.5 6.1 28.6 28.0 2.0

Face to Face Telephone E- Mail sms UGC websites Sns websaites Other

Summary 2WOM from friends/family tends to raise brand awareness and interests. Q. How did you receive WOM mostly in the last 6 months? (ma ) *ma=multiple answer

Online WOM

Real WOM

Page 11: Wom research07

11Who is your WOM giver?

46.5

38.4

47.8

20.0

23.3

17.2

33.5

1.9

38.1

35.6

42.4

19.0 19.7

13.6

32.3

2.4

35.5

29.3

37.8

19.8

16.7

10.6

33.6

2.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

WOM resulted in Awareness 46.5 38.4 47.8 20.0 23.3 17.2 33.5 1.9

WOM resulted in Interesting 38.1 35.6 42.4 19.0 19.7 13.6 32.3 2.4

WOM resulted in Purchasing 35.5 29.3 37.8 19.8 16.7 10.6 33.6 2.5

Family andRelatives

Friends withcommoninterests

FriendsSomeonefamiliar

Co- workerExtendedfriends

User Others

Q. Who gives you WOM mostly?  ( ma) WOM from friends is outstanding.

Page 12: Wom research07

12What kind of information does WOM carry?

Summary 3“What was the WOM you received and/or released about?”

#1: Feature and content of the brand #2: Testimonials #3:Price

People wants to receive both negative and positive information by WOM.

Q. What was the WOM you received about?(ma)

A B C D E F G H I J K L M N

A: Release of the products/service

B: Features of the products/service

C: Feature which has created buzz

D: Price

E: Products style and design

K: Own experience with the products/service

L: Promotion campaign

M: Manufacture’s environmental consciousness

N: User’s opinion

F: Sophistication of the TVCM

G: Campaign character(s)

H: Celebrity users

I: CM music

J: CM Storyline

Aware through WOM

Interested through WOM

Motivated through WOM

Page 13: Wom research07

Chapter   2Two Phases of WOM Spread

Page 14: Wom research07

14Aspect of Analysis

Source of WOM

“I shared my experience with other people by WOM.”

First Spread     64.5%

Second Spread    59.6%

WOM from third-party and

TV CM

Target

Target

Aware

Interested

WOM

Customer

WOM

Target

Target

Consumer

WOM

Motivated

Two phases of WOM spread

“I shared another person’s experience with other people by WOM.”

Purchase

:

Page 15: Wom research07

15Two phases of WOM spread

Summary 164.5 % : the first spread of WOM59.6 % : the second spread of WOM

Summary 2The spreads of WOM among women are wider and faster than those among men. A lot of WOM circulates among teenagers using mobile phones.

-Source of WOM-

Summary 3 Major media which promotes the second spreads of WOM are WOM and TV.

1st WOM from friends 37.1%2nd TV 35.6%  3rd Retail outlet promotion 21.2%4th User’s opinion 20.8%5th Online community 18.4%

Page 16: Wom research07

16Two phases of WOM spread

First Spread 64.5%

Second Spread 59.6%

■Who1st   Family, relatives 57.2%2nd   Friends 52.9%3rd   Friends with same interests

45.3%

■How1st   Face to face   89.1%2nd Over the phone   21.1%3rd Post messages on online community 20.7%

■Why (B/C:Because)1st   B/C I want to introduce good products. 64.7%2nd B/C the listener wants to look good. 48.6% 3rd   B/C It’s highly novel information. 28.5%

■What

67.7% of panelists answered features and contents of service/ products.  

■Source of WOM 1st   WOM from Friends 37.1%2nd   TV CM 35.6%  3rd   Retail outlet promotions 21.2%4th   User’s opinion 20.8%5th   Online community 18.4%

“I have WOMed my experience to others before.”

“I have WOMed someone’s experience to others before.”

