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e-WOM Case Study Domino's Pizza Prank MKTG 437 – Digital Marketing Scott W. Flexo, Ph.D. About Domino's Pizza Was founded in 1960 in Ypsilanti, Michigan Corporate headquarters are in Ann Arbor, Michigan Has more than 10,000 stores in 70 countries around the world Menu offers pizza, chicken wings, sandwiches, pasta, and a variety of sides and desserts Best known for under 30 min. delivery Pizza Market Share Domino's Pizza Target Age 10-45 Primary Target Teens/Young Adult Males Domino's Online Ordering Launched online pizza ordering in 2007 In 2008, Domino's revolutionized the online delivery experience with the Pizza Builder and Domino's Tracker tools. https://order.dominos.com/en/pages/track er/#/track/order/ Domino's Pizza Problem In April 2009, two Domino's Pizza employees filmed themselves violating health code standards and pranking customers foods. The video went viral on Youtube and was eventually picked up by the national media. This caused a sensation – Domino's Pizza Sales Took a Significant Hit! Prank Video - Youtube Domino's Responds Domino's acted quickly to the prank video by creating a twitter account to address customer concerns Domino's CEO made a statement that was posted to Youtube By doing this they showed they were concerned and were able to inform their customers of the steps being taken to correct the situation Domino's Responds to e-Wom Significant Outcomes! https://www.youtube.com/watch?v=nRuzjl9YhJA http://blog.seattlepi.com/techchron/2009/0 9/30/youtube-prank-forces-dominos-pizzafranchise-to-close/ Domino's Monitor's Social Media Began to monitored user comments about pizza on social networking sites and blogs Domino's gathered data on customers taste preferences from focus groups Customer reviews stated that pizza was "boring, bland, mass-produced cardboard" The Pizza Turnaround Campaign Domino's decided to reinvent their pizza from the crust up An integrated campaign with broadcast and Internet, Youtube videos, social networks, and public relations taste tests, pizza reviews on popular shows, and press coverage. Pizza Turnaround ONLINE! More Action! Show Us Your Pizza Campaign! Designed to create transparency in marketing its food, show quality, and deliciousness ● Winning entries win $500 (based on viewer votes) Lesson's Learned Marketers seek to "influence" consumer decision making. To achieve this objective digital marketers need to recognize the ease and speed with which people can share brand experiences, recommendations, and product related opinions with others, both positive and negative. Influence and WOM Marketers seek to "influence" consumer decision making. To achieve this objective digital marketers need to recognize the ease and speed with which people can share brand experiences, recommendations, and product related opinions with others, both positive and negative. 13 Characteristics of WOM WOM is a Two Edged Sword Both positive and negative WOM influences purchase intentions. In fact, consumers weigh negative WOM more heavily than positive WOM. Consumers remember and remember correctly negative WOM more than they do positive WOM. Which means negative WOM is more likely to be passed on correctly than positive WOM. 14 Digital Marketing and Forms of Social Media Social Bookmarketing Sites: Amplify exposure and traffic by encouraging and making it easy to book mark your site. Social Media Sites: Listen and understand what's "hot" modify product/brand communications appropriately and contribute "hot" content. Forms and Discussion Sites: Participate with targets and listen for "bad" comments – Negative WOM passes fast! Media Sharing Sites: Create content and upload for rapid distribution among target market 15 Digital Marketing and Forms of Social Media Review and Ratings Sites: Paid advertising, write and upload reviews and supply ratings. Social Network Sites; Get on Facebook, get likes, supply "hot" content, make friends, offer ways for twoway communication between company and customers. Blogs/Micro-Blogs: Write and upload content, listen to what others are writing, get on twitter and build a twitter "brand." Wikis: Build a collaborative online community of product/brand advocates. 16