For many social network users, Twitter is both a water cooler and a complaint department. Although most are there to engage with peers, many consumers are using Twitter to talk about their experiences with brands—and from time to time share their grievances. As more and more brands have joined Twitter, consumers’ expectation for interaction with brands has risen.

According to customer experience research company Maritz Research, nearly half of consumers who tweeted a complaint directed toward a brand expected the company to respond—or at least to read their tweet. However, only a third of those consumers received a tweeted response from the mentioned brand.

Consumers ages 55 and older are particularly expectant of a company to read their complaint on Twitter. Gen Y and Gen X consumers, who tend to be more active on Twitter, were less hopeful that a company would read their complaint—perhaps because they believe those expectations will not be met.

Despite the gap between consumer expectations and brand delivery, consumers are overwhelmingly positive when brands take the time to actually respond to them on Twitter. The Maritz study indicates that 86% of Twitter complainers would have liked or loved to hear from the company regarding their complaints—and out of those who heard back, 75% were satisfied with the company’s response.

Many brands are responding to tweets and mentions in order to maintain their reputations and sustain important customer relationships. According to a Forrester Consulting social media report commission by Dell, 58% of US marketers believe that listening and engaging with consumers through digital media will help with customer perceptions of their brand. Also, 56% said their social media efforts would aid in building long-term customer relationships.

Responding to customer complaints, although often thought of as a customer service function, can help increase positive branding—and therefore work in a marketer’s favor. Social media-savvy airline Virgin America has found that engaging with consumers via social networks helps build loyalty.

When consumers tweet @VirginAmerica during their travels—whether it be a question about the airline’s in-flight entertainment or a complaint about a flight delay—the airline does its best to respond.

“People are surprised that anyone there is listening, especially in the airline category,” Abby Lunardini, vice president of corporate communications, told eMarketer in a September 26, 2011, interview. She added that the engagement bolsters positive experiences and helps the airline improve its services. It also leads customers to fly with Virgin America again.

“Engendering loyalty is really important and definitely has a strong economic component,” Lunardini said. “Because once people fly with us, they usually stick with us.”

Keep your business ahead of the digital curve. Learn more about becoming an eMarketer Total Access client today.

Check out today’s other article, “How Young, Urban Consumers Respond to Digital Marketing in China.”

New Delhi : When it comes to enjoying a drink, Indians have become more sophisticated with 82 percent of the people preferring red wine, according to a survey across three cities released Wednesday.

The Wine Study 2010 by the Nielsen found that wine has a more stable base of consumers and are the category drivers. And with more international players entering the market, Indian consumers have only progressed in their indulgence of wine.

“Wine holds a distinct position in the Indian consumers’ mind. It is seen as a sophisticated, stylish drink as compared to other alcoholic beverages like whiskey, scotch and rum that are considered men’s drinks or gin, which is considered a woman’s drink,” said Arti Verma, associate director of The Nielsen Company.

The survey was conducted among 450 respondents across three cities – Mumbai, Delhi and Bangalore – and gauged consumer perceptions about wine and their consumption and purchase habits.

Across cities, there is a differing association on the beverage. Wine has a high association with business occasions in Delhi. However, Bangalore considers wine a drink for successful people and for relaxation. In Mumbai, wine is perceived to be a drink suited for any season.

When it comes to price, both Delhi and Bangalore consider wine an expensive drink. But for Mumbaikars, price is not a concern when it comes to drinking good wine.

Also, 62 percent Indians consume wine only outside the house – typically at a friend’s place or in restaurants and pubs, while 32 percent relish it both in and out of home.

New Delhi : The pen just can’t be written off. Branded fountain and ballpoint pens have no dearth of takers in India and sales are rising despite high prices and the growing use of computers, cell phones and the internet.
“The luxury pen segment in India is growing and a good brand or a designer pen is a latest must have. Consumers falling into the 51 years and above age bracket buy the highest number of such pens,” Nikhil Ranjan, CEO, William Penn, told IANS.

