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Ripple Effect - How Empowered Involvement Drives Word of Mouth

of: Martin Oetting

Gabler Verlag, 2010

ISBN: 9783834983725 , 151 Pages

Format: PDF, Read online

Copy protection: DRM

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Ripple Effect - How Empowered Involvement Drives Word of Mouth


 

Foreword

6

Acknowledgements

8

Contents

10

List of Figures

15

List of Tables

16

1 Introduction

17

1.1 Consumer Marketing Faces New Challenges

17

1.1.1 Advertising Under Pressure

17

1.1.2 The Decline of Mass Advertising Effectiveness

18

1.1.3 Consumer Empowerment on the World Wide Web

21

1.1.4 The Evolving Field of Consumer Marketing

22

1.1.5 Renewed Interest in Word of Mouth

23

1.1.5.1 The Need for New Approaches

23

1.1.5.2 Online Word of Mouth on the Rise

24

1.1.5.3 Collaborative Marketing

24

1.1.5.4 Word-of-Mouth Marketing as a Response to the Challenges

25

1.2 Word-of-Mouth Marketing Practice

26

1.2.1 Introduction

26

1.2.2 Terminological Diversity

27

1.2.3 “Awareness Word of Mouth” vs. “Evaluation Word of Mouth”

28

1.2.4 The Practice of Stimulating Word of Mouth

30

1.2.4.1 Product-based Word-of-mouth Stimulation

30

1.2.4.2 Advertising-based Word-of-mouth Stimulation

33

1.2.4.3 Relationship-based Word-of-mouth Stimulation

34

1.2.5 Overview: The Awareness Word-of-Mouth Marketing Framework

36

1.3 Word of Mouth as a Field of Academic Study in Marketing

38

1.3.1 Value of Word of Mouth Communication to the Firm

38

1.3.2 Online Word of Mouth

40

1.3.3 Influentials and Their Role in Spreading Messages

41

1.4 Goal of this Research

42

1.4.1 How Can Marketing Stimulate Word of Mouth?

42

1.4.1.1 “Why Do People Listen?”

44

1.4.1.2 “What Effects Does Word of Mouth Create?”

44

1.4.1.3 “What Makes People Talk?”

44

1.4.1.4 “What Happens to the Communicator after the Word of Mouth Event?”

