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Word of mouth is relevant to 
services marketers versus marketers 
of goods as service marketers focus 
on influencing the actions of the 
consumers other than the product 
they maybe thinking of consuming.
Popular Facebook check ins of consumers in the area of 
Hobart. 
• Dominos Pizza 
• Hungry Jacks 
• Salamanca Markets 
• Local clubs/pubs 
• Zap fitness
Dominos Pizza 
• Cheap Pizzas 
• Bad reputation 
• Consistency issues 
Hungry Jacks 
• Shake and win 
• Increases popularity of the organisation 
Salamanca Market 
• Growing of Businesses through exposure of word of mouth on 
Facebook
Local Nightclubs/Pubs 
• Promoting events 
• Check in for free drinks 
Zap 
• Check ins can generate business.
Social network communication management is dictated by its tangibility 
E.G- Tangible 
V.I.P lawns and Hungry Jacks 
• Well established businesses 
• Trustworthy 
• Brand loyalty shown by many clients 
• Hiring that ‘bloke down the road’ 
• Cost effective, thus more people return 
Tangible entities influence WOM both +/- 
- Positive WOM 
- Promise future customers to 
complete work to a similar if not 
better standard for a discount. 
- Give people the opportunity to 
rate their service on a public 
domain. 
- Negative WOM 
- Offers for subscribed individuals 
(hungry jacks app discounts) 
- Hire ambassador to spread WOM 
(distanced from business) 
- Offer discount services for future 
jobs (less effective) 
- Delete negative posts on Facebook
Intangible businesses influence WOM 
Companies like Telstra and The Owl House bar, Sydney. 
• Established for many years 
• Brand loyalty displayed by many customers 
• Wide variety of products (wide market reach) 
• Multi-million/ billion $ companies 
Positive WOM 
• promote that product in a manner 
which is similar to the + WOM 
• Opportunities to win prizes/ get 
discounts by purchasing certain goods. 
• Promote positive comment/discussion 
Negative WOM 
• offers discounts for punters 
• demote negative discussion 
• Hire ambassadors to promote product 
in a non-harmful manner
Consumer Consideration 
firm-generated communications vs 
peer- generated communications 
Firm-generated 
communications –ads: 
Trustworthiness = 
credibility 
Spokesman credibility 
Attracting pictures 
Compare with 
previous products 
Cost-benefit analysis 
Peer-generated 
communications- WOM: 
Who that peer is 
Trustworthiness 
Friend’s comments, 
suggestions and 
recommendations
Firm-generated 
communications 
 Credibility -- perceived 
honesty and objectivity of 
the source, which has an 
enormous influence on the 
acceptance of the 
communication 
 Spokesman -- overall image, 
brand user, profession, 
expertise, familiarity
Marketers are interested in 
opinion leaders 
 more effectively than do the mass 
media 
 have greater exposure to the mass 
media 
 opinion leaders are more likely to be 
asked about political and government 
issues 
 achieve greater degree of social 
interaction and higher socioeconomic 
status 
 crucial change-agents who champion 
innovation through a community and 
are well positioned to become aware of 
and to adopt innovations
Pros & Cons for marketers of: 
smartphone-equipped customers? 
Pros: 
Instant contact with 
consumers 
Make more money 
Good information travels 
fast 
Better manage customer 
relationship 
Offer Personalized and 
direct marketing to 
customers 
Cons: 
Consumers has access to 
information which may be 
provided by competitors 
Bad information flows 
quickly and customers tend 
to remember bad things 
longer 
Customers may have privacy 
concerns and will not trust 
marketers
Reference groups 
• A group who can influence our decisions, beliefs and 
attitudes. 
Why are they of importance to marketers? 
- influential 
- Trustworthy 
- un-bias 
- Ideology of ones self
Facebook reference groups 
• YOUR MATES/ PEERS 
• Friend shares post, you see post, your likely to read that 
post, like that post and share again. ------ we are basically 
all sheep, we conform with our peers. 
• Exponential relationship between sharing a post and its 
reach*** 
• However….. Nothing is free anymore. Facebook costs $ to 
promote anything.

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Cb power pt pres 97 03

  • 1. Word of mouth is relevant to services marketers versus marketers of goods as service marketers focus on influencing the actions of the consumers other than the product they maybe thinking of consuming.
  • 2. Popular Facebook check ins of consumers in the area of Hobart. • Dominos Pizza • Hungry Jacks • Salamanca Markets • Local clubs/pubs • Zap fitness
  • 3. Dominos Pizza • Cheap Pizzas • Bad reputation • Consistency issues Hungry Jacks • Shake and win • Increases popularity of the organisation Salamanca Market • Growing of Businesses through exposure of word of mouth on Facebook
  • 4. Local Nightclubs/Pubs • Promoting events • Check in for free drinks Zap • Check ins can generate business.
  • 5. Social network communication management is dictated by its tangibility E.G- Tangible V.I.P lawns and Hungry Jacks • Well established businesses • Trustworthy • Brand loyalty shown by many clients • Hiring that ‘bloke down the road’ • Cost effective, thus more people return Tangible entities influence WOM both +/- - Positive WOM - Promise future customers to complete work to a similar if not better standard for a discount. - Give people the opportunity to rate their service on a public domain. - Negative WOM - Offers for subscribed individuals (hungry jacks app discounts) - Hire ambassador to spread WOM (distanced from business) - Offer discount services for future jobs (less effective) - Delete negative posts on Facebook
  • 6. Intangible businesses influence WOM Companies like Telstra and The Owl House bar, Sydney. • Established for many years • Brand loyalty displayed by many customers • Wide variety of products (wide market reach) • Multi-million/ billion $ companies Positive WOM • promote that product in a manner which is similar to the + WOM • Opportunities to win prizes/ get discounts by purchasing certain goods. • Promote positive comment/discussion Negative WOM • offers discounts for punters • demote negative discussion • Hire ambassadors to promote product in a non-harmful manner
  • 7. Consumer Consideration firm-generated communications vs peer- generated communications Firm-generated communications –ads: Trustworthiness = credibility Spokesman credibility Attracting pictures Compare with previous products Cost-benefit analysis Peer-generated communications- WOM: Who that peer is Trustworthiness Friend’s comments, suggestions and recommendations
  • 8. Firm-generated communications  Credibility -- perceived honesty and objectivity of the source, which has an enormous influence on the acceptance of the communication  Spokesman -- overall image, brand user, profession, expertise, familiarity
  • 9. Marketers are interested in opinion leaders  more effectively than do the mass media  have greater exposure to the mass media  opinion leaders are more likely to be asked about political and government issues  achieve greater degree of social interaction and higher socioeconomic status  crucial change-agents who champion innovation through a community and are well positioned to become aware of and to adopt innovations
  • 10. Pros & Cons for marketers of: smartphone-equipped customers? Pros: Instant contact with consumers Make more money Good information travels fast Better manage customer relationship Offer Personalized and direct marketing to customers Cons: Consumers has access to information which may be provided by competitors Bad information flows quickly and customers tend to remember bad things longer Customers may have privacy concerns and will not trust marketers
  • 11. Reference groups • A group who can influence our decisions, beliefs and attitudes. Why are they of importance to marketers? - influential - Trustworthy - un-bias - Ideology of ones self
  • 12. Facebook reference groups • YOUR MATES/ PEERS • Friend shares post, you see post, your likely to read that post, like that post and share again. ------ we are basically all sheep, we conform with our peers. • Exponential relationship between sharing a post and its reach*** • However….. Nothing is free anymore. Facebook costs $ to promote anything.