Premium Essay

Word of Mouth

In: Business and Management

Submitted By radwasami
Words 14313
Pages 58


2:04 PM

Page 222


Market segmentation

All markets are heterogeneous. This is evident from observation and from the proliferation of popular books describing the heterogeneity of local and global markets. Consider, for example, The Nine Nations of North America (Garreau, 1982), Latitudes and Attitudes: An Atlas of American Tastes, Trends, Politics and Passions (Weiss, 1994) and Mastering Global Markets: Strategies for Today’s Trade Globalist (Czinkota et al., 2003). When reflecting on the nature of markets, consumer behaviour and competitive activities, it is obvious that no product or service appeals to all consumers and even those who purchase the same product may do so for diverse reasons. The Coca Cola Company, for example, varies levels of sweetness, effervescence and package size according to local tastes and conditions. Effective marketing and business strategy therefore requires a segmentation of the market into homogeneous segments, an understanding of the needs and wants of these segments, the design of products and services that meet those needs and development of marketing strategies, to effectively reach the target segments. Thus focusing on segments is at the core of organizations’ efforts to become customer driven; it is also the key to effective resource allocation and deployment. The level of segment aggregation is an increasingly important issue. In today’s global economy, the ability to customize products and services often calls for the most micro of segments: the segment of one. Following and implementing a market segmentation strategy allows the firm to increase its profitability, as suggested by the classic price discrimination model which provides the theoretical rationale for segmentation. Since the early 1960s, segmentation has been viewed as a key...

Similar Documents

Free Essay

Business Research: Word of Mouth

...EXECUTIVE SUMMARY This research is the study of the factors that affect people to provide word-of-mouth on Oishi Grand. There are 4 factors that we think it will affect people to provide word-of-mouth on Oishi Grand, these 4 factors are 1.Food quality 2.Service quality 3. Perceived price and 4. Brand image. Our main research question is Does food quality, service quality, perceived price, and brand image affect people to provide word-of-mouth on Oishi Grand? Moreover, we try to find the factor that has the biggest impact. We conduct the survey by using questionnaire as the tool to collect information. We collect information from 210 Assumption University’s students. Then we use SAS program to analyst the data. We try to separate people into many groups to see the relationship easier. We think that people who are Japanese lover, Novelty seeker, have an experience on Oishi Grand and Buffet lover will perceived different on Oishi Grand’s food quality, service quality, brand image and perceived price. According to our hypothesis testing, Food quality, service quality and perceived price affect people to provide word-of-mouth on Oishi Grand, Perceived price generate the biggest impact. Moreover, people perceived food quality, service quality, perceived price and brand image of Oishi Grand as high. People who are buffet lover and non-buffet lover have no different frequency to go to Oishi Grand. Most of people will go to Oishi Grand during weekend afternoon (04.00pm. to 10.00 pm...

Words: 367 - Pages: 2

Free Essay

Forms of Employee Negetive Word of Mouth

...FORMS OF EMPLOYEE NEGATIVE WORD OF MOUTH: A STUDY OF FRONT-LINE WORKERS The purpose of this article is to explain and provide the understandings within the forms of negative word of mouth (WOM) by the front line workers toward the employees and customers in any organizations. The word of mouth in this article is about the negative verbal communication or spoken meanings of a person towards the customer and other employees that work in the same organization or department. According to this article there has been a research interest into (WOM) from several organizational disciplines and there is a notable lack of studies on employee negative WOM behaviours. Besides that the author of the article has found some studies that contribute and also relate on employee behaviours that can be viewed as linked to word of mouth such as sabotage (Ackroyd and Thompson, 1999; Harris and Ogbonna, 2002;Wang et al.,2011), workplace incivility (Van Jaarsveld et al., 2010) and retaliation (Skarlicki et al., 1999). Although they are some research aids have tended to avoid the forms of WOM by employees, especially front-line, customer contact employees who are the direct interface between organizations and their customers. This article also mention that the authors have stated that the findings of the word of mouth phenomenon in the organization will provide the important information to the literature on the changing aspects of negative employee behaviour in the workplace, mostly in relation to......

