Social Media Consumer Knowledge

Improved Essays
Companies can gain an edge on the competition by truly understanding their customers. Even firms that are experiencing sluggish sales or scandal can utilize social media to access consumer knowledge and aid in product development. On December 16, 2009, just shy of Domino’s Pizza 50th birthday, the pizza chain introduced a new and improved pizza. Russell Weiner the chief marketing officer for Domino’s Pizza announced in a press release that “To us, it’s as big as McDonald’s changing the Big Mac, or Burger King reinventing the Whopper. We spent the last 18 months reinventing the brand in anticipation of our 50th anniversary. Our inspiration came from the thousands of direct consumer feedback messages on several social media channels.” …show more content…
Complaints, compliments or insights can lead to a creation of completely new services and products. He goes on to explain, “…that the failure rate of new products is between 40 and 75 percent, firms should be particularly concerned about what their customers say they want and need. If firms can utilize their customers’ knowledge, the failure rate of new products can be greatly reduced.” A reduction in failure rate would help a firm’s bottom line.
Social media allow firms to easily obtain consumer knowledge in the masses and similar to that of the informative focus groups but at a fraction of the cost. Bhagwat explains, “Firms do not have to chase customers for their feedback but instead have attentive customers coming to them voluntarily.” Unlike traditional market research methods, social media enables consumer and firms to communicate in real time, consumer are more likely to give valuable insights since they believe they are being
…show more content…
For example, Brewtopia a beer brewing company “created an online community in which members voted upon every last detail of the beer, from alcohol content to the packaging. The beer was then brewed according to the customer specifications.” The members were compensated with “viral equity” and given dividends based on how well the beer sold. The members were motivated to help develop the best quality beer. The unique customer feedback driven beer created demand before it was even released. This high level of knowledgeable participants help develop a successful

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