BM7005 Buyer Behaviour Assignment Sample


Module Code And Title : BM7005 Buyer Behaviour Assignment Sample


Discuss, with the support of research evidence, whether “Word-of-mouth communication is the most powerful force for change but the least accessible”.

BM7005 Buyer Behaviour Assignment Sample 1
BM7005 Buyer Behaviour Assignment Sample


Netflix spent $200 million on advertising, but the word-of-mouth strategy proved to be significantly more powerful than any other. “Word of mouth continues to be the most effective form of marketing for Netflix,” said Steve Swasey, Netflix’s Vice President of Corporate Communications. During the years 2010-2011, they used the phrase “Netflix and Chill” to increase interest in their product through word-of-mouth advertising. Netflix billed itself as “the ideal method to rent DVDs” when it initially began, but they quickly realised that this was not what their customers wanted (Chen and Yuan, 2020).

Netflix and chill became a part of the urban vocabulary in 2010 as a result of their quick increase in popularity. Netflix was able to establish a firm foothold in the pop culture arena through the use of memes on social media that interacted with the current generation.

Netflix has come to understand that users trust one another more than they do ads. Because of this, if Netflix meets the needs of its users, it will gain in popularity. They believe that by using user data and sentiment, they can provide exactly what the customer is searching for, which is why they are so interested in understanding their own users. Netflix was given the opportunity to develop an online community by connecting with its users on social media and answering their savvy questions. This internet community spread the word about Netflix and its services primarily through word of mouth.

How is Netflix Word of Mouth different?

It is typical for people to spread the word about something they are interested in by talking about it with their friends. On the other hand, today’s word-of-mouth marketing involves both planned and unintentional efforts to distribute favourable information about a firm through word-of-mouth. When we examine Netflix’s word-of-mouth strategy, we can think of it as a modernised version of an old-fashioned tactic. Word Of Mouth has changed over time, and social media has played a significant role in its evolution.

When it comes to trusting social media recommendations, 92 percent of consumers surveyed by Nielsen Holdings around the world said they trusted social media recommendations more than traditional advertising. Currently, consumers communicate with brands through a range of different methods. Netflix employed a multi-touchpoint marketing strategy in order to generate greater interest in their product by contacting consumers wherever they were (Zhang et. al. 2019).

As a result of realising how engaged their online audience was on social media platforms such as Facebook and Twitter, Netflix modified its strategy to better communicate with them. A number of provocative questions were given in order to elicit an immediate response from the audience.

Netflix tracks users’ on-site behaviour in order to determine what they want to watch and how they want to view it. Customers no longer have to search for shows as a result of Netflix’s investment in sophisticated technologies. A personalised homepage ensures that no two users will see the same information on the same page.

In recognition of the fact that people enjoy viewing current events, the Netflix platform makes a wide selection of genres available to them. When the film The Social Dilemma was released on Netflix, it caused quite a commotion. As a result, it was instantly covered by media sources of all sizes, and the event has since become a popular topic of discussion.

According to Netflix, while choosing which episodes and topics to focus on, they were aiming for an “under-penetration” technique. In addition, a large proportion of people who sign up for a marquee show and then browse around to see what else is available will utilise these as the foundation for their long-term memberships.

Also, as part of Netflix’s Word of Mouth strategy, the firm has teamed with well-known brands in order to spread positive word of mouth about new episodes through licencing agreements or other forms of marketing outreach and promotion. In a collaboration for the third season of “Stranger Things,” Netflix and Coca-Cola created a television commercial that was aired in theatres and was followed up with collaborations with Coca-Cola branded products (Li et. al. 2018).

Netflix also collaborated with well-known companies from the 1980s, like Lego, Baskin-Robbins, and Burger King, all of which appear in the episode. This part of the Word-of-Mouth method increases the excitement for the show and potential collaborations with other businesses, resulting in increased viewership, online and offline debate, and the acquisition of additional subscriber accounts.

Pros and cons of Netflix Word of Mouth


It facilitates communication: When a friend or relative recommends Netflix, the vast majority of people are well aware of what they’re getting themselves into. Consequently, clients know exactly what to expect from the product because it has already been established for them by a third party.

Netflix’s Complimentary Advertising: It also has the additional benefit of being completely free; when a Netflix customer notifies another Netflix user about the company’s service, Netflix incurs no further costs as a result of the exchange of information. To accomplish truly successful word-of-mouth marketing (WOM), it is often necessary to take a comprehensive approach.

The following phase is to instil a sense of brand loyalty in your customers: The likelihood of word-of-mouth marketing occurring is higher if Netflix customers are pleased and satisfied with the service they receive from the company. The likelihood of customers remaining satisfied and loyal to a brand increase as their satisfaction and loyalty increase.

Interaction based on intuition: Word of Mouth marketing enables businesses to harness the power of positive word-of-mouth to build a strong online community around their company and increase sales and brand awareness (Basaran and Ventura, 2021). These members of the company’s community can act as digital brand ambassadors on behalf of the organisation.


Inability to exert control: Word-of-mouth marketing has the problem of being difficult to control and edit, which makes it unsuitable for many situations. In the event of a very negative experience, the customer is likely to spread the word about the product or service in question. Internet and social media have supplanted traditional word-of-mouth (WOM), providing unsatisfied customers with a larger audience to air their grievances and concerns.

