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Online Peer Reviews

                     Presented by
                     Woo Jeong Kim 42546898
                     YunruFeng 41958896
                     Zhenlan Lin 41958681
                     Hsuan Chang Chien 42497730
                     ElitzaKostourinska 42544607
      MKTG7503 Advanced Consumer Behaviour   6/04/2012
Introduction
                                                 e-WOM
                                                revolution




        Build up
         more
        credible
        source.
                   MKTG7503 Advanced Consumer
6/04/2012                                                    2
                           Behaviour
Topics
                                            • McGuire’s Four
                               Motivation
                                              General Categories




                               Personality • Myers-Briggs Theory




                                Reference • Decision making
                                 Group      process



            MKTG7503 Advanced Consumer
6/04/2012                                                          3
                    Behaviour
Tripadvisor.com




                      <TravelTrendsTM Weekly, 2008>

              MKTG7503 Advanced Consumer
6/04/2012                                             4
                      Behaviour
Tripadvisor – Useful Tools


                      Trip Friends




                                                     Trip Wow

Mobile Apps

                        MKTG7503 Advanced Consumer
   6/04/2012                                                5
                                Behaviour
Research Methodology
 Primary research
  Qualitative
     • In-depth interviews
  Quantitative
     • Online survey

 Secondary research
  Academic Journal articles

                   MKTG7503 Advanced Consumer
6/04/2012                                       6
                           Behaviour
Motivation




            MKTG7503 Advanced Consumer
6/04/2012                                     7
                    Behaviour
MKTG7503 Advanced Consumer
6/04/2012                                8
                    Behaviour
McGuire’s Four General Categories

• Cognitive motives: focus on the person’s need for being
  adaptively oriented toward the environment and achieving a
  sense of meaning.
• Affective motives: deal with the need to reach satisfying
  feeling states and to obtain personal goals.
• Preservation-oriented motives: emphasize the
    individual as striving to maintain equilibrium.
• Growth motives: emphasize development


                         MKTG7503 Advanced Consumer
6/04/2012                                                      9
                                 Behaviour
Nike plus




            MKTG7503 Advanced Consumer
6/04/2012                                10
                    Behaviour
Motivation
                      Survey findings
 For which occasion(s) below stimulate you to
 use tripadvisor.com?
When you read online reviews what aspect(s)
 of that review is most important for you?
• “ the main online activities for trip planning would be
  price comparison for
  flight, accommodation, map, rental car”
• “I trust sincere review and we can find small motels
  or B&B as well as big chain hotels, there are lots of
  good information of these kinds of small or not well-
  known local places to use lower budget.”
Motivation
                              Secondary research
• What Motivates Consumers To Write Online Travel
  Reviews?
• Motivations for contributing e-WOM
1)    Enjoyment
2)    Exertion of collective power over companies
3)    Venting negative feelings
4)    Concerns for other consumers
5)    Helping the company
6)    Expressing positive feelings
7)    Positive self-enhancement
                         MKTG7503 Advanced Consumer
6/04/2012                                             14
                                 Behaviour
Motivation
                        Secondary research
                       Motivation Construct



                                                Enjoyment/positive self-
            28%             27%                 enhancement
                                                Venting negative feelings
                                                & collective power
                                 18%            Concerns for other
             27%                                consumers
                                                Helping the company




                   MKTG7503 Advanced Consumer
6/04/2012                                                                   15
                           Behaviour
Motivation
                            Secondary research
• Demographic Differences
                                                    more motivated
      •to help the                                    to ease their
        company                                     negative feelings.
   •Enjoyment/self-
     enhancement



• The low-income group: Higher perceived risk of travel.
• Express negative emotions.

                       MKTG7503 Advanced Consumer
6/04/2012                                                                16
                               Behaviour
Personality




             MKTG7503 Advanced Consumer
6/04/2012                                 17
                     Behaviour
Personality
• Drives interrelated aspects of Theory
  Four Personas Based On Myers-Briggs …




              MKTG7503 Advanced Consumer
6/04/2012                                  18
                      Behaviour
Personality
                                     Survey Findings
             Humanistic
                2%                             Four Website
                                               Personas
   Methodical                                  Classifications
      16%



Spontaneous         Competitive
    24%                58%


                          MKTG7503 Advanced Consumer
 6/04/2012                                                       19
                                  Behaviour
Survey Findings
Categorize your traits
    60.0%

