Premium Essay

Word-of-Mouth Communication in the Service Marketplace

In: Business and Management

Submitted By lianalisty
Words 8566
Pages 35
Word-of-mouth communication in the service marketplace
The Authors
W. Glynn Mangold, Professor of Marketing, Department of Management & Marketing, College of Business & Public Administration, Murray State University, Murray, Kentucky, USA Fred Miller, Professor of Marketing, Department of Management & Marketing, College of Business & Public Administration, Murray State University, Murray, Kentucky, USA Gary R. Brockway, Chairman and Professor of Marketing, Department of Management & Marketing, College of Business & Public Administration, Murray State University, Murray, Kentucky, USA

Abstract
Word-of-mouth communication (WOM) is a dominant force in the marketplace for services. However, the current body of research provides little insight into the nature of WOM in the service marketplace. Reports the results of a content-analytic study that provides insight into WOM’s content and the catalysts by which it is stimulated. The goal was to capture a series of “grounded events” from which broader patterns could be discerned. These grounded events were actual incidents of WOM as described by the recipients of a communication. Three content categories and ten catalyst categories are identified. Implications for managers are addressed.

Article Type:
Research paper

Keyword(s):
Communications; Consumer behaviour; Customer satisfaction; Interpersonal communications; Services marketing.

Journal:
JOURNAL OF SERVICES MARKETING

Volume:
13

Number:
1

Year:
1999

pp:
73-89

Copyright ©
MCB UP Ltd

ISSN:
0887-6045 Research indicates that word-of-mouth communication (WOM) has a significant effect on consumer purchasing behavior. One study conducted by the US Office of Consumer Affairs indicated that, on average, one dissatisfied customer can be expected to tell nine other people about the experiences that resulted in the dissatisfaction. Satisfied...

Similar Documents

Premium Essay

Marketing Mix

...Marketing mix The Marketing mix is generally accepted as the use and specification of the "four P's" describing the strategic position of a product in the marketplace. One version of the marketing mix originated in 1948 when James Culliton said that a marketing decision should be a result of something similar to a recipe. This version was used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "Marketing-Mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is explained in most marketing textbooks and classes. Definition A"Marketing Mix" is the set of controllable, tactical marketing tools that work together to achieve company's objectives, they are: product, price, promotion and place: o Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. o Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's...

Words: 1063 - Pages: 5

Premium Essay

Marketing

...Definition of Marketing Definition of Marketing Marketing is an essential advertising directive every business needs to succeed in pursuing profit, service, or success vertically and horizontally in any business venture. Marketing pertains to sales, packaging, public relations, distribution, pricing, name brand recognition, designing, promoting, exchanging, processing products, and services to attract potential target market customers. Everything consumers come into contact with has a marketing directive or strategy attaching itself to a certain marketing campaign. Marketing campaigns can be verbally through word of mouth and pursued electronically targeting personal electronic devices; radio, television, billboards, and paper advertising. Marketing campaigns can be very expensive and portray a big part in economic development and growth (Perreault, Cannon, & McCarthy, 2011). In advanced economies, marketing costs about 50 cents of every consumer dollar (Perreault, Cannon, & McCarthy, 2011). For organizations to provide information on products and services, marketing campaigns need to penetrate a direct message focusing in on ready, willing, and able target market consumers seeking needs, conveniences, services, and satisfaction. As profit directs organizations to introduce products and services into the marketplace, marketing campaigns and marketing directives can create the current and future company successes or marketing failures. Using three different......

Words: 1078 - Pages: 5

Premium Essay

Club It, Part 1

...provided. Live bands, NYC bands, San Francisco bands and world DJs will all be used with the main musical focus lying in hip-hop, techno, electronica, and MP3 playlists. An open mike for alternative, R&B, country, latin, folk and jazz will be offered during specific months. Merchandising will include baseball caps, shot glasses, t-shirts and glass mugs. Anticipated staff needs are to be met by: * 1 Assistant manager, * 4 bartenders, * 6 waiters, * 2 stewards, * 2 short order cooks, and * 4 security guards. (3) An online portal will be provided to employees so they can access and update their information and for employee communications. Every company requires the use of information systems that are appropriate for their data collection needs. These needs...