■Who1st Family, relatives 57.7%2nd Friends 48.2%3rd   Friends of community 43.4%

■How1st   face to face 88.7%2nd over the phone   18.7%3rd post messages in online community 15.7%

■Why1st   B/C I want to introduce good products. 53.5%2nd B/C the listener wants to look good. 47.8% 3rd   B/C. It’s highly novel information 25.8%

Page 17: Wom research07

17First Spread of WOM

Q11. How often do you WOM your experience to others?(sa)

First Spread: to WOM OWN experience to others

DID: 64.5 % Total 23.5 34.0 35.5

Male Total 21.3 31.3 40.8

10’s. 10.6 22.7 25.8 40.9

20’s 29.9 28.4 34.3

30’s 10.4 20.9 28.4 40.3

40’s 16.4 32.8 46.3

50’s 20.9 31.3 43.3

60 and over 16.7 40.9 39.4

Female Total 25.8 36.8 30.3

10’s 22.7 18.2 53.0

20’s 9.0 31.3 38.8 20.9

30’s 9.0 22.4 43.3 25.4

40’s 9.0 19.4 43.3 28.4

50’s 32.8 43.3 17.9

60 and over 25.8 33.3 36.4

Often Sometimes Rarely Nevern800

400

66

67

67

67

67

66

400

66

67

67

67

67

66

7.0

6.8

7.5

4.5

4.5

3.0

7.2

6.1

6.0

4.5

OftenSometimes

+ Rarely

DID

Page 18: Wom research07

18Second Spread of WOM -frequency

Q11. How often do you WOM someone else’s experience to others?(sa)

DID: 59.6 %Total 20.0 34.0 40.4

Male Total 19.0 31.0 45.3

10’s 22.7 25.8 45.5

20’s 29.9 26.9 38.8

30’s 9.0 17.9 25.4 47.8

40’s 13.4 35.8 47.8

50’s 19.4 29.9 49.3

60 and over 10.6 42.4 42.4

Female Total 21.0 37.0 35.5

10’s 18.2 19.7 56.1

20’s 29.9 38.8 26.9

30’s 17.9 41.8 32.8

40’s 9.0 16.4 43.3 31.3

50’s 25.4 46.3 20.9

60 and over 18.2 31.8 45.5

Often Sometimes Rarely Nevern800

400

66

67

67

67

67

66

400

66

67

67

67

67

66

5.6

4.8

6.1

4.5

3.0

1.5

4.5

6.5

6.1

4.5

7.5

7.5

4.5

Usually5.6%

Sometimes

20.0%

A little34.0%

Never40.4%

Often

Sometimes

Rarely34.0%

Second Spread: to WOM THIRD PERSON’s experience to others

OftenSometimes

+ Rarely

DID

Page 19: Wom research07

19Second Spread of WOM -contents

Q15. What do you WOM about?(ma)■OverallIn the second phase of WOM spread, the subject discussed the most is about product/service features followed by price, popularity and speaker’s own testimonials.■SexMore women tend to tell others about their experience with a product/ service and good deals compared with men.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

TotalMale totalFemale total

Horizontal% TOTAL A B C D E F G H I J K L M N OTotal 477 67.7 37.3 36.9 36.3 33.8 17.2 14.9 10.3 5.9 5.7 5.0 3.8 3.1 2.9 0.8Male Total 219 69.9 38.8 39.3 35.6 26.5 14.2 9.6 10.0 4.6 5.0 5.0 2.3 0.9 3.2 1.4Male Teens 36 66.7 27.8 50.0 41.7 22.2 13.9 5.6 19.4 13.9 5.6 5.6 0.0 2.8 0.0 2.8Male 20s 41 78.0 29.3 36.6 31.7 24.4 24.4 9.8 12.2 7.3 7.3 9.8 4.9 0.0 7.3 2.4Male 30s 35 62.9 45.7 48.6 31.4 22.9 14.3 8.6 14.3 0.0 2.9 5.7 0.0 2.9 2.9 0.0Male 40s 35 71.4 40.0 34.3 31.4 28.6 11.4 11.4 5.7 0.0 0.0 2.9 2.9 0.0 0.0 0.0Male 50s 34 73.5 44.1 44.1 44.1 32.4 8.8 20.6 2.9 2.9 5.9 2.9 2.9 0.0 5.9 0.0Male 60 and over 38 65.8 47.4 23.7 34.2 28.9 10.5 2.6 5.3 2.6 7.9 2.6 2.6 0.0 2.6 2.6Female Total 258 65.9 36.0 34.9 36.8 39.9 19.8 19.4 10.5 7.0 6.2 5.0 5.0 5.0 2.7 0.4Female Teens 29 65.5 20.7 41.4 17.2 27.6 17.2 13.8 17.2 10.3 3.4 3.4 3.4 10.3 3.4 0.0Female 20s 49 59.2 40.8 36.7 38.8 38.8 20.4 18.4 10.2 14.3 8.2 6.1 8.2 6.1 4.1 0.0Female 30s 45 77.8 37.8 37.8 35.6 44.4 20.0 26.7 4.4 4.4 8.9 8.9 0.0 6.7 4.4 0.0Female 40s 46 69.6 37.0 37.0 41.3 41.3 21.7 17.4 10.9 2.2 8.7 6.5 4.3 4.3 2.2 0.0Female 50s 53 66.0 37.7 26.4 43.4 41.5 20.8 20.8 15.1 7.5 3.8 1.9 7.5 3.8 0.0 0.0Female 60 and over 36 55.6 36.1 33.3 36.1 41.7 16.7 16.7 5.6 2.8 2.8 2.8 5.6 0.0 2.8 2.8

