• Title/Summary/Keyword: Word-of-mouth Marketing

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Design of Ubiquitous Referral Marketing A Business Model and Method (유비쿼터스 구전 마케팅 시나리오와 비즈니스 모델 개발)

  • Lee Kyoung-Jun;Lee Jong-Chul
    • Journal of Intelligence and Information Systems
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    • v.12 no.1
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    • pp.163-175
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    • 2006
  • This paper provides a corporation's marketing strategy under a ubiquitous computing environment: a WOM(word-of-mouth) marketing using RFID(Radio Frequency Identification) technology and a business model which facilitates the word-of-mouth marketing. To this end, we examine the word-of-mouth communication effects on consumers' life, changes in corporations' attitude toward word-of-mouth marketing, and the difficulties that corporations have in conducting word-of-mouth marketing. The business model this paper suggests makes seamless business-to-consumer and consumer-to-consumer networking possible using the RFID technology and facilitates the word-of-mouth marketing through incentive system of each economic player.

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The Effect of Corporate Green Marketing on Consumer Word of Mouth Intention (기업의 그린마케팅이 소비자 구전의도에 미치는 영향)

  • Park, Ji-Ho;Park, Hyeon-Suk
    • Industry Promotion Research
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    • v.7 no.3
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    • pp.9-16
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    • 2022
  • In the midst of increasing interest in the environmental responsibility of companies, this study investigates how eco-friendly activities affect the creation of management performance. To this end, the effect of companies' green marketing on consumers' word-of-mouth intention, the mediating effect of brand reliability, and the moderating effect of consumers' pro-environmental behavior were verified. The results of the collected data analysis are as follows. First, companies' green marketing has a positive (+) effect on consumers' word-of-mouth intention. Second, brand reliability takes a positive (+) mediating role in the relationship between companies' green marketing and consumers' word-of-mouth intention. Third, consumers' pro-environment behavior has a moderating role between Brand Reliability and their word-of-mouth intention. Therefore, companies' eco-friendly strategies and their implementation will help enhance both brand reliability and consumers' word-of-mouth intention. By revealing the effect of companies' eco-friendly strategies and their implementation on brand reliability and consumers' word-of-mouth intention it is meaningful to analyze the relationship between green marketing and the possibility of consumers' spontaneous word-of-mouth intention. The results suggest to companies that it is necessary to establish an eco-friendly marketing strategy for sustainable growth.

Effective Demand Lifting through Pre-Launch Movie Marketing Activities

  • Song, Tae Ho;Yoo, Shijin;Lee, Janghyuk
    • Asia Marketing Journal
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    • v.18 no.3
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    • pp.1-18
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    • 2016
  • The purpose of this paper is to examine empirically how to balance advertising expenditure before and after launch with regard to the direction of word of mouth in the motion picture industry. The vector auto-regression model is applied to assess the dynamic impact of advertising and word of mouth on sales. Empirical data, including advertising, word of mouth, and sales (the number of entries) of 83 movies are used for analysis. The research results show that for a movie having more positive word of mouth in the pre- and post-launch periods, it is worthwhile to spend the advertising budget in the pre-launch period only and to spare it in post-launch period. However, it is worthwhile to spare the advertising budget in the pre-launch period for movies having less positive word of mouth before and after launch, and to concentrate spending in post-launch period instead. Mangers who handle products and services facing shortened lifecycles, such as games, eBooks, and digital music contents, need to check the quality of pre-launch word of mouth for their advertising budget decisions in the pre- and post-launch periods and spend more of the advertising budget in the post- (pre-) launch period if pre-launch word of mouth is negative (positive). For products and services with a shortened lifecycle, it is recommended to spend more of the advertising budget in the post- (pre-) launch period if pre-launch word of mouth is negative (positive).

Relationship among Restaurant Owner's SNS Marketing, Trust, Purchase Intention, and Word of Mouth Intention

  • KIM, Hye-Sook;CHOI, Young-Sim;SHIN, Choung-Seob
    • Journal of Distribution Science
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    • v.17 no.7
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    • pp.27-38
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    • 2019
  • Purpose - This study analyzes effects of word of mouth intention of restaurant product via SNS on trust of products, purchase intention, and word of mouth intention targeting restaurant customers. Research design, data, and methodology - Targeting restaurant customers, 500 surveys were distributed in restaurants located in Seoul (where restaurants are clustered, such as Myeongdong, Dongdaemoon Station Shopping Center, and Sadangdong) between July 1st, 2016 and July 30th, 2016. Among those, 490 were collected, and 478 were used for analysis excluding those with no answer or insincere answers. Results - SNS word of mouth information characteristics had significant effects on trust of restaurant product in the order of vividness, neutrality, and timing. Trust on restaurant product has significant effect on perceived risks (-) and perceived benefits (+) by SNS. While perceived benefits of restaurant product on SNS has effect on purchase intention, perceived risks of restaurant product on SNS does not affect purchase intention. Perceived benefits of restaurant product on SNS has significant effect on word of mouth intention, whereas perceived risks of restaurant product on SNS does not have significant effect on word of mouth intention. Conclusions - As marketing through SNS can bring about a huge reduction effect in terms of marking cost, it can be utilized as an effective promotion by not only large restaurant corporations, but also small restaurants.