Words: 869 - Pages: 4

Free Essay

Situational Change

...project managers. By implementing contracting operations with vendors across the Phoenix area, Syntonizoun’s will be able to integrate multiple product services such as wedding, reception and graduation coordination’s for people of all ethnic backgrounds. Market Summary: Syntonizoun’s business is structured under sole proprietorship with an EIN of 12-3456789. Located in the vicinity of West Glendale, AZ, home of the Phoenix Cardinals Stadium, Syntonizoun’s operates out of the multi-tenant office building, Westgate Garden Offices. Syntonizoun’s is tailored to coordinate and organize nearly any occasion. As the city continues to develop, the demand for event planners is increasing. By contracting with local organizations across the greater Phoenix area, Syntonizoun’s can expand their versatility to target a broader demographic. Also, with the rise in cultural pride and recognition, event management is experiencing an escalation of ethnic-focused celebrations. Target Markets: • Weddings • Birthdays • Receptions • Graduations • Funerals • Corporate Events Market Demographics: Characteristic of Syntonizoun’s clienteles are the following demographics and geographics considerations: Geographics: • Syntonizoun’s stretches across the entire Phoenix region. Utilizing the internet, local media and word of mouth, Syntonizoun’s caters to customers of all ethnic backgrounds. • Target population number is approximately 1.5,000,000. (is this......

Words: 1374 - Pages: 6

Premium Essay

Social Network

...be advertised to, so again editorial communication is so powerful, they would rather be communities that can exchange views that are untarnished.” - Sir Martin Sorrell Social media is a global phenomenon in which old demographics no longer apply. Conversations happen at the click of a button. New communities are born every day and brands need to be involved; in the first instance to listen, and then to participate. Social media is booming. Every day new statistics, white papers and articles appear discussing its continued growth. Independent market analyst Datamonitor (2008) has revealed how quickly the number of people participating in online social networking is growing: the United Kingdom currently leads Europe, in terms of membership, and is expected to reach 27 million users - a threefold increase on today's figures - by 2012 (www.datamonitor.com). “Social networking sites are the reality television of the Internet,” said Jon Gibs (Senior Director of Media, Nielsen//NetRatings). “The content is relatively inexpensive for publishers to produce, and social networking is not a fad that will disappear. If anything, it will become more ingrained in mainstream sites, just as reality TV programming has become ubiquitous in network programming,” Gibs continued (www.acnielsen.com). “However, again like reality programming, the concept of ‘reality’ alone, or in this case ‘social networking,’ is not enough. In this competitive marketplace, sites also have to provide......

Words: 918 - Pages: 4

Premium Essay

Group Colaboration

...1. What makes cultural creative a unique segment in the U.S. marketplace? What specific marketing techniques should TTV use to appeal to the cultural creative segment? a. The American population has grown increasingly diverse with people from various cultures, backgrounds and values is the number one reason makes U.S. marketplace a unique segment. Customers in different cultures have different values, experiences, expectations, and ways of interacting. Even within a culture, such differences will be apparent between different subgroups—not just ethnicity, but also age, gender, profession, religion, family size, physical environment, and more. The “American Dream” a notion that the American social, economic, and political system makes success possible for every individual. As the author mentioned in the article, people in the U.S. are motivated to purchase high-quality products with social value and sought to make a difference in the world. b. With the growth of the internet and mobile platforms, relationship marketing has continued to evolve and move forward as technology opens more collaborative and social communication channels. This includes tools for managing relationships with a customer that goes beyond simple demographic and customer service data. 2. What should Karen do to prepare for year two and beyond? Does it make sense for TTV to focus on its current customers in year two? Why or why not? a. To being with, Karen should focus on advertising and marketing to...

Words: 581 - Pages: 3

Premium Essay

Marketing to the Bottom of Pyramid

... University Ave., Laramie, WY 82071, United States University of Illinois at Urbana-Champaign, 61 Wohlers Hall, 1206 South Sixth Street, Champaign, IL 61820, United States article info Article history: Accepted 1 February 2009 Keywords: Subsistence marketplaces Subsistence consumers Bottom of the pyramid abstract Over 4 billion people live in what is commonly referred to as the “bottom of the pyramid” or as subsistence marketplaces. These individuals and families live in substandard housing, with limited or no access to sanitation, potable water, and health care, have low levels of literacy, and earn very low incomes. Scholars and practitioners alike suggest that the problems existing in subsistence marketplaces demand the attention and involvement of responsible businesses and that doing business with consumers in such marketplaces can be both socially responsible and profitable. This research explores the strategies and tactics currently being used across commercial and social enterprises engaged in subsistence marketplaces. The analysis leads to recommendations about marketing practices currently used by companies and organizations that are successfully operating in subsistence marketplaces. © 2009 Elsevier Inc. All rights reserved. 1. Introduction Of the 6.5 billion members of the human community, approximately 800 million are at the top of the economic pyramid...

