Even with all the buzz out there about blogs, social networks and the like most companies still haven't taken action by either starting a corporate blog or at least listening and responding to comments and discussions on blogs and social networks like Facebook and Twitter.
But that's definitely starting to change. Businesses are realizing the potent power of Word of Mouth and its ability to shape consumer perception and purchase intent.
Take the recent Dunkin' Donuts example. Most of you probably heard about the Rachel Ray advertisement, and the uproar the ad caused by the scarf she wore. Appears the black & white paisley patterned scarf resembles a Muslim keffiyeh. Many, mostly conservative, bloggers were insulted, and made their feelings known by posting negative comments about Dunkin's choice of apparel.
The management at Dunkin realized this is a potential harm to their reputation and brand equity and took immediate action:
1) They responded to at least the most influential bloggers with the following message:
"In the ad that you reference, Rachael is wearing a black-and-white silk scarf with a paisley design that was purchased at a U.S. retail store," the company responded to bloggers. "It was selected by the stylist for the advertising shoot. Absolutely no symbolism was intended. However, given the possibility of misperception, we will no longer use the commercial."
2) They did what they promised and pulled the ad. And that's not cheap! This ad was part of a $40MM national broadcast, print and online campaign.
Now, whether you agree with the uproar over the ad, or fell it was an incredible over-reaction or mis-understanding of the keffiyeh and Arab culture is irrelevant here. The point is, the power of consumers over brands is irrefutable, and smart companies like Dunkin' monitor social media and take action!
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