William Penn – The World Pen Store is India’s only multi-brand retail store chain housing premium fine writing instruments manufactured the world over.

“Brand awareness of luxury pens is 88 percent,” Ranjan added.

According to a 2007 Technopak Advisors study, the Indian luxury pen market is gearing up for action. The total market spend on premium pens in India is Rs.479.3 crore (Rs. Rs.4.793 billion), with a category engagement of 79 percent.

High-end pens fall under different categories. The luxury pens cost anywhere between Rs.15,000 and Rs.40,000. Some limited edition pens cost up to Rs.1 crore (Rs.10 million).

The highest number of premium pens are purchased in south India — four times a year. In the north and the west, the frequency of purchase is about twice a year.

In recent years, several international luxury pen makers have come in to grab a share of the market, which is growing at nine percent annually.

Finest brands like Mont Blanc (Germany), S.T Dupont (France), Cross (USA), Sailor (Japan), Caran d’Ache (Switzerland), Conway Stewart (Britain) and Sheaffer (US) are now available in the country.

“India is the second fastest developing economy in the world after China. Plus, it has a promising luxury pen market thanks to the growing consumer base with disposable income and a strong aspiration for luxury brands,” said Dominique Lesueur, export director, S.T Dupont.

Echoing him, Chris Reed, sales manager, Sailor, told IANS: “We started our operations in India in April 2006 because we identified the market potential for top quality writing instruments in the country.”

So hasn’t the growing use of digital media affected the sales of luxury pens?

“We have not seen any reduction in sales that could be specifically attributed to technology; rather, we have seen growth in many markets,” said Jasmine Jones, regional manager, Sheaffer.

Ranjan further added: “One can’t do away with a pen. You will definitely put your signature when you sign a cheque, a contract, a merger. By far a luxury pen is one of the best gifts. Also luxury pens are a collectors item. They are a delight for pen connoisseurs.”

Mumbai : Celebrity endorsement has become another name in the world of advertisement. Almost every company is roping in famous celebrities to increase the sale of their brands. But is it working?

A recent research conducted among over 1000 adults in India reveals that while celebrity interest among consumers is high, multiple brand endorsements by celebrities confuses consumers and reduces correct brand and celebrity associations. To be an effective marketing tool, celebrity endorsements need consistency over time and should go beyond the obvious to make a strong connection between the brand’s value and the celebrity.

Cyrus M Gonda H.O.D. – General Management with Rizvi Institute of Management Studies says that the role of celebrities in advertising is complex. What celebrity endorsement doesn’t appear to do is build brand trust or belief in product efficacy, nor does it encourage word of mouth:

• Only 35% of consumers feel a celebrity helps them to trust a product
• Just 32% believe a celebrity helps them believe that a product actually works
• Only 31% say that a celebrity makes them want to recommend a brand

People find it hard to remember which celebrity promotes which product, but for celebrities who endorse more than one brand it gets even more difficult. Like Amitabh Bachchan endorses 36 brands across 23 categories. He was seen in commercials for approximately 3.16 million seconds in 2007. Then, there are cricket superstars like Sachin Tendulkar (21 brands), MS Dhoni (24 brands). Dr. Kalim khan Director of Rizvi Institute of Management Studies & Research says ‘When someone buys mobile for example they ask their friends, family etc. no one looks at an advertisement to buy a mobile phone. Commodities are sold out on the basis of word of mouth and not the endorsements.”

At its most extreme, using popular celebrities with multiple endorsement deals can actually reduce brand saliency. When asked which brand Indian consumers most associate with Kareena Kapoor, out of 51 brands named unprompted, only Airtel (17%) and Boroplus (10%) achieved double digit recall. Likewise, M.S Dhoni had 81 unprompted brand associations in consumers’ minds, but only Boost (12%) and Pepsi (10%) reached double digits. With most Indian celebrities endorsing multitude of brands, one of celebrity endorsement’s greatest strengths – driving brand salience – can be completely negated by a celebrity who is spread too thinly across brands.

