Group PresentationCase Study 8.1 – p. 642

‘Facebook check-in: A new form of e-word-

of-mouth’

Alex McQueenBrayden Kershaw-DonkersDylan Shea

Case Background: p.642 text • The exchange of information between customers in real-

time via the internet is now a key element of consumer

behaviour

• Facebook users can now generate and share word of

mouth communication in real time by;

• “Liking” brand pages

• “checking-in” to various service locations; or

• Commenting on an experience

What is Word of Mouth:• Word-of-mouth communication is where one person

informally influences the attitudes of others

• Key characteristics include;• Interpersonal

• Non-commercial

• Direct contact

• eWOM is electronic word-of-mouth communications, that is they are conducted online.

• Social networks; Facebook, Twitter, Instagram etc.

WOM’s Relevance to Service Marketing• Services are intangible

• Services cannot be tested before purchase

• Quality of services can fluctuate

• It is difficult to judge price and value in advance

Examples of Facebook Check-in

How to Manage eWOM

• Search for any feedback and reviews already online

• Setup social media accounts

• Create a plan for how to respond to feedback either positive or negative

• Stay consistent with how to respond to feedback either positive or negative

• Stay consistent with responses – have a team or individual responsible for all responses

• The best way to encourage e-WOM is to exceed expectations

Factors affecting consumers evaluating WOM communications:

• The effectiveness of word-of-mouth communication to consumers is related to past satisfaction or dissatisfaction purchase experiences

• These experiences are taken into account from the consumer for both firm generated WOM and peer-generated WOM.

• However, consumers are more receptive to peer-generated WOM

Opinion Leadership

• Opinion leadership is the process by which one person (the opinion leader) influences the actions and attitudes of others.

• The key characteristic of an opinion leader is they have an informal relationship with the end users, and don’t get paid to give advice to consumers.

• Opinion leaders are important to marketers are they can act as buzz agents, and create ‘hype’ to influence customers purchase decisions

Buzz & Viral Marketing• A buzz agent is any person, event, or activity that creates hype

• Viral marketing is an attempt to deliver a marketing message that spreads quickly – like a virus

• Successful viral marketing appeals to any one of the three basic human motivators;• Entertainment

• Greed

• Charity

• Facebook checking-in is a feature businesses utilise to help create viral marketing.

Pros of a highly connected consumer:• Formulation of pull strategies to draw consumer’s in

• Gain unparalleled access into consumer’s daily lives to

better understand the consumer

• Easily share content with the consumer; such as ads,

trivia, coupons, videos, competitions

• Consumer’s can be seen as coming to the marketer

Cons of a highly connected consumer:• Reputational damage from negative eWOM or internet

trolling.

• Marketer’s must understand the technology and the

online environment to be successful

• Online communications can be less credible than those

offline

• eWOM is perceived as less reliable or possibly biased

Reference Groups:

• A reference group is any person or group that acts as a comparison for an individual in evaluating themselves, forming values, attitudes or behaviours.

• Establishment of online brand communities for

consumer to consumer interactions

• Learning of consumers attitudes, needs and desires

• To establish stronger loyalty with the consumer

Example of an online consumer reference group:

Q&A

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