The Effect of Word Of Mouth (WOM) on Consumer purchasing behavior
Submit By: Dalia Salah kamal
Research Methodology Paper
Submitted to the Management Department
Faculty of Management Technology
The German University in Cairo
Tutorial number: T01
Name of Supervisor: Monica Sami
Topic: Word of Mouth as tool of marketing.
Table of figure:
All the time friends and relatives recommend places, product, services, movies or even clothes and we follow these recommendations as it worthy trust than the advertising. These recommendations are named in the market Word Of Mouth and it does have its own influence on the brand image and product reputation which affect the company with positive or negative influence. Word of mouth is a communication tool between people and each other with a previous experience about a certain product or service (Gildin, 2002:1). The word of mouth is a very important marketing tool and it is very important to companies as that word of mouth influence the companies whether with negative or positive influent which effect the consumer purchasing decision which is our focus is to know the effect of WOM on the consumer purchasing decision. To the consumers WOM is persuasive source of information (Argan 2012:1). As we mention before that the word of mouth is indirect communication tool between people, so it is highly persuasive as people trust each other more than the advertising because the sender does not have any personal gain of the recommendation, on the contrary of the company's advertising they are making money from it which why people rely on the word of mouth in making purchasing decision (Prakash 2010:3). In this research it will mention how the word of mouth effect the consumer purchasing decision through defining the importance, the characteristics, and the positive and negative word of mouth and through knowing the consumer purchasing decision process and what is the factors that influence consumer purchasing and what is the impulse purchasing and impulse purchasing types and this could affect the consumer purchasing decision. The aim of this research is finding how the word of mouth affects the consumer purchasing behavior theoretically and practically. In the methodology section there is explanation of the research variables and the procedures of testing the gap which is the effect of WOM on consumer in the retail as shopping in Egypt. The gap will be tested in real life through surveys that will be distributed in GUC among 500 students. The surveys will be in figure of multiple choice questions that will take 10 minutes to be answered. The testing procedure will take a month and a half to conduct the result, and after the conducting the results will show if the WOM effect the consumer's purchasing decision in shopping in Egypt or not and then there is the conclusion section where the whole research will be summarized.
2. Literature Review:
2.1 What is Word of Mouth (WOM)?
Not all people is aware of the meaning of Word Of Mouth but if the consumer simple thought where the WOM comes from you will find the meaning is the word that came out of the mouth which is the word recommended to anyone about a product or a brand or restaurant you had dinner in. The recommendation is the Word Of Mouth which is a market tool indirect tool not like advertising or planners which need hiring people to do it, for that reason it's indirect marketing tool that take place between the people (Chung and Drake 2006: 2), and according to the marketing experts word of mouth is the most important marketing tool (Alsop, 1984: 2) and the most powerful tool in the market (Gildin 2002: 7). According to another research Word of Mouth could be defined as a way of communicating between buyers with previous experience about a product or a service (Samson 2010:2).
References: Argan (2012). Word of mouth (WOM) as a tool of health communication. A case study of Turkey. In Journal of society for development in new net environment in B& H, vol. 6, pp. 216-221.
Arya D. P. (2010). Advertisement effectiveness: Role of WOM in success of educational Institutes in Non-Metro cities. The IUP Journal of Management Research, vol. 6. no.1, pp. 1-20.
Chung. Y. M and Drake. R (2006). The consumer as advocates self-relevance, culture and word of mouth. In Springer Science +Business Media, Vol. 17, pp.269-279.
Cooper, Donald R.; Schindler, Pamela S. (2008). Business Research Methods. International Edition. McGraw Hill Publications.
Dobele A., Lindgreen A. (2011). Exploring the nature of value in the word-of -mouth referral equation for health care. In Journal of Marketing Management, Vol. 27, No. 3, pp.269-290.
Dwyer P. (2007). Measuring the value of Electronic Word Of Mouth and its impact in consumer communities. In Journal of Interactive Marketing, vol.21. No.2, pp.1-18.
Gildin Z. (2002). Understanding the power of word-of-mouth. In REVISTA DE ADMINISTRAC 'O MACKENZIE, vol. 4, pp. 91-106.
Kolter P., Armstrong G. (2008). Principles of Marketing. Eleventh edition. In Prentice Hall Publication.
Merwe D., Kempen E
Robert D., Sajtos L. (2009). Anytime, Anywhere: Measures The Ubiquitous CONSUMER’S IMPULSE PURCHASE Behavior. In International Journal of Mobile Marketing Vol.4. NO.1, pp.1-9.
Schelleken A.C; Verlegh W.J and Smidts A. (2009). Two types of language Bias in Word Of Mouth. In Advance in Consumer Research, vol.36, pp. 1-4.
Please join StudyMode to read the full document