This document discusses why customers listen to word-of-mouth referrals from certain sources. It explores research from marketing legend Ernest Dichter on how customers are more likely to listen to industry experts, celebrities, friends and family, and knowledgeable brand advocates. The document presents statistics showing that recommendations from these sources have high conversion rates. It promotes learning more about using word-of-mouth referrals through a blog focused on referral marketing strategies.

1. Demystifying
W o rd o f
Mo ut h
Er nes t
Di c ht er
With
Marketing
Legend
PART TWO
Who Customers
Listen To

2. W o rd O f
Mo ut h
Re fer ral s
are a
Rec u r ri n g
3 St e p
Process

3. These st eps are :
Talking
about
Listening to

4. Ac t i n g o n
t h e Re fer ral
AND

5. In this 3 part
series, find out
why each step
happens
and
how to use this
knowledge to
acquire more
customers through
word of mouth
referrals...
With the help of
marketing legend,
Ernest
Dichter

6. W hy
c us tomers
li s t e n

7. I n d u s t ry
E xp er t s

8. Customers are more
likely to listen to
experts from fields
relating to
the product.

9. “Under this header are
those persons who, on the
basis of their training
and/or work, appear to be
closer to the product and
more knowing about it than
the average consumer.”
Ernest
Dichter
writes

10. McDonald’s addressed its
image problem by
answering questions about
its food (e.g Is there
horsemeat in the burgers?)
with “Our food, Your
questions.”, a webseries
hosted by Ex-Mythbuster
Grant Imahara.
SOURCES:
http://www.reuters.com/article/2014/10/21/us-m
cdonalds-results-idUSKCN0IA1BT20141021
http://en.wikipedia.org/wiki/MythBusters
The Mythbusters tested
769 Myths
across 9 seasons

11. T h e c ampaign raised
quali ty p erc ept io n a nd
purchase considerat ion
in t h e sought-aft er
Mille nnial demographic
SOURCE:
http://www.reuters.com/article/2014/10/21/us-m
cdonalds-results-idUSKCN0IA1BT20141021

12. Celebri t ies

13. Ernest Dichter defines
celebrities as
“Included are movie, theater,
TV, and radio personalities
whose ‘authority’ is attributed
to prominence in
show business.”
Celebrities are
more influential
than the average
customer in
referring a
product/service.

14. of surveyees between 18
and 34 were willing to
try a product promoted
by an idol they admired. 30%
SOURCE:
http://www.marketing-interactive.com/does-cele
brity-endorsement-actually-work/

15. SOURCE:
http://www.ehow.com/about_538741
2_air-jordan-shoes.html
In wi nt er 1984, Nike wa s
h aving t rouble comp e t ing
wi t h rivals Adida s an d
Conver se in t h e basket ball
shoe market.
So t h ey hired a rooki e t o
e ndor se a new
li ne o f s h o es.

16. Michael Jordan.

17. 21 year s lat er, in 2013,
Jordan product s raked i n
$2.25 BILLION.
Air Jorda n s mad e Ni ke
$2.3 Millio n i n i t s f ir s t
t wo mo nt h s.
SOURCE:
http://www.forbes.com/sites/kurtbadenhau
sen/2014/02/06/lebron-and-durant-are-the
-nbas-top-shoe-salesman/

18. Clo se s t T i e s

19. Cons u mer s are more
li kely t o li s t en t o
rec omme ndat io ns from
t heir fr iend s a nd family
t h a n a nyo n e e l s e.

20. “What is meant here is the
influence of mother, father,
big brother or sister, husband
wife, boyfriend or girlfriend
which expresses itself not
necessarily by means of verbal
communication, but by the
speaker’s actions.”
E r n e s t
Dic ht er
elab orat e s:

21. 92% of consumers wordwide
trust recommendations
from friends and family
more than any form of
advertising, up from 74%
in 2007.
SOURCE:
http://wommapedia.org/

22. Kn o wl edgeabl e
Passionat e Fans

23. Customers listen to
knowledgable,
passionate fans (brand
advocates) because
they have great
knowledge about
the product.

24. Ernest
Dichter
says:
“The connoisseur may
know as much or more
bout the product and its
background than the
expert, but he does not
make his living in
connection with it; he
merely enjoys it and his
know-how about it.”

25. Offers shared by
trusted advocates
convert at 4-10x higher rate than
offers sent by brands.
SOURCE:
http://branderati.com/the-age-of-advocacy-and-in
fluence-26-stats-marketers-should-know/

26. SOURCE:
http://www.statisticbrain.com/star-wars-
total-franchise-revenue/
You might have
heard about a
$27 Billion
movie franchise
fuelled by its
passionate fans.
It’s 37
years old.

27. SOURCE:
http://www.bitrebels.com/wp-content
/uploads/2011/02/Star-Wars-Franchis
e-Economics-Infographic-1.jpg
It has entertained
children across
three generations...
though much of
its fanbase was
not born when
the movies were
first sreened.

28. Guessed right, you did.

29. In Summary
Customers listen to
a referral because:
1. Its backed by
industry experts
2. Its endorsed by
celebrities
3. It comes from
friends/family
4. Its backed by the
knowledge of a
brand advocate

30. Coming soon:
Missed Part 1?
Click here!
Check out
part 3 here!
Demystifying
Word of Mouth
PART 3:
Why Customers
Act on
Referrals

31. Word of mouth has
been shown to
improve marketing
effectiveness by
up to 54%!
Visit
for more tips and
strategies on using word
of mouth to acquire
more customers!
SOURCE:
http://blog.getambassador.com/word-of-mou
th-marketing-statistics/
Blog.ReferralCandy.Com