'I love PEMCO' : Creating conversation worthy buzz in the insurance industry with word of mouth marketing

Surveys by PR-COM, a communications agency, indicate that leading German companies (1) have not recognized the relevance of social media yet or (2) have difficulties with implementing the concept (Meiners et al. 2010). For example, a survey among DAX-companies indicates that their social media activities are “lückenhaft und halbherzig” (PR-COM 2009). Another survey in the German IT industry shows that less than a third had a German and/or English blog (PR-COM 2010), even though blogging is considered a key tool for marketing communications. However, firms “that are not present on social media run the risk of not being in the position to build a positive reputation or to correct negative comments” (Meiners et al. 2010).

Consumer created reviews and ratings : the importance of word of mouth in information search

This study explored the creation, dissemination and exchange of electronic word of mouth, in the form of product reviews and ratings of digital technology products. Based on 43 in-depth interviews and 500 responses to an online survey, it reveals a new communication model describing consumers' info-active and info-passive information search styles. The study delivers an in-depth understanding of consumers' attitudes towards current advertising tools and user-generated content, and points to new marketing techniques emerging in the online environment.

Frequent (flier) frustration and the dark side of word‐of‐web: exploring online dysfunctional behavior in online feedback forums

Purpose Following the perspective of frustration theory customer frustration incidents lead to frustration behavior such as protest (negative word‐of‐mouth). On the internet customers can express their emotions verbally and non‐verbally in numerous web‐based review platforms. The purpose of this study is to investigate online dysfunctional customer behavior, in particular negative “word‐of‐web” (WOW) in online feedback forums, among customers who participate in frequent‐flier programs in the airline industry. Design/methodology/approach The study employs a variation of the critical incident technique (CIT) referred to as the critical internet feedback technique (CIFT). Qualitative data of customer reviews of 13 different frequent‐flier programs posted on the internet were collected and analyzed with regard to frustration incidents, verbal and non‐verbal emotional effects and types of dysfunctional word‐of‐web customer behavior. The sample includes 141 negative customer reviews based on non‐recommendations and low program ratings. Findings Problems with loyalty programs evoke negative emotions that are expressed in a spectrum of verbal and non‐verbal negative electronic word‐of‐mouth. Online dysfunctional behavior can vary widely from low ratings and non‐recommendations to voicing switching intentions to even stronger forms such as manipulation of others and revenge intentions. Research limitations/implications Results have to be viewed carefully due to methodological challenges with regard to the measurement of emotions, in particular the accuracy of self‐report techniques and the quality of online data. Generalization of the results is limited because the study utilizes data from only one industry. Further research is needed with regard to the exact differentiation of frustration from related constructs. In addition, large‐scale quantitative studies are necessary to specify and test the relationships between frustration incidents and subsequent dysfunctional customer behavior expressed in negative word‐of‐web. Practical implications The study yields important implications for the monitoring of the perceived quality of loyalty programs. Management can obtain valuable information about program‐related and/or relationship‐related frustration incidents that lead to online dysfunctional customer behavior. A proactive response strategy should be developed to deal with severe cases, such as sabotage plans. Originality/value This study contributes to knowledge regarding the limited research of online dysfunctional customer behavior as well as frustration incidents of loyalty programs. Also, the article presents a theoretical “customer frustration‐defection” framework that describes different levels of online dysfunctional behavior in relation to the level of frustration sensation that customers have experienced. The framework extends the existing perspective of the “customer satisfaction‐loyalty” framework developed by Heskett et al.

Engaging social customers : influencing new marketing strategies for social media information sources

A global, online quantitative study among 300 consumers of digital technology products found the most reliable information sources were friends, family or word of mouth (WOM) from someone they knew, followed by expert product reviews, and product reviews written by other consumers. The most unreliable information sources were advertising or infomercials, automated recommendations based on purchasing patterns or retailers. While a very small number of consumers evaluated products online, rating of products and online discussions were more frequent activities. The most popular social media websites for reviews were Facebook, Twitter, Amazon and e-Bay, indicating the importance of WOM in social networks and online media spaces that feature product reviews as it is the most persuasive piece of information in both online and offline social networks. These results suggest that ‘social customers’ must be considered as an integral part of a marketing strategy.

Marketing buzz : towards a framework for entrepreneurs

Despite the increasing recognition of the importance of word of mouth as an integral component of a firms’ marketing efforts, there has been little emphasis on developing suitable guidelines for entrepreneurs who wish to leverage scarce resources by pursuing more innovative marketing techniques. In addition, although there has been a great deal of research into the nature of social networks and interpersonal communication via word of mouth, there have been few attempts to link this research with the firms marketing strategy. In this paper, we consider the diffusion of innovation literature and recent research into social network structure and propose a framework that may be useful for enhancing the marketing efforts of entrepreneurial firms.

