"Consumers are taking ownership of brands, and their referral power is priceless."
- Erik Qualman
I chose to discuss a chapter by Erik Qualman this week, because I find his work to be particularly enjoyable to read and on point with current events. Qualman's Chapter, "I Care More about What My Neighbor Thinks Than What Google Thinks" addresses many different ways that consumers today use social media to make purchases. Whether it be buying something online, or doing research for making a purchase, such as a car, consumers rely on the internet. To be more specific, Qualman talks about how consumers rely on each other on the internet. (Qualman, 2013)
I'd like to restate the point I believe is the most important from this chapter, "consumers are taking ownership of brands, and their referral power is priceless." (Qualman, 2013) This statement is supported through several scenarios given by Qualman in Chapter 5. Here are two I felt were important to discuss:
1. "The main threat to Google inthe search wars is social search (seeing what one's peers and friends think about products, services, movies, etc.) More and more, products and services will find us via our peer networks." (Qualman, 2013)
- Qualman discusses a scenario where Steven and his wife decide to buy a new family car. Rather than use Google to find out more information on buying a car, Steven decides to use social search. When typing in "buying a car" on his favorite social network, Steven's results yield information about his friends. He sees through search that 9 people have purchased the vehicle he's interested in so he clicks to learn more. Because he "respects the opinions of the nine people who purchased the same vehicle," he reads on and trusts their opinions. (Qualman, 2013) These people aren't trying to advertise or sell to him. They're simply sharing their own information about the product. "Today, over 90 percent rely on what peers say, while 14 percent rely on advertising." (Qualman, 2013)
2. Companies use Social Media as a marketing tool to gain information about their consumers. Because more users see what their friends and family members are doing on Facebook, they're more inclined to trust an Application through Facebook.
- TripAdvisor copied the idea of the Facebook Application "Where I've Been" and turned it into their own "Cities I've Visted." This gave TripAdivsor the ability to access data and information for public relation efforts. For example, "If TripAdvisor sees in October that 80 percent of males 60 to 65 are putting Machu Picchu as a place they desire to visit when historically only 20 percent have been selecting that destination, then it would make intuitive sense to change the TripAdvisor home page to have a callout for a Machu Picchu Seniors special." (Qualman, 2013)
To conclude, it is impossible to avoid using social media as tool, whether you are a consumer or a business owner. Social media has made a huge impact on the way business and marketing is conducted today. Consumers now trust more what their friends are talking about on social media, than what a business is trying to advertise and market them.
Fun Term Learned from Chapter 5
"Jumped Shark: recognized in the Internet community as the moment that something goes past its prime." ie. "Most MP3 players had a 'jumpt the shark' moment when the iPod was first released." (Qualman, 2013)
Works Cited
Qualman, E. (2013). Socialnomics (2nd ed.). Hoboken, NJ: Wiley.
Nicole,
ReplyDeleteNice overview of the chapter. The lesson from this chapter echoes a lot of what we've been leaning throughout the duration of the IMC program: that people trust peers more than they trust advertisements, and that word of mouth marketing is still very powerful.
I'm a big fan of TripAdvisor myself and will not book a hotel, vacation excursion, etc. without consulting reviews on the site first. I consider it my most valuable travel resource; it has saved me many a vacation-related headache.
I've used Facebook and Twitter to crowdsource for advice before buying a new car last year.
What social sites do you use to gain insight and expertise from your peers?
Kait
Hi Kait,
DeleteI am envious of your being able to use Facebook and Twitter for your car buying! I do not have enough followers for it to be utilized properly, but I am working on that ... especially after all that I have learned through this class!
However, I have used LinkedIn in my job search, and I am amazed each day, at how many resumes I send out, and how many suggestions I get from my connections, and groups. An amazing job search tool!
Dawn
Dawn,
DeleteI'm in the early stages of a job search at the moment and am looking to LinkedIn to help me out. Best of luck on your search! Twitter is a good tool for connecting/networking on the search, too!
Kait
Hi Kait & Dawn!
DeleteThanks for your posts. Kait- that's really interesting that you were able to use Facebook to crowdsource advice for buying a car last year. I have yet to use Facebook as a tool for purchasing products, but I do rely on other social media networks for reviews and expertise.
I actually very often use the Foursquare application on my iPhone which can sync with your Facebook and your Twitter accounts. Foursquare is an application that allows a user to "check in" where ever they go. Users have the ability to review, leave tips, and see if other friends on the Foursquare network have been to those places. I use this for places to go out to eat, for a drink, or just to casually grab coffee.