Words: 1854 - Pages: 8

Free Essay

The Impact of Electronic Word of Mouth on Purchase Intention in Egypt.

...purchase, they learn about others’ past experiences through word-of-mouth (WOM). Today, the Internet has replaced traditional face-to-face WOM and has created a new electronic WOM platform (eWOM). Consumers now have a breadth of information at their fingertips and can access thousands of user reviews online. Word of mouth is considered one of the most market information sources that influence consumers. It is so influential because consumers usually trust other consumers’ information more than the information generated by advertisers and marketers because WOM is typically generated and communicated behind marketers’ selling purposes and is thus considered to be more trustworthy and credible (Blackshaw 2006, Sen and Lerman, 2007). The developing of the Internet has increased consumers' alternatives for receiving unbiased product information from other consumers and provides the opportunity for consumers to articulate their opinions by engaging in electronic word-of-mouth (eWOM). Examples of the types of online WOM platforms: product review websites, retailers’ websites, brands websites, personal blogs, message boards and social networking sites (Hennig-Thurau, Gwinner, Walsh and Gremler, 2004). Electronic word-of-mouth (eWOM) has several characteristics (e.g. directed to multiple individuals, available to other consumers for an indefinite period of time, and anonymous) that differentiate them from the traditional word-of-mouth (WOM). These characteristics enable eWOM to......

Words: 434 - Pages: 2

Premium Essay

Word of Mouth Marketing

...Twitter and Brands with Word of Mouth Marketing Word of mouth marketing is rapidly becoming part of marketing’s plan when it comes to brand building. Twitter was first introduced in April 2006 as a social platform that provided one’s status updates; four years later Twitter’s strategic direction integrated its business users with Twitter for business (Promoted Tweets, Twitter Ads) in April 2010. I was at first skeptical about Twitter because of the limited number of characters per message and I didn’t see the advantages in microblogging at first. These days, when I am on Twitter my game plan is simply I follow topics I want to know about and receive updates on, then check back for messages (or tweets). Speaking for myself, I eventually discovered how to enjoy tweets on events and topics that interested me. Nevertheless, Twitter presently has over 75 million accounts, so I would tend to agree that there’s a lot of personal marketing one can accomplish with it if it’s done right. This seems to be the case with Twitter’s other market: companies, advertisers, and marketers who seem to be able to make marketing sense with it. Social networks like Twitter have forced marketers to spend more time studying social trends and behaviors to improve or develop their targeting strategies. It’s been shown that television and social media are correlated. Research has concluded that consumers love using social media while they watch TV (see illustration[2]). Twitter is able......

Words: 505 - Pages: 3

Free Essay

Employment Law and Policy

...Ottawa University Employment law and policies Instructor: Carmen Pascaretti March 26, 2013 1. Word of mouth can be seen as disparate treatment because employers can pass on potential employees. Recruiters have to make sure that they have a balanced workforce; in this case they do not, as they are mainly only hiring Koreans. Although many organizations make extensive use of word-of-mouth recruiting, the compliance manual notes that this technique in a non-diverse workforce is a barrier to equal employment opportunity if it does not create applicant pools that reflect the diversity in the qualified labor market. Thus, caution is needed when over-relying on word-of-mouth recruiting to ensure that it is not creating barriers towards hiring minorities. If they do not want to hire other nationalities other than Korean, then they will need to certify that they are hiring applicants based on the Bona Fide Occupational Qualifications, not race; otherwise this will be a basis for discrimination. They need to get approval from the EEOC for Bona fide occupational qualifications and show proof that the job requirements are correctly identified as validated Bona Fide Occupational Qualifications. 2. I believe that if it was a small company, my decision would remain the same in favour of word of mouth because sometimes companies really benefit from employee referrals. Word-of-mouth referrals often save small companies money on costly advertisements, require minimal effort,......

