Although the importance of this topic seems to be extremely high, research is still in its infancy. There is a wide variety of academic articles available that describe the changing paradigm of word-of-mouth, yet there is only limited literature available that examines how brands can deal with negative electronic word-of-mouth and online firestorms within the social media context. This may be connected to the fact that its emergence, its development and its consequences happened in a rather short period of time. However, from popular press articles, Thomas et al. (2012) gathered and analyzed a variety of company examples. Thereby, they identified five general coping strategies, delay, respond, partner, legal action, and censorship, which will be illustrated with cases below.
Read moreYour Brand under Attack: Negative electronic Word-of-Mouth (eWOM) and online Firestorms in Social Media Part 1
In 2012, just 39 cents were enough to trigger an ‘online firestorm’ that broke over McDonald's Germany. What happened was that the leading fast-food brand had raised the price of its cheeseburger by exactly that amount. As a consequence, many consumers expressed their unhappiness about the price increase by communicating their displeasure on McDonald’s Facebook wall (Frickel, 2012). This in itself does not seem to be unusual within the highly-connected online world in which many companies manage their own social media presences and respond to or interact with consumers. However, it becomes unusual if the number of ‘likes’ and comments on one critical social media comment rise to exorbitant levels. Within 48 hours 81,000 users clicked on the ‘like’-button and 6,800 users commented. The company responded one day later and announced that the price for the cheeseburger would not be raised in most restaurants (Frickel, 2012).
Read moreHow Brands Should Deal with a Social Media Crisis. United Airlines case
With the huge rise of Social Media over the last decade, a new era has begun in the web environment. The presence of social media such as Youtube, Facebook, Twitter etc have utterly changed the online scene for brand managers and marketers (Fournier & Avery, 2011). Billions of people were now connected and were able to express their thoughts, write articles, share images and videos.
Social media brought the world closer by providing a platform where everyone and from everywhere could join. Just to take a picture and understand the massive size of social media; Facebook statistics in 2014, showed that their monthly active users are 1.39 billion people, while Youtube users account for more than 1 billion as well (Facebook, 2015; Youtube, 2015).
Read moreHow to use CRM in the era of social media – a case of Walt Disney Company
CRM, Customer Relationship Management, was around the turn of the millennium one of the brightest shining marketing concepts in the business world (Gummesson, 2004). Back then, the general perception and the use of CRM consisted of companies gathering extensive customer data, aiming to manage relationships with their customers. Furthermore, in this scenario the companies were viewed as the main actors and the customers as passive cast members (Malthouse, Haenlein, Skiera, Wege and Zhang, 2013). But the winds of change have blown strongly in recent years and the traditional view of CRM and its alleged success is constantly fading (Wind, 2008).
Read moreHow is eWOM becoming a part of marketing strategies? And what are the consequences? Part 2
In Part I of this article the eWOM types and their us by marketers has been discussed, meanwhile, laying the ground basis of understanding eWOM and its use for consumer advocacy. The paper identified a research gap in the consumers’ response to eWOMM. In other words, what is the reaction of internet users when marketers initiate advocacy with existing and potential customers through social media publications, blogs or video channels? The article identified a fit of the users’ response to eWOMM with the Cho and Cheon’s model (2004) of advertising avoidance on the internet. Moreover, the article will explore marketers’ implications for managing eWOM without causing marketing/advertising avoidance.
Read moreHow is eWOM becoming a part of marketing strategies? And what are the consequences? Part 1
Customer advocacy is defined by marketers’ attempt on building mutual “transparency, dialogue and partnership” (p. 5) and is becoming an essential part of a marketing strategy (Lawer and Knox, 2006). However, the marketers’ presence in the user’s activities online can been seen as avoided or causing irritation (Cho and Cheon, 2004). Therefore, the following paper sets the question of how can marketers influence customer advocacy and word-of-mouth (WOM), without causing irritation or avoidance. As a result, the paper will begin by identifying the problem of advertising avoidance on the internet and the three main reasons for it (Cho and Cheon, 2004), followed by e-word-of-mouth marketing (eWOMM) as a phenomenon and eWOM types. The aim of the paper is to give the ground understanding of who talks online – the marketers, the influencers or the end users. Part II would provide a follow up on the topic, which will explore the notion of avoidance in eWOMM and the theory in practice, meanwhile providing implications for building customer advocacy while minimising the threat negative response.
Read moreSocial Media Marketing for Building a Strong E-loyalty
In the past few years, we have seen radical changes and advances on the Internet, which has brought new opportunities and challenges in not only our lifestyle but also various business over the world. The Internet has a great power beyond imagination. Especially, The Internet is more meaningful when it comes to business performances. It is not optional anymore but mandatory to make use of the Internet in business perspective.
The start of the digital marketing is probably from the advent of web 2.0. People started to use the terminology, web 2.0, to illustrate a new platform whereby content and applications are not created and issued by individuals anymore, but instead are continuously updated and changed by all users on the Internet where people can easily access (Kaplin & Haenlein, 2010).
Read moreSocial media has changed the marketing landscape and enabled consumers to be more interactive – what can marketers do to better adapt to this new landscape?
With the emergence of social media the marketing landscape have changed, and marketers have to develop a new approach to there marketing strategy. Traditional media such as TV, radio and newspapers are now challenged by social media platforms such as Facebook, Twitter and Instagram and YouTube. Social media has also enabled consumers to be more interactive through different platforms, where they create and share information, opinions, thoughts and experiences about a specific brand or in a consumer community with other consumers. This paper will highlight how consumers now have more power to influence marketing activities and what marketers should do to better adapt to this new marketing landscape.
Read moreThe Power of Personal Branding in Social Media Part 2
To illustrate the opportunities social media present to individuals I would like to look at some examples where everyday people have been able to create strong personal brands and become new type of celebrities- celebrities of social media. Lets first look at second biggest social media platform YouTube, it has more than a billion users, every minute more than 300 hours of videos are uploaded on the site and everyday people watch billions of videos (youtube, n.d.).
Read morePower of Personal Branding in Social Media Part 1
Internet emergence of Web 2.0 has tremendously empowered individuals by providing the tools for successful personal branding. The advantage of Web 2.0 is that no longer the knowledge of complex coding language is necessary, this provided anyone with the opportunity can generate their own content online, upload their pictures or videos and directly share it in virtual world. (Labrecque, Markos and Milne, 2011). The information that people generate online leaves a digital footprint that indirectly results in personal branding. (Lampel and Bhalla 2007; Madden et al. 2007 cited in Labrecque, Markos and Milne, 2011). As such, social media has become an essential tool through which people express and present themselves and learn about others (Vazire, Gosling 2004 cited in Labrecque, Markos and Milne, 2011).
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