Words: 10813 - Pages: 44

Premium Essay

Brand and Corporate Image

...Brand and Corporate Image OMM615: Strategies: Marketing/Advertising/Public Relations An Assessment of Brand and Corporate Image The thought of customers not recognizing a company’s particular brand name or not understanding one's corporate image should spur marketers to act. Marketers by the use of advertising, sales promotion and public relations are able to build brand awareness and a positive corporate identity. In this paper corporate imaging and brand names will be discussed from the marketers point of view with reference to consumer perception. All assertions and suggestions will be supported by scholarly reference. As companies seeks to gain a competitive edge through some means of organizational restructuring and/or innovation, building brand name recognition and corporate image has become increasingly important. Customers identify with brand names and advertisements, which promoted products that made a favorable impression. Corporate image is an abstract concept that has a definite effect on marketing performance since consumers prefer to purchase from companies with reputable corporate images. Brand naming is a concrete concept in that a brand name is something one can see, touch, hear, feel or smell. By seeing and/or hearing and advertisement one can become familiar with a brand name which in turn can build brand's recognition. Corporate imagery is a highly involved mental process that marketers pursue in order to......

Words: 935 - Pages: 4

Premium Essay

Social Media Marketing

...Social Media Marketing Zayda Patton Principles of Marketing BUSB340 Dr. Vernon R. Stauble July 28, 2011 Social Media Marketing Social Media Marketing is an internet-based that allows people to participate actively in the marketing and selling of products and services in online marketplaces and communities. It is used to persuade consumers to buy products and services that are worthwhile to them at low-cost combining technology and social interaction (Lake, 2011). It allows businesses marketing their products at cost effective with the advantage of targeting specific markets. Social media is an online word of mouth communication that creates a cycle of acquisition and retention (Morton, 2001). Social media gives marketers a voice and a way to communicate with peers, customers and potential consumers. It personalizes the “band” and helps to spread the message in a relaxed and conversational way (Lake, 2011). It has provided great benefits to small businesses to access potential customers without investing great amount of money on paid advertising. Now days, businesses can take advantage of being part of social media marketing to promote their products and services. To have an effective social media marketing a company needs to analyze and determine what market they will be targeting and what kind of data is available to identify the factors that are important to the company to achieve the goals desired (Stephens, 2011). The best way a company can effectively start...

Words: 1264 - Pages: 6

Premium Essay

Qrt2 Ebusiness

...focuses on custom cabinetry, furniture design, carpentry and maintenance, and decks and patios. Custom wood-work and furniture are in high demand in today’s market, everything from custom toy chests to commercial decks and patios. Some businesses may be small with carpenters who work from their home or they may be larger construction type businesses that specialize in cabinetry for homes and decks and patios. There are many benefits for a home-based carpentry business, like Nioco’s, to be online. Being online will give Nioco’s more exposure to their individualized work, letting people see first-hand the type of work Nioco’s can do and receiving customer feedback on the product will expand their customer base. Nioco’s currently operates by word-of-mouth, starting off by doing work for friends and posting pictures of the products on Facebook and letting those customers tell their friends, etc. If Nioco’s had an online web page, customers would be able to see examples of Nioco’s work, be able to contact and make orders easily, and receive customer feedback or testimonials to gain potential clients or improve customer experience. Nioco’s is operated and owned by one person, Jay Walden. As a home based business, he has all the tools necessary to make the most intricate designs and personalize projects. He has constructed wine racks, toy chests, keepsake boxes, picture frames, coffee tables, nightstands and storage benches. He has also done more commercial type projects such as......

Words: 2244 - Pages: 9

Premium Essay

Learning from Amazon's Cuture of Metrics

...Learning from Amazon’s culture of metrics Questions: 1. By referring to the case study, Amazon’s website for your country and your experience of Amazon offline communicate their core proposition and promotional offers. Amazon does an excellent job communicating their core propositions for the Unites States through search engine results. Bing result: Online shopping from the earth's biggest selection of books, magazines, music, DVDs, videos, electronics, computers, software, apparel & accessories, shoes, jewelry ... Yahoo results: Online shopping from the earth's biggest selection of books, magazines, music, DVDs, videos, electronics, computers, software, apparel & accessories, shoes, jewelry ... Google result: Online retailer of books, movies, music and games along with electronics, toys, apparel, sports, tools, groceries and general home and garden items. Region 1 ... Both Yahoo and Bing are the same but Google communicates the same core propositions slightly different but all three communicate the same basic core propositions. These online search results are an excellent way of communicating Amazon’s core propositions. Amazon also communicates its propositions at its website Amazon.com but they are not in a sentence list. They are listed by department. Offline Amazon communicates its core propositions very clearly through advertising such as the commercial they ran during the Super bowl. They communicate their promotional offers very......

