Synopsis Of Research Methodology

A RESEARCH SYNOPSIS ON THE IMPACT OF WORD OF MOUTH ON FEMALE CONSUMER’S BUYING BEHAVIOR COMPARED TO MALE CONSUMERS

Done by VANDANA Student Master of Business Administration (MBA)

Guided by DR. SIDDARTHA VERMA Lecturer Department of Business Management

HINDUSTAN INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES FARAH, MATHURA U.P

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A STUDY ON THE IMPACT OF WORD OF MOUTH ON FEMALE CONSUMER’S BUYING BEHAVIOR COMPARED TO MALE CONSUMERS

ABSTRACT In this research , we will study the impact of word of mouth (positive and negative) on females than to male consumers’ buying behavior. We will take into account various variables like age, gender, and effect of word of mouth in order to drive a relationship with consumer’s decision-making regarding purchase. We will take neutral products for this analysis so as to provide both the genders with same circumstances to come up with an objective comparison. The age bracket of 20 – 50 years will be taken as the sample for this research, which will be further divided into sub groups as per our requirements. Agra region will be selected in order to support the market trends of that particular region. This would help the firms in creating marketing strategies focused to both the genders, separately. In the end, we will work on our research topic to either prove or disapprove our proposed hypotheses.

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INTRODUCTION Buying behavior of consumer are influenced to a greater extent by the suggestions or references given by their friends and near than the information obtained by advertising or any other medium. In formal terms this suggestions and references which make a person his or her buying decision, can be termed as word of mouth . Word of mouth( WOM) “Word of mouth, is a reference to the passing of information by verbal means, especially recommendations, but also general information, in an informal, person-to-person manner. Word of mouth is typically considered a face-to-face spoken communication, although phone conversations, text messages sent via SMS and web dialogue, such as online profile pages, blog posts, message board threads, instant messages and emails are often now included in the definition”. The concept WOM was present far back in the 1950’s and this medium had been utilized by researchers. As the function of WOM is to spread information within people who constitute a formal or informal group, earlier researchers discussed word of mouth taking the group into consideration. The term word of mouth is a cost effective, fast moving, well accepted medium of communication.capatalizating on this medium, will not only spread the information but also affect the sales. New products , new ideas are standers conversational ingredients. They make news. Hence, in an era characterized by a continual stream of innovation, it is not surprising to find a renewed emphasis on the old age adage that’ your best salesman in satisfied consumer. “The assumption, of course is that the satisfied buyer will tell other about experience and thereby adds mileage to a manufacturer’s promotional expenses.” (Engel et all.,1969) WOM is a tool which enhances the customers and consumers’ loyalty towards the company, result in regular transaction feeling within the customer and reduces the switching of the customer.” Word of mouth has for long been recognized as a powerful force affecting consumer choice , loyalty and switching”,(wangenheim and Bayon,2004). Benefits WOM are • • •

The formation of favorable attitudes( day 1971). Research indicates that word of mouth communication (WOM) has a significant effect on consumer purchasing behavior. The reduction of risk or uncertainty associated with buying decisions.

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Consumer versus Customer Theoretically consumers are end users and customers are buyers but this definition brings about some degree of ambiguity . Therefore we define consumers as those who seek products to consume and satisfy they needs. Based on this definition, consumers are the most important element in marketing and understanding their behavior makes really sense. Consumer Buying Behavior “Buying Behavior is the decision processes and acts of people involved in buying and using products”. Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. Stages of the Consumer Buying Process Six Stages to the Consumer Buying Decision Process are 1. Problem Recognition(awareness of need) 2. Information search - A successful information search leaves a buyer with possible alternatives, the evoked set. o Internal search, memory. o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc. 3. Evaluation of Alternatives-need to establish criteria for evaluation, features the buyer wants or does not want. 4. Purchase decision -Choose buying alternative, includes product, package, store, method of purchase etc. 5. Purchase -May differ from decision, time lapse between 4 & 5, product availability. 6. Post-Purchase Evaluation - outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc. Types of Consumer Buying Behavior •

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Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes,

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computers, education. Spend a lot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. Impulse buying, no conscious planning.

Factors that Effect the Consumer Buying Decision Process A consumer, making a purchase decision will be affected by the following three factors: 1. Personal 2. Psychological 3. Social Personal Factors Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in the family is responsible for the decision making. Young people purchase things for different reasons than older people. Psychological factors Psychological factors include: •

Motives-A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix. MASLOW hierarchy of needs!! o o o o o

Physiological Safety Love and Belonging Esteem Self Actualization

Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. •

Perception-Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. Information inputs are the sensations received through sight, taste, hearing, smell and touch.

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Ability and Knowledge--

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Need to understand individuals capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc. •

Attitudes-Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non- living.....Drive perceptions.Individual learns attitudes through experience and interaction with other people.

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PersonalityAll the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include: Work holism Compulsiveness Self confidence Friendliness Adaptability Ambitiousness Dogmatism Authoritarianism Introversion Extroversion Aggressiveness Competitiveness. Lifestyles-o o o o o o o o o o o o

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Recent trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle. Lifestyles are the consistent patterns people follow in their lives. Social Factors Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture. •

Opinion leaders-Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)

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Roles and Family Influences-Role...things you should do based on the expectations of you from your position within a group. Husband, father, employer/ee.

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Reference Groups-Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group.

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Social Class-An open group of individuals who have similar social rank. Social class influences many aspects of our lives. Social class determines to some extent, the types, quality, quantity of products that a person buys or uses.

