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Just in time for C.C.’s panel discussion at WOMMA (Word of Mouth Marketing Association). I read an interesting article in the Washington Post this morning.

Turns out that the Federal Trade Commission is saying that any company who engages in WOM marketing (in which people receive compensation) must disclose their relationship. It’s interesting and I think they make a good point, but are we not giving enough credit to the consumer? I’m not sure if today’s smarter, more informed, professional and proactive consumer needs to be made privy to the relationship. Are these so called imposters that are paid by Sony Ericsson or the volunteer force constructed by P&G really selling? Is there an actual transaction taking place or are they merely giving the consumer the opportunity to experience a product away from the mundane everyday store experience?

I’m interested to hear C.C.’s take after he comes back from the WOMMA conference. I’ll keep you posted.

Aaron Greenberger aaron

Categories

Advertising, Conversation
  • As Shel is apt to say, "it depends." It's not so much that these companies are using a formal WOM strategy and compensating the reps to introduce products/services unless the reps don't disclose the fact that they are being compensated.

    Imagine the scenario that someone you know tells you/shows you his new LG cell phone and raves about how great it is. A couple of days later you find out that he received the phone for free in exchange for telling his personal contacts what a wonderful product it is. Even if he doesn't directly benefit monetarily if you decide to also purchase the phone for yourself, isn't his recommendation now suspect to some degree in your mind?

    Wouldn't you feel a little used and betrayed? And the next time he starts recommending the next great thing wouldn't you wonder what sort of deal he has for pushing that?
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