THE IMAPCT OF ELECTRONIC WORD OF MOUTH ON BRAND IMAGE AND PURCHASE INTENSION IN MOBILE INDUSTRY 1.1 Introduction Word of mouth is one of the fastest sources of transmitting the information and the mechanism best referred to for the successful transmission is the availability of social media through which various interactions among people take place which shape up the loop of communication about our surroundings and help in creation, share, exchanging information and ideas in virtual communities and networks. The importance of word of mouth is seen from its large scale effect that it poses on the making of customer perceptions about brands and is affected very quickly by communication. If the communication is effective, the more easily the …show more content…
This is one of the very hot issues these days for marketers to understand the importance of electronic word of mouth because it ultimately affects the brand image and consumer purchase intension. Increase in positive electronic word of mouth, increases the brand image and thus the consumers are more willing to purchase. So, there is a positive relationship among the Electronic word of mouth with brand image and purchase intension. Consumer before making a purchase decision usually prefers those brands of product or services which they think has served them more value than the cost which creates a good brand perception in the mind. So there is always an influence of brand image on purchase intension. There are number of blogs and online forums (local and universal) that are working on giving reviews of their every new range of products. These forums, blogs, Facebook pages, and other communities are reviewed by millions of people daily. The more accurate and reliable information the blogs will provide, the more effective brand image will be created in the mind of the consumer. This easily assessable information then effects the consumption decision of the …show more content…
1.4 Research Objectives 1. To study the impact of eWOM on brand image 2. To study the impact of eWOM on purchase intension 3. To study the impact of brand image on purchase intension 4. To study the impact of brand image on brand equity 1.5 Hypotheses H10: Electronic word of mouth has no significant impact on brand image. H1: Electronic word of mouth has a significant impact on brand image. H20: Electronic word of mouth has no significant impact on purchase intention. H2: Electronic word of mouth has a significant impact on purchase intention H30: Brand image has no significant impact on purchase intention H3: Brand image has a significant impact on purchase intention. H40: Brand image has no significant impact on brand equity H4: Brand image has a significant impact on brand equity 1.6 Theoretical Framework
60% of US consumers discover new brands or product through social media, 59 percent use social media to learn about unfamiliar brands or products, 46% are strongly influenced in their purchase decisions by opinions in social media 39% refer to social media before making purchase decisions.
Consumer-generated reviews on the company’s website informs potential consumers about the product. Reviews give potential consumers information about how the brand is perceived and the level of quality of the product. Consumer-generated reviews work like word-of-mouth endorsements. Word-of-mouth endorsements always have more impact than claims of the company.
Technology is a great gateway to reach the affluent consumer audience. Consumers in this category are likely to use technology to thoroughly research a product or company before making their purchase. It is suggested that companies take extra time and effort to online sources in order to attract affluent customers. Recommendations include, “reach out to users who post negative reviews and find ways to mitigate their impact or explain misplaced blame, connect with shoppers on a more intimate level than broadcast TV through blogs, and use social media as a way to improve customer satisfaction” (Haack,
Prendergast, G., Ko, D., & Siu Yin V., Y. (2010). Online word of mouth and consumer purchase intentions. International Journal Of Advertising, 29(5), 687-708
Firms today are showing a great interest in finding effective ways to attract and retain customers, simply because e-commerce is moving quickly and the competition has been rapidly increasing throughout the years. As a result, most of the firms are focusing more in the development of their e-marketing methods since it can form a better relationship between the customer and the firm and possibly lead to stronger consumer loyalty. E-marketing is also a main focus as it has become increasingly and internationally popular throughout recent years, since it is a very fast and easy way to portray messages and promote company products and services. It is also an entertaining way for companies to show their individuality and range of offerings in terms of products, services, and communications. Essentially, e-marketing allows for firms to create strong ties with consumers, engaging them, and allowing them easy access from almost anywhere. This project is going to examine Nike’s e-marketing environment through the analysis of Porter’s five forces, to eventually show that firms can face both threats and opportunities in a marketing environment (Kotler et al, 2001). Furthermore, it is going to illustrate how Nike uses sources of social media such as YouTube, Facebook, Twitter and Instagram to entice new customers to its own web-site. It does so by providing motivational videos including famous professional athletes wearing their gear. It also promotes its services by providing photos of products, along with detailed descriptions of their functionality, along with inspiring messages. This report is also going to show the relation of some of the eight different factors called the 8C’s to what Nike’s marketing department has done in order to obt...
