What Marketers Misunderstand About Online Reviews

WHAT MARKETERS MISUNDERSTAND ABOUT ONLINE REVIEWS

OPINIONS

DIFFERENT OPINIONS FROM USERS

DIMINISHES

Anubhab Mondal , IIT Kharagpur

YOU GET WHAT YOU PAY FOR !!!

PREVIOUSLY CONSUMERS PURCHASED BASED ON THE IDEAS OF


IS PRODUCT A BETTER THAN B!!!




CELEBRITY ENDORSEMENTS


BUT

Times have changed !!Anubhab Mondal , IIT Kharagpur

Today’s consumers t

hink DIFFERENTLY


PRESENT DAY CONSUMERS PURCHASE BASED ON THE INFORMATION FROM



USER GENERATED REVIEWS



EXPERT ADVICE


THE GROWTH OF USER GENERATED REVIEWS


THROUGH VARIOUS

ONLINE SOCIAL NETWORKING SITES


THROUGH VARIOUS

E-COMMERCE SITES


THROUGH VARIOUS

ONLINE REVIEW SITES


BUT MOST MARKETERS IGNORE ONLINE REVIEWSAnubhab Mondal , IIT Kharagpur

THERE HAS TO BE A STRATEGIC SHIFT


TWO TOOLS WERECREATED FOR MARKETERS


1 INFLUENCE MIX

2 THE 0 CONTINUUM


INFLUENCE MIX1


(p)Rior beliefs,thoughtsandexperiences


INFORMATIONFROM(M)ARKETERS


INFORMATIONFROM(O)THER USERS


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


THE 0 CONTINUUM


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


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


COMPETITIVE POSITION


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

COMPETITIVE POSITION

Reviews at sites like

zomato and flipkart

decrease barriers for new comers


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!!!


WHAT

ACTUALLY

WENT WRONG ??


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.


PRODUCT SEGMENTATION


A product’s location on the O continuum often varies across customer segments and from country to country.


Shoppers in brick-and-mortar stores are often more susceptible to M than online shoppers are


Consumers used to the

richness of online reviews

are not likely to go back to

rely solely on traditional M


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.


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


www.google.comwww.slideshare.netwww.yahoo.comwww.freeimages.comwww.tedx.comwww.EverythingisaRemix.comm

CREDITS


http://www.google.com/

http://www.slideshare.net/

http://www.yahoo.com/

http://www.freephotos.com/

http://www.tedx.com/

mailto:%20%[email protected]

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

DISCLAIMER

What Marketers Misunderstand About Online Reviews

Marketing

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