WHAT MARKETERS MISUNDERSTAND ABOUT ONLINE REVIEW
SOME MARKETERS NEGLECT ONLINE REVIEWS
TOOLS FOR MANAGERS TO SHIFT MARKETING STRATEGIES
1
WHAT AFFECTS CUSTOMER PURCHASE DECISION
P
PRIOR PREFERENCES
PRIOR BELIEFSPRIOR EXPERIENCES
PRIOR EXPERIENCE
EARLIER MARKETS NOW ONLINE SHOPPING
PRIOR BELIEFS EARLIER NON BRANDED NOW BRANDED
PRIOR PREFERENCE EARLIER NOW
M- INFORMATION FROM MAKETERS
O-INPUT FROM OTHER PEOPLE AND INFORMATION SOURCES
O CONTINUUM
The closer your product is to the O-dependent end, the greater the shift in
how consumers gather and evaluate information about it.
2
STRATEGIC IMPILCATIONS can be considered once firms
understand where a product falls on the O continuum
COMPETITVE POSITION
WHEN CUSTOMERS DEPEND MAINLY ON O,BRANDING BECOMES LESS IMP.
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Independent restaurants tend to benefit, while chains and franchises often see their revenues decline.
CONSUMERS turned to ratings and user reviews as their main source of information
Celebrity endorsements are less effective than they once were
Banner ads intended to create or reinforce brand awareness are not very successful
MARKET RESEARCH
Usually market research measures P to predict the product consumers will like by assessing
their past
3
For e.g. –marketers wouldn't like combination of cell phone,mp3 player etc into one convergent device
+ + =
iPHONE HIT THE MARKET
Because people became influenced by O
PRODUCT SEGMENATION
A product’s location on the O continuum often varies across customer segments and from country to country.
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Shoppers in brick-and-mortar stores are often more susceptible to M than online shoppers are
NO GOING BACK
GROWING SUSPICION is subjected when companies is suggested to shift their marketing
mix in recognition of the rising power of O
Yelp, TripAdvisor, and others are becoming increasingly sophisticated at weeding out fake
reviews, and consumers are developing a better sense of which sites they can trust
30% of U.S. consumers say they begin their online purchase research by going to Amazon for product information and reviews
Studies commissioned by Google have found that shoppers consult 10.4 sources of information, on average, before making a purchase.
Consumers who use smartphone apps such as ShopSavvy to compare prices can minimize the weight of M on their
decisions even on Black Friday.
success will come to companies which
closely track the sources of information their
customers turn to and find the combination of
marketing channels and tools best suited to the ways those consumers
decide.
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