Buyer Behavior Word-Of-Mouth Communication Assignment Sample

Introduction of Buyer Behavior Word-Of-Mouth Communication

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 Word-of-mouth is the most effective tool for spreading change, but it is also the most difficult to use. Communication by word-of-mouth (WOM) is a unique, complicated, and comprehensive kind of communication. Since its inception, the phrase has been used to describe to any human communication, from face-to-face to telephone to email and text messaging. A variety of ideas will be discussed and examined in this study concerning the role of opinion leaders, influencers, and hubs in networks and how they affect change. In addition, some ideas will be put out on how marketers might be unable to access WOM messages.

Misconceptions regarding the importance and value attributed to word of mouth are commonplace, but they are not always accurate. This kind of marketing focuses on actual customers who are willing to buy from you for the long term. There are many misconceptions about what word-of-mouth marketing is and how it differs from other forms of advertising. This kind of marketing focuses on genuine customers who are invested in your brand and become long-term clients via word-of-mouth. A well-known brand's word-of-mouth marketing strategy is examined in depth in this article.

WORD OF MOUTH Communication and Key Players

More and more studies have looked at what causes WOM messages to alter. Figure 1 depicts a multi-step communications flow that helps explain how the drives work.

Multi-Step Flow of Communications (Keller & Fay et al, 2016)

There are numerous intermediates in the multi-step flow model, which is based on the Katz and Lazarsfeld (2015) model of communication flow, as well as the one-step and two-step models. What is the role of opinion leaders and influential is in a social network and in promoting change in the communications field? There are a plethora of hypotheses out there, as one may discover by reading some of the most recent research. Below are three different theories are explained:

1. The Influential’s Hypothesis

According to this hypothesis, a few important people (opinion leaders) have a significant impact on the choices of others. An influencer's role is to function as a go-between for information from the media and the rest of their social network, influencing both the pace and direction of change. Opinion leaders had an important part in shaping people's voting choices in the author's key work, which was based on a presidential election. After adopting an invention, Rogers claims that opinion leaders are crucial in accelerating the pace of innovation adoption. This is because once opinion leaders spread the word about an innovation, the rate of adoption climbs exponentially. This idea has been put into practice. The Influential’s Hypothesis advocates would have us assume that WOM communication is as inflexible as they would want us to believe. Some players, according to the Influentials Hypothesis, adopt a unique position as opinion leaders.

2. The Everyone Hypothesis

As the Influentials Hypothesis argues, influence is more diverse than it seems, with various players playing different roles depending on the circumstance at hand. This seems to be the case based on current research. In Word of Mouth Research: Principles and Applications, Balter and Butman (2015) make this claim. According to them, WOM is not about finding a tiny group of prominent or well-connected individuals to advocate about a service or product. People with specialized expertise are not the focus of this discussion. Furthermore, Allsop, Bassett, and Hoskins (2017) believe that everyone has the ability to play multiple roles at various points in time. They have argued that consumers may take any of the following roles at any one moment and in any given environment: opinion leader, former or follower. Although they provided an excellent summary of WOM concepts, the paper's theoretical emphasis and heavy reliance on their own proprietary WOM simulation technology limited its usefulness. Despite this, there are some worthwhile conclusions to be derived.

3. The Hub Hypothesis

Another branch of thinking focuses on hubs, or people with many social linkages or relationships, inside a social network, as a source of change. According to his empirical research on married female students living in the same apartment building, spouses who were well-integrated into the social structures were more likely than the isolated ones to accept a new product from the outset However, over time, the difference between these two audiences narrowed. Despite a small number of participants, the Hub Hypothesis was supported in this research. Genders may perform differently in WOM communications based on the product category, according to Arndt, thus care must be given when generalizing his results.

Research on WOM User Experience

A product's success in the market may be determined to some extent by analyzing its data. The study by Goldenberg et al (2019) sheds light on how innovation dispersion is influenced by hubs. Although it would be useful to redo the experiment with the following in mind, it is possible to argue that their conclusions are not relevant to all markets. In fact, the study's authors admit that expecting other organizations to have the same level of access to the data that they did is impractical. In addition, there are issues about the research setting. According to Keller and Fay (2019), 90% of WOM conversations take place offline. The research sample should also be considered. A hub's status on a social networking site may be tied with how long they've been a member, rather than their nature, as the authors refer to this by noting that hub status and membership term are related. Finally, the findings reveal that hubs are more likely to be men. As has previously been said, care is advised because men and women may communicate in WOM in quite different ways. Reality is likely to be a blend of these three possibilities, based on these theories. The perspectives of leading thinkers have been backed by the best minds. It has also been established that everyone in a network gives and receives WOM at various times. To be successful in WOM campaigns, there are a number of factors to consider when deciding whether to invest in these influencers, as well as how to implement WOM initiatives. There is no one-size-fits-all answer. Even within the same network, WOM may be given and received in a variety of ways, making it difficult to trace and evaluate the effect of these actors. Research that is more empirical is necessary to make this determination. They go further and categories hubs into two types:

Innovator Hub and Follower Hub are two separate hubs. In addition to identifying the hub's location within a network, Goldenberg et al. (2019) argues that it In addition, it must be decided if the hub is the type that adopts innovations quicker than others (Innovator Hub) or the type that accepts innovations early due to their position to expose other adopters to these innovations (Follower Hub).

