Word-of-mouth is often more effective than paid

promotional messages initiated by manufacturers. Stimulating WOM is not a new strategy, but the emergence of e-WOM brought upon a huge surge in the amount of money and creativity devoted to campaigns and strategic initiatives centered on WOM, including using buzz agents, viral marketing, e-referrals and recommendations, and responding effectively to negative rumors.

The source Word of MouthStrategic applications  Buzz Agents  Viral Marketing  Tackling Negative Rumors .

these agents agree to promote products by bringing them to family gatherings. a) Highly successful e-merchants attach links encouraging users to send notices of their selections to their friends.com and Burger Kings Subservient Chicken 2. read books while riding on mass transit. Viral Marketing 1. Viral marketing consists of encouraging individuals to pass on an e-mail message to others.Buzz Agents Many firms enlist typical consumers to serve as their buzz agents. Eg:-hotmail. . etc. Another effective form of viral marketing is online referrals and recommendations. These “agents” typically do not receive payment but are motivated by being called upon to serve as opinion leaders. thus creating the potential for exponential growth in the message’s exposure and influence.

Markets realize it is impossible to control word-ofmouth communications. Persistent critics of marketers who initiate bad publicity online are called determined detractors. 2.Tackling Negative Rumors 1. The Web is a prolific ground for spreading rumors. SPOKESPER . THE CREDIBILITY OF FORMAL SOURCES.

THE CREDIBILITY OF FORMAL SOURCES. AND ENDORSERS . SPOKESPERSONS.

Credibility of Formal Sources Endorser related to the message and its ease of Effectiveness Effectiveness is comprehension Synergy between the endorser and the product types is important. Endorser’s demographic characteristics should be similar to the target Endorser credibility is not a substitute for corporate credibility Endorser’s words must be realistic for them .

Credibility of Formal Sources Other Credibility Sources Vendor Credibility • The reputation of the retailers Medium Credibility • The credibility of the magazine. website. or radio station Effects of time • The sleeper effect phenomenon when the consumer does not remember the source .

The reputation of the retailer who sells the product has a major influence on message credibility. The consumer’s previous experience with the product or the vendor has a major impact on the credibility of the message.  Medium Credibility  1. There is no single answer as to which medium has the most credibility . Vendor Credibility 1. The reputation of the medium that carries the advertisement also enhances the credibility  of the message. 2.  2.

This phenomenon is called source amnesia or the sleeper effect.  Reintroduction of the same or similar message by the source serves to jog the audience’s memory. and the original effect remanifests itself. research suggests that both positive and negative credibility effects tend to disappear after six weeks or so. over time. leaving behind the primary message content.  The theory of differential decay suggests that the memory of a negative cue simply decays faster than the message itself. . that is. it is separated from the context in which it was learned.  Though a high-credibility source is initially more influential than a low-credibility source. the high –credibility source remains more persuasive than the low-credibility source.Effects of Time on Source Credibility: The Sleeper Effect  When information is transferred from the short-term memory to the cerebral cortex.

. The receiver is the targeted prospect or a customer. such as wholesalers. characteristics and motives 6. THE RECEIVERS AS THE TARGET AUDIENCE The Receiver 1. and retailers who receive trade. and the receiver’s mood. The factors affecting the decoding and comprehension of persuasive messages include the receiver’s personal characteristics and motives. There are also unintended audiences. whether or not they are specifically targeted by the source. 5. which include everyone who is exposed to the message. 3. The message’s receivers decode the messages they receive on the basis of their personal experiences. The message’s source must encode the message in such a way that its meaning is interpreted by the targeted audience in precisely the intended way. distributors. 2. There are also intermediary audiences for a message. 4. involvement with the product or product category. the congruency of the message with the medium.

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