I recently penned a Viewpoint article for Ad Age China looking at the phenomena of “group purchase” (AKA “tuan gou” or “团购”). In it, I noted that according to our analysis of Auto IWOM, the mentions doubled in 2nd half of 2008, as the chart from our data below demonstrates.

I have written and talked about group purchase a number of times over the last few years, including here and here.  I shared a case study of a group purchase made by one of my team members here. What’s interesting now is that group purchase discussions are becoming more prominent.

Is this because of the economic situation? Maybe, maybe not, but it is clearly a phenomena that manufacturers and their dealers are having to learn to deal with.  A sort of riot at a Ford dealership in December over a group purchase deal gone bad suggests that at least some dealers could improve in the communications department. Further to this point, I write:

Auto makers must develop a deeper understanding of the trends in order to determine if group purchases should be seen as a threat or an opportunity–and if it is the latter, they must learn how to profit from it.

The key takeway is that IWOM is more than just chatter; as the group purchase phenomena illustrates, it is a force that is reshaping the relationship between brands and consumers. IWOM can both influence purchase decision and how the purchase is made. The group purchase example demonstrates that for IWOM, it is important to not only listen to the talk, but understand what’s happening behind it.