Like Dawn, I also use LinkedIn as a great job searching tool. I actually got my current job through LinkedIn. So it does work!
Hi Kait and Nicole,
DeleteKait, best of luck on your job search!
Nicole, congrats on finding your job through LinkedIn. I expect to be successful with LinkedIn as well.
Dawn
Hi Nicole,
ReplyDeleteAs my Mother used to say, "Great minds think alike!" Since we both chose the same chapter to discuss this week, AND we both chose the same title for our blog posts, I thought that saying was fitting! Go Team 1! :)
I agree that the power of social media is something that needs to be payed more attention to - by companies, consumers, and people in their everyday actions. It has become so much more than a tool for socializing, as you would in a club or bar. It has become one of the best was to reach a very specific target audience, whether it be for companies selling a product or service, a consumer looking for targeted information on products or services, or those wanting to socialize with 'like-minded' people. All of those things could never have been as successful through conversations at a bar or a club.
Plus, just the shear quantity of people reached is reason enough to utilize social media for marketing products, services, and even yourself!
Great post! Come visit my blog to see how the other mind works. Lol!
Dawn
Thanks Dawn! Great minds DO think alike! I agree, the quantity of people reached should definitely be reason enough for companies to utilize social media for marketing products, services and themselves.
DeleteNicole
Nicole,
ReplyDeleteGreat post! As I mentioned in responding to Dawn’s blog post, I have started to use consumer reviews more and more before purchasing a product. I sometimes find it difficult to sift through some of the users opinions. As Qualman mentions, social commerce is a referral program on steroids (2013).
After reviewing several resorts and hotels on Trip Advisor, I have often wondered if some of the reviews are planted by the company. Negative feedback could easily ruin a brand’s reputation and make consumers think twice about utilizing their product.
As we look at the pros and cons of social commerce, I pose the following questions:
1) How would you deal with negative feedback, especially if it was unwarranted or planted by a competitor?
2) How does handling consumer feedback differ for small businesses that may only have a couple of reviews on their sites?
3) Did you think it is a good thing or bad thing that consumers have so much power and are taking ownership of brands?
References
Qualman, E. (2013). Social econiomics- how social media transforms the way we live and do business. (2nd ed.). Hoboken, New Jersey: John Wiley & Sons, Inc.
Hi Travis,
DeleteThanks for your feedback. I've come across the topics you pose in your questions throughout this week on other blogs and I would have to answer the following way -
1. Dealing with negative feedback can be difficult at times, but if the company or product has a large following or fan base, it gives the satisfied consumer the opportunity to defend the brand, ie. Apple. But the company definitely has to get their customer service involved to see what they can do to help improve customer satisfaction and mend whatever caused the negative feedback in the first place.
2. I believe that consumer feedback is much different with small businesses because what I stated in my response to question 1. The small business may not have a large consumer following, so if they have negative feedback it could impact their business much more significantly than a large business.
3. Personally, I believe it's a good thing that consumers now have so much power because it doesn't leave much room for false advertising.
Thanks Travis!
Nicole,
DeleteThanks for your response. My only hesitation about giving the consumer too much power is what Andrea pointed out on Dawn's Blog. Allegedly, Microsoft tried to pay various YouTube account holders to post positive reviews related to the Xbox One (Bushey, 2014). I think that this probably happens more than we think, especially with travel sites.
As you mentioned, bad reviews can have a significant impact on small businesses. One bad review could really hurt the company's reputation. Also, how do we truly know if the review was warranted? I have stayed at resorts that people have complained about on Trip Advisor. My impression was very different when I experienced the resort. Maybe we have different tastes in food, a different definition of fun or see the world differently in general. This is why I am skeptical of relying on consumer feedback at times.
References:
Bushey, R. (2014, January 21). Microsoft Denies It Secretly Paid For Positive Xbox Coverage On YouTube. Business Insider. Retrieved from http://www.businessinsider.com/microsoft-youtube-xbox-one-comments-2014-1#ixzz2tX9mGKwq
Hi Nicole,
ReplyDeleteSocial media is now one of the greatest PR tools available. It creates an instant connection between and brand and its consumer. I agree that it must be include in every marketing plan. There are some pros and cons as with any new form of consumer interaction. One of the pros is that social media can connect companies and its consumers in "real time." When the messaging is implemented correctly this creates an opportunity to draw a positive result from the consumer and strengthen the brands image. This strategy can have just the opposite effect. If a brand's message draws a negative response this now becomes part to and has the potential to damage the brand's image. Social media is a very effective yet tricky tool. Nice post!