Words: 450 - Pages: 2

Premium Essay

Social Media Marketing

...Social Media Marketing Abstract Keywords: social media marketing, advantages, electronic word-of-mouth (e-WOM), disadvantages. Introduction Marketing is a well-built methodological science and is continuously changing its rules to adapt to the new developments. Internet development and especially social media is one of the recent changes that happened to the market and it has a major impact on the communication between the firms and customers. Internet helps people to share, to create, to adjust content, and to get informed. It has certain characteristics (Peterson et al., 1997) such as: * Stores vast amounts of information at different virtual locations inexpensively * Distributes, searches, and organizes the information powerfully and inexpensively * Serves as a transaction medium * Low cost and easy entrance * Serves as a physical distribution medium for certain goods such as software. Social media is different from traditional media as it provides quality, regularity, usability, proximity, and eternity, which makes it efficient for the firms. According to a report from the Center of Marketing Research (CMR), more large companies are using social media to promote their brand online (Belicove, 2012). The introduction of social media to the market has changed the way businesses operate and advertise. The largest mediums have been pages such as Facebook, Pinterest, FourSquare, Youtube, and Twitter. In 2012, the yearly report showed that large......

Words: 4180 - Pages: 17

Premium Essay

Stages of the Research Project

...Week 3 Individual: Stages of the research Project RES/351 Word of Mouth is considered a powerful marketing device. The impact of consumers discussing products and services with other potential clients can be both beneficial or negative depending upon the view of the customer. Word of mouth referrals have long been considered a vital aspect of marketing but in the new digital age this referral system is drawn into question. One of the major criticisms of the word of Mouth today is that it is less influential due to globalization. The internet provides a new voice for consumers but is this voice as powerful as traditional word of mouth? This new field of research is slowly being explored. Due to the age of the internet, there are limited studies in this area. One of the most prominent studies was performed by Microsoft and Keller Fay Group. The study “Talk Track” was intended to measure the impact of the word of mouth both traditional and nontraditional forms. The research collected 24,724 interviews from participants ages 18-54 (Microsoft; Keller Fay Group, 2011). The study was self-reported with the participants using diaries to keep track of conversations concerning brands. Participants also completed online surveys that further detailed the word of mouth conversations. The independent variable in this experiment was the word of mouth, and the dependent variable was impact of the word of mouth on consumer brand values. The sample sizes of participants were: Adult......

Words: 758 - Pages: 4

Free Essay

Viral Marketing

...explains it all. Similar to “word-of-mouth”(Unit 4 Chapter 4), this marketing technique diffuses almost instantaneously. However, unlike “word-of-mouth”, Viral Marketing is mainly spread electronically, through web based technologies such as emails and social networking sites. It is safe to say that “word-of mouth” marketing is the most powerful marketing strategy. This viral strategy utilizes web based technologies to ensure that their product or service is being promoted. The classical example of a successful Viral Marketing strategy is Microsoft's At the early stages of its product life cycle, any message sent from a user contained an ad for MSN as well as a web link at the bottom of the message. Any message sent to family and friends was promoting the use of Hotmail, especially to those individuals using alternate emailing services. Anyone who received messages from Hotmail users could simply click the link and “Sign up for FREE!”. As emails were being sent, the link to sign up for went viral, and the buzz of this product was passed to different individuals and social groups around the world. Within the first year, Microsoft attracted over 15 million users, today there are over 300 millions users globally. |EXAM TIP: | |Most students far too much time answering Group 1 question words such as Define.......

