Word-of-mouth promotion actually refers to direct personal interchange of messages through different means of communication which contributes to enhancing brand reputation and increasing consumer confidence. Inter-personal communication is mainly done by means of language, but other non-language means such as movements, gestures, facial expressions or signals (including writings and symbols) can also help.
Value of Word-of-Mouth
Inter-personal communication is an important channel for building up brand reputation and is also the most readily acceptable means of brand promotion by consumers. According to research, the credibility given by consumers to recommendations made by other users is 18 times that of advertising promotion. Therefore, manufacturers should produce high quality products and provide good service to win the loyal support of consumers and let the brand reputation build up among consumers.
Characteristics of Word-of-Mouth Promotion
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It is easy to implement and is not restricted by institutional, media, spatial or temporal factors.
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In inter-personal communication, the two parties involved can be the disseminator and receptor sending out and receiving information at the same time. In this way, they can immediately check the extent of reception of information and the effect of dissemination.
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Since inter-personal communication is target specific, enterprises may adjust the tactics of dissemination according to the receptiveness and response of the receptors and make the best use of their dissemination skills.
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Inter-personal communication is slow and the information volume is relatively small. It cannot cover quite as large a number or scope of people within a given time as mass media.
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Enterprises Using Word-of-Mouth Promotion
As a Means of Publicity
Vivien Chan & Co is one of the first solicitors' firms in Hong Kong to be granted a business licence by the Ministry of Justice of China to practise on the mainland. Ms Chan was among the first group of Hong Kong lawyers to venture into the mainland market in the 1980s who successfully broke into the expatriate male-dominated commercial law consultancy sector at that time. Her philosophy is that she can achieve customer satisfaction as long as she concentrates on doing what she is interested in and good at and provides clients with services of high quality and stable standards. By so doing, her clients will recommend her to their friends, thus building up reliable and long-term word-of-mouth.
As Ms Chan believes that it is her duty to do her job well, she seldom launches any publicity campaign for her services. In her opinion, in order to successfully build up her company's brandname, it is necessary not only to provide outstanding service but also let clients know the spirit and value of the company. With her dedication and professionalism, she was not only elected chairwoman of the Inter-Pacific Bar Association but was also a recipient of the 2005 Hong Kong Women Professional and Entrepreneur Association Award.
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| Source: Synovate Ltd - company interview |
