It
has been long understood that word of mouth can be one of the most
powerful marketing tools. If consumers like or dislike a product,
they will tell others.
It works on the
Internet too.
Compete Inc., an
Internet marketing research firm, estimates that about half of the
five million consumers who book travel online each month consult
consumer reviews, blogs and message boards.
These influences
constitute what Compete calls CGM, or consumer-generated media.
Compete found CGM directly influenced the purchasing decisions of
16% of online travel buyers.
When asked about key
influences on travel buying, consumers who bought travel in the
past six months and visited a CGM site within the past two months
cited consumer review/rating sites (21.2%) and online advice from
other consumers (11.3%) as key influences. Thirty-six percent said
family and friends were key influences.