WHAT MARKETERS MISUNDERSTAND ABOUT ONLINE REVIEWS

OPINIONS

DIFFERENT OPINIONS FROM USERS

DIMINISHES

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YOU GET WHAT YOU PAY FOR !!!

PREVIOUSLY CONSUMERS PURCHASED BASED ON THE IDEAS OF

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IS PRODUCT A BETTER THAN B!!!

PREVIOUSLY CONSUMERS PURCHASED BASED ON THE IDEAS OF

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PREVIOUSLY CONSUMERS PURCHASED BASED ON THE IDEAS OF

CELEBRITY ENDORSEMENTS

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BUT

Times have changed !!Anubhab Mondal , IIT Kharagpur

Today’s consumers t

hink DIFFERENTLY

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PRESENT DAY CONSUMERS PURCHASE BASED ON THE INFORMATION FROM

Anubhab Mondal , IIT Kharagpur

PRESENT DAY CONSUMERS PURCHASE BASED ON THE INFORMATION FROM

USER GENERATED REVIEWS

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PRESENT DAY CONSUMERS PURCHASE BASED ON THE INFORMATION FROM

EXPERT ADVICE

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THE GROWTH OF USER GENERATED REVIEWS

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THROUGH VARIOUS

ONLINE SOCIAL NETWORKING SITES

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THROUGH VARIOUS

E-COMMERCE SITES

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THROUGH VARIOUS

ONLINE REVIEW SITES

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BUT MOST MARKETERS IGNORE ONLINE REVIEWSAnubhab Mondal , IIT Kharagpur

THERE HAS TO BE A STRATEGIC SHIFT

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TWO TOOLS WERECREATED FOR MARKETERS

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1 INFLUENCE MIX

2 THE 0 CONTINUUM

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INFLUENCE MIX1

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(p)Rior beliefs,thoughtsandexperiences

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INFORMATIONFROM(M)ARKETERS

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INFORMATIONFROM(O)THER USERS

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THE INFLUENCE MIX IS A ZERO SUM GAMEINCREASE IN THE IMPACT OF ONE REDUCESTHE IMPACT OF OTHERS

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THE 0 CONTINUUM

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The closer the product is to the ‘O’ dependent endthe greater is the shift in consumer’s buying strategy

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STRATEGIC IMPILCATIONS can be considered once firms understand where a product falls on the O continuum

Companies can consider the strategic implications in:• Competitive position• Communication• Market Research • Product Segmentation

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COMPETITIVE POSITION

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WHEN CUSTOMERS DEPEND MAINLY ON O, BRANDING BECOMES LESS IMP.

COMPETITIVE POSITION

Reviews at sites like

zomato and flipkart

decrease barriers for new comers

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COMMUNCATIONAnubhab Mondal , IIT Kharagpur

These companies should promote ongoing flow of positive content

Weight of trusted reviews overrides adsand Endorsements !! Anubhab Mondal , IIT Kharagpur

MARKET RESEARCHAnubhab Mondal , IIT Kharagpur

• Usually aims to measure P

• As dependence on O increases impact of P decreases

• Marketers should redirect resources to systematic tracking, coding of information from review sites, etc. Anubhab Mondal , IIT Kharagpur

a market research study conducted in early 2007—before the release of the first iPhone—concluded that U.S. consumers would not be interested in a “convergent” device that combined thefunctionality of a cell phone, an MP3 player, and a camera

BUT AS SOON AS IT WAS RELEASED IN THE MARKET IT WAS AN INSTANT HIT!!!

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WHAT

ACTUALLY

WENT WRONG ??

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The study had measured P, but as soon asthe iPhone hit the market and early adopters began gushing over it, people became influenced by O.

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PRODUCT SEGMENTATION

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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

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Anubhab Mondal , IIT Kharagpur

Consumers used to the

richness of online reviews

are not likely to go back to

rely solely on traditional M

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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

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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.

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As the influence mix evolves, companies will be

SUCCESSFUL which closely track 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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www.google.comwww.slideshare.netwww.yahoo.comwww.freeimages.comwww.tedx.comwww.EverythingisaRemix.comm

CREDITS

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Created by ANUBHAB MONDAL, IIT KHARAGPUR, during an Internship under Prof.Sameer Mathur, IIM Lucknowwww.IIMInternship.com

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