A key concept underlying competitive strategy is that of WTP, representing the consumer's 'willingness to pay' a superior price for goods or services. Through branding and other attempts, firms make an effort to push outside their message and create a high willingness to pay, whereby consumers feel there are few or no replacements for what these businesses are selling.
Social media, nonetheless, are making drive-established marketing anachronistic. Users of social media typically eschew professional communications forced on them by faceless and impersonal organizations, in favor of more personal conversations. These individuals seek greater engagement with their favourite brands, and involvement-with or without the approval of the company's -in creating brand styles.
Their affinity for these favored brands might well auger the dawn of a new WTP: readiness to participate. This informative article presents a model of consumer engagement through social media, and argues for re-conceptualizing WTP by utilizing a number of examples which demonstrate how firms that engage consumers via social media (e.g., Facebook, Twitter, YouTube) stand to reap the gains of long term competitive advantages.
The New WTP Willingness to Participate Case Study Solution
PUBLICATION DATE: May 15, 2011 PRODUCT #: BH431-PDF-ENG
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
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