    50.0%
             41%
    40.0%                     37%
                                                                      Analytical
    30.0%                                                             Driver
                                                                      Amiable
    20.0%
                                                                      Expressive
    10.0%

      0.0%
             Competitive Spontaneous Methodical          Humanistic
                            MKTG7503 Advanced Consumer                         20
 6/04/2012
                                    Behaviour
Frequency to leave comments




  Frequentely


                                                                     Humanistic
  Occasionaly                       32%
                                                                     Methodical
                                            42%                      Spontaneous
                                                                     Competitive

             Never


                     0.0%   20.0%      40.0%        60.0%    80.0%

                                MKTG7503 Advanced Consumer
 6/04/2012                                                                        21
                                        Behaviour
Respondents’ Roles In Group Trip Planning


  70.0%

  60.0%

  50.0%

  40.0%                                                     Competitive
                                                            Spontaneous
  30.0%                          26.7%                      Methodical
  20.0%                                                     Humanistic

  10.0%

   0.0%
             Organizer   Participator            Follower
                         MKTG7503 Advanced Consumer
 6/04/2012                                                               22
                                 Behaviour
The Reasons Why Feel Favorable towards Tripadvisor.com


                                                 •Yes, reputation
                                                 •it is because tripadvisor is the
Competitive says                                 biggest online travel
                                                 community, rather than travel
 •It is more famous...                           agency.
 •looks more organized
 • the interface is too complicated. The
 information about the city I was traveling                     Humanistic says
 too however was very helpful

                                              Methodical says

     •Yes                           •Trip advisor has a good foundation of
     •No                            information and many member features.
     •No idea                       I like being able to track my travels with
                                    a world map.
   Spontaneous says           MKTG7503 Advanced Consumer
   6/04/2012                                                                         23
                                      Behaviour
Personality
                        Secondary research
• Research on correlation between the way
  people look online and personality types.

     – 140 respondents were asked.
     – Being eye tracked when skim over the
       website
     – Complete MBIT assessment individually



                   MKTG7503 Advanced Consumer
6/04/2012                                       24
                           Behaviour
Secondary research Result



 • Difference
   in Viewing
   Habits




                MKTG7503 Advanced Consumer
6/04/2012                                    25
                        Behaviour
Secondary research Result

• Preference over metaphorical and realistic image




                   MKTG7503 Advanced Consumer
 6/04/2012                                           26
                           Behaviour
Reference Group




http://www.youtube.com/watch?v=owGykVbfgUE
Reference Group
               The nature of RG influence

 • Information influence

 • Normative influence

 • Identification influence


                   MKTG7503 Advanced Consumer
 6/04/2012                                      28
                           Behaviour
Most influential reference group

                                       Friends
                  6.74%
                                       Family
         14.04%

                              38.20%   Colleagues
      5.62%
                                       Travel agency
       11.24%
                                       Professional
                                       reviews
                   24.16%              Others
Benefits from Word-of-mouth




1. There is more potential input to a decision
2. Internet information is more diverse.
3. Higher quality input into a decision
Evaluation of online reviews

                             • Based on Content

                             • Based on Source


The perception that the
  source is similar to the
  reader leads to greater
  persuasive effect.
Effects On Consumer Decision Process
Advantage of Online Reviews


                 saves time                                         54%

   enjoyable travel planning                                       52%

            helps plan a trip                                       55%

              ease decision                                                62%

              provide ideas                                                      68%

        reduce uncertainty                                                 61%

       avoid places/services                                   50%

       evaulate alternatives                                               62%

    learn about destination                                                  65%

                                0%   10%   20%   30%   40%   50%     60%     70%
Prime Source Of Information
                          0.65%

                                     3.87%

                  7.74%



                                                      Internet search
                                                      Travel agent
      18.06%                                 43.32%   Social network
                                                      Word of mouth
                                                      Maganize
                                                      Printed media
          8.39%
                                                      Other

                                  18.06%
To what degree will ranking list
    affects your trip planning        23%      39%           38%
             decision?


How likely will these online peer                                  Unlikely
 reviews affect your purchasing       13% 42%                46%
                                                                   Indifferent
           intention?                                              Likely



    To what extent, do you trust      14%    45%             42%
       online peer reviews?