Words: 639 - Pages: 3

Premium Essay

Marketing

...MARKETING MANAGEMENT Contributors:  Prof. Dr. Ashok Kurtkoti  Prof. Avinash Deshpande  Prof. Dr. Rajendra Bartakke  Prof. Dr. N.J. Chavan  Prof. Pradeep Sadarpatil  Prof. Sandip Kodgire  Prof. Swapnil Patil  Prof. Gaurav Petkar  Prof. Shripad Joshi  Prof. Sheetal Kunjir 1 Marketing Management Session Plan (31st batch PGDM) MARKETING MANAGEMENT : Session Plan Session 1 Topic Introduction: Developing rapport between faculty and students, syllabus overview, about lectures and cases, etc. Defining marketing for the 21st century The Scope of Marketing Core Marketing Concept Company Orientation Toward The Marketplace Marketing Management tasks Scanning the marketing environment , Forecast demand and conducting marketing research Components of a modern Marketing Information System Internal records Marketing intelligence Identifying the major forces The demographic environment The economic environment The socio-cultural environment The natural environment The technological environment The political –legal environment Scanning the marketing environment , Forecast demand, and conduction marketing research The Marketing Research System The Marketing Research Process Chapter No. 2/3 Chapter 1 4 11 18 24 Chapter 3 4 60 61 62 65 66 68 70 71 73 74 Chapter 3 5 82 84 2 6 Creating Customer Value and Customer Relationship Building Customer Value, Satisfaction and Loyalty Customer Perceived Value Total Customer Satisfaction Customer Relationship......

Words: 737 - Pages: 3

Premium Essay

Business Areas

...As it is known, every beginning is difficult. So it is in business world too. By starting up a new business you are called to face a few challenges that affect your business. Our business, Eastern Foods, is going to analyse some of them. We are going to discuss about Human Resources (HRM), Accounting, Marketing and Operations Management. Human Resources Management: Human Resources is an important function, no matter how small the business is, especially for the employees. It is the area which ensures that the employees are working the right hours, they are getting the benefits they deserve so they can expel the stress that they may get and be happier and more productive. It is also responsible for payroll, benefits, hiring, firing, communication and keeping up to date with state and federal tax laws. Moreover, it helps managers to recruit, select, train and develop members for an organization. Accounting: Accounting is used to collect, classify, and manipulate financial data for the organization and keeps the financial stability. It is responsible for determining an organization’s overall wealth, profitability, and liquidity. Without accounting, organizations would have no basis or foundation upon which daily and long-term decisions could be made. The budgets for marketing activities, profit reinvestment, research and development, and company growth are based on that area. Marketing: Marketing is also an important piece of the business puzzle. It has to do with......

Words: 1612 - Pages: 7

Premium Essay

Assignment #1 Hrm 530

...that Mountain Bank should implement to achieve a competitive advantage in the marketplace. Mountain Bank already has the necessary tools to implement a variety of strategic plans. The key will be making the necessary changes and implementing them in order to gain a substantial and competitive advantage in the marketplace. The banks recent internal studies concluded that their best resources are their tellers. Based on this information I would recommend focusing on this echelon of the workforce strategically. As a part of the human resource management (HRM) team I would recommend a duel fold strategy that melded the competitive business strategy and the human resource strategy. a. Competitive business strategy: This strategy would focus on the needs of the customers and how to meet them efficiently and consistently. Every banking business that truly wants to succeed must ask “why will customers bank with us?” This question is the basis for the strategy they must adopt. For Mountain Bank I would recommend a #1 focus on customer service and satisfaction. I am not talking about simple courtesy but the type of incredible service that stands out far from our competitors. Numerous studies have shown that superior service will always beat cost of fees or price. BIGresearch.com, an Ohio-based market intelligence firm, conducted a four year study showing that most customers will put service ahead of price - if given the the opportunity (BizBest Media Corp, 2005). ......

Words: 1304 - Pages: 6

Premium Essay

Marketing

...high profile brand, increase the focus on promotion and desensitize the weight given to price. Promotion represents all of the communications that a marketer may use in the marketplace. The promotion component of a marketing mix is where everything comes together. The product or service, its pricing strategy, and distribution method or methods determine the techniques the business will use to create awareness and attract customer attention. Promotional strategies incorporate a combination of one or more elements of print, electronic and technology-based advertising, public relations, sales techniques, customer service, and word-of-mouth “buzz.” The right strategy fits the product according to how customers perceive its overall value. Mercedes benz Since Promotion is about the development and implementation of promotional strategies that we’ve already introduced, many companies in the globe use that element in order to inform and persuade customers about the product. Example 1: Every one of us knows Mercedes Benz as one of the top most recognized automobile brand in the world and it’s also considered as the world’s oldest manufacturer of luxury carmaker. Mercedes Benz has adopted many strategies in order to promote and present its product to customers through the following: Online advertising Social media Establishing excellent customer service at its point of sales Television advertising Print media By following all these strategies Mercedes managed to build a......

Words: 735 - Pages: 3