A) Features of the products/service

B) PriceC) Release of the

products/serviceD) Feature which has

created buzzE) Own experience

with the products/service

F) User’s opinionG) Promotion

campaignH) Products style and

designI) Sophistication of

the TVCMJ) Campaign

character(s)K) CM musicL) Manufacture is

environmentally conscious

M) Celebrity usersN) CM StorylineO) Others

Page 20: Wom research07

20Second Spread of WOM -source

Q17.What was the source of WOM?

■Major source of information in second spread of WOM are WOM from friends and TV.Women WOM a lot based on endorsements from friends. UGC websites are one of important sources for men.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

totalmenwomen

A) FriendsB) TVC) Retail Outlet PromotionD) UsersE) SNS websitesF) MagazinesG) Other WebsitesH) UGC websitesI) Online ads

J) NewspaperK) Someone familiar w/ the product fieldL) Search EnginesM) Company websitesN) Clerk/SalespeopleO) News/ news websitesP) Collaterals in storeQ) Newspaper flyersR) Direct Mail

S) RadioT) BillboardsU) Online VideoV) Events/ExhibitionsW) Transportation AdsX) Others

A B C D E F G H I J K L M N O P Q R S T U V W X

Page 21: Wom research07

Chapter   3Positive WOM vs. Negative WOM

Page 22: Wom research07

22Positive WOM vs. Negative WOM

Never35.5%

A litte34.0%

Sometimes23.5%

Usually7.0%

Q31. Did you discourage anyone to buy a product/service based on your bad experience with it past 6 months? Moreover, did you tell anyone about someone’s bad experience which were WOMed by third person past 6 month? (sa)

First Spread of Positive WOM

Second Spread of Positive WOM

Q11 POSITIVE

Yes =64.5 %

A little34.0%

Sometimes

20.0%Never40.4%

Often5.6%

Fist Spread of Negative WOM

Q. Have you WOMed YOUR bad experience to others?

Yes: 37.3 %

N=800

Often

4.0%

Sometimes

8.0%

Rarely

25.3%Never

62.7%

Often

3.8%

Sometimes

6.6%

Rarely

25.1%

Never

64.5%

Yes: 35.5 %

Second Spread of Negative WOM

Q. Have you WOMed SOMEONE’s bad experience to others?

Often

Sometimes

Sometimes

Rarely

Rarely 34.0%n=800

n=800

Yes = 59.6 %

Page 23: Wom research07

Chapter   4WOM Influence on Purchasing

Page 24: Wom research07

24Influence of WOM

SUM 1: Cosmetics (which are popular product among female office workers and housewives) with 10.3%, gained the largest ratio in the category of purchase frequency.

9.3% for Food & Beverages including alcohol following cosmetics 7.6% for daily commodities, supplemental foods and drugs following foods & beverages

SUM 2: Purchasing decisions are strongly influenced by WOM: cosmetics; digital camera and video recorder; dairy commodities, supplemental foods, and apparel; vacation related service

Following products categories were among the top five with regards to purchasing amount.Cosmetics; daily commodities, supplements foods and Cloths; and vacation/leisure related products.

Condition

In Question 18 (see the next page), investigates which was the most important purchase trigger for all products/services bought over the last 6 months.

Page 25: Wom research07

25Products purchased in the past 6 monthsQ18.What is the top-ranked product category for all purchase made in the past 6 months ?