Complaining in cyberspace : the motives and forms of hotel guests’ complaints online

Traditionally, consumers who have been dissatisfied with service have typically complained to the frontline personnel or to a manager in either a direct (face-to-face, over the phone) manner, indirect by writing, or done nothing but told friends and family of the incident. More recently, the Internet has provided various “new” ways to air a grievance, especially when little might have been done at the point of service failure. With the opportunity to now spread word-of-mouth globally, consumers have the potential to impact the standing of a brand or a firm's reputation. The hotel industry is particularly vulnerable, as an increasing number of bookings are undertaken via the Internet and the decision process is likely to be influenced by what other previous guests might post on many booking-linked sites. We conducted a qualitative study of a key travel site to ascertain the forms and motives of complaints made online about hotels and resorts. 200 web-based consumer complaints were analyzed using NVivo 8 software. Findings revealed that consumers report a wide range of service failures on the Internet. They tell a highly descriptive, persuasive, and credible story, often motivated by altruism or, at the other end of the continuum, by revenge. These stories have the power to influence potential guests to book or not book accommodation at the affected properties. Implications for managers of hotels and resorts are discussed.

Antecedents of Destination Brand Loyalty for a Long-Haul Market: Australia's Destination Loyalty Among Chilean Travelers

Limited extant research examines Latin American consumers' perceptions of holiday destinations. This article measures destination brand equity for Australia as a long-haul destination in the emerging Chilean market. Specifically, it develops a model of consumer-based brand equity (CBBE) to explain attitudinal destination loyalty. The proposed model is tested using data from a sample of Chilean travelers. The findings suggest that brand salience, brand image, and brand value are positively related to brand loyalty for Australia. Further, while brand salience for Australia is strong, as a long-haul destination the country faces significant challenges in converting awareness into intent to visit. Australia is a more compelling destination brand for previous visitors than non-visitors. This implies that a word-of-mouth recommendation from previous visitors, a key component of attitudinal loyalty, is a positive indicator of future growth opportunities for Australia's destination marketers to capitalize on.

Why perform pro-social behaviours? Understanding the key sources of perceived value in preventative health services

In maintaining quality of life, preventative health is an important area in which the performance of pro-social behaviours provides benefits to individuals who perform them as well as society. The establishment of the Preventative Health Taskforce in Australia demonstrates the significance of preventative health and aims to provide governments and health providers with evidence-based advice on preventative health issues (Preventative Health Taskforce, 2009). As preventative health behaviours are voluntary, for consumers to sustain this behaviour there needs to be a value proposition (Dann, 2008; Kotler and Lee, 2008). Customer value has been shown to influence repeat behaviour (McDougall and Levesque, 2000), word-of-mouth (Hartline and Jones, 1999), and attitudes (Dick and Basu, 2008). However to date there is little research that investigates the source of value for preventative health services. This qualitative study explores and identifies three categories of sources that influence four dimensions of value – functional, emotional, social and altruistic (Holbrook 2006). A conceptual model containing five propositions outlining these relationships is presented. This study provides evidence-based research that reveals sources of value that influence individuals’ decisions to perform pro-social behaviours in the long-term through their use of preventative health services. This research uses BreastScreen Queensland (BSQ), a cancer screening service, as the service context.

Interactions and consequences of inertia and switching costs

Purpose: Service research typically relates switching costs to customer loyalty, and portrays them as effective switching deterrents that engender harmful word-of-mouth (WOM). Rather than to customer loyalty, this paper aims to relate switching costs to consumer inertia, and show that while switching costs may result in customer retention, they can engender positive and negative WOM. This depends on whether the inertia stems from satisfaction or indifference. Design/methodology/approach: A mall-intercept survey investigated 518 customers' perceptions of their mobile phone service providers. Structural equation modelling fitted the data to the conceptual model. Findings: Switching costs deterred switching and engendered negative WOM, but only with low-inertia customers. With high-inertia customers, retention and WOM behaviours depended on whether the inertia stemmed from satisfaction or indifference. Satisfied customers with high switching costs tended to stay, gave more positive and less negative WOM. With indifferent customers, switching costs were unrelated to retention or WOM behaviours. Research limitations/implications: While they may be perceived negatively, switching costs can engender PWOM. Hence, research should not consider switching costs alone without considering the context that produces them. Practical implications: Service providers should segment their customers into low-inertia, high-inertia/satisfied and high-inertia/indifferent, and target each segment differently. By converting customers into the high-inertia/satisfied segment, service providers can make the best use of switching costs – not only in the traditional sense as a barrier to defection, but also as a way of generating positive WOM. Originality/value: This study is the first to consider the role of inertia with switching costs, positive WOM, and negative WOM. The findings suggest that past studies portraying switching costs as negative impediments that evoke only negative WOM might be misleading.

