March 2007
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WOMMA is always hard at work trying to get our members the best data to drive their word of mouth efforts. With that in mind, we are pleased to give you an exclusive offer from member company Vizu Answers, which is a research network that claims to be democratizing market research. Vizu Answers allows anyone to create a poll and select the locations within its network where they would like it placed in order to generate relevant answers from a highly targeted audience.
The first 100 WOMMA members to respond to this offer get a FREE opinion poll on Vizu Answers valid through May 1, 2007. (Terms: Up to $200 off. One use per person.)
--> WOMMA members: Be sure to log into the Member Center to get the
FREE discount.
Nonmembers who want to check out what Vizu Answers has to offer can use the codes READWOMMA100 and READWOMMA50 to save $100 and $50, respectively, off a Vizu poll. (Terms: First 200 respondents only, offer expires May 1, 2007.)
Visit Vizu Answers.
Blog readers know what they want and will be regular readers of the blogs that give it to them, according to a blog readership survey conducted by WOMMA member company Vizu. Part of getting your blog on readers' radar is knowing what it is that attracts them in the first place. According to Vizu, for instance, 43.9% of blog readers say that writing quality is a key factor in the regularity of their blog reading, 51.5% say the quality of writing helps determine the credibility of the blog, and 43.6% say that the blog's subject matter is key.
Other findings:
* 65.7% of blog readers read for entertainment, 42.5% for personal interests and hobbies, 32.5% for education and information, and 12.3% for work.
* 30.8% of blog readers read more than three blogs regularly, and of the blogs they read most often, 68.3% say they read them daily.
* 67.3% of readers find blogs by following links from other blogs, 22.9% use recommendations on blogs, and 19.6% use search engines.
Learn more (Media Post)
WOMMA Members, log on to WOMMA's Member Center and read the full report from Vizu Answers in the WOMMA Member Library.
Fifty-four million (34%) online adults in the United States say they connect with others online in order to get information on health and wellness, according to a JupiterResearch online report titled "Online Health: Assessing the Risk and Opportunity of Social and One-to-One Media." JupiterResearch dubbed these purveyors of health and wellness information "health connectors," emphasizing the importance of trying to reach this connected population via social networking and consumer-generated media.
The report also found that health connectors are highly interactive and that they trust one another. Their connectedness, JupiterResearch contends, poses both a threat and an opportunity to healthcare marketers and stakeholders, as both negative and positive consumer-generated content can easily spread through their network.
Learn more
Strong ties have more influential power than weak ties, according to Jacqueline Johnson Brown and Peter H. Reingen's article in the Dec. 1987, issue of The Journal of Consumer Research, titled "Social Ties and Word of Mouth Referral Behavior." Reingen and Johnson Brown's research addresses the gaps in understanding WOM behavior, specifically how word of mouth moves from group to group (the macro level) or within small groups (the micro level). Gaining a better grasp of how word of mouth moves from a small group to form large-scale patterns and innovations could shed light on what needs to be done to flip the switch.
Research findings:
* At the macro level, weak ties form a bridge, connecting information in one subgroup to participants in another subgroup.
* At the micro level, strong ties and homophilous ties are used to transport referral information.
Learn more
If you've been thinking about getting more involved in WOMMA activities, now's the time. WOMMA's Research Council is gearing up to start another round ofexciting new research-related projects, and we'd love to have you on board.
On the docket:
--> Measuring Word of Mouth Vol. 3: Join the MWOMv3 Editorial Board and get involved in molding the only collected volume of word of mouth research.
--> Data Anthology: WOMMA's collection of word of mouth statistics (in PowerPoint form) is going live this spring. Get involved in the peer review committee.
--> Terminology Framework: We're revisiting and updating this document, which spells out the standardized vocabulary for word of mouth marketing research; weigh in and sign on.
--> Research Conference: Voice your opinions on what should be included in future word of mouth research events.
--> WOM Research Blog: Contribute and join the conversation.
All WOMMA members are welcome (and encouraged!) to get involved in the Research Council. It will be of particular interest to market researchers and marketers who deal with data and measurement.