Slowly but steadily spreading: Word-of-mouth advertising can be a slow-moving form of marketing. It can take a long time for a company to spread the word about its products and services, and even longer to build a connection with customers who will then spread the news to their friends. Netflix takes advantage of online social media to promote its shows and to reach a wider audience. This electronic version of word-of-mouth can reach a larger audience more quickly than the traditional way, but it is less personal. It is also more expensive.

Difficulty Is Evaluating the Results: When compared to more traditional kinds of advertising, the impact of word-of-mouth marketing is substantially more difficult to quantify than the impact of traditional forms of advertising. In contrast, when it comes to word of mouth, it is more likely to occur as a result of informal encounters between customers. Unless you’re actively involved in the conversation, it’s difficult to know whether or not company improvements are the product of word-of-mouth marketing (Angelastri, 2020).

Netflix’s effective Word of Mouth strategy proposal

Making an effective Word of Mouth plan for Netflix would include consideration of how to satisfy the consumer while also providing them with the desire and drive to share their experiences because positive Word of Mouth is mostly spread through the contentment of the communicator. Customer engagement and expectations will also benefit from a greater emphasis on word-of-mouth traffic (Wu and Zhou, 2021). You’ll find four suggestions for a Netflix word-of-mouth approach in the section below:

Inquiring about reviews: Because Netflix has always been committed to providing customers with exactly what they want, the company may solicit user feedback online through its social media channels. For example, you could use polls to grade your Instagram stories or you might ask questions and solicit opinions. Every region will have its own version of this. Following that, the evaluations and responses might be placed on their websites, so increasing their trustworthiness and credibility.

Interaction on social media platforms: Netflix has always been a social media whiz when it comes to posing provocative questions to pique the interest of its fans, and this is no exception. Increased word of mouth for a brand will result from the use of hashtags such as “Netflix and Chill.”

It’s possible that Netflix will create both standard Instagram and Snapchat filters as well as holiday-themed filters, such as those for Halloween or Thanksgiving, depending on their budget (Azahra and Sharif, 2021). More consumers will become aware of Netflix and its offerings as a result of increased word-of-mouth advertising, which will result in increased revenue for Netflix.

Worldwide recommendation: Netflix generally delivers movie recommendations based on your geographic location, but it may begin to recommend the best films from other nations in your region on their site as well. If I’m in the United Kingdom and have access to Netflix, I can watch one of Egypt’s “top 10 suggested movies,” to put it another way.

Referral programmes (sometimes known as “referral networks”: Providing referral programmes will provide customers a cause to tell others about their positive brand experience. Netflix can provide advantages for different levels of promotion. For example, if a user recommends Netflix to a friend who then gets the service, Netflix may provide a free month’s subscription to the user (Fadilah, 2021).


Netflix has a well-defined social media strategy. Social media is a big part of this plan, and it’s a big part of what they’re trying to do. Audience feedback helps brands create content that resonates with their followers. Netflix is doomed to lose its cool on social media because of its clear-cut policy. In the last five years, Netflix has grown at an incredible rate.

As of the third quarter of 2020, the corporation has more over 195 million customers. Profitability is increasing at a rapid pace. By 2020, the company expects its operating margin to rise to 20%. Despite the company’s long-term debt load, it no longer appears to be a serious concern. Netflix is increasing the strength of its competitive moat by investing in original content production.

Original content creation has accounted for the vast majority of the company’s earnings and profits. But there is no other option because customer happiness directly affects the company’s bottom line. In order to attract more new members, it is important to post original content. You must create more original content if you hope to keep their attention.

In 2020 and 2021, Netflix intends to produce more original programming. Content costs are a predetermined price. Netflix’s long-term financial burden will be significantly lowered as a result. Profits are increasing and operational margins are widening for the company. Content creation has a set price tag. We expect Netflix to generate massive profits each quarter as its membership base grows rapidly. According to Netflix’s latest earnings report, the company will invest in original programming that boosts subscriber growth.


Angelastri, S., (2020). How have streaming platforms changed the way people consume entertainment and what roles Data science and Word-of-mouth play in making them successful? An analysis of the Streaming Video-on-demand sector through the market leader Netflix (Doctoral dissertation, Politecnico di Torino).

Azahra, N. and Sharif, O.O., (2021). Pengaruh Electronic Word Of Mouth Terhadap Brand Attitude Dan Purchase Intention (Studi Kasus Twitter Netflix Indonesia). eProceedings of Management8(5).

Başaran, D. and Ventura, K., (2021). The Effect of Negative Electronic Word-of-Mouth on Brand Image: The Case of Netflix Turkey via sikayetvar. com. İZMİR KAVRAM VOCATONAL SCHOOL, p.17.

Chen, Z. and Yuan, M., (2020). Psychology of word of mouth marketing. Current opinion in psychology31, pp.7-10.


Li, P., Yang, X., Yang, L.X., Xiong, Q., Wu, Y. and Tang, Y.Y., (2018). The modeling and analysis of the word-of-mouth marketing. Physica A: Statistical Mechanics and its Applications493, pp.1-16.

Wu, X. and Zhou, J., (2021). The Influential Factors of Developing Better in the Global Stream Media Market: An Analysis of Netflix.

Zhang, T., Li, P., Yang, L.X., Yang, X., Tang, Y.Y. and Wu, Y., (2019). A discount strategy in word-of-mouth marketing. Communications in Nonlinear Science and Numerical Simulation74, pp.167-179.


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