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Transcript
“Why are certain products talked about more than others?”
How product and buzz marketing campaign characteristics drive
word-of-mouth
People often share opinions and information about products with
others and word-of-mouth has an important impact on product
success. But why do consumers talk about certain products more
than others? In addition, companies conduct word-of-mouth
marketing campaigns where they often give away free products,
coupons, or gifts in the hopes that it will encourage consumers to talk
about the brand. But do such giveaways really encourage buzz?
This paper examines how product and campaign characteristics drive
word-of-mouth. First, the authors analyze a unique dataset of actual,
everyday conversations from over 300 buzz marketing campaigns.
The data are analyzed with a hierarchical model of word-of-mouth,
which simultaneously reflects underlying differences across people
and across products, enabling the key behavioral hypotheses to be
tested above and beyond a flexible, heterogeneous model. Second,
they conduct a large field experiment with random assignment across
various US cities to uncover the underlying process driving the key
findings in the first analysis. Results indicate which product and
campaign characteristics are associated with talking and shed light
on the psychological drivers of buzz.