Learn more about WOMMA's Research Council.
If you are interested in joining WOMMA's Research Council, email Research Editor Shannon Stairhime at shannon@womma.org.
Online shopping sites that offer customer reviews enjoy greater satisfaction and loyalty and are more competitive than sites without reviews, according to the Top 40 Online Retail Satisfaction Index from ForeSee Results. Customer satisfaction is an important performance metric for companies, and this data demonstrates the importance of customer reviews beyond their word-of-mouth-spreading potential. The study also showed a strong correlation between the satisfaction ratings of the top 40 sites and likelihood of customers to recommend the site via word of mouth.
Other findings:
* 49% of consumers who made a purchase from the top 40 sites prior to the holidays recalled seeing product reviews.
* Customers are 6% more likely to recommend online shopping sites that offer product reviews.
* Satisfaction rates were 5% higher among consumers who reported seeing product reviews prior to making purchases.
* Customers on sites that offer reviews are 5% more satisfied with the retailer as a whole than customers on sites without reviews.
Learn more (MediaPost)
Learn more (ForeSee)
Between 10% and 15% of consumers aged 17-35 are categorized as "ad avoiders," according to a recent study conducted by WOMMA member company Microsoft and Starcom, with research help from WOMMA member company Millward Brown. Those consumers who qualify as ad avoiders consider traditional advertising media "annoying" and do what they can to dodge the messages.
The study classified two subcategories of ad avoiders: passive avoiders, who "can't be bothered" with ads, and active avoiders, who are more vigilant in their avoidance. Because they are more difficult to reach via traditional means, ad avoiders are a good example of why nontraditional marketing techniques such as word of mouth should be explored.
Other findings:
* 12% of ad avoiders watch less than one hour of TV per week
* Active avoiders are typically young, tech-savvy men who go out of their way to consume media that doesn't contain ads (DVDs and satellite radio).
* Passive avoiders are typically women, often moms, who prefer leisure activities that exclude ads (books and board games).
Learn more (MediaWeek)
Learn more (MarketingVOX)
Word of mouth impacts the decision making process, so long as word of mouth recipients are allowed to consult with the person passing them the information, according to the December 2001 article "Word of Mouth Learning," by Abhijit Banerjee, MIT, Department of Economics, and Drew Fudenberg, Harvard University, Department of Economics. In the study, successive generations of a single word of mouth chain made the same choice between two alternatives, provided that the information they received was unbiased, that two other consumers were consulted, and that simple satisfaction information was available.
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Banergee and Fudenberg asserted that, even when the only source of information present is unvalidated word of mouth communication, simple assessment by the word of mouth recipient can help them to determine whether to allow it to influence their decision. Even though the nature of word of mouth communication assumes that the WOM recipient is unable to observe the information's lineage, the authors contend that word of mouth is able, in many cases, to successfully guide decisions.
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WOMMA is thrilled to introduce you to two of our exciting WOMBAT speakers: Dr. David Weinberger, esteemed blogger and co-author of "The Cluetrain Manifesto," and Chip Heath, the best-selling co-author of "Made to Stick: Why Some Ideas Survive and Others Die." Come see these two keynotes present exclusively at WOMMA's Word of Mouth Basic Training conference, April 17-18 in New Orleans.
Learn more about these incredible keynotes by visiting our event website.
View the WOMBAT agenda.
Consumers are dissatisfied with the current state of traditional journalism, according to a recent Zogby International Poll, and are therefore leaning on bloggers to supplement their news. The majority of respondents indicate that they are not happy with the way journalism is responding to what they want, though 90% say "trustworthiness" will play a large part in deciding the influence social networking sites and blogs will have over journalism. Fifty-three percent of respondents say that the rise of free, internet-based media poses the greatest opportunity to the future of journalism, and 76% indicate that the internet has had a positive effect on the quality of journalism.
Other findings:
* 55% of respondents say they are dissatisfied with traditional news outlets, and 61% say traditional journalism is out of touch with what Americans want from their news.
* 86% of respondents believe bloggers will play an important part in journalism's future.