45

1.4.2 The Word-of-Mouth Marketing Model

45

1.4.3 A Neo-Behaviourist Perspective

47

1.4.4 Study Overview

49

2 Word of Mouth Research Traditions

50

2.1 Opinion Leaders and Early Marketing Studies

50

2.1.1 Roots in Opinion Leader Research

50

2.1.2 Early Word-of-Mouth Research in Marketing

50

2.2 Three Strands of Literature

51

2.2.1 Focus on Personal Influence: Opinion Leader Research

51

2.2.2 Focus on Networks: Tie-strength

52

2.2.3 Focus on Personal Experience: Satisfaction and Dissatisfaction

53

2.3 Definition

55

3 Drivers for Word of Mouth

57

3.1 Four groups of Word-of-Mouth Drivers

57

3.1.1 Pre-Purchase Trigger for Word of Mouth

58

3.1.2 Triggers for Word of Mouth During Purchase

58

3.1.2.1 Participation

58

3.1.2.2 Personal Relationships

59

3.1.3 Post-Purchase Triggers for Word of Mouth

59

3.1.3.1 Product Involvement

60

3.1.3.2 Satisfaction/Dissatisfaction

60

3.1.3.3 Emotions

60

3.1.3.4 Network Externalities

61

3.1.4 Undetermined Triggers for Word of Mouth

62

3.1.4.1 Involvement

62

3.1.4.2 Self-involvement

63

3.1.4.3 Other-involvement

63

3.1.4.4 Message Involvement

64

3.1.4.5 Category Involvement

64

3.1.4.6 Purchase Involvement

65

3.1.4.7 Firm-stimulated Word of Mouth

66

3.2 Summary

68

4 Involvement

71

4.1 Introduction

71

4.1.1 Different Levels of Cognitive Processing

71

4.1.2 Definition

72

4.2 Dimensions

73

4.2.1 High vs. Low Involvement

73

4.2.2 Situational vs. Enduring Involvement

73

4.3 Objects of Involvement

74

4.3.1 Product

74

4.3.2 Message

74

4.3.3 Media

75

4.4 Involvement Effects

76

4.4.1 Overview

76

4.4.2 Involvement and Word of Mouth

77

4.4.2.1 Few Explicit Links Between Involvement and Word of Mouth

77

4.4.2.2 Richins & Root-Shaffer (1988)

77

4.4.2.3 Venkatraman (1990)

78

4.4.2.4 Wangenheim & Bayón (2007)

80

4.5 Stimulating Involvement

81

4.5.1 Involvement as Internal and Individual-specific

81

4.5.2 Implicit Stimulation of Involvement

82

4.5.2.1 File, Judd & Prince (1992)

82

4.5.2.2 Mancuso (1969)

83

4.6 Summary: Involvement

84

5 Empowered Involvement

86

5.1 Introduction

86

5.2 Empowerment in Various Fields of Business Research

86

5.2.1 Empowerment in Marketing

86

5.2.2 Empowerment in Healthcare

86

5.2.3 Empowerment in Human Resources Management

87

5.3 Implicit: Involvement

88

5.4 Empowerment as a Motivational Construct

88

5.4.1 Conceptual Considerations, Dimensions of Empowerment

88

5.4.2 Measuring Empowerment

90

5.5 Empowered Involvement as a Word-of-Mouth Marketing Paradigm

91

5.5.1 A Soft Constructionist Paradigm

91

5.5.2 Empowered Involvement Defined

91

5.6 Summary

93

6 Testing Empowered Involvement

95

6.1 Introduction and Overview

95

6.1.1 A Deductive Approach

95

6.1.2 Two Stages of Empirical Analysis

95

6.2 First Preliminary Research

96

6.2.1 Introduction

96

6.2.2 Sample Selection

96

6.2.3 Experimental Treatment and Data Collection

97

6.2.4 Scales/Measurement

99

6.2.5 Hypotheses

99

6.2.6 Results

99

6.2.7 Limitations

101

6.3 Second Research Study

102

6.3.1 Introduction

102

6.3.2 Hypotheses

102

6.3.3 Methodical Considerations, Project Description and Sample Selection

104

6.3.3.1 Collaboration with Word-of-Mouth Marketing Company

104

6.3.3.2 Blog Launch Project Description

105

6.3.3.3 Sample Selection

106

6.3.3.4 Test Group

106

6.3.3.5 Control Group

106

6.3.4 Questionnaire Development

107

6.3.4.1 Measuring Empowered Involvement

107

6.3.4.2 Measuring Word of Mouth

108

6.3.4.3 Questionnaire Introduction and Wording

109

6.3.5 Data Analysis: Structural Path Modelling

111

6.3.5.1 Empowered Involvement as a Formative Construct

111

6.3.5.2 Four Dimensions of EmI Measured Reflectively

113

6.3.5.3 Reflective Measurement of Word-of-Mouth Behaviour

114

6.3.5.4 The Structural Path Model of Empowered Involvement and Word of Mouth (Measurement and Structural Model)

114

6.3.6 Choice of an Algorithm

116

6.3.6.1 Varianceand Covariance-based Algorithms

116

6.3.6.2 Selection Criteria

117

6.3.6.3 Assessing the Reflective Measurement Models

118

6.3.6.4 Assessing the Formative Structural Model

124

6.3.7 Results

124

6.3.7.1 Descriptive Statistics

124

6.3.7.2 PLS Analysis

127

6.4 Discussion of the Results

130

6.4.1 A Word-of-Mouth Marketing Paradigm

130

6.4.2 Insight for Community Marketing

130

6.4.3 Four Drivers of Empowered Involvement

131

6.4.3.1 Meaning

131

6.4.3.2 Impact

131

6.4.3.3 Choice

132

6.4.3.4 Competence

132

6.4.4 Performance Measure

133

7 Outlook

135

7.1 EmI as a Component of a Word-of-Mouth Marketing Strategy

135

7.1.1 Linking Engagement Marketing and Word of Mouth

135

7.1.2 Dialogue and Engagement as a Response to Media Fragmentation

136

7.1.3 Stimulating Empowered Involvement

136

7.1.3.1 Nike Armstrong Bands: Meaning

138

7.1.3.2 Kettle Chips: Impact, Choice and Competence

138

7.1.3.3 Tremor: Impact

138

7.1.3.4 Saftblog: Meaning

139

7.1.3.5 A Basic Empowered Involvement System

139

7.2 Empowered Involvement in the Current Marketing context

141

7.2.1 From Transaction-Orientation to Interaction-Orientation

141

7.2.2 Interaction With a Ripple Effect

142

7.2.3 The Customer As A Co-Worker

143

7.3 Limitations and Further Research

145

7.3.1 Limitations

145

7.3.1.1 Limited Generalisability

145

7.3.1.2 Complete Set of Cognitions, Ways to Stimulate Them

145

7.3.1.3 Complete Analysis of WOM Behaviour

146

7.3.1.4 Difference Awareness-WOM vs. Experience-WOM

146

7.3.1.5 Cross-Cultural Applicability

146

7.3.1.6 Integrating SOR- and Interaction Approaches

147

7.3.2 Further Research: Selection of Participants

147

References

149