The Research Regarding the Effect of Consumers' Motives on Perceived Usefulness of Word-of-Mouth Marketing in Online Shopping Mall Contents (온라인쇼핑몰 콘텐츠에서 소비자 동인이 구전마케팅의 지각된 유용성에 미치는 영향에 관한 연구)

  • Chun Myung-Hwan
    • The Journal of the Korea Contents Association
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    • v.5 no.3
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    • pp.19-28
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    • 2005
  • It is true that internet provides consumers with an efficient way to search information with minimal effort and cost, which facilitates better decision making. Especially, previous studies revealed that the online word-of-mouth marketing is widely used as a source of consumers' information seeking and purchase decision making. Even with this importance of the online word-of-mouth communication on internet few researches have systematically addressed the issue. This study investigates the effect of consumers' motives on perceived usefulness of word-of-mouth marketing in online shopping mall contents. The results are as follows: First, choice uncertainty, perceived sacrifice, and social pressure play an important role for perceived usefulness of word-of-mouth marketing. Second, perceived usefulness has directly affected consumers' quality perception. Thus, it is essential for internet companies to find ways to encourage their customers to engage in word-of-mouth communication on their websites.

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Effects of Visible and Invisible Factors and Buying Impulse Intention upon Store Loyalty: Focused on Physical Evidence and Word-of-Mouth of Discount Store

  • Yang, Hoe-Chang;Ahn, Ho-Keun;Lee, Young-Chul
    • Journal of Distribution Science
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    • v.11 no.11
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    • pp.57-61
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    • 2013
  • Purpose - This study aimed to understand the influence of visible factors directly shown to and experienced by consumers such as physical evidence, and invisible factors obtained through acquaintances or other experienced consumers such as word-of-mouth, in the discount stores' marketing communication on impulse buying intention and store loyalty. Research Design, Data, and Methodology - This study examined the effect of factors in discount stores' marketing communication, for instance, physical evidence, word-of-mouth, and buying impulse intention. The questionnaire survey resulted in 68 completed questionnaires. Results - Physical evidence and word-of-mouth have a statistically significant positive effect on store loyalty. The results of regression analysis regarding whether visible or invisible factors have more impact showed that word-of-mouth has a statistically significant positive effect on store loyalty. With regard to impulse buying intention, only word-of-mouth was statistically significant. Conclusion These results suggested that visible and invisible factors that appeal to customers are very important. In particular, the results suggested that stores should create invisible factors (e.g., positive word-of-mouth) for their customers.

Exploratory Study of the Impact of Social Media Marketing on Consumer Purchase Intention: Comparative Study of Pakistan and South Korea

  • Noreen, Tayyaba;Han, Sang-Lin
    • Asia Marketing Journal
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    • v.17 no.3
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    • pp.53-72
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    • 2015
  • Social media marketing have drawn substantial attention in business and academia. This study examines the impact of social media marketing on purchase intention of consumer in South Korea and Pakistan. The research background rests on literature of social media, social media marketing, electronic word of mouth and social media advertisement. Descriptive research method is adopted for the purpose of this study. The findings indicated that South Korean users have higher intention to purchase products through social media platforms as compared to users in Pakistan. The results also show that electronic word of mouth has greater influence on purchase intention as compared to advertisement on social networks. Managerial implications and limitations of the study results were also discussed.

The Effect of Marketing Communication and Store Loyalty in Traditional Markets: Focusing on Shopping Value and Shopping Experience (마케팅 커뮤니케이션이 점포 충성도에 미치는 영향: 쇼핑가치와 전통시장 이용경험을 중심으로)