The top ranked product category was cosmetics, which is highly supported by all housewives and female office workers. (OL)

WOM influenced cosmetics purchases account for 15.2%.

10.3

9.3

7.6 7.67.1

6.6

5.4 5.0 5.0 4.84.0 3.9 3.8 3.6

3.1 2.9

1.9 1.8

6.5

15.2

8.6

9.8

7.4

1.6

7.0

4.53.7

4.5

7.0

4.54.9

4.1

2.9 3.32.5

0.41.2

7.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0Purchase amount   × WOM influence (in Q20)   ×   Occupation

TOTAL A B C D E F G H I J K L M N O P Q R S

800 10.3 9.3 7.6 7.6 7.1 6.6 5.4 5.0 5.0 4.8 4.0 3.9 3.8 3.6 3.1 2.9 1.9 1.8 6.5Q20 Very Influenced 244 15.2 8.6 9.8 7.4 1.6 7.0 4.5 3.7 4.5 7.0 4.5 4.9 4.1 2.9 3.3 2.5 0.4 1.2 7.0

Homemakers 148 18.2 7.4 13.5 4.1 5.4 2.7 4.1 2.0 0.7 4.7 2.7 6.1 4.7 6.8 0.0 2.7 1.4 3.4 9.5Homemakers w/ job 68 11.8 16.2 7.4 5.9 10.3 8.8 1.5 4.4 1.5 4.4 4.4 5.9 2.9 5.9 1.5 0.0 0.0 2.9 4.4

Female office workers 18 33.3 5.6 11.1 0.0 5.6 0.0 5.6 5.6 0.0 0.0 0.0 11.1 5.6 5.6 0.0 0.0 5.6 0.0 5.6Corpany emmployee 222 5.0 8.6 8.6 8.1 5.9 7.7 5.4 3.6 9.9 7.2 5.4 4.1 4.1 2.3 1.8 3.2 2.3 1.4 5.9Professions 31 0.0 9.7 6.5 9.7 3.2 6.5 3.2 3.2 0.0 9.7 6.5 3.2 6.5 9.7 3.2 3.2 3.2 3.2 9.7Business Executives 39 2.6 7.7 2.6 5.1 10.3 5.1 2.6 2.6 5.1 2.6 5.1 5.1 5.1 2.6 12.8 10.3 5.1 0.0 7.7Students, others 274 10.6 9.5 4.4 10.2 8.4 8.0 7.7 8.4 5.1 2.9 3.3 1.5 2.6 1.8 5.1 2.6 1.5 1.1 5.5

TOTAL

Occupation

*WOM influence herein indicates horizontal % of “very influenced" matrix quoted from Q 20.

Total

strongly influenced by WOM

A) CosmeticsB) Foods/beverages (inc. Alcohol)C) Daily commodities, supplemental

foods, drugsD) PC/Printers for home useE) ClothingF) Cell Phones

G) CD's, DVD'sH) Books, MagazinesI) Game ConsolesJ) Digital Cameras, video recordersK) AV equipmentsL) Travel, accommodation, recreation serviceM) Financial products (ie loan, insurance)

O) Consumer electronicsP) PC software, gamesQ) PC/Printers for office useR) CarsS) Mail Order products (inc. education

service)T) Others

Page 26: Wom research07

26Products purchased in past 6 months –WOM influence

Q20. How much did WOM influence on your purchasing decision?(sa)

71% for numeric value of total WOM influence on consumersThe ratio of “very influenced” in cosmetics was the highest.

Total 30.5 40.5 29.0

Cosmetics 45.1 37.8 17.1

Foods & Beverages (incl. Alcohol) 28.4 36.5 35.1

Daily Commodities, Supplemental foods, and Drugs

39.3 41.0 19.7

PC/printers for private use 29.5 44.3 26.2

Clothing 54.4 38.6

Cell phone 32.1 45.3 22.6

Music, CD, movie and DVDs 25.6 34.9 39.5

Books and magazines 22.5 42.5 35.0

Game Consoles 27.5 50.0 22.5

Digital cameras, video recorders 44.7 31.6 23.7

AV equipments 34.4 46.9 18.8

Travel, accommodation, recreation facility

38.7 48.4 12.9

Financial Products (ie. loan, insurance) 33.3 33.3 33.3

Consumer products 24.1 41.4 34.5

PC Software, Games 32.0 40.0 28.0

PC/Printers for office use 26.1 43.5 30.4

Cars 40.0 53.3

Mail-order products (incl. education service)