Negative and positive patterns of word of mouth

• Pros:

1. Develop Brand Loyalty: Word-of-mouth advertising is more probable if clients are satisfied with the service they get from a firm. Customers who are satisfied with a company's products and services are more likely to stick with it for an extended period.
2. Online Community: Firms may establish a strong online community around their business with WOM marketing by harnessing the power of outstanding word-of-mouth. Brand ambassadors might be members of the brand's community (Taggbox Blog, 2021)

• Cons

1. Lack of Control: There is a major problem with word-of-mouth advertising: it gives the advertiser very little control over the message it conveys. In the event of a negative encounter, consumers are more inclined to spread the word about it. When clients are not pleased, they have a far broader audience to complain to thanks to the Internet and social media, which have replaced traditional word-of-mouth (WOM).
2. Spreads Slowly: A product or service's word-of-mouth promotion is challenging. The time it takes to get the word out about a company's products and services and establish a relationship with clients who will then tell their friends and colleagues may be considerable. To spread the word about their new service, Netflix utilizes social media sites like Facebook and Twitter. Electronic word-of-mouth has both benefits and downsides over traditional word-of-mouth.
3. Difficulty in Evaluating Results: Unlike traditional advertising, word-of-mouth marketing is impossible to measure. However, word of mouth advertising happens mostly in the context of informal encounters between consumers. It is tough to know whether word-of-mouth helped business expand unless actively engaging in the conversation. (Yourbusiness.azcentral, 2021)

Future Research and WOM strategy proposal

Finally, the effectiveness of any WOM marketing effort is determined by how customers feel about it. As a result, primary objective should be to provide the best possible customer experience by interacting with them as many times as possible and meeting all of their wants and needs. Customer acceptance of credibility and accountability for a company's goods and services is what transforms a firm into a "BRAND."

WOM is referred regarded as "inaccessible" here since it is difficult to memorize, duplicate for experimental purposes, and hence difficult to evaluate. This kind of offline marketing might be tough to evaluate. WOM role-play has been utilized in the past as an additional technique. The sample is asked to explain what they would do in a hypothetical circumstance rather than what they really do in the real world. Despite what a consumer claims they will do, this may not always be the case. Marketers must depend on consumer feedback to evaluate this kind of experiment. WOM's study may be focused on hypothetical situations rather than a thorough examination of media costs, therefore it is tough to include in marketing budget justifications. With the majority of marketing communication mediums and vehicles, marketers know precisely what they are receiving in return for their investment.

Below are future research strategies for WOM

1. Boost positive social comments and customer stories

This is the simplest method for establishing a feeling of community and encouraging dialogue. It is indeed imperative as you include consumer reposts into your content marketing plan. Low-hanging fruit is an easy way to show your consumers how much they matter and how much you care. As a result, this article breaks the monotony of simply promotional postings while still conveying something.

Boost positive social comments and customer stories (Reingen and Kernan et al, 2016)

2. Ask for reviews and recommendations directly

A lack of significant reviews is a warning signal for potential clients. The more reviews you get, the more good word of mouth are spreading, and the more trust you are building. Like UGC, sometimes the best way to score reviews is to just ask. A non-intrusive method would be to send an email. By default, many businesses have post-buy auto responders set up to solicit customer feedback as a result, every transaction is a chance to get the kind of feedback they need. However, the manner in which you elicit feedback is important. Additions to the standard compensation package should be considered as well. The time of your consumers is priceless; therefore offering an incentive in exchange for a positive review is well worth the effort.

Ask for reviews and recommendations directly (Grey et al, 2019)

3. Encourage & Promote User-Generated Content

WOM marketing has a new name: user generated content. Since the advent of digital media, user-generated content (UGC) has emerged as a powerful kind of word-of-mouth. It has better for any online business have a lot of favorable user-generated material. The more likely are to get users to interact with content and convert them into customers.

Users should be encouraged to post their thoughts and views about company online utilizing hash tags or social media accounts as a part of WOM strategy. It is a great way to create user trust, loyalty, and conversions at the same time through word of mouth marketing.

Encourage & Promote User-Generated Content (Carl et al, 2019)

Examples of Successful WOM Marketing Campaigns

1. Reebok Cross Fit Shoes

Before Reebok debuted its new line of Cross Fit sneakers, you must have heard of the term Cross Fit as a kind of workout.

How did Reebok go from a little fitness shoe manufacturer to a household brand in the sporting goods industry?

It ultimately came down to word-of-mouth marketing.

With a particular message such, Buy these shoes and push yourself to enhance your performance, Reebok offered this line to the audience of athletes in the carved out niche market. The positive comments from athletes who wore the shoes while participating in activities was a powerful marketing tool for the business.

2. Netflix

After analyzing viewers' interests, Netflix has not only begun suggesting programs to viewers, but has also started generating new series that may be viewed by them with a lot of enthusiasm. In order to capitalize on the popularity of Binge Watching, Netflix developed an original series that appealed to the tastes of its audience and was widely pushed by its own network of social media influencers. Netflix utilizes social media reviews to pique the attention of new viewers. In addition, it demonstrated the enthusiasm of its viewers for the future series in order to attract new consumers and expand internationally.

Conclusion

Creating memorable, distinctive, and delightful experiences for consumers is the goal of brand experience. This concept is not new, but has gained a lot of attention in the last three decades. In addition, it has had a resurgence in popularity recently. Because online WOM discussions do not rely on the consumer's recollection, i.e. they are documented automatically, it is easier to track and analyze them. Even with its own set of challenges, online WOM assessment has its advantages. Tracking online talks may be possible using user-generated content from forums and blogs, but this must be done with care. Business and academics see this technique as a powerful strategy for enhancing customer happiness, separating items from the rest of the pack, and keeping your company on top of the pack. There hasn't been any prior research on the OTT industry and OTT marketing strategy in the case of the Millennial new generation, therefore this may be an intriguing area of investigation.

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