                                    0% 20% 40% 60% 80% 100%

                                MKTG7503 Advanced Consumer
6/04/2012                                                                   35
                                        Behaviour
Willingness To Post Comments
               How often do you make comments after using tripadvior.com for
                                       purchasing?
80.00%


70.00%


60.00%


50.00%


40.00%                                                             How often do you make comments after using
               72.15%                                              tripadvior.com for purchasing?

30.00%


20.00%


10.00%                         24.05%

 0.00%                                               3.80%
                Never          Occasionally          Frequently


                                      MKTG7503 Advanced Consumer
   6/04/2012                                                                                            36
                                              Behaviour
Conclusion

   Motivation                       Seeking information



   Personality                      Website layout



   Reference group                          WOM

            MKTG7503 Advanced Consumer Behaviour   6/04/2012

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Online peer review - tripadvisor

  • 1. Online Peer Reviews Presented by Woo Jeong Kim 42546898 YunruFeng 41958896 Zhenlan Lin 41958681 Hsuan Chang Chien 42497730 ElitzaKostourinska 42544607 MKTG7503 Advanced Consumer Behaviour 6/04/2012
  • 2. Introduction e-WOM revolution Build up more credible source. MKTG7503 Advanced Consumer 6/04/2012 2 Behaviour
  • 3. Topics • McGuire’s Four Motivation General Categories Personality • Myers-Briggs Theory Reference • Decision making Group process MKTG7503 Advanced Consumer 6/04/2012 3 Behaviour
  • 4. Tripadvisor.com <TravelTrendsTM Weekly, 2008> MKTG7503 Advanced Consumer 6/04/2012 4 Behaviour
  • 5. Tripadvisor – Useful Tools Trip Friends Trip Wow Mobile Apps MKTG7503 Advanced Consumer 6/04/2012 5 Behaviour
  • 6. Research Methodology  Primary research Qualitative • In-depth interviews Quantitative • Online survey  Secondary research Academic Journal articles MKTG7503 Advanced Consumer 6/04/2012 6 Behaviour
  • 7. Motivation MKTG7503 Advanced Consumer 6/04/2012 7 Behaviour
  • 9. McGuire’s Four General Categories • Cognitive motives: focus on the person’s need for being adaptively oriented toward the environment and achieving a sense of meaning. • Affective motives: deal with the need to reach satisfying feeling states and to obtain personal goals. • Preservation-oriented motives: emphasize the individual as striving to maintain equilibrium. • Growth motives: emphasize development MKTG7503 Advanced Consumer 6/04/2012 9 Behaviour
  • 10. Nike plus MKTG7503 Advanced Consumer 6/04/2012 10 Behaviour
  • 11. Motivation Survey findings For which occasion(s) below stimulate you to use tripadvisor.com?
  • 12. When you read online reviews what aspect(s) of that review is most important for you?
  • 13. • “ the main online activities for trip planning would be price comparison for flight, accommodation, map, rental car” • “I trust sincere review and we can find small motels or B&B as well as big chain hotels, there are lots of good information of these kinds of small or not well- known local places to use lower budget.”
  • 14. Motivation Secondary research • What Motivates Consumers To Write Online Travel Reviews? • Motivations for contributing e-WOM 1) Enjoyment 2) Exertion of collective power over companies 3) Venting negative feelings 4) Concerns for other consumers 5) Helping the company 6) Expressing positive feelings 7) Positive self-enhancement MKTG7503 Advanced Consumer 6/04/2012 14 Behaviour
  • 15. Motivation Secondary research Motivation Construct Enjoyment/positive self- 28% 27% enhancement Venting negative feelings & collective power 18% Concerns for other 27% consumers Helping the company MKTG7503 Advanced Consumer 6/04/2012 15 Behaviour
  • 16. Motivation Secondary research • Demographic Differences more motivated •to help the to ease their company negative feelings. •Enjoyment/self- enhancement • The low-income group: Higher perceived risk of travel. • Express negative emotions. MKTG7503 Advanced Consumer 6/04/2012 16 Behaviour