21.4 28.6 50.0

Others 32.7 25.0 42.3

Very influenced Influenced Not at all

n800

82

74

61

61

57

53

43

40

40

38

32

31

30

29

25

23

15

14

52

7.0

6.7

Very influenced + influenced =71%

Very Influenced

30.5 %

Influenced40.5 %

Not at all29.0%

Page 27: Wom research07

Chapter   5Customer Advocacy through WOM

Page 28: Wom research07

28Customer Advocacy through WOM

Breakdown of Customer Advocacy through WOM

WHO1st   Friends

  46.2%2nd Friends with same interest 44.6%3rd   Family/Relatives 41.7%

<Notes>

•Men advocate to friends the most while women do to family/relatives the most.

•Teenagers give advocacy to friends mostly in both gender.

•Men in their 30’s to 50s, tend to give advocacy to co-workers. On the other hand, men in their 10’s, 20’s and 60’ give advocacy to friends the most.

•Women tend to give advocacy to friends and family equally unlike males.

HOW 1st   Talk face to face        85.6%2nd Talk over the phone 22.6%3rd   Post messages on SNS websites 17.8%

<Notes>

•Face-to-face conversation transmission has been dominant since the “WOM research” started.

•Women have more occasions to WOM over the phone compared with men. In addition, women in their 20’s and 30’s, who WOM the most, are frequent user of SNS websites.

•Most of male customers carry product advocacy via face to face conversations.

■WHY1st Like to introduce good products 67.0%2nd Would make others happy 39.0%3rd It’s highly novel information 16.2%

<Notes>

Women have more desire to tell others about a product/service that they believe in its usefulness compared with men.

SUMMARY 1The most common way that customer advocacy spreads is via face-to-face conversation.The most common reason why customers spread advocacy is “want to introduce good products to others.”One of the notable facts is that women in their 20’s and 30’s, who WOM the most, are frequent users of SNS websites.

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Chapter   6Relation between WOM and Media

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30Outline

TARGET

TARGET

Potential Customers

WOM

CustomersLoyal customers

WOM

TARGET

TARGET

Targets

WOM

Aware

Interested

Purchase

Motivated

Recommend

Satisfied

Spread

C

C

BPhase of Customer Attitude

① Source of information which made the consumer aware  

② Source of information which made the consumer interested

③ Source of information which made the consumer to buy the product

SUM 1:   WOM from friends is ranked within top 3 at three phase of Awareness,  Interests and Purchase

This survey shows that over-the-counter promotion influenced consumers behavior at every phase of awareness, interest and purchasing at most.WOM from friends heavily influences on brand interest and purchasing.

SUM 2: Online WOM among 10’s and 20’s remain growingYoung generation, who are in their 10’s and 20’s, uses UGC websites the most. 41.6% of all respondent make posts on those websites. Daily basis message posters are 10%, and weekly ones are 29.9%. Most teenagers post messages on everyday basis, and most of people in their 20’s and 30’s post on weekly basis. Online videos audience is 85.7% of total respondents of both genders.

Consumers

Prospective Customers

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31

Potential Customers

Customer

Contribution to brand awareness

Contribution to brand interest

Contribution to brand purchase

Consumers

Targets

Over –the-counter 23.5%

WOM from friends17.5%

TV ads22.3%

WOM from friends18.9%

Over-the-counter22.5%

WOM from friends13.1%

Company website11.4%

Over-the-counter26.4%

WOM influenced purchasing71%

WO

M Influence

purchasing decisionsS

pre

ad

of W

OM

TV ads18.6%

WOM source

Each 3 figures in A,B and C indicates the ratio of the products customers who think those information source were lead of "Awareness", "Interest" and "Purchase" on shopping in the past 6 months.