In article “The influence of e-word-of-mouth on travel decision-making: Consumer profiles”, it says that the presence of e-WOM brings more choices and information to tourism from a wide range of users (Hernández-Méndez, Sánchez-Fernández & Muñoz-Leiva 2015). Another advantage is social media tools are considered a more credible source of information because those who generate the content have no vested interest in the companies. According to Wu and Wang, “if users trust the comments and opinions of others in the online environment, it will positively affect their trust and attitude towards the brand and their purchase intent.” (as cited in The influence of e-word-of-mouth on travel decision-making: Consumer profiles
Viral marketing is a form of word-of-mouth marketing that aims to result in a message spreading exponentially and campaigns work when a message is spread exponentially and it results in a desired outcome for a brand (Stokes, R., 2010). Viral marketing uses the internet to disclose and spread the company’s products or services. It harnesses the electronic connectivity of individuals to ensure marketing messages are referred from one person to another (Stokes, R., 2010). There are two types of viral marketing. Organic viral campaigns spread with no input from the company who wants to advertise. The message or product/ service being sold by the merchant are passed around in a viral nature without any intention from the marketer (Stokes, R., 2010). In organic viral marketing, no planning was done on how to broadcast the products or services and those who expose the products or services made a choice just to pass it around by word of mouth in the internet. Amplified viral marketing on the other hand have been strategically planned, have defined goals for the brand being marketed, and usually have a distinct method of passing on the message (that can be tracked and quantified by the marketer) (Stokes , R.,2010). To go viral, sellers or services provider have to define the aims of the campaign. Sellers or service providers have to decide if the company wants brand awareness, drive traffic or make sure customers avail of the products or services. Secondly, the company should plan the message it wants to go viral. The message has to be unique and easily noticeable by consumers. Third, the message you want to convey must be passed on to others efficiently. The company has to provide incentives for sharing. The greatest ince...
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or
Social media is another great cost-effective way at marketing a company. In today’s technological world, the internet plays a huge role on any major brand. By utilizing the use of the internet, Chocolates El Rey could have a much wider market share as this information is available to anyone, anywhere in the world. The use of things like viral videos and social media...
Without customers continuing to purchase products from any company, there will not be any profit. For consumer needs, good communication habits are required so that his or her satisfaction is always priority. By consistently keeping an open means of communication with purchasers, there will be continued knowledge of how to keep them satisfied. Word of mouth can make or break a company (Richins, 2009). When consumers receive negative feedback about a product by someone they trust in their personal life, they are very likely to avoid purchasing that product.
· Use of social media for promotion- word of mouth and social media help to get the message across and promote the product efficiently
Since the invention of the Internet, and it’s global popularity, the Internet has become an essential resource for companies trying to market their product or service. With consumers attached to their smart phones and other electronics, the Internet, and apps on various devices the controlling platforms for marketing. With the speed of the Internet and its availability to many people, it is the most effective way of marketing. The Internet has strengthened the relationship between marketers and customer.
Several factors affect consumers’ attitudes, actions and decisions. Public catch information from social networks, which is an important source of getting information and this, is also a very suitable source of information. People talk about their experiences with each other regarding a product or brand. This is how people get different kind of information about different brands and products. In marketing we call this thing electronic word of mouth. Word-of-mouth is evaluating or sharing experiences...
According to Shimp (2007), there are five important factors which determine the purpose of advertisement in terms of marketers’ communication with consumers. He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affect the products in two ways. Firstly, by basic demand, which build consumer desires for old products of the company and secondly, refers to a new brand of the company. In addition, effective advertising can retain consumer’s mind fresh about the image of a brand which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as s...
The first advantage of using social media in business is increasing brand awareness. Social media can help business to build their brand awareness by increasing interactions with a business brand. Brand awareness means the total percent of a target people who know the company exists and what the company offers of products or services. When the brand awareness is increased, the possibility of buying is increased. Thus, efforts should be made to make the brand a part of the consciousness of customers. For example, Coca- Cola is one of the best companies that enjoy unusual...