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Buzz doesn't affect all businesses in the same way. If your company makes paper clips or clothes hangers you can't expect much buzz. Here are ten industries (in no particular order) where word of mouth plays an important role in the purchasing process. |
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| 1. | Automotive | |
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Expensive, exciting and visible products have a better chance of being
talked about, so it comes as no surprise that people talk about new cars.
But they also talk about where to buy them. Fifty seven percent of customers
of one car dealership in California learned about the dealership by word
of mouth. "This is not unusual," says Jim Callahan of the Dohring Company,
which conducts surveys for hundreds of car dealerships around the country
every year. |
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| 2. | Consumer Electronics | |
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People love to talk about new things, and the consumer electronics
industry provides us with a constant flow of innovative products. The
key word here is New. Today, digital cameras are a hot topic but one can
expect fewer people to talk about them as the novelty of the product wears
off and people begin to spread buzz about a new gadget. |
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| 3. | High Tech | |
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A lot of high-tech buzz in recent years has focused on the Web. For example,
a 1999 survey sponsored by Priceline.com shows that on-line shoppers on
average told 12 other people about their experience with on-line purchases.
The extensive buzz about high tech products is also driven by their complexity
which makes them difficult to evaluate. Talking with current users of
a certain software package helps customers reduce the risk associated
with the purchase. |
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| 4. | Entertainment | |
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The Blair Witch Project earned $50 million in its first week through
on-line and off-line buzz. (The film's web site got 21 million hits before
the movie opened.) Fifty three percent of movie-goers rely to some extent
on a recommendation from someone they know, according to a study by Maritz
Marketing Research. No matter how much money Hollywood pours into advertising,
people frequently consult with each other about what movie to see. |
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| 5. | Fashion | |
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Social learning plays a major role in the way fashion spreads (I call
this visual buzz). More than half of the respondents who were asked by
market research firm Yankelovich to specify sources of information about
new styles, said they learn about fashion by observing what others are
wearing. |
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| 6. | Health Care | |
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Health is obviously a high-priority topic for most of us. By asking
around, we reduce the risk of getting a second-rate doctor or getting
stuck with a physician we don't like. Seventy percent of Americans rely
on the advice of others when selecting a new doctor, according to Maritz
Marketing Research. |
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| 7. | Publishing | |
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When personal experience is needed to asses a product or a service,
buzz can be expected. This affects several sectors like the travel and
entertainment industries. What's interesting about the book publishing
industry is the role played by resellers in spreading the word about a
new book. |
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| 8. | Travel | |
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Forty three percent of people surveyed by the Travel Industry Association
cited friends and family as a source for information about places to visit
or about flights, hotels or rental cars. |
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| 9. | Toy and Games | |
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Children tend to socialize more and be more influenced by their peers
than their elders. As a result they seem to talk more about products.
From Beanie Babies to Nintendo, word of mouth has always been the driving
force behind successful toys and games. |
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| 10. | Consumer packaged goods | |
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Do people actually talk about things like soap, detergents or
toothpaste? They do. Of course, the discussion about Colgate is not as
intense as the discussion about Harry Potter, but there's definitely constant
exchange of information about these products, especially when they are
new. |
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