Good How Rumors Impact Consumer Decisions And Managerial Reactions Research Paper Example

Part A

EveryDay Glam is a shining light:
Some users view the video as a good tutorial and are happy with the results. These commenters will post comments that are supportive of the video. They are likely to post messages expressing support. Such users are also likely to ask for other tutorials as well as ask production questions. They will ready offer their congratulations when they feel that the video is very informative and well produced. These commenters are usually impressed with the content of the video. In the comments section, you can recall Njoodi Njoodi. Her comment says, “Happy birthday, your makeup is perfect, keep going.” This is an example of a consumer who is impressed by the video and this leads het to providing a positive and uplifting comment. Ashley Fierro comments by saying, “Hi Carli, for someone just starting out, what brushes would you recommend as a Must have?” She shows that she has appreciated the video and she asks questions based on the presentation. This shows that she intends to get advice from the video and use it personally.
These are just examples of internet users who view the EveryDay Glam video positively. They show appreciation for the product and its presentation. These users are positive in their interaction and help in growing the brand image as well as consumer confidence. They directly express love to the maker of the video. According to research, negative rumors are more prevalent on the internet than positive rumors. Negative rumors are also more likely to be trusted by other consumers as compared to positive rumors. It is therefore important to ensure that the product offered is of the highest quality in order to minimize the number of negative comments. Research by Pan and Chiou (2011) shows that negative rumors are more likely to be believed by consumers as compared to positive rumors. Most online communities are made up of people with similar interests. Although the reach of rumors on such online forums is limited, the rumors are likely concerningonline concern things that most of the users are interested in. judging by Research by Park et al (2014), indicates that the level of knowledge of the customer is also important. It is therefore prudent to encourage such positive comments about a productproduct, as they will influence the less knowledgeable customers.

Everyday Glam casts brand halo (using the product, do well on her face and encourage the brand image):

A number of users are also likely to use the product because of the video. These users generally post positive comments and show intention to use the product. They also provide their accounts and experiences with the products used in the video. However, their intention is not shown explicitly. These are users impressed by the presentation but their knowledge of the brand precedes the presentation. They are likely to have encountered the product before but they will only start using it due to the expected gains they will make. Such users can easily be influenced into using a specific product discussed in the video. The main intention shown by this group of users is the intention to look like the presenter but not so much about purchasing the product advertised. Examples of such comments from the viewer’s include C GEBS who says “beautifulcheck out some of my work love to know your thoughts!” and Barnor Saba who says “Hi there. My daughter wants to start her own YouTube channel in makeup. I will be supporting her on the business side of things. Do you have any advice for her? Thank you so much for your time. You have a real gift and talent for makeup. I can now see why it is called Makeup Artist! Thank you again.”
This group of users show appreciation for the presentation as well as the production. They are not actually interested with the product being sold but would like to get help from Carli. According to literature review, this category of users can be documented. They are the users who are most likely to comment positively to gain a reaction, with the hope that they will get advice to achieve the look but not use the product being sold. They aim at attracting Carli’s attention for help with whatever problem they might be facing. Barbara for example would like to get advice on behalf of her daughter on how to set up a successful make-up channel. This type of users is common in social media. Their main aim is to try to get attention, usually from the publisher by making positive comments while at the same time seeking a reaction. From the literature review, research carried out by According to Park et al (2014), , the trust of a customer for a brand is affected by the type of review and the content of the reviewthe content of a product review may directly affect consumer-brand confidence. For more knowledgeable customers who are more knowledgeable, the content of a review is likely to influence their buying habits. For novices, the number of reviews is going to influence their buying habit. The main reason for this observation is that Aan expert buyer will identify a relevant review from a multitude of reviews and use the content to influence their buying decision. Less knowledgeable customers will believe the content that is carried by most of the reviewers.