* Despite the high level of dissatisfaction, 72% say journalism is important to their community.
* 81% name websites as an important news source, 78% television, 73% radio, 69% newspapers, and 38% magazines.
Learn more
Fifty-three percent of all pings are spam, and 64% of all pings from English language blogs are spam, according to a report by the eBiquity Group that analyzed 8.8 million pings on weblogs.com between Jan. 23 and Jan. 26. A year ago, eBiquity reported that 75% of all pings from English language blogs were spam, which indicates that the growth of "spings" (pings from spam blogs) has leveled off. The number of pinging spam blogs (56%) has remained constant since last year's study.
The study named MySpace as the biggest contributor to the blogosphere, and applauded the site for its relatively low contribution to splog creation. Blogspot, alternatively, was recognized for being very heavily spammed; a full 51% of Blogspot blogs are splogs. Maintaining a relatively pure blogosphere should be top of mind for marketers who intend to continue working in the space into the future. Proliferation of splogs threatens the credibility of this medium.
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When individuals faced with a decision use other members of their social networks as a source of information they are better able to navigate potential outcomes, according to an April 2002 research report titled "Social Networks and the Aggregation of Individual Decisions," written by D. Lee Heavner of Economic Analysis LLC and Lance Lochner of the University of Rochester. The research also suggests that increasing the overall size of a social network may have a negative impact on the efficiency of the network.
The study was intended to determine how well offline social networks work as sources of information dissemination, specifically in warning school-aged children of the negative outcomes of dropping out of high school. As a by-product, the study also found that instituting penalties for non-participation and rewards for participation increased participation rates. The threat of punishment -- as opposed to the promise of reward -- garnered the most measurable effect.
Learn more
WOMMA's one-of-a-kind collection of word of mouth marketing research continues to be in high demand. Measuring Word of Mouth Vol. 1 is now in its second printing, Vol. 2 is flying off our shelves, and now it's time for our members to start submitting topic proposals for our third volume in this growing library of word of mouth metrics and measures.
We're looking for:
* Follow-ups to papers that appeared in Vol. 1 or Vol. 2 with updated results and data
* How-to case studies that include how word of mouth was measured and how metrics were used
* Reviews and applications of existing word of mouth tools and metrics -- addressing challenges as well as opportunities
* Papers that report results of research projects having to do with word of mouth measurement
* Summaries of findings from academic research that detail practical implications for measuring word of mouth
Email topic proposals to WOMMA's Research Editor, Shannon Stairhime, at shannon@womma.org. Proposals are due April 9, 2007. Don't miss your chance to be part of this remarkable research collection!
Email is a key point of influence for consumer purchase decisions, according to the Microsoft Digital Advertising Solutions research released in January by WOMMA member company Microsoft. The findings suggest that many of consumers' major decisions are influenced by email conversations with friends and family and point to the medium as a place where marketers can insert messages that might impact consumers during the decision-making process.
Other findings:
* 45% of frequent online users say email is their primary form of communication.
* 66% of male and 81% of female respondents discuss social arrangements (what films, concerts, or events to see or where to eat) via email.
* 41% of men discuss financial services purchases via email.
* 77% of women discuss travel plans via email.
Learn more (Microsoft)
Learn more (MediaPost)
Confidence in new media is on the rise, according to the American Advertising Federation's AAF Media Investment Survey 2007. Results show a growing inclination among executives to augment traditional media with new media properties and experimentation, and responses indicate that traditional media categories are in serious need of innovation if they are to remain competitive. A full 87.4% of respondents believe that the pace and scope of innovation in the media landscape inspire creativity, and they are willing to invest their budgets to harness that creativity.
Other findings:
* 73% of respondents reserve 1%-20% of their budget for experimentation and new media properties.
* 12.37% of respondents reserve 21%-40% of their budget for experimentation and new media properties.
* Concerning media planning in 2007, respondents ranked "I am always open to new ways to use traditional media" at 78%, "the right media mix almost always includes a balance of traditional and nontraditional media" at 75.5%, and "the search for new media properties to grow my brand never stops" at 57.7%.