Words: 799 - Pages: 4

Free Essay

Critical Review: “the Microeconomics of Customers Relationships”

...evaluates “The Microeconomics of Customers Relationships” by Fred Reichheld. The article presents a method to raise a company’s net-promoter score (NPS). The review will show that the NPS is a simplistic but valuable tool that has to be used with caution. Summary Reichheld (2006) starts his article by defining NPS and poses these five questions: “Why is the connection as strong as it is?”, “How does the quality of customer relationships affect the economics of a business?”, “Can the microeconomics of NPS itself ultimately be quantified and managed?”, and “How does a company raise its NPS — and on which customers should it focus its efforts”. In answering these questions, the author quantifies the value of the customer by giving value to word-of –mouth, retention rate, margins, annual spends, and cost efficiencies. In the second main section, Reichheld (2006) discusses how to Increase the NPS Strategically. The strategy promotes three priorities for increasing the NPS. The first priority is to invest in the company’s core customers (promoters). These customers are return customers which have a positive effect on the business (Reichheld, 2006). The second priority is addressing the customers that have a negative impact on the business (detractors). Although having a negative effect on the business, these customers are still profitable and the company can invest time in trying to satisfy them (Reichheld, 2006). The third priority is finding new promoters in the......

Words: 1069 - Pages: 5

Free Essay

Studentbeans Strategy and Targeting

...Student Beans Segmentation and targeting * Target group= students * Target group divided in these segments * Multi-segment targeting: different strategies for each segment Each year a different kind of targeting. It depends on which University year they are in. Target Freshers (A) | YEAR 1: Party animals (B) | YEAR 2: Inbetweeners (C) | YEAR 3: More serious student (D) | Just arrived at university | Attending lectures and seminars | Attending all classes | Spending a lot of time to individual studies | Attend Freshers Fair | Socialising to meet new friends | Spend more time to individual studies | Still spending time with friends but less because of the study | Go to clubs/pubs with new university friends | Active: sports, social events, etc. | Active: sports, social events, etc. | Planning their graduation | Socialize | Going out to pubs/clubs | Socialize and spending time with friends | Planning their holiday before the working life begins | Spend around 100£ each month on leisure activities | Living alone for the first time: learning to cook, learning to be alone, etc. | Working part-time | Looking for a job or an extra study | | Looking for a student job | Interested in future: looking for potential internships, conferences | | Key message strategy * Student beans makes student life a little more awesome * Save money A) Friends, belonging, social, being part of a group, fun with new people: * With student beans you......

Words: 749 - Pages: 3

Free Essay


...reputation of your business. These things take time, but word of mouth is a powerful force in society, and having friends and neighbors talking about how you treated them right is the best advertising a business can have.One significant practical effect from studying business ethics and applying then to your business is an improvement in the reputation of your business. These things take time, but word of mouth is a powerful force in society, and having friends and neighbors talking about how you treated them right is the best advertising a business can have.One significant practical effect from studying business ethics and applying then to your business is an improvement in the reputation of your business. These things take time, but word of mouth is a powerful force in society, and having friends and neighbors talking about how you treated them right is the best advertising a business can have.One significant practical effect from studying business ethics and applying then to your business is an improvement in the reputation of your business. These things take time, but word of mouth is a powerful force in society, and having friends and neighbors talking about how you treated them right is the best advertising a business can have.One significant practical effect from studying business ethics and applying then to your business is an improvement in the reputation of your business. These things take time, but word of mouth is a powerful force in society, and having friends......

Words: 286 - Pages: 2

Premium Essay

The Contribution of Customer Satisfaction to Business Success

...a company should seek customer satisfaction are increased loyalty, effective feedback and suggestions, attraction of new customers through free word-of-mouth publicity, saving marketing and advertising costs, as well as retaining existing ones. According to Keiningham, Munn, and Evans (2003, p. 37), “both practitioners and academics have accepted the premise that customer satisfaction results in customer behavior patterns that positively affect business results.” While it is highly argued that retaining current customers is easier than attracting new ones, as it would normally cost 20 times more to attract new customers rather than keeping existing ones per Carson Research Consulting, Inc. report. Continuous customer satisfaction from the offered product will lead to an easy purchase decision every time the need for these products and services arises. Thus, customers tend to become loyal to these providers, where their satisfaction helps to increase customer loyalty, reducing the need to allocate marketing budget to acquire new customers, where their word-of-mouth will also bring potential customers, increasing revenue and profit. According to Hoyer and MacInnis (2001), satisfied customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive word of mouth. As positive and negative feelings can coexist, customers may like parts of the service while rejecting other parts; nevertheless, these same...

