When a friend or co-worker tells you about a product she likes, as women do, and you then bought it too, how would you feel if you found out afterwards that she’d been paid to tell you?
Most private product talk among women is not commercial. Among men, either. Think TIVO, iPod, movies or restaurants – people refer those to each other because they love them, not because they get paid to do it.
If they did get compensated somehow, and you found out later, would you be as trusting of their next referral?
People telling each other about products they like, like TIVO, iPods, or other products has been referred to in the past as word of mouth advertising or word of mouth marketing.
The trust that the recommendation is not secretly motivated in anyway by compensation from a third party is what makes it a recommendation accepted at face value from people who know and trust each other. That’s what makes it so valuable to product manufacturers and marketers. Some of them, like Apple, try to make products remarkable enough that people will WANT to tell others about them.
Others pay to manufacture that word of mouth. They use people who...
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