In fact, the respondents to the survey reported that the two factors that had the biggest impact on their airline choices were comparison-shopping on the Internet (38%) and personal recommendations from an acquaintance on Facebook or Twitter (42%). but, although personal recommendations have a clear impact on choices, the question is whether positive comments have a greater impact than negative comments. This distinction has not yet been made with regard to word of mouth marketing effects. The U.S. national election in 2004 was viewed by many as the most negative in recent memory (Johnson, 2011). Why would hard-nosed politicians with limited budgets invest so much in negative advertising if positive comments had greater impact on behaviour? Although we like to believe positive comments have a greater impact on our decisions than negative comments, there are reasons to believe that within certain industries or contexts negative comments have a more pronounced effect on our behaviour. Survey respondents were asked about their recommendation activities for the seven airlines in the UK, in order to measure the number of positive and negative comments for each airline during the previous year.
Have you made a very negative comment to a friend or acquaintance on Facebook or Twitter about your experience flying with an airline in the previous year? (Yes/No)
* (if Yes) Tell us which UK airlines you made a negative comment on Facebook or Twitter about to a friend or acquaintance and to how many people you spoke
* Have you made a very positive comment to a friend or acquaintance on Facebook or Twitter about your experience flying with an airline in the previous year? (Yes/No)
* (if Yes) Tell us which airlines you made a positive comment about on Facebook or Twitter to a friend or acquaintance and to how many people you spoke
Discussion & Interpretation
The first thing that was observed was that easyJet and Ryanair were the only airlines in the study that were profitable in Q3/2010 and they were the airlines with the lowest negative comments among respondents who considered them their primary carrier. easyJet and Ryanair were also the airlines with the highest percentage of positive comments. The single exception is BMI, that squeaked by British Airways, with 93% positive comments. The second observation is that the airline industry is in dramatic upheaval and undergoing structural transformation from low-cost carriers such as easyJet and Ryanair. The result is that all the traditional network airlines are losing money at historic levels.
Negative word of mouth on social media and networks predicts poor profit
The really interesting finding here is that the percentage of negative comments on Facebook, YouTube, Digg or Twitter is highly predictive of operational profit, while positive comments are not very predictive at all. While many people might have anticipated that negative comments are as predictive as positive comments, few people would expect negative comments alone to be predictive of operating profit. The correlation of negative comments is even higher against the five-quarter average of operational profits than it is with operational profits in Q3/2009 (Doganis, 2010).
This makes sense because the five-quarter average contains data over a longer period of time and smoothes out any volatility that might impact a single quarter. The strong negative correlation between operating profit and negative comments suggests that as the percentage of an airline's customers who are making negative comments about them increases the airline's operating profits decrease (Daily Post, 2011, September 5). Conversely, as the percentage of an airline's customers who are making negative comments on social media sites about them decreases the airline's profits increase. This correlation illustrates a very interesting dynamic that appears to be at work in this particular industry.
If we view the word of mouth communication on social media sites among UK airline customers as a media channel then we are saying the greater the frequency and reach of the negative comments about an airline on that channel the greater the negative impact on an airline's profits (Daily Post, 2011).
This is literally what is happening in this industry with traditional media channels, advertisers specify in advance the frequency and reach of their advertisements and then pay accordingly With the word of mouth channel there is good news and bad news. The good news is that you do not have to pay to use the channel for advertising. The first piece of bad news is that you cannot specify the content, frequency, or reach of the advertising. The second piece of bad news (at least for the airlines studied in the current market) is that negative word of mouth advertising is much more predictive of profits than positive word of mouth advertising (Lawton,...
, et al., 2011). Individuals most often use social media to create and strengthen relationships and increase communication within those relationships, rather than explicitly wanting to shop for products. Those individuals are using social media sites to: a) "construct a profile within a bounded system"; b) maintain "lists of other users with whom they share connections"; and c) view and "browse" those lists of connections with others they have interacted
SOCIAL MEDIA INFLUENCE How Social Media Influence Customers Purchasing Behavior in the Macau Hotels SectorData AnalysisAfter surveying the travelers who have visited Macau for their traveling plans, the data is obtained in a comprehensive graphic manner to interpret the results easier. Initially, keeping the ethics of research in mind, the respondents obtained informed consent. The pie chart showed that all 113 participants agreed and accepted to participate in the research
social media of hotel industry influence consumer purchasing behavior 24/09/2015 Prominent examples of social media Business Use of Social Media Social media and consumer purchasing Role of Social media in Advertising and Marketing Social Media Marketing Evidence of importance of Social Media Marketing Impact of Social Media Marketing on Consumer Purchasing Behavior The Herding Effect Theory of Social Impact Social Media Influence Factors on Consumers Social Media in the Hotel Industry Social media and Thailand Hotels Approaches to Methodology Outline of research Method Sample
COVID- has created an unpresented social environment for society. Many individuals have lost family members and individuals that they cared deeply about. To date, nearly 550,000 Americans have died from COVID-19. These individuals represented friends, family members, community leaders, and loved ones. For many the lose alone can be difficult to overcome given the prevailing circumstances. Compounding the issue were economic considerations that ravaged most of the developed world. Millions
Modern Communication Technology and Its Benefits While opponents and critics of modern communication technology like social media platforms Twitter and Facebook argue that these tools invariably bring pain and problems to people’s lives, this one-sided and ultimately shallow approach to modern communication technology ignores the many benefits that text messaging, smartphones, social media, the Internet, and other communication tools in the Digital Era provide to individuals, businesses, organizations, governments and law
Fraser Island is one of the largest and beautiful islands of Australia and is very popular destination for holidays. Tourists get a chance to see species of wild dogs and a variety of types of fish that are found only in Australia. Similarly Kangaroo Island, Adelaide, Jamison Valley and Cairns are also on the top list of tourists attractions. Markets and Competitive Advantages and Disadvantages Every year, overseas as well as local
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now