“Celebrities are a lazy alternative for brand-building,” quotes Dr. Kalim Khan. “Lazy, as well as a foolish,” He argues that celebrities offer nothing but instant gratification. “More than a fourth of these celebrity associations don’t add value to the business. In most situations, the brand managers don’t have an answer as to why they are spending a fortune.”

All figures from: Seal The Hole in the bucket; a book by Cyrus Gonda & Dr.Kalim Khan Embassy books; copyright 2010.

The Indian two-wheeler industry finds itself amongst the list of casualties of the global financial disaster. Job-losses, pay-cuts, low consumer confidence and cautious stance of vehicle financers has had an adverse impact on the domestic two-wheeler sales that registered a modest 2.6 % growth in financial year 2008-09 (FY-09) over FY-08. Of late, cheaper petrol, comparatively lower interest rates and the excise duty cut due to the stimulus packages have brought in some relief for this disturbed industry.

In this phase of muted growth, company-level performances varied significantly with some excelling and some putting up a weak show. The market leader Hero Honda registered a healthy growth of 12 % in its domestic sales whereas Bajaj Auto disappointed with its domestic sales plunging by 23% in FY09 over FY08. Likewise, TVS Motors saw its domestic sales dropping marginally by 1.4 % in FY09, but in contrast, Honda Motorcycles and Scooters India (HMSI), a wholly owned subsidiary of Honda Motor Company, recorded a robust 16.5 % growth in domestic sales in India. According to CARE Research, a large bouquet of two-wheeler models and variants to offer, coupled with strong-hold in entry level segment comprising 75 – 125 cc motorcycles with a strong focus on rural markets has benefited Hero Honda , whereas soaring demand in the easy to operate and light weight gearless scooters has benefited HMSI.

CARE Research, in the recently released report on ‘Indian Two-wheeler Industry’, observes that the urban market for two-wheelers is largely penetrated with nearly 57 of every 100 youths that earn an income to support the ownership of a two-wheeler (i.e. the target population) already owns one. In fact, in some big cities, nearly three-fourths of the target population own a two-wheeler. Thus, the opportunity is limited in urban areas. However in case of rural areas, merely 15 % of the target population owns a two-wheeler and thus the opportunity is humungous. Lower penetration in rural areas can be attributed to supply side constraints due to widely dispersed target population which has discouraged the penetration of two-wheeler manufacturers, dealers as well as vehicle financers in these areas. However, the income levels of rural households are rapidly increasing and more and more villages and smaller towns are turning into attractive market for consumer products, including two-wheelers Furthermore, rural households are largely insulated from the dents of the global financial crisis.

“Rural India would be the next growth frontier for India’s two-wheeler industry” remarked Ms. Revati Kasture, Head, CARE Research. “Excise duties are already at lower levels and the scope of expansion in target market on account of reduction in the cost of ownership is very limited. In light of the same, along with already high penetration in urban markets, rural India offers big opportunity to the industry. Ability of the players to increase their focus and penetration in these markets would determine their fortunes in next few years” added Ms. Kasture.

CARE Research estimates the domestic two-wheeler demand to be somewhat weak for the next 9 – 12 months with sales foreseen to grow by 6.7 per cent in FY10 to 7.9 million units from 7.4 million units in FY09. The demand is likely to pick up thereafter with economy stabilizing and resumes its buoyancy. CARE Research expects domestic two-wheeler sales to grow to 11.3 million units by FY14, signifying a compounded annual growth rate (CAGR) of 8.8 per cent.

“Easy availability of cheap two-wheeler finance would be one of the critical factors in achieving the said growth rate as nearly half of the two-wheeler sold in India are purchased on finance” says Mr. D.R. Dogra, Deputy Managing Director, CARE Ratings. “The macro economic outlook still remains weak, with GDP forecasted to grow by 6.5 per cent in FY10, the slowest since FY03. The consumer confidence level would take some time to improve. Furthermore, the players in TW finance industry are still cautious in lending” added Mr Dogra.