  • 17. Personality MKTG7503 Advanced Consumer 6/04/2012 17 Behaviour
  • 18. Personality • Drives interrelated aspects of Theory Four Personas Based On Myers-Briggs … MKTG7503 Advanced Consumer 6/04/2012 18 Behaviour
  • 19. Personality Survey Findings Humanistic 2% Four Website Personas Methodical Classifications 16% Spontaneous Competitive 24% 58% MKTG7503 Advanced Consumer 6/04/2012 19 Behaviour
  • 20. Survey Findings Categorize your traits 60.0% 50.0% 41% 40.0% 37% Analytical 30.0% Driver Amiable 20.0% Expressive 10.0% 0.0% Competitive Spontaneous Methodical Humanistic MKTG7503 Advanced Consumer 20 6/04/2012 Behaviour
  • 21. Frequency to leave comments Frequentely Humanistic Occasionaly 32% Methodical 42% Spontaneous Competitive Never 0.0% 20.0% 40.0% 60.0% 80.0% MKTG7503 Advanced Consumer 6/04/2012 21 Behaviour
  • 22. Respondents’ Roles In Group Trip Planning 70.0% 60.0% 50.0% 40.0% Competitive Spontaneous 30.0% 26.7% Methodical 20.0% Humanistic 10.0% 0.0% Organizer Participator Follower MKTG7503 Advanced Consumer 6/04/2012 22 Behaviour
  • 23. The Reasons Why Feel Favorable towards Tripadvisor.com •Yes, reputation •it is because tripadvisor is the Competitive says biggest online travel community, rather than travel •It is more famous... agency. •looks more organized • the interface is too complicated. The information about the city I was traveling Humanistic says too however was very helpful Methodical says •Yes •Trip advisor has a good foundation of •No information and many member features. •No idea I like being able to track my travels with a world map. Spontaneous says MKTG7503 Advanced Consumer 6/04/2012 23 Behaviour
  • 24. Personality Secondary research • Research on correlation between the way people look online and personality types. – 140 respondents were asked. – Being eye tracked when skim over the website – Complete MBIT assessment individually MKTG7503 Advanced Consumer 6/04/2012 24 Behaviour
  • 25. Secondary research Result • Difference in Viewing Habits MKTG7503 Advanced Consumer 6/04/2012 25 Behaviour
  • 26. Secondary research Result • Preference over metaphorical and realistic image MKTG7503 Advanced Consumer 6/04/2012 26 Behaviour
  • 28. Reference Group The nature of RG influence • Information influence • Normative influence • Identification influence MKTG7503 Advanced Consumer 6/04/2012 28 Behaviour
  • 29. Most influential reference group Friends 6.74% Family 14.04% 38.20% Colleagues 5.62% Travel agency 11.24% Professional reviews 24.16% Others
  • 30. Benefits from Word-of-mouth 1. There is more potential input to a decision 2. Internet information is more diverse. 3. Higher quality input into a decision
  • 31. Evaluation of online reviews • Based on Content • Based on Source The perception that the source is similar to the reader leads to greater persuasive effect.
  • 32. Effects On Consumer Decision Process
  • 33. Advantage of Online Reviews saves time 54% enjoyable travel planning 52% helps plan a trip 55% ease decision 62% provide ideas 68% reduce uncertainty 61% avoid places/services 50% evaulate alternatives 62% learn about destination 65% 0% 10% 20% 30% 40% 50% 60% 70%
  • 34. Prime Source Of Information 0.65% 3.87% 7.74% Internet search Travel agent 18.06% 43.32% Social network Word of mouth Maganize Printed media 8.39% Other 18.06%
  • 35. To what degree will ranking list affects your trip planning 23% 39% 38% decision? How likely will these online peer Unlikely reviews affect your purchasing 13% 42% 46% Indifferent intention? Likely To what extent, do you trust 14% 45% 42% online peer reviews? 0% 20% 40% 60% 80% 100% MKTG7503 Advanced Consumer 6/04/2012 35 Behaviour
  • 36. Willingness To Post Comments How often do you make comments after using tripadvior.com for purchasing? 80.00% 70.00% 60.00% 50.00% 40.00% How often do you make comments after using 72.15% tripadvior.com for purchasing? 30.00% 20.00% 10.00% 24.05% 0.00% 3.80% Never Occasionally Frequently MKTG7503 Advanced Consumer 6/04/2012 36 Behaviour
  • 37. Conclusion  Motivation Seeking information  Personality Website layout  Reference group WOM MKTG7503 Advanced Consumer Behaviour 6/04/2012