  • Song, Mu-Yeung;Yang, Hoe-Chang
    • Journal of Distribution Science
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    • v.10 no.11
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    • pp.71-77
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    • 2012
  • Purpose - This study examined marketing communication in traditional markets by assessing consumers demonstrating brand loyalty through repeat purchases despite active marketing by competing brands hence, showing that the brand did not lose customers owing to communication. Specifically, this study examined the effects of marketing communication factors in traditional markets upon consumers' store loyalty and to determine consumers' practical and hedonic values, as moderating variables. Moreover, this study determined that both experienced and inexperienced consumers in traditional markets could similarly assess the market and examined the outcome of traditional market development as well as future strategies. Research design, data, methodology - To verify the relationship between marketing communication and store loyalty, and the moderating effects of shopping value, data were collected from 230 consumers in the Gyeonggi Province to test the theoretical model and its hypotheses. Although the field of distribution management typically uses two research methodologies, this study was conducted using empirical methodology. Specifically, analysis of variance and hierarchical regression analysis were used to test the hypotheses. Results - Consumers who had experienced the traditional market placed a greater emphasis on the physical environment or word-of-mouth marketing. Moreover, other factors apart from advertising had a significantly positive influence upon marketing communication sub-factors and store loyalty. Word-of-mouth marketing was found to be more important than other factors, therefore affirmative word-of-mouth marketing was considered important from various viewpoints. The study investigated the moderating effects of hedonic value and practical use value in the relationship between marketing communication sub-factors and store loyalty: The negative influence of publicity, physical environment, and word-of-mouth marketing was considered to be statistically significant. Conclusions - Consumers who made use of the traditional market did not think of the physical environment in an affirmative way, and consumers who did not make use of the traditional market perceived it as having a poor physical environment. However, consumers who engaged in word-of-mouth marketing experienced the traditional market in an affirmative way. Consumers who made use of the traditional market had significantly high hedonic value and/or practical use value, therefore future strategies should encourage consumers to make more use of the traditional market. Consumers who had experienced the traditional market demonstrated strong market loyalty. For consumers who did not make use of the traditional market, marketing communication was likely to influence store loyalty in a different manner from a practical perspective. In other words, marketing communication was needed to develop the traditional market, and consumers who did not make use of the traditional market should be given the opportunity to do so. Consumers having low hedonic values experienced high publicity to have high store loyalty, and consumers who experienced good facilities of the traditional market had high store loyalty (Nam & Jun, 2011). Consumers with low hedonic values as well as those with high hedonic values on the traditional market could have high store loyalty through affirmative word-of-mouth marketing.Therefore, various types of events and strategies were needed to enable consumers to experience the traditional market in an affirmative way.

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Relationship among Outdoor Brand's Eco-Friendly Activities, Brand Image and Word of Mouth Intention

  • Min Wook KIM;Ki Hyun KWON;Sang Hoon YOON;Seung Jin HAN
    • Journal of Sport and Applied Science
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    • v.7 no.2
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    • pp.13-19
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    • 2023
  • Purpose: The purpose of this study is to provide directions and implications related to eco-friendly marketing and products of outdoor brand companies by empirically analyzing the influence of outdoor brand's eco-friendly activities on brand image and word of mouth. Research design, data, and methodology: In this study, a survey was conducted on those who have purchased outdoor brand products through the convenience sampling method, and a total of 470 effective samples were collected. Frequency analysis, reliability analysis, confirmatory factor analysis, and structural equation model analysis were conducted based on the collected data. Results: As a result of the analysis, first, it was found that eco-friendly marketing among the eco-friendly activities of outdoor brands did not have a positive effect on the brand image. Second, among the eco-friendly activities of outdoor brands, eco-friendly products were found to have a positive effect on the brand image. Third, it was found that the brand image had an effect on word of mouth intention. Conclusions: Academic and practical implications were discussed based on the research results that eco-friendly marketing of outdoor brands does not have a positive effect on brand image, eco-friendly products have a positive effect on brand image, and brand image affects word of mouth.

The Effect of Online WOM of Menu Product Consumers on Product Perception Risk and WOM Effect

  • HEO, Yeong-Wook
    • Journal of Distribution Science
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    • v.18 no.3
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    • pp.77-85
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    • 2020
  • Purpose: This study examined marketing value as online word-of-mouth media in the foodservice industry, and it did research on online word-of-mouth (e-WOM) communication marketing schemes using mass communication in the industry. The study is also intended to investigate the impact of electronic word-of-mouth (e-WOM) information and communication on product awareness risks, benefits, and word-of-mouth (WOM) impacts on restaurant consumers. Research design, data, and methodology: The analysis was conducted on a valid questionnaire of 425 menu product consumers. The survey was conducted for two months in March 2019. The collected data was analyzed using SPSS and hierarchical regression analysis was applied. Results: It did empirical research on the reciprocal casual relations to online and the existing word-of-mouth communication that have to be preceded to understand characteristics of online word-of-mouth communication for the purpose of this study. The result is summarized as follows. First, the online word-of-mouth (e-WOM) effect on product recognition risk shows the statistically significant effect of information sender characteristics, information recipient characteristics, and online word-of-mouth (e-WOM) communication on product recognition risk. Second, the influence of online word-of-mouth (e-WOM) on product risk benefits shows that the information sender characteristics, the information receiver characteristics, and online communications have a statistically significant effect on product risk benefits. Third, online word of mouth risk recognition had a statistically significant effect on word of mouth acceptance. Fourth, online risk benefit had a statistically significant positive effect on word of mouth (WOM) effect. Conclusions: The communication between online word of mouth (e-WOM) sender and recipient had a positive influence on the product evaluation and attitude change in the foodservice industry, and the word-of-mouth (WOM) effect affected financial and non-financial performance. The results mentioned above indicated that the communication between the sender of the information and the receiver of the information had a positive effect on the product evaluation and attitude change of the menu consumer, and the word-of-mouth (WOM) result affected the financial. Therefore, the online word-of-mouth (e-WOM) effect has a positive effect on the word-of-mouth (WOM) effect of menu products when performed simultaneously and positively between the information sender and the information receiver.