News • 26.06.2020

Word-of-mouth marketing: effective strategy

Study says arrogance is the secret to sales

A woman whispering
Source: Bildagentur PantherMedia / billiondigital

A new study from Michigan State University published in Journal of the Academy of Marketing Science shows that leveraging consumer arrogance might be marketers' most effective strategy for promoting their brands and products.

"Arrogance is when you broadcast your superiority to others, whereas consumer arrogance is broadcasting your superiority to others via consumption," said Ayalla Ruvio, professor of marketing at MSU and the lead author of the study. "Whether it's, 'I got a better deal on a product than you,' or, 'Look at my new car,' it's all about showing others how great a consumer you are, better than them."

Word-of-mouth

Companies spend millions of dollars advertising products, services and experiences, but Ruvio explained that word-of-mouth -- the information consumers share about products, deals, brands or anything that is consumption related -- is an invaluable promotion tactic that is driven by consumer arrogance. "It is predicted that in 10 years, the conventional world of marketing will disappear and will rely only on word-of-mouth marketing -- especially for those of the younger generation who do not trust marketing messages from companies, and rely on influencers, recommendations and other forms of word-of-mouth communication," Ruvio said. "This is why the social phenomenon of consumer arrogance is critically important to understand."

In an era of oversharing one's consumption practices and triumphs, Ruvio and colleagues Tomas Hult and Richard Spreng from MSU and Richard Bagozzi from the University of Michigan wanted to find out what role consumer arrogance played in word-of-mouth sharing -- for better or worse. In five studies, they showed how consumer arrogance drives word-of-mouth communication. "We found that if you can trigger people's sense of consumer arrogance, they're more likely to engage in word-of-mouth communication," Ruvio said. The study found that such a tendency might be a double-edged sword for marketers.

"Bragging culture"

"While most consumers prefer to engage in positive word-of-mouth communication and talk about their consumption triumphs, we found that consumer arrogance fuels both positive and negative word-of-mouth communication," Ruvio said. Consumers brag about their consumption triumphs out of self-enhancement motives. Such triumphs portray them in a positive light as successful consumers to others. And, if their sense of consumer arrogance is triggered, they will brag significantly more; however, triggering this sense of arrogance will also lead consumers to share negative information if they regard their consumption experience as a failure. In such cases, negative word-of-mouth communication will help them reaffirm their sense of superiority, especially if the failure occurred in the presence of others.

The "bragging culture" in which we live rests upon consumer arrogance -- showing others what you have that they don't, how you got it or where you're doing it. This culture is shifting how companies reach their consumer bases. "Our research emphasizes the uniqueness of consumer arrogance as a social phenomenon that drives word-of-mouth communication," Ruvio said. "The findings provide marketing managers with a strategic mechanism to add to their arsenal of managerial options for how to engage in the marketplace, particularly on social media."

Source: Michigan State University

related articles:

popular articles:

Thumbnail-Photo: The importance of effective complaint management...
12.08.2020   #customer satisfaction #customer relationship management

The importance of effective complaint management

A strategic and cross-channel approach to handling negative customer experiences

Customers are more demanding than ever, while brand loyalty is declining. Even a couple of negative experiences can alienate consumers and erode loyalty. Shoppers increasingly share bad reviews and complaints on public communication channels for ...

Thumbnail-Photo: Coronavirus: most Americans now using face masks...
15.05.2020   #brick and mortar retail #coronavirus

Coronavirus: most Americans now using face masks

New nationwide survey from Fast

A new nationwide survey from Fast shows that the vast majority of Americans – 88 percent – are now using face masks, but 19% want to personally receive a COVID-19 vaccine before they feel safe shopping in stores again, while another 29 ...

Thumbnail-Photo: Growth of online grocery sales in 2020
30.04.2020   #online trading #e-commerce

Growth of online grocery sales in 2020

New research by Mintel

The latest research from Mintel reveals the online grocery market is forecast to grow by 33 percent in 2020 to reach an estimated value of £16.8 billion, up from £12.7 billion in 2019. This phenomenal rise follows four consecutive years ...

Thumbnail-Photo: Walmart brings the big screen to its parking lots...
14.08.2020   #POS marketing #marketing

Walmart brings the big screen to its parking lots

Retailer’s first-ever drive-in movie theater

Walmart is lifting the curtain on plans for the Walmart Drive-in, a drive-in movie theater experience, which is rolling into 160 Walmart stores across the country beginning this month, created in partnership with the Tribeca Film Festival.Available ...

Thumbnail-Photo: 4 tips on how to handle customer complaints
13.08.2020   #consulting #customer satisfaction

4 tips on how to handle customer complaints

How you can effectively respond to negative reviews and use them to be a benefit to your company

Most retailers don’t like customer complaints. Plus, they also mean extra work. Yet ignoring complaints is not a great long-term strategy because any bad customer experience can haunt your brand if it becomes public. That’s why retailers ...

Thumbnail-Photo: Consumer product demand in wake of Covid-19 crisis...
29.04.2020   #coronavirus #food retail

Consumer product demand in wake of Covid-19 crisis

Newly launched IRI CPG demand index

IRI® released the IRI CPG Demand Index™, a proprietary metric measuring weekly changes in consumer purchases, by dollar sales, against the year-ago period across departments, categories and retail formats.“The COVID-19 pandemic has ...

Thumbnail-Photo: COVID-19: Study reveals impact on hourly workforce...
04.05.2020   #online trading #e-commerce

COVID-19: Study reveals impact on hourly workforce

78 percent are worried about making ends meet during the pandemic and 47 percent have less than $1,000 in savings

Bluecrew, the staffing technology platform connecting job seekers with W-2 protected hourly work, released new survey results which indicate hourly workers are bearing the brunt of unemployment and uncertainty in the face of the COVID-19-fueled ...

Thumbnail-Photo: In-store farming: growing parsley inside the supermarket...
26.06.2020   #sustainability #in-store marketing

In-store farming: growing parsley inside the supermarket

Purchasing locally grown products

One aspect of globalization means that it’s possible for consumers to buy products from anywhere on Earth. That’s also why a head of lettuce may have traveled more miles from the place it was grown to the supermarket than some salad ...

Thumbnail-Photo: Video marketing in times of Corona
09.07.2020   #digital marketing #online marketing

Video marketing in times of Corona

The potential of video content for retailers

The spread of the coronavirus has had a particularly severe impact on the stationary retail industry. Many companies are now increasingly focusing on their online presence to cushion declining in-store sales and to virtually stay in touch with their ...

Thumbnail-Photo: Job maker 4.0: e-commerce
27.05.2020   #online trading #e-commerce

Job maker 4.0: e-commerce

Retail training and continuing education programs are booming

Digitization in retail and e-commerce growth present fresh challenges for retail employees and the retail world. That’s why interest in the new "E-Commerce Merchant" dual vocational training course offered by Germany’s HDE ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen