Good deals drive WOM

16 November 2010

LONDON: A majority of consumers in markets including China, India, the UK and US like to share word of mouth "about finding good bargains and deals," new figures show.

The finding has emerged from the nVision Global Research programme to be discussed at the forthcoming Future Foundation's Global Village-Global Jungle conference in London on November 24th - more details about which are available here.

One central trend identified is that "shopping around extensively to get the best deal" is a habit attracting 70% of adults in Brazil, France, Germany, Ireland, Poland and Spain.

Some 90% of Brazilians, 73% of Americans and 69% of their French counterparts "often share tips on how to cut costs and save money."

Recommendation from friends and family are especially powerful in fast-growing economies, with nearly half of Indian and Chinese participants seeking advice when buying a TV.

But this total falls to around a fifth of the population in France and Germany.

More broadly, 56% of Americans, 55% of Britons and 53% of Germans enjoy telling friends about "products or services I have recently bought at a really good discount or price".

These scores were only slightly below the 64% and 62% totals posted in India and China respectively, demonstrating the appeal of this activity around the world.

Given this shift towards "consumer empowerment", the Future Foundation suggested factors such as poor service currently exert a particularly negative impact.

For example, two-thirds of people in China claimed to have switched store or company following a disappointing experience in this area during the last year.

Social networks are also playing an important role, with over 80% of the internet audience from Brazil, Russia, India and China engaging in this pastime, either through a PC or mobile device.

Indeed, 30% of regular web users in India and China can be classified as influencers, measured against just 10% in Western Europe, indicating a nuanced strategy is required.

"After checking email, social networking is the most popular online activity among BRIC netizens," Matthew Taylor, head of quantitative analysis at the Future Foundation, said.

"Influencer marketing is only effective if the network of consumers linked to your brand is arranged in the appropriate manner and this is more likely to be the case in emerging markets where online consumers are still affluent, influential, early-adopters."

Other subjects to be discussed at the Future Foundation's Global Village-Global Jungle conference include the dynamics of health and wellbeing, now a key category in many countries.

For further details about this event, click here.

Data sourced from The Future Foundation; additional content by Warc staff