The influence of online reviews on consumers’ attributions of service quality and control for service standards in hotels

Online travel reviews are emerging as a powerful source of information affecting tourists' pre-purchase evaluation of a hotel organization. This trend has highlighted the need for a greater understanding of the impact of online reviews on consumer attitudes and behaviors. In view of this need, we investigate the influence of online hotel reviews on consumers' attributions of service quality and firms' ability to control service delivery. An experimental design was used to examine the effects of four independent variables: framing; valence; ratings; and target. The results suggest that in reviews evaluating a hotel, remarks related to core services are more likely to induce positive service quality attributions. Recent reviews affect customers' attributions of controllability for service delivery, with negative reviews exerting an unfavorable influence on consumers' perceptions. The findings highlight the importance of managing the core service and the need for managers to act promptly in addressing customer service problems.

From consumer to community : factors of influence in the purchasing decision making process

The impacts of online collaboration and networking among consumers on social media (SM) websites which are featuring user generated content in a form of product reviews, ratings and recommendations (PRRR) as an emerging information source is the focus of this research. The proliferation of websites where consumers are able to post the PRRR and share them with other consumers has altered the marketing environment in which companies, marketers and advertisers operate. This cross-sectional study explored consumers’ attitudes and behaviour toward various information sources (IS), used in the information search phase of the purchasing decision-making process. The study was conducted among 300 international consumers. The results were showing that personal and public IS were far more reliable than commercial. The findings indicate that traditional marketing tools are no longer viable in the SM milieu.

The role of customer gratitude in strengthening seller-buyer relationships

Despite its emphasis on relationships between buyers and sellers, and the effect of emotion on behaviours, marketing literature has not yet investigated customer gratitude as an element of relational exchange. Gratitude is a significant component of personal relationships and may offer important insights into how perceptions of relationship marketing investments impact customer trust in, satisfaction with and affective commitment to a seller. In addition, customer gratitude may provide a more complete explanation of how marketing investments work. Consequently, this research contributes to marketing literature by investigating customer gratitude as a mediating mechanism in the relationship between customer perceptions of relationship marketing investments and customer trust in, satisfaction with and affective commitment to the seller: all dimensions of relationship quality.

Buzz in motion pictures : what is buzz and how can marketing create it?

In the movie industry, the extraordinarily successful theatrical performance of certain films is largely attributed to buzz. Despite longstanding commentary about the role of buzz in successful movie marketing and the belief that it accelerates new product diffusion, limited scholarly evidence exists to support these assertions. This is primarily due to the lack of conceptual distinction of buzz from word-of-mouth, which is often used as the main basis for conceptualising buzz. However, word-of-mouth does not fully explain the buzz surrounding films such as 'Gone With The Wind', 'The Dark Knight' and 'Avatar'. Informed by valuable insights from key experts who have launched some of the most successful movies in box office history, as well as a range of moviegoers, this thesis developed a deeper understanding of what buzz is and how it is created. This thesis concludes that buzz is not the same as word-of-mouth.

Mothers influencing mothers : the use of virtual discussion boards and their influence on consumption

Mothers represent a large segment of marketing dollars and traditionally, word of mouth was spread from mother to mother in a face-to-face environment, such as the school car park or mother’s groups. As families have evolved, so too has the traditional mother’s group. Limited academic studies have explored online mothers’ groups and how they impact on consumption. In order to explore the nature of this online influence and how mothers are influenced by other mothers online, a study was conducted through the use of observation and qualitative questioning. The data suggests that trust between mothers is generally high and mothers tend to trust the opinions of other mothers when they recommend a product. This is similar in other reference group contexts, however, mothers are communicating about brands frequently and influencing behaviour. This leads to a number of managerial and theoretical implications discussed in the paper.

An investigation of problem-solving support and relaxation motivations on e-WOM

As a consequence of greater computer-mediated consumer-to-consumer communication within the firm's marketing communications, there has been a growing need to understand these digital interactions more explicitly. That is, we still know little about the exact extrinsic and intrinsic motivations that drive electronic word-of-mouth. The purpose of the paper is to better understand why members within community-based websites develop a need to exchange and/or develop a social bond within the community. Questionnaire data were gathered from 147 members of an online beauty forum in Australia. The findings highlight that those members seeking problem-solving support in combination with elements of relaxation will be more inclined to exchange with other community members and develop a social bond within that community. Marketing managers can capitalise these findings by strengthening problem-solving support systems and creating environments where community members can also relax and unwind to increase the exchange between members and also increase the social bonds within the community.