PresentationMartinOetting

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1. Slide 1: Empowered Involvement, Word of Mouth and Brand Advocacy A Theoretical Framework and Case Studies
2. Slide 2: Good Afternoon.  Work in progress  Forthcoming working paper summer 2007 (further publications / Dissertation)  if interested: martin@trnd.com
3. Slide 3: Contents.  Introduction and Background  Word of Mouth Research  Involvement  Empowerment  Theory: empowered involvement  Empirical testing (status quo)  Summary
4. Slide 4: Introduction § Importance of word of mouth as a business success factor § Media and audience fragmentation § The spread of digital word of mouth on the Internet § Consumer empowerment - media creation (publishing, video, etc.) and advertising avoidance
5. Slide 5: My Question How can companies deal with these issues in their marketing communications approaches?
6. Slide 6: Research Project Stimulating word of mouth as a task within (brand) communications in the context of growing consumer empowerment
7. Slide 7: Three Word of Mouth traditions  Focus on Personal Influence Critical review, extension and discussion of opinion leader concept (Feick/Price 1987; Richins- Root/Shaffer, 1988; Reynolds/Darden, 1971)  Focus on Personal Experience Satisfaction/Dissatisfaction (Sundaram/Mitra/Webster 1998; Richins, 1983; Day 1977)  Focus on Networks Tie-strength, network properties (Granovetter, 1973; Sheingold, 1973; Godes/Mayzlin; 2004)
8. Slide 8: Focus of study main focus of study antecedents of WOM consequences of WOM (causes) (effects) receiver The power of Word of Why do people listen, of communi- Mouth – what it leads to what makes them seek cation when people receive it out WOM? unit of analysis What happens to the What makes people talk communicator sender after spreading and spread WOM? (sender) WOM? Nyilasy, 2005
9. Slide 9: Key antecedent: involvement  (Product)  Category involvement  Self-involvement  Other-involvement  Message involvement  Purchase involvement Involvement as a key driver for word of mouth
10. Slide 10: Involvement research  Continuum from „very low/none“ to „very high“ (Kapferer/Laurent 1985), advertising research: often dichotomous (high/low)  Influenced by:  Person-specific factors  Situation-specific factors  Stimulus-specific (product/message/medium)  Involvement research: paradigm assumes involvement to be intra-personal, no measure for externally stimulated involvement
11. Slide 11: Question: What do we know about ‚creating‘ involvement?
12. Slide 13: Stimulating involvement: “empowerment“
13. Slide 14: Empowerment research Different fields, different levels:  Consumer empowerment (no coherent theory - Wathieu et al, 2002; Bush, 2004; Brennan/Ritters, 2004; Coppack/Brennan, 2005 - pro‘s/con‘s discussion)  Patient Empowerment (McGregor, 2005; MacStravic, 2000)  Employee Empowerment: developed since the mid-eighties, both theoretically and empirically
14. Slide 15: Employee empowerment Spreitzer, 1995: „Psychological Empowerment in the Workplace: Dimensions, Measurement and Validation“ Locus of Control Psychological Managerial Empowerment: Self-esteem effectiveness Meaning Competence Access to Information Innovation Self-Determination Impact Rewards
15. Slide 16: Three considerations  Involvement as antecedent to Word of Mouth  Relationships as antecedents to Word of Mouth (Sundaram/Mitra/Webster, 1998; Gremler/Gwinner/Brown, 2000)  Participation in the Service process as antecedent to Word of Mouth (File/Judd/Prince, 1992)
16. Slide 17: Theory: Empowered Involvement Locus of Control Psychological Empowerment: Self-esteem Word of Mouth Meaning Competence Access to Information Self-Determination Impact Rewards
17. Slide 18: Empirical testing 1) Early experiment: voting on ads Locus of Control Self-esteem Word of Mouth Access to Information Rewards
18. Slide 19: Vote Locus of Control Self-esteem Access to Information Rewards
19. Slide 20: Before launch Did you talk to friends about Hubba Bubba in past 4 weeks? (yes/no) Paderborn: 5,0% (5 out of 101) Berlin: 5,1% (4 out of 78) Siegen: 8,4% (6 out of 72)
20. Slide 21: Post: Online questionnaire
21. Slide 22: Generating WOM: Vote speak about brand in past 4 weeks? speak about brand in past 4 week Did Did speak about brand? – before vs. VIP Vote) (before during (before VIP Vote) no; 94,81% no; 31,17% yes; 68,83% yes; 5,19% Chi2emp (df=1)=47,02; p<0,001
22. Slide 23: Generating WOM: vs. Control Group Caution: slightly Did speak about brand in past 4 weeks? different questions! (before VIP Vote) no; 31,17% yes; 68,83% Vote: Chi2emp (df=1)=63,48; p<0,001
23. Slide 24: Mean Promoter Score 4 3,26 3,35 3,5 3 2,58 2,5 2 1,5 1 0,5 0 before after Max, after general: t(76)=-4,352; p<0,001 Max: t(76)=-4,086; p<0,001
24. Slide 25: Experiment vs. Control Group (post) Vote: t(149,9)=4,323; p<0,001
25. Slide 26: Promoter Score: pro vs. contra Ad? 4 3,75 3,5 3,25 3,26 3,20 3 2,75 2,5 2,25 2 nps pro, 72 nps con, 5 t(75)=0,078; p=0,938
26. Slide 27: Empirical testing: currently on-going Locus of Control Psychological Empowerment: Self-esteem Word of Mouth Meaning Competence Access to Information Self-Determination Impact Rewards
27. Slide 29: Blog launch project
28. Slide 30: PaybackBlog
29. Slide 31: Post launch questionnaire  Empowerment levels: project participants vs. other members  Word of Mouth behaviour: project participants vs. other members  Currently on-going, questionnaire ends tonight
30. Slide 32: Summary Empowered Involvement appears to stimulate Word of Mouth  Using empowerment for marketing, not against it  Actively involving and empowering consumers in marketing processes  Supporting word of mouth, creating a dialogue with consumers that creates useful insight  Outside innovation: the deeper this reaches into the organisation, the more impactful it is likely to be
31. Slide 33: Now what does this have to do with Social Software...? Ross Mayfield, 2006
32. Slide 34: Social Software reaches beyond the people it directly touches: We should also consider the Word of Mouth Effects of Empowered Involvement
33. Slide 35: Thank you very much. Martin Oetting Doctorate Candidate ESCP-EAP European School of Management (Berlin campus, www.escp-eap.de) Partner, Director Consulting & Communications trnd - the real network dialogue (www.trnd.com) martin@trnd.com Blog (German): www.connectedmarketing.de