Learn more (AAF)
Learn more (AdWeek)
Learn more (Yahoo! News)
Part of the reason why word of mouth is so often neglected within the marketing mix is that it's thought to have a zero-cost. If something's free already, why invest? In Gerald Ian Burke's article "Word of Mouth Communication -- A Shared-Cost Approach," which appeared in the December 1996 edition of the Journal of Marketing Communications, Burke suggests that using a cost-shared approach to how marketing and promotional spending and the creation of customer value are allocated can have a positive effect on the perceived value of word of mouth.
According to Burke, when "spending" is established -- however arbitrarily -- the promotional mix is given more attention, and over time more spending is shifted to the areas most likely to support positive word of mouth communication.
Learn more
WOMMA's Word of Mouth Basic Training (WOMBAT) event, taking place in New Orleans April 17-18, has something for everyone -- including researchers. If you're a researcher who is working in the word of mouth marketing world, you need to attend WOMMA's original "how-to" conference. Here's why:
* It's a great place to learn about upcoming issues and trends on the word of mouth horizon.
* Find out what metrics-related issues marketers are struggling with -- so you can be the one to address them.
* Network with the folks who use your research to inform their word of mouth marketing decisions every day.
* Inform your research with tons of learning about how the word of mouth marketing industry is growing and changing.
On top of all that, at WOMBAT 2007 you'll get 50+ amazing speakers, a fabulous location, case studies from word of mouth's greatest players, and priceless how-to lessons that showcase the word of mouth marketing industry's most innovative techniques.
Register today!
Marketers are being encouraged to consider connectivity when targeting potential new customers. According to a recent study co-authored by Shawndra Hill, Wharton professor of operations and information management, consumers are more likely to buy a product if they have "network neighbors" (consumers linked to a prior customer) who already use it. According to the data, network neighbors adopt at a rate that's three to five times higher than that of baseline groups.
The study makes a strong case for marketers using social network data when determining which consumers to target. By allowing existing customers to play a connective role in linking it to new customers, a company can greatly increase adoption rates -- all with word of mouth.
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Even though marketers claim that word of mouth, customer service, web and interactive marketing, and public relations are the most effective ways to communicate their brands, 60% of their budgets still go to traditional marketing endeavors, such as broadcast, print, and direct mail, according to the State of the Brand Survey conducted by MiresBall in conjunction with Luth Research and the American Marketing Association. Part of the problem, the report's authors contend, is that marketers are stuck in a rut, and are throwing money at problems that require creativity to solve. Spending on marketing activities is up (from 9% in 2004 to 11% in 2006), but brand positioning and brand marketing are still lagging.
Other findings:
* Brands that spend upwards of 25% on creative services partnerships enjoy greater success.
* Revitalizing a brand is extremely important, and is most effective if done every three to five years.
* Eight out of 10 brands surveyed were revitalized in the last five years.
* Of those surveyed, 33% indicated that building awareness was their highest priority brand management goal; 33% indicated creating preference, 24% creating loyalty, and 11% creating understanding.
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A recommendation that is sought out by a recipient has more impact on service adoption than one that is unsolicited, according to a December 2003 article by Robert East and Caroline Hancock of the Kingston Business School, Kathy Hammond of the London Business School, and John Scriven of South Bank University. The article, titled "The Relative Frequency and Impact of Sought and Unsought Recommendations," was written to determine if word of mouth efforts should be focused on encouraging prospective customers to seek advice or on getting existing customers to dole out advice.
According to the team's research, the average number of recommendations needed in order to acquire one customer is 49, and a weighted average showed that sought WOM has twice the effect of unsought WOM -- though, admittedly, with much variability between categories -- and indicated that an average of 50% of recommendations are sought. "Recommendation" was given as the reason for recruitment twice as often as "advertising" and twice as often as "personal search," and a rough calculation found that a single recommendation is worth the same as 600 ad exposures. The research team concluded that encouraging prospective customers to seek advice would have a profound effect on the propensity of word of mouth activities.
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