Tuesday, March 13, 2007

Class 17 Agenda: How To Manage Negative WOM

Learning Objective(s):
  • To understand the amplification effect for online WOM
  • To learn ways to track and monitor online WOM
  • To identify methods of effective outreach and relationship building with online influencers
  • To identify proactive and reactive strategies to address negative WOM

Readings for This Class:

· ThisCompanySucks.com: The use of the Internet in negative consumer-to-consumer articulations. Ainsworth Anthony Bailey. 2004. Pages 1-15. (Bb)

· Chapter 13: Blogging in a Crisis. Robert Scoble & Shel Israel. 2006. Pages 197-208. (NC)

· Suggested Reading: Chapter 7: The Weird Value of Negativity. Dave Balter & John Butman. 2005. Pages 141-164. (Bb)

Content & Activities:

· Debrief WOM Istanbul trip and WOMM conference.

· Discuss research for project

· How to Handle Negative WOM

    • Research on negative WOM and how many people are told.
    • But in the age of the internet consumers have more opportunities to have their voices amplified. Bailey discussed the use of corporate complaint websites. According to Harrison-Walker’s content analysis of the United Airlines complaint site, the top complaints were employee rudeness, employee incompetence, receiving misinformation from employees and baggage handling (see Bailey, p. 173).
    • Only 28% had visited a corporate website (sample was 158 undergraduates) but when visiting a site, 70% of the people browsed comments while 47% read them in detail.
    • Criteria to use in determining if and how to respond to NWOM (Jim Nail’s presentation). Three criteria include:
      • How core is the issue to your brand, reputation, and business?
      • Is the post influential? (Jim provided various quantitative and qualitative ways to assess this).
      • Are comments defending you? How well are they making your case?
    • Cases:
      • Kryptonite bike lock
      • Fiskateers intervention
    • Application Activity
      • Provide students with a concrete example of NWOM and have them work through if and how they should respond.

To Do (for next class):

· After next class, there will be no new readings.

· You should email your client on your status.

· Readings

o Single-Source WOM Measurement: Bringing Together Senders & Receivers; Inputs & Outputs. Ed Keller & Brad Fay. 2006. Pages 31-41 (Bb). See Class 6 on Blackboard for this reading.


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