The use of personal sources of information
Because consumers of services lack any objective means of evaluating them, they
often rely on the subjective evaluations of friends, family and a variety of other
opinion leaders. Hence, in purchasing services, personal sources of information
(e.g., word of mouth and referrals) become more important to consumers than
non-personal sources such as the mass media (e.g., television, radio and the Yellow
Pages). One strategy often used to stimulate word-of-mouth advertising is to offer
incentives to existing customers to tell their friends about a service organisation’s
offerings. For example, Dodo, a broadband supplier, rewards existing customers for
referrals by placing a reward on their account. Service marketing organisations may
also simulate personal communication or word of mouth using mass media. Mass
advertising that features customer testimonials can be very effective. For example,
funeral insurance companies frequently feature real people in their advertisements
explaining how their funeral insurance was a blessing when they were dealing with
the unexpected death of a loved one.