Consumer Word of Mouth Changes Buying Habits 60% of the Time, TARP Worldwide Poll Finds
Men and Senior Citizens Most Likely to Complain
Arlington, VA, February 12, 2008 — In a time when mom and pop shops have shuttered their doors and have been replaced by nationwide chains, consumers still have the most powerful tool for ensuring that they receive the best possible customer service: their mouths. A recent online survey of more than 8,000 consumer-packaged-goods consumers, conducted by TARP Worldwide, found that more than 60% of consumers who hear of a first-hand positive or negative experience will change their buying habits.
The Word of Mouth (WOM) survey, commissioned by some of the nation’s leading consumer packaged goods companies, including ConAgra, Del Monte, Kraft and UniLever, sought to gauge the effect of WOM on purchasing behavior.
The TARP Worldwide poll found that 42% of consumers who hear about a positive product experience will buy that product for the first time and another 21% of those consumers will buy more. The effects of positive WOM mirror those of negative WOM as 42% of consumers who hear of a negative WOM stop buying that product and 14% buy less. However, consumers with negative experiences provide more detailed explanations through more channels than those who have positive experiences.
“This poll shows that consumers have the power to both positively and negatively affect buying decisions. Too often, WOM has focused on complaints but this poll shows that 63% of consumers who hear of a positive product experience will buy more of that product,” said Dennis Gonier, CEO of TARP Worldwide. “It is up to the stores and the product manufacturers to invest in customer service, whether that is technologies or employees. Companies must look at consumers WOM as part of their marketing strategy, not just part of their crisis communications strategy.”
Other key findings of the TARP Worldwide WOM poll include:
- Men complain 50% more often than women to the store.
- Consumers 65 and over are more likely to complain to the store than other age groups.
- Consumers age 25-54 tell more people about their experiences than other age groups.
- Only 60% of consumers are satisfied with the response when they contact the manufacturer.
- Only 1 in 19 consumers complain to a product manufacturer.
E-mail is the primary contact method for compliments to the manufacturer, used by 38%; about one third of those complaining to the manufacturer about a negative experience use e-mail.
Contact
Josh Zecher
463 Communications
Phone: (202) 463-0013, ext. 206
Email: josh.zecher@463.com
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