Networked Consumer Behavior: Word-of-Mouth, Social Media, and Fashion

ref: Michael R. Solomon (2014), Consumer Behavior 11/e. Global edition. Pearson.

Viewed? Trusted?

Word-of-Mouth Communication

WOM is product information transmitted by individuals to individuals

■  More reliable form of marketing

■  Social pressure to conform

■  Influences two-thirds of all sales

■  We rely upon WOM in later stages of product adoption

■  Powerful when we are unfamiliar with product category

Transmission of Misinformation

Serial reproduction

•  Assimilation: changing content to make it

consistent with one’s preexisting schemas

•  Leveling: omitting details to simplify the

structure.

•  Sharpening: exaggerating prominent details.

Comparison of Acceptance Cycles

• Classic:

extremely long acceptance cycle

• Fad: very short lived, nonutilitarian fashion

Innovation Theory

Diffusion of Innovations

“The part of the diffusion curve from about 10 percent to 20 percent adoption is the heart of the diffusion process. After that point, it is often impossible to stop the further diffusion of a new idea, even if one wished to do so.”

E.M. Rogers, Diffusion of Innovations

Critical Mass and Momentum

Innovation Theory

“Ideas and products and messages and behaviors spread just like viruses do.”

- Malcolm Gladwell, The tipping Point

The Surrogate Consumer

■  Surrogate consumer: a marketing intermediary hired to provide input into purchase decisions

■  e.g., wedding planner, realtor

Structure of Social Networks

Characteristics of Online Communities

■  Conversations – communication among members

■  Presence

■  Collective Interest – commonalities that create bonds among the members.

■  Democracy

■  Standards of Behavior

■  Levels of Participation – most users are lurkers

■  Crowd Power – wisdom of crowds

Social Shopping