TAILIEUCHUNG - Marketing Experience Goods on the Internet: The Case for ‘Strong’ Word of Mouth

The issues related to non-market forest goods and services involve social and economic dimensions. Unlike market forest goods and services, non-market ones are not traditionally traded and their value is not defined by the market price. At the same time the access to non-market forest goods and services is largely unlimited and free in most of the EU Member States. These characteristics of non- market goods and services, combined with their growing importance and social demands, can lead to an un-sustainable management of these goods and services. . | Marketing Experience Goods on the Internet The Case for Strong Word of Mouth MBA Individual Project By Zaeem Max Maqsood August 2004 Judge Institute of Management University of Cambridge Abstract Experience goods are particularly susceptible to opportunistic behaviour yet professional services for example are underrepresented in online research sources such as ratings reviews and recommendations. This anomaly is investigated by exploring the underlying theory of trust as well as the nature of experience goods and the mechanisms of word of mouth marketing. This allows for the generation of variables related to trust and trust mechanisms and their application online including novel developments such as further distinctions in trust theory and the notions of weak and strong word of mouth. A number of B2B2C eBusiness sites are studied including Online Social Networking sites and as well as trading and reviewing platforms such as eBay eLance and ePinions. We find that trust mechanisms are implemented in interesting ways but that products heavily exhibiting experience qualities are not successfully marketed and sold on any of the sites. We conclude not only with the confirmation of the relationship between experience goods and strong word of mouth but also the existence of significant market space to utilise social networking for the successful marketing and selling of experience goods online including professional services and other traditionally difficult categories. i Contents Literature Trust Why We Need It And How It Experience Goods Opportunistic Behaviour And Reliance On Word Of Mouth. 6 Word-Of-Mouth Its Reliance On Social Online Reviews What They Are Used Research Data Collection Site Analytic Focus Of The Mini Case Summary of Findings .34 Conclusion .44 .

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