Relation between WOM and Mass Media

Experience of giving WOM advocacy54.9%

Total WOM*: 39.9%

Total WOM: 44.2%

Total WOM: 38.0%

A) Aware

B) Interested

C) MotivatedProspective Customers

wom

wom wom

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32The Influence of Mass Media on the 3 Stages

“Awareness Trigger" “Interest Trigger" “Purchase Trigger"

N=800A B C D E F G H I J K L M N O P Q R S T U V W V W

Awareness trigger 23.5 22.3 17.5 12.0 9.5 9.5 9.3 8.5 8.1 6.8 6.6 5.5 5.4 4.6 4.6 4.5 3.9 3.0 0.8 0.6 0.5 0.3 0.3 2.4 7.0

Interest trigger 22.5 18.6 18.9 11.6 9.6 7.6 6.1 9.8 6.9 7.6 4.9 4.3 5.5 6.5 3.3 3.1 3.5 2.0 0.6 1.0 0.3 0.5 0.1 3.9 8.8

Purchase trigger 26.4 9.3 13.1 11.4 7.1 2.9 3.3 10.5 4.3 10.1 4.6 2.5 4.4 6.4 2.5 2.0 3.6 1.9 0.6 0.3 0.3 0.5 0.3 3.4 9.8

*ordered by quantity

A) Retail Outlet Promotion B) TVC) FriendsD) Company websitesE) Other WebsitesF) MagazinesG) Internet AdsH) UGC websites (price comparison)

I) Collaterals in storesJ) Clerks/SalespeopleK) Search EnginesL) NewspapersM) SNS websites

N) UsersO) News/ news websitesP) Newspaper flyersQ) Someone familiar w/ the product fieldR) Direct MailS) Events/ExhibitionsT) BillboardsU) RadioV) Transportation AdsW) Online VideoX) OthersY) N/A

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33The Influence of Media on 3 Stages ver: Homemakers

The Influence of Mass Media on “Housewives (216 people)”

Horizontal%N=216 A B C D E F G H I J K L M N O P Q R S T U V W X Y

Awareness trigger 30.1 28.7 20.4 10.2 9.7 9.3 8.8 8.8 8.3 8.3 8.3 8.3 7.9 6.5 5.1 5.1 4.6 2.3 1.4 0.9 0.5 0.5 0.0 2.8 3.2

Interest trigger 24.1 25.5 23.1 8.3 8.8 8.3 6.5 5.6 6.9 6.9 5.1 4.6 6.5 5.6 4.6 3.7 8.8 2.8 0.5 0.9 1.4 0.0 0.0 4.6 4.6

Purchase trigger 26.4 10.2 13.4 8.3 12.5 5.6 6.9 3.7 1.4 8.3 2.3 1.9 4.6 3.2 4.6 4.6 9.3 2.8 0.9 1.4 0.5 0.5 0.0 4.6 6.9

TV, Retail Outlet Promotion, and WOM from Friends equally bring awareness to housewives.In terms of influence on purchase, the order is as follows: A)ROP;C) Friends; F)Clerk/Salespeople.

*ordered by quantity

A) Retail Outlet PromotionB) TVC) FriendsD) Company websitesE) Clerk/SalespeopleF) Other WebsitesG) Collaterals in storesH) Newspaper flyersI) Magazines

J) UGC websites (price comparison)

K) NewspaperL) Internet AdsM) Search EnginesN) SNS websitesM) Someone familiar w/ the product fieldN) Direct MailO) UsersP) News/ news websites

Q) Events/ExhibitionsR) Transportation AdsS) BillboardsT) RadioU) Online VideoV) OthersW) N/A

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Chapter   7Changes in Lifestyle and Media Consumption

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35Online Video Consumption

Q35. Do you usually watch online videos?(sa)83.7% of all respondents watch online video (sum of frequent, occasional and rare viewers).The ratio of “Frequent” viewer is the highest in male teenagers, and 90% of men in each segments of 20’s, 30’s and 40’s are online video audience(frequently, occasional and rare viewers).More than 90 % of women in their 20’s and 30’s are online video audience as well.

Total 18.3 30.6 34.9 16.3

Male Total 20.0 32.8 33.3 14.0

10’s 39.4 30.3 18.2 12.1

20’s 14.9 44.8 29.9 10.4

30’s 22.4 32.8 34.3 10.4

40’s 17.9 34.3 37.3 10.4

50’s 20.9 25.4 35.8 17.9

60 and over 28.8 43.9 22.7

Female Total 16.5 28.5 36.5 18.5

10’s 31.8 22.7 27.3 18.2

20’s 25.4 37.3 26.9 10.4

30’s 13.4 32.8 44.8 9.0

40’s 11.9 34.3 37.3 16.4

50’s 32.8 40.3 20.9

60 and over 10.6 10.6 42.4 36.4

Frequently occasionally Rarely Never#800

400

66

67

67

67

67

66

400

66

67

67

67

67

66

6.0

4.5

83.7% are online video audience

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36Changes in Media Consumption last year

