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How to get customers to talk about you

WOM is arguably the most influential means of persuasion and can be a critical driver of a company’s growth. For this reason, many companies offer consumers incentives to encourage them to generate WOM.

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Researchers from Arizona State University, New York University, and Northwestern University published a new paper in the Journal of Marketing that examines how marketers can fuel positive word of mouth (WOM) without using explicit incentives.

The study, appearing in the Journal of Marketing, is titled “How Marketing Perks Influence Word of Mouth” and is authored by Monika Lisjak, Andrea Bonezzi, and Derek Rucker.

WOM is arguably the most influential means of persuasion and can be a critical driver of a company’s growth. For this reason, many companies offer consumers incentives to encourage them to generate WOM.

Classic examples of WOM are referral and seeding programs, whereby a company literally “pays” current customers to generate positive WOM and attract new customers. Despite its intuitive appeal, however, this practice can backfire. Ironically, incentivizing WOM sometimes can hamper, rather than increase, consumers’ willingness to engage in WOM.

This research shows that commonly used marketing perks–e.g., gifts, benefits, and rewards–can effectively foster WOM without being used as explicit incentives. Their effectiveness at boosting WOM, however, depends on how they are framed and therefore perceived by consumers: Marketing perks are more effective at fostering WOM the less they are perceived to be given out of contractual obligation. The term “contractuality” refers to the degree to which a perk is perceived to be given to consumers in exchange for engaging in specific behaviors dictated by a company, such as filling out a survey or making a certain number of purchases.

Lisjak explains that “We demonstrate that marketers can influence the perceived contractuality of a perk with easily implementable pivots. Consumers can perceive the exact same perk, say a free coffee, as more or less contractual simply based on how it is framed.”

As one example, the perceived contractuality of a perk can be lowered by giving consumers a free item after a set number of purchases, but not making the number of purchases salient to the consumer. As another example, the same perk could be accompanied by a thank you note, as opposed to a note that highlights all the effort a customer had to put in to earn the perk. In both instances, companies do not have to change the offering, only how consumers perceive it.

Interestingly, however, perks lower in contractuality can sometimes backfire against companies. This is more likely to occur when a perk characterized by low contractuality comes from a disliked or distrusted company. Under such circumstances, consumers become wary of the company’s intentions and then interpret the perk as a manipulative act of persuasion driven by ulterior motives.

When this happens, perks lower in contractuality in fact hinder rather than fuel WOM. To illustrate, many consumers do not like utility providers or financial institutions. To the extent that such dislike prompts consumers to make hostile attributions of benevolent gestures, such companies might be better off using perks that are higher in contractuality.

Finally, contractuality can entail a trade-off. Despite being more effective at fostering WOM, low contractuality perks might be less effective than high contractuality perks at inducing compliance with a direct request. For example, if a company wants consumers to complete a customer satisfaction survey, offering a high contractuality perk can be more effective and efficient than offering a low contractuality perk.

Simply put, when brands have a specific action other than WOM that they would like consumers to take, perks higher in contractuality might serve as better incentives because they make behavior-reward contingencies clear and salient.

Bonezzi summarizes the study by saying “Our findings suggest that marketers could nudge consumers to generate positive WOM by providing them with perks that have fewer strings attached. Of note, this could be achieved at a similar cost to perks that come across as highly contractual.”

BizNews

Women more likely to choose wine with feminine labels

The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

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To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.

A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.  

“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”

Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.

In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.

The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.

“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.

A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.

However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.

Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.

“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.

In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.

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Strategies

Tips that businesses should consider during the holiday shopping season

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

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As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond. 

SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.

Plan for the Holiday Rush

Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.

“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.

If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts. 

Create an Experience for Customers

“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.

Stand Out from the Crowd

Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

Be E-Commerce Friendly

As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.

“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”

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BizNews

License to chill? Bond shows ‘regressive nostalgia’ can freeze a brand’s future

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

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Super-spy James Bond is a prime example of ‘regressive nostalgia’ highlighting how certain consumer groups cling to idealised past versions of brands and resist attempts to move with the times, a new study reveals. 

Researchers examined the James Bond movie franchise – a cultural icon for over 70 years – and discovered that some ‘super-consumers’ react negatively to modern portrayals of the fictional British secret agent that reflect contemporary societal values.  

Whilst loyal to the brand, these consumers prefer traditional, more exclusionary, versions of Bond which most closely follow author Ian Fleming’s original 1950s and 1960s vision – characterised as an arrogant, misogynistic, and racist Imperial British male. 

Publishing their findings in International Journal of Research in Marketing, consumer behavior experts from the University of Birmingham and ESCP Business School, London note that regressive nostalgia is characterized by a preference for racial and cultural purity and heroic masculinity. The phenomenon harbors exclusionary and aggressive tendencies that pose significant threats to brands. 

The researchers have, therefore, produced a toolkit to help marketeers shield their brand’s contemporary positioning from the negative connotations associated with this form of nostalgia – allowing brands to evolve without alienating their core consumer base. 

Finola Kerrigan, Professor of Marketing at the University of Birmingham, commented: “The James Bond franchise is a perfect example of how ‘regressive nostalgia’ manifests. Whilst the brand has successfully adapted to changing times, a small but disproportionally vocal part of its fanbase is anchored in the past, highlighting the need for careful brand management. 

“These ‘super-consumers’ cling to Ian Fleming’s characterisation of Bond and the period during which the novels were written to justify their nostalgia. They actively resist attempts to modernise the franchise, dismissing as ‘woke nonsense’ recent movies such as ‘No Time to Die.” 

Chloe Preece, Professor of Marketing, ESCP Business School, London notes that these Super-consumers view Bond as a heroic, white, male icon providing a ‘safe space’ for those feeling threatened by contemporary discussion about creating a more inclusive society. The character’s ‘man-of-action’ persona allows this group of mostly male consumers to identify with the spy’s ‘heroic masculinity’ based on his ability to sleep with the ‘Bond girls’. 

While the study focuses on the Bond franchise, the researchers identify parallels with other groups’ appropriation of brand resources and associating them with anti-social causes. 

“Brands use nostalgia to connect with consumers – delighting and enchanting their customer base whilst connecting them to others – but this makes nostalgia potentially dangerous in drawing consumers to the past, when it creates a sense of loss combining a cherished past and a despised present,” said independent scholar Dr Daragh O’Reilly. 

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

The researchers note that marketeers should be alert to the risk posed by regressive nostalgia and have devised toolkit comprising of a series of questions to help brand managers assess the level of threat.

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