Wendy Lomax

Taking control of word of mouth marketing: the case of an entrepreneurial hotelier

Marketing in entrepreneurial contexts, such as small business, relies heavily on word of mouth (WOM) recommendations for customer acquisition. However, we know little about how WOM processes work for small firms, or how owner‐managers can influence them. This case study of an entrepreneurial owner of an independent hotel is used to illustrate the problems associated with WOM, and potential strategies to overcome them. The owner‐manager researched existing hotel customers through face‐to‐face interviews and a questionnaire. The results confirmed the importance of WOM, but found two sets of dissonance. One was between input WOM types and sources, the other between output WOM content and targets. The owner‐manager improved the effectiveness of WOM communications through a variety of interventions, thus demonstrating that WOM can be an effective part of a marketing strategy for a small firm.

Loyalty to supermarkets

We report results form a mail survey of loyalty among supermarket customers. Most findings are consistent with previous research but the study does not support earlier evidence that store loyalty is associated with low economic and educational status. The research shows that store-loyal people more often come from the 25–44 year-old age group and that they prefer large out-of-town supermarkets.

Consumer Loyalty: Singular, Additive or Interactive?

Abstract Consumer loyalty may be defined as a singular concept, usually as an attitude toward the loyalty object or as repeatpatronage behaviour; alternatively, the definition may combine attitude and behaviour in either an additive or an interactive expression. We argue that definitions of loyalty are useful if they predict phenomena such as recommendation, search and retention (loyalty outcomes). In three consumer fields, we find that combination measures of customer loyalty often perform poorly as predictors of loyalty outcomes compared with singular measures since recommendation is predicted by attitude but not by repeat patronage, whereas retention and search behaviour are predicted better by repeat patronage than by attitude. We also find that the prediction of loyalty outcomes is not improved by the inclusion of an interaction term in the model. On this evidence, we argue that combination concepts of loyalty are of limited value. Further, we find that there is no form of loyalty that consistently predicts all the different loyalty outcomes and, therefore, we should abandon the idea of a general concept of loyalty.

Decision Making and Habit in Shopping Times

Reports on the results from a consumer survey of shopping trips to supermarkets in England and Wales. Most people exhibit habits about when they do their main trip to the supermarket: 61 per cent have a usual day and 67 per cent a usual time of day. Most shoppers state that they could shop at other times but give reasons for their actual times that reflect situational pressures such as the pattern of work and nearness to the weekend. Many people state that they deliberately avoid busy shopping times and the survey showed that a small number of these people do so. However, there was no significant tendency for those who dislike checkout delay to shop at quieter times than for those who are tolerant of this delay. Store operators cannot change the main situational factors that control the time of use of stores and this limits their ability to influence when people shop. Nevertheless, the survey indicated that some increase in the use of off‐peak times could be achieved by permanent in‐store changes and bett...

Dove vs. Dior: Extending the Brand Extension Decision-Making Process from Mass to Luxury

This paper furthers the understanding of the decision process used by managers when extending their brands. In particular, we investigate the extent to which the model of extension decision process outlined by Ambler and Styles (1997) for fast moving consumer goods is relevant to the luxury sector. We find that the broad structure and components of the A & S model extend to the luxury sector. However, some modifications are required to reflect the differences between luxury and fast moving consumer goods. In contrast with fast moving consumer goods, growth, rather than defence, is the main driver for extending luxury brands. The marketing function, rather than R&D, has the strongest influence on brand extension decisions in the luxury sector. Tradition and brand heritage are identified by luxury goods experts both as the first driver and an important decision criterion for brand extensions.

Hear nothing, do nothing: The role of word of mouth in the decision-making of older consumers

Abstract In some product categories, older consumers (aged 65+) tend to be more brand loyal, have smaller consideration sets and defer purchase more than younger consumers. This conservative behaviour may arise, in part, because older people are more socially isolated and thus receive less social influence relating to product options. In this multi-study research, the volume of word of mouth (WOM) is used as an indicator of social influence. The WOM received by men and women falls substantially beyond age 65, indicating that a deficit in advice may be part of the explanation for conservative decision-making. To test this proposition, the duration of customer tenure of the current brand (how long the respondent has been a customer) is used as a measure of purchase deferral and, as predicted, tenure is longer when less WOM is received. This evidence indicates that some older consumers experience a degree of social isolation, which affects their decision-making. In marketing and social policy, there is a need to promote procedures, technologies and institutions that help older people to connect with others.

The measurement of cannibalization

Notes that the risk of cannibalization is a very real threat for many new product launches and that the risk becomes even more significant if the new product is launched under the same brand name as an existing product. Points out that, since line extension is by far the most common branding strategy for new products, it is important that managers develop their understanding of the effect and that little empirical work has been published on the subject. Defines cannibalization and examines three techniques which managers might use to measure it. Tests gains loss analysis, duplication of purchase tables and deviations from expected share movements on consumer panel data relating to three line extensions in the UK and German detergent markets. Presents results showing cannibalization of the parent brand by all three extensions and suggesting the need for managers to use multiple methods when evaluating the degree of cannibalization. Emphasizes the need to sample over time, since the extent of cannibalization is shown to be dynamic.

The time factor in re‐branding organizations: its effects on staff knowledge, attitudes and behaviour in UK charities

Purpose – As staff are vital to successful re‐branding, particularly in the charity sector where restricted budgets limit reliance on external marketing, it is important to understand the impact of re‐branding on staff. This study aims to examine the effect of time on staff knowledge, attitudes and behaviour and, in addition, the interaction of time with seniority, tenure and level of support for re‐branding.Design/methodology/approach – The paper first explores the literature from both the for‐profit and non‐profit sectors. A quantitative study was undertaken in nine leading, UK charities that had re‐branded two, three and four years ago; n=345. The data were analysed using one‐way and two‐way ANOVAs.Findings – A negative relationship was found between time since re‐branding and the three constructs of knowledge, attitudes and behaviour. But this consistency was not mirrored by a consistency in the impact of interaction effects.Practical implications – Re‐branding is not a one‐off event. To sustain its b...

New Brand Extensions: Patterns of Success and Failure

ABSTRACT The success of brand extensions is crucial for businesses. This study examines the performance of successful and failing new brand extensions. The analysis framework consists of purchase data for 47 extensions across 30 consumer packaged-goods categories in a large-scale U.K.-based consumer panel. The results show that the performance of successful new extensions is comparable to that of established ones by the second quarter following their launch. Successful extensions continue to gain customers from that point forward. Failing extensions, however, show declines in both the number of customers and the repeat-purchase rate from the third quarter onwards. The study suggests a diagnostic framework to assess the performance of new brand extensions.

Shaping up word of mouth marketing strategy: the case of an independent health club.

Owner‐managers of small businesses invariably cite word of mouth recommendations as the principal way in which they attract new customers. Marketing theory is under‐developed in this field with little empirical evidence about the recommending behaviour of small business customers and referral groups. The case study of an independent health club reported here illustrates how these processes can be researched and the results used to influence word of mouth recommendations. The owner‐manager of the club carried out some basic research on his customer base in order to identify the types of members who were most active in recommending the club, and the stimuli that led to recommendations being made. A key finding was that newer members were more likely to recommend than those who had been members for some time, contradicting the implications of relationship marketing theories that long standing customers generate most recommendations. Membership more than doubled following a number of activities designed to increase recommending behaviour. The most important stimuli to recommendations were believed to be involvement with the club, incentives and experiential factors. The case study indicates that word of mouth strategies benefit from research to find out which customers are recommending the business, what they are recommending about the business and what prompts them to do so.