Lecture 4 - WOM and Trends & generations

Question 1

Word of Mouth

Answer 1

Passing of information to person to person

Question 2

Factors that amplify the impact of WOM

Answer 2

1. Trusted expert source: people don’t want to take risks
2. When the message is about a weak brand: since they are unknown, any positive or negative comment is informative
3. High-involvement product
4. Intangible products: people are less certain about things you cannot touch
5. Social sharing: there needs to be a sender and a receiver

Question 3

Why do people share things online with others?

Answer 3

1. Impression management
2. Emotion regulation
3. Information acquisition
4. Social bonding
5. Persuading others

Question 4

Radical Flank Effect

Answer 4

Phenomenon in social movements where the presence of more radical and extreme groups can influence perceptions of moderate groups - they are seen as normal in comparison to the extreme groups

Question 5

Impact of bad publicity varies depending on context…

Answer 5

Severity
Relevance to core brand values
Speed and effectiveness of crisis management
Strength of existing customer relationship
Short-term vs long-term effects
Prior brand awareness

Question 6

Berger 2020: effect of negative reviews on book sales

Answer 6

Famous authors: a negative review has a negative impact on the sales
New author: positive impact on sales, any publicity is good publicity

Question 7

Emotion: valence and arousal

Answer 7

Valence: whether the emotion is negative or positive
Arousal: whether it is low of high arousal
Positive valence + high arousal= increased social sharing

Question 8

What happens when people start doing good for the environment?

Answer 8

Overly moral behavior can elicit annoyance and ridicule rather than admiration and respect

Question 9

Cialdini’s principles

Answer 9

1. Reciprocity: obligation to give when you receive
2. Commitment and consistency: people like to be consistent
3. Social proof: when things are uncertain, people will look at the actions and behaviors of others to determine their own
4. Liking: people say yes to people they like
5. Authority: people will follow the lead of credible knowledge experts
6. Scarcity : people want more of the things they are less of
7. Unity: we say yes to people who are part of our in-group