84.6%

36.3%

34.4%

67.8%

86.7%

86.5%

83.4%

67.7%

98.8%

78.0%

84.4%

52.6%

80.3%

43.3%

49.0%

Watch analog-broadcasted TV 23.6 54.9 15.4

Watch Digital-broadcasted TV 19.9 13.8 63.7

Watch TV subscriptions (BS, CS, cable TV etc) 20.5 65.6

Listen to radio 12.3 47.6 32.3

Read newspapers 12.4 10.9

63.4 13.4

Read magazines 11.4 19.8 55.3 13.6

Check newspaper fliers 11.9 13.9 57.6 16.6

Read free magazines (R25, Saikei Living City Living etc) 12.8 44.9 32.4

Surf the Internet on PC 46.3 50.0

View SNS website on PC 29.6 39.6 22.0

Watch online videos 36.4 40.5 15.6

Surf the Internet on cell phone 17.3 30.0 47.5

Watch DVD’s 25.4 12.1 42.8 19.8

Play games on home game consoles (Wii, Playstation etc) 9.1

14.2 20.0 56.6

Play games on portable game consoles (Nintendo DS, PSP etc) 18.5 21.5 51.0

Increased Decreased No change Do not use

#800

800

800

800

800

800

800

800

800

800

800

800

800

800

800

6.1

2.6

8.5 5.4

7.9

10.0

2.5 1.3

8.8

7.5

5.3

9.0

Q36. How did you change the consumption of media this year compared with last year?(sa)

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37Changes in Media Consumption last 1 year

Frequency increased

Online Videos recorded second with increase.Magazines and Analog-broadcasted TVs shows decrease, but more than 50% have not changed.

The Comparison of “Increase” and “Decrease” in a year ago.

A B C D E F G H I J K L M N

A) Internet browse with PCB) online movieC) online community (blogging, SNS websites)D) gameE) DVDF) digital-broadcasted TVG) Internet browse with cell phone

H) free magazines/newspapersI) NewspapersJ) Newspaper flierK) MagazinesL) TV subscription (BS/CS:skyperfecTV, WOWWOW)M) RadioN) analog-broadcasted TV

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38

Change in amount of time spent on Media (Increased - decreased)

43.8

28.920.8 17.3

13.3 12 9.53.1 2.8 1.5

- 2 - 4.4 - 5.2 - 8.4

- 17.5

-40

-20

0

20

40

60

80

100

120%

Change

Usage ratio

Changes in Media Consumption last 1 year

H) free magazines/newspapersI) newspaperJ) newspaper flyersK) radioL) magazinesM) analog-broadcasted TVN) home game (PS, Wii)

A B   C      D E    F   G H     I J K      L M   N     O

A) Browse Internet with PCB) online movieC) online community (blogging, SNS websites)D) digital-broadcasted TVE) DVDF) Browse Internet with cell phoneG) portable game (Nintendo DS, PSP)H) TV subscription (BS/CS:skyperfecTV, WOWWOW)

Q36. Among the 15 media below, which one exhibits usage change?

The graph below indicates the change in amount of time spent on media. It should be noted that TV keeps shifting from analog to digital in Japan. Only newspapers recorded growth among traditional media.

Page 39: Wom research07

39Contacts

Masayuki Nakajima Senior Marketer

KOKOKUSHA Marketing Dept / WOM Research 2007 teamTel: 03-3775-0085

Fax: 03-3575-0086

E-mail: [email protected]

*translation cooperation

Chiyoe YamamotoKOKOKUSHA Network Sales Dept / WOM Research 2007 team (Proofreader)

KOKOKUSHA Co.,LTDKOJUN Building 7F6-8-7 Ginza,Chuo-ku,Tokyo Japan, 104-8111http://www.kokokusha.co.jp

*Translation supervision

Rainer JeskeCONNECTYOU K.K., PresidentAIG Building Suite B1 1-1-3 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan Tel: 03-5288-5227 Fax: 03-5288-5353Mobile: 090-7247-7959E-mail: [email protected]