Word-Of-Mouth Marketing Case Study

2.4.1 Viral Marketing

According Schneider (2011), viral marketing styles uses word-of-mouth marketing.

2.4.1.1 Word-Of-Mouth Marketing

Wow.lk uses the word-of-mouth marketing method frequently. Word-of-mouth marketing is the techniques that apply social network of consumers to increase brand awareness (Kiss, C., & Bichler, M., 2008).

 Wow.lk has company pages in social media platforms such as Twitter, Facebook to promote the brand for free.

 Furthermore, they use Dialog’s fan page for promotions since the acquisition of the company.

2.4.2 Affiliate Marketing

As stated by Turban (2006), affiliate marketing is an arrangement where by a marketing partner refers consumers to a selling company’s website. This is considered as a free advertising

 The use of social media and other partnering websites to give information about the products to the customers is done regularly by wow.lk.

Variations  Wow.lk allows customers to modify their buying arrangements according to their preferences.

 Customers can select products from the list of products shown, the wish list or from the ordered list where previous purchases are listed.

Improved CRM  Compared to brick and mortar retailers, e-commerce businesses can demonstrate the product details to customers which can be viewed at any time.

Increase in Sales  Wow.lk has a multi-channel business model.

 Hence, customers get the chance to buy products from the website or from their physical store.

3.0 Case Study

3.1 Business to Consumer (B2C)

An online business selling to individual consumers is referred to B2C e-commerce type. This is the popular e-commerce type which is used around the world (Laudon K. and Traver C., 2009).

3.1.1 eBay

3.1.1.1

 In second quarter of 2003, they recorded a net revenue of $509.3 million and up to 91% increase since the same period in 2002 due to online auctioning (Shaw M., 2006).

 eBay handle databases to accomplish auctions where sellers and buyers pass in product information. In addition, negations and bidding will occur between the seller and the buyer while eBay acts a link between the parties.

 The online auctioning has been good mostly for second-hand goods and was convenient because it developed a community among consumers and suppliers.

3.1.1.3 Revenue Model

3.1.1.3.1 Transaction Fee Model

 Once the transaction is done, a percentage of the dealer’s fee is taken.

 The customers similarly find it profitable as they are no difficulties in auctioning.

 A fixed fee is set to every product that surpasses a particular income.

 In 2011 annual survey, it stated that the eBay’s top 2000 sellers have experience a 45% revenue growth compared to the previous year due to e-tailing (Apostolou N., 2012).

3.1.1.4 eBay Mobile App eBay mobile app is one of the means that eBay uses to increase their revenue after the introduction in