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Presentation decides word of mouth »InvestorPlus

Thanks: unconditionally brings something more in many cases (Photo: Bru-nO / pixabay.com)pressetext.redaktion

Chicago (pte003 / 3/22/2021 / 6:10 AM) – When companies use marketing bonuses such as gifts or loyalty rewards to promote word of mouth, their presentation is critical. Because the less customers have the feeling that they are getting them out of a contractual obligation, the more likely they are to achieve the desired effect, shows a study published in the “Journal of Marketing”. For companies that consumers trust little, this can also go wrong.

Avoid contract feelings

Businesses often use marketing grants to encourage word of mouth customers. However, as the study shows, this does not necessarily work well if consumers feel too much that they are specifically “paid” for word of mouth, that is, when there is a high degree of “contractability”. It is therefore cheaper if customers perceive bonuses or gifts to be non-binding. So marketers don’t need to rethink what they are giving away, but above all how.

“Customers can perceive exactly the same bonus, for example a free coffee, as more or less ‘contractual’, depending on how it is presented,” explains first author Monika Lisjak, marketing assistant professor at Arizona State Univerrsity http: / /asu.edu. So it can help not to bring this number into the foreground with a loyalty bonus after a certain number of purchases. A cover letter for a gift, on the other hand, should express thanks rather than emphasizing the effort it took for the customer to get it at all.

Always observe exceptional cases

However, non-binding bonuses can also backfire. This is especially true if the company is unpopular or is met with great distrust. If customers don’t like a financial institution, for example, they could suspect sinister motives behind an ostensibly benevolent gesture. This can be avoided under certain circumstances with gifts of a higher contractual nature.

In addition, the researchers note that while marketing grants without obvious conditions tend to have a positive effect on word of mouth, they are not necessarily as well suited for other purposes. For example, if customers are supposed to take part in a survey, a clear thank you is probably more useful.

(The End)

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