Fair weather fans provide not so constructive criticism (trying to take people away, have nothing to do with the video):

These users make comments just for the sake of it and may not be interested in neither the video nor the products being sold. The comments posted by such consumers are rarely positive and will act as a distraction for other users and consumers. These users have an opposing view to the presenter and show this by making comments that are not related to the video. Such comments may even be abusive in nature. Other comments may be viewed as forms of online bullying. Examples from the comments section of such users include; Mehrun N. Absar posts “why the need for layering so many shades on the eyes if you are going to cover it all with one shade of gold” and Rose Rapaport says, “can you please make up your mind and go in order.”
Tthis class of users generally has negative comments about the video. Furthermore, they are most likely going to make up majority of the commenters. As stated earlier, this group of users will only post comments for the sake of posting comments. They can create a bad image for the brand because the public tends to believe their comments more than the positive reviews. In turn, they also create a poor reputation for the brand. This is mainly because some of the harsh criticism they offer may sway a viewer’s perception. It is therefore important to try to reduce the number of comments received from such users, as they tend to be negative for the brand. According to research by Pan and Chiou (2011), members of online communities are likely to believe negative rumors about products on the internet. It is therefore important to ensure that these types of comments are kept to a minimum. This is also supported by research by Kamins et al (1997) which indicates that negative comments are usually perceived as more accurate and trustworthy as compared to positive ones.

Distracting rumors running rampant:

The last category is distracting rumors running rampant. These are generally comments from viewers but they literally have nothing to do with the video posted. Comments from such users literally take advantage of the traffic generated by the video and try to divert their attention to other unrelated products. Such users are mostly trying to attract the attention of other viewers in order to draw their attention towards another product or video. In this case, such users will likely post links to their own tutorials or other products that they are trying to promote. Recall Sophie Tew asking, “What editing programming should I use for starting a channel?” and Tatyana Brown posted, “please watch my videos, support me.”
These users post comments that have nothing to do with the video but want to divert attention to their own products. They utilize the traffic the videos receive in order to find new followers and viewers for their own videos. If not managed properly, they can divert the attention from the intended product and may use the opportunity to redirect the viewer’s attention in another direction. Furthermore, they will also derail the conversation other users are having online. This implies that such users can lead to a loss in the number of users watching the videos. According to Madupu et al (2010) research shows that the comments and reviews made about a product have an effect on customer trustthe trust customers have on a product. This is mainly because online reviews become a potential threat to the customer trust and brand image, since everything posted online is made public without being checked for validity and trustworthiness of information. As a result, comments can have a negative effect on a brand because they allow posing of a lot of information that has not been verified. It is therefore important for administrators of blogs particularly those concerned with promoting a certain brand to ensure effective moderation of the blogs to ensure such negative comments are minimized.

Part B

Suggested Managerial and Research Oriented Implications
Feedback from users is very important in marketing of users. The internet is responsible for exposing products to consumers in different markets all over the world. This is regardless of the geographical location of the producer or seller of the products. The internet means that internet users are no longer consumers of media but also publishers. Social media is among the most common forms of interaction on the internet. A big part of social media is considered rumors. These statements have an element of truth but also contain exaggerated or untrue claims. It has also been established that word of mouth can influence the purchasing patterns of consumers. It is therefore very important for management to include social media as part of their marketing strategy. This allows the product to have a global market despite the geographical production location. Management has to ensure that they try to maintain generally positive reviews about their products that are available on the internet.
Some big companies have created positions for marketing executives that are solely responsible for social media. As suggested in the literature review, many users find negative reviews to be more trustworthy than positive reviews. Because the internet allows anyone to be a publisher, it is important to moderate the type of comments that make it to the comments section of a feed. There are many moderating tools available to management. They can for example ensure that all posts are reviewed before they are available online. This can help the feed administrator to ensure that abusive language for example does not make it to the comments. The administrator can also remove all comments that are in no way related to the product described in the video or article. This ensures that the discussion among the consumers is directly related to the product.
Despite all these measures, ultimately it is the responsibility of the producer to ensure that they present high quality products presented in appropriate ways to ensure that they get the desired feedback. This feedback is very important as it allows management to know whether their product is reaching the intended market. They can also get ideas on future products and presentations from the comments.

Conclusion

The internet and particularly social media has allowed everyone not just to be a consumer of information but also a publisher of information. The internet has also opened up products to global markets and consumers. It has also helped in opening up new avenues through which consumers can be able to discuss products. Such consumers, who may include disgruntled customers, happy customers, and competitors just to mention a few, express how they feel about the effectiveness of a product and this leads to the generation of rumors. This feedback from users (whether positive or negative) is very important in determining the impact the product is having on consumers as well as creating rumors on the internet. However, some of the comments received from users are negative; hence, they create negative rumors around a product and affects consumer confidence. This in turn leads to a diminished brand image, reduction in sales, revenue and market share. It is therefore important to ensure that the product offered is of the highest quality in order to minimize the number of negative rumors and improve consumer brand awareness.