Words: 482 - Pages: 2

Premium Essay


...offered by the brand, warranty/guarantee etc.) Aesthetics, warranty, Purchase process 1. How did u choose the outlet to buy it from? (Variety offered, proximity etc, size of the outlet) Big outlet 2. Did you state your ac needs to the salesman at the outlet? No, 3. Did the salesman try to explain other brands and their benefits? yes 4. Where there any deals or price discounts? Yes 10% off Post purchase evaluation 1. How often do u use the ac (how many hrs/day, how many months in a year) 3-4 months 2. Reason for non-use? 3. In case of dissatisfaction with the brand, what action would you take: * Complain to store/manufacturer * Stop buying that brand or from that store * Engage in negative word of mouth * Complain to pvt or govt comsumer protection agencies * Take legal action 4. Will u consider another brand for the next AC purchase or are u committed to this brand? Depends on the values and quality I get Shaji George 45, married,...

Words: 2148 - Pages: 9

Premium Essay

Wom Dove Case Study

...impact of direct exposure (people actually having seen the creative) is measured. By doing so, all dynamics behind the buzz in terms of word-of-mouth and word of mouse and how this influences consumer dynamics remains unknown. Insights in the content and dynamics of these conversations could be very useful to understand the success (or failure) of a campaign however. Traditional approaches also neglect the actions people undertake after having viewed a commercial message, while commercials can be found on sites like YouTube and are shared around the world. This study tests Dove’s viral movie ‘Evolution’ and confirms that measuring indirect exposure as well consumer actions undertaken after ad exposure provides advertisers with new and useful insights. 3 Introduction The consumer 2.0 the cocktail party goes digital Today’s empowered 2.0 consumer is very well informed, strongly connected with peers (and millions of surfers in general), has the ability to unify with them & share ideas but also has the tools to create proper content beyond control of marketers. This consumer is more sceptical, questions many things and uses intelligent ways to see through the facade of marketing actions (Jaffe, 2005). With the rise of this “new” consumer a recent trend in marketing called “word of mouse” (WoMo) has emerged. Verhaeghe et al. (2007) defined word of mouse as “the act of a consumer receiving, creating and/or distributing marketing-relevant content through online channels......

Words: 7483 - Pages: 30

Premium Essay


...Question 1 Arnold Palmer Hospital exists due to its customers who are the patients. Knowing the customers' expectations is very important for improving the hospital's services because as part of the total quality management at the hospital where process of continuous improvement, there is always room for improvement and perfection. If patient(s) is or are disgruntled by any service(s), the hospital should be thinking about ways to improve their process. Further, a patient's assessment enables the hospital to know whether their services would be recommended to others as word of mouth is the best advertising. Also, patients will not have the expertise to judge the quality of health care they received, if and only if, they have not been provided with the detailed information on their health problems and the corresponding medical diagnosis/treatments. This is why all discharged patients are sent a detailed survey form involving strategic areas at Arnold Palmer Hospital two weeks after discharge such as; satisfaction by the patient, respect given by the employee, quality of care, access to information by patients, quality of medical staff, coordinated care, if they received education needed concerning the area of patients concern and the quality of discharge information given to the patients. Considering the fact that the patients are provided with this information at Arnold Palmer Hospital, I believe that patients can judge better regarding their own care than any third-party......

Words: 301 - Pages: 2