WHAT MARKETERS
MISUNDERSTAND ABOUT
ONLINE REVIEWS
Based on the article by Itamar Simonson and Emanuel Rosen
Pre-purchase Behaviour Of Consumers
Earlier Mindset:◦ “You get what you pay
for”◦ Is Brand A better than
Brand B?◦ Largely dependent on
information provided by marketers and celebrity endorsements
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“You get what you pay for”
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Comparing Brands
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Celebrity Endorsements
Pre-purchase Behaviour Of Consumers
Present Mindset:◦ Consult Social Media◦ User generated reviews◦ Expert opinions◦ Peer-to-peer information
These reviews are beyond the control of organizations
These reviews are less likely to be biased
Customers become aware of the product specs and service experience
Rise of social media
Increase in the number of freelance bloggers and critics
Increase in the number of review portals
There needs to be a SHIFT in marketing strategyTo account for future customers and opinions of existing customers
If the impact of O on a purchase decision
goes up, that of P or M or both
goes down
The Influence mix
The closer the product is to the
‘O’ dependent end
the greater is the shift in consumer’s
buying strategy
OTHER EXCEPTIONS
Things like:◦ Milk, a habitual purchase
dominated by P◦ Toothbrush, swayed by M
due to packaging, etc.
After establishing a product’s position in the ‘O’ continuum
Companies can consider the strategic implications in:◦ Competitive position◦ Communication◦ Market Research ◦ Product Segmentation
Competitive Position
Reviews at sites like
zomato and flipkart
decrease barriers for new comersBranding
takes relatively
less importance
CommunicationLess
dependent on celebrity
endorsements
Weight of trusted reviews
overrides ads
These companies
should promote
ongoing flow of positive
content
Market Research
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.
Product Segmentation
Companies should analyse different consumer segments and tailor their marketing strategies accordingly
A customer’s reliance
on O might vary
with situational
factors
Consumers used to the richness of
online reviews are not likely to go back to rely
solely on traditional M
SURVEY SHOWS THAT
◦30% of US consumers begin their online purchase by going to Amazon
◦Shoppers consult 10.4 sources of information, on average, before making a purchase
CONCLUSION
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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