Hi Kenya,
DeleteThanks for your feedback! I agree, social media is definitely a tricky tool. But like you said, it gives the business the ability to act in "real time." I once was having technical problems buying a movie on demand on Fio, so I took a shot and tweeted them about it. Minutes later, they tweeted me back with suggestions on how to fix my problem. By that time we had actually settled on a different movie, but I was happy to know and see that my questions were being answered!
Nicole
Nicole,
ReplyDeleteGreat summation of this chapter. I agree with you and Kait that word of mouth is still the most important and powerful form of advertising.
To further state Qualman’s point, I found a great article on social media and businesses.
The article noted: “Your customers are interacting with brands through social media, therefore, having a strong social media presence on the web is the key to tap into their interest. If implemented correctly, marketing with social media can bring remarkable success to your business”. (Kim) social media marketing article
I’ve noted on several posts, until this class I really have not utilized the full potential social media platforms offer. However, this class has really been on eye opener. Now, I say to myself, “why have I not used social media it is such a powerful tool”. In a few weeks I have to take a trip for work to Las Vegas, I’m going to utilize all the social media platforms I can to make the best of the trip.
Thanks,
Joanna
References
Kim, L. (n.d.). Social media marketing. Retrieved from http://www.wordstream.com/social- media-marketing
Hi Joanna,
DeleteIt's great to hear that you intend to use social media platforms during your trip to Vegas. That's definitely going to be a place with a great deal of social media interaction. When I was in Vegas, I would share photos on Instagram and Facebook with my friends and Instagram 'followers' and many people on Instagram tried to contact us with plans for the night.
The article you shared is very insightful and helps to further demonstrate the importance of using social media today for business.
Thanks for your post!
Nicole,
ReplyDeleteGreat post! Last summer I read about how the NYS Attorney Generals office set up a fake yogurt stand in the city. They were then approached by a number of people to write fake comments and reviews for money. Do you think that this new system of reviewing various places online can be abused?
Hi Daniel,
DeleteAbsolutely. For some reason there are people who take the time to create false places, post false comments, etc. These people are definitely abusing the system. But in retrospect, I believe the real outweighs the unreal and most people can sense when something is false.
Nicole
Hi Nicole-
ReplyDeleteI enjoyed your post. This topic of referrals is a classic example of how social media can breathe new life into traditional marketing practices. Word-of-mouth and personal referrals are certainly not new concepts. “Scholars have been pondering WOM over 2400 years, although modern marketing research into WOM started only relatively recently, in the post-war 1940s” (Buttle, 1998). As I have mentioned in other posts, my family had a gift basket company for over 100 years and referrals were always the leading source of new business. Social media has simply offered us an additional, more powerful means of spreading the word.
You make reference to Qualman’s quote, "consumers are taking ownership of brands, and their referral power is priceless" (Qualman, 2013). This makes me wonder about the psychology of consumers. We have read about the previous pushy, interruptive behavior of advertising and marketing. For this method to have been pursued for such a long time, it must have been successful to some degree. What changed? What made consumers wake up and realize that they were in control? I think social media must be responsible for a considerable portion of this shift. Do you agree?
When I go on the Best Buy website, I will read the specifications of the television, for example, but my next step is to look at customer reviews. Why? Because I know the reviews are unbiased. These are people who have had personal experiences with the television, in their living rooms, not on a showroom floor.
-Sue
p.s. That Happy Days episode brought back memories! I remember thinking then that it was a bizarre twist to the storyline. So funny! It was interesting to see the origin of the “jumping the shark” term.
References:
Buttle, F. (1998). Word of mouth: Understanding and managing referral marketing. Journal of Strategic Marketing, 6, 241-254. Retrieved from http://d3.infragistics.com/wp-content/uploads/2013/08/Word-Of-Mouth-JSM.pdf
Qualman, E. (2013). Socialnomics (2nd ed.). Hoboken, NJ: Wiley.
Hi Sue,
DeleteThanks for your post! To answer some of your questions, I think it's difficult to pin point exactly what has changed. Technology and social media have helped to give the consumer the tools to become more in control, which has definitely contributed to the shift in advertising and marketing.
I also thought the incorporation of that Happy Days episode was funny! It's interesting how it has become recognized in the internet community.