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Culture and Sub-culture-Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. Culture determines what people wear, eat, reside and travel

In general, people make smart decisions regarding products and services. They are more likely to believe a message that comes with no hidden motives. In such a scenario, if you wish to reach out to your customers, despite the competitive market, then word of mouth is the option for you. With IMs , blogs and social networks offering wider scope to this form of marketing, your reach is made certain. And that’s why it’s your winning approach. Many marketers are now realizing the power of word of mouth marketing. Getting the customers to sell their products is the best way to improve their sales. You talk, people listen, and then they share it with their friends. Word of mouth marketing is a byproduct of good product, good service and good marketing. It’s important to remember that the marketed word doesn’t stop with people introducing the product. It continues as they use the product, they review the product, praise it, and demean it. It’s only the good products that are sustained through this technique. There may have been several breakthroughs in the strategies used for marketing a product or a service. But none is as effective as the most ancient one- word of mouth marketing, which breaks all marketing barriers even in this advanced day and age. A number of the world’s best known brands have initiated word of mouth marketing campaigns, among them: Nokia, American Express, and Kellog’s.

OBJECTIVES OF THE STUDY • •

Comparative analysis to the response of word of mouth in the different categories of consumers’ age. To analyze the response of male and female consumers regarding word of mouth.

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To consider the knowledge of consumer regarding product and word of mouth. To study the effect of word of mouth marketing on sales of product. To study the reliability of word of mouth information.

IMPORTANCE OF THE STUDY • • • • •

It will support marketers in identifying their target segment that they can influence and which can work in their favor. It will become easier for marketers to formulate the exact integrated marketing strategies for their target consumers of the organization. It will provide a platform to the market researchers of the respective organization to devise the marketing budget in accordance with a perfect balance between the medium chosen and consumers. The product or service, communicated can be analyzed by the buying trends of the consumers. Marketers can better predict how consumers will respond to marketing strategies.

REVIEW OF LITERATURE “One of the simplest way of economizing effect in an inquiry is to review and build up work already done by others.” The review of literature is an essential aspect of the research project. The literature in any field, forms of foundation upon which a future work is built. Review of related literature avoids duplication of work, shows strength and weakness of various past researches and determines the design of further research. It enables the researcher to know the means of getting to the frontier in the field of study. The review of literature bridges the gap between new and old knowledge and provide the guidance to the researcher that he is doing his work systematically and correctly. Goldenberg et all., (2001) It is a known fact that satisfied consumers shares their satisfaction with their group, either formal or informal. This satisfaction is shared in the form of information, which is nothing but publicity for the product which comes free of cost. This information sharing which spreads cumulatively is called WORD OF MOUTH. the information dissemination is faster by word of mouth than by any other mean. M, Kay. (Jan 1, 2001 )The process of consumption has long been associated with sex and gender, thus, it comes as no surprise that consumer researchers often examine the effects of these variables on consumer behaviors. It also comes as no surprise that much is known about sex and gender and how they impact buying and consuming activities. Yet there is one gender-related variable, gender identity, that has both intrigued and perplexed consumer behavior researchers for over four decades.

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Ennew et al.(2000) “not all satisfied customers will engage in positive word of mouth leaving a role for the organization to consider how it may attempt to covert satisfied customer into advocates”. Block and Morwitz (1999) attribute this tendency to three reasons. First, traditionally, females have been in charge of grocery shopping. Second, because of such traditions, females tend to know more about stores and products. Third, also due to their traditional role, females have a better idea about inventory levels when they go shopping than males do. Herr, Karders and Kim (1997) seemed to find similar results related to word-ofmouth information and product evaluation. Among other things, they found that negative word-of-mouth information does indeed decrease familiarity with a product. Their research concentrates on the method in which the message is delivered (vividly vs. pallidly) and the type of information that is given (anecdotal vs. attribute information). The researchers present three hypotheses that extend over two experiments. In the first experiment, eighty-four college undergraduates were used to determine if word-of-mouth information is more potent than pallid printed information. Information about a particular item (in this case a computer) was presented to the undergraduates through word-ofmouth and print. The results indicated that word-of-mouth communication is more potent and more important in consumer judgment of a product than less vivid printed information. In the second experiment, Herr, Kardes and Kim (1997) used one hundred twenty college undergraduates to find if word-of-mouth communication can effect product judgment if previous judgment is available. The researchers were also interested in finding if vivid word-of-mouth communications effect product judgments if negative judgments were available. The subjects were given pervious information about a product (in this case a car). Afterwards, a confederate was put in with student groups to manipulate the subjects. The researchers found that a vivid word-of-mouth communication has a reduced effect on product assessment when the consumer already has a negative opinion of a product. The researchers claim that consumers are likely to trust their own opinions more than they trust the opinions of others. Still, it is concluded that word-of-mouth communication has a strong impact on product judgment because it is accessible and vivid. In the last article, Ellison and Fudenburg (1995) study how word-of-mouth communication summarizes information for individuals. The two researchers focus on how word-of-mouth creates "conformity and "diversity." They divide consumers into two groups- "conformity" and "diversity." They test whether word-of-mouth communication supports their positioning. They found that when consumers receive more detailed wordof-mouth information they display more diversity than when they receive limited and /or general information. The researchers used textural analysis to support their hypotheses. Brown and Reingen (1987) believe that previous research on word-of-mouth communication did not effectively look at the impact on dyads and groups. Previous research failed to determine how word-of-mouth starts with the individual and ends up aggregating to large groups. The researchers study the role of word-of-mouth communication in the interpersonal process and discover how this is intertwined in the macro and micro word-of-mouth process. By examining and interviewing a population of

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sixty-seven students of piano teachers, the researchers tried to find all referral sources for the students’ piano teachers. By finding this information, the researchers could then find data to support their hypotheses. At the end of the study they found that ties between consumers (piano students) are important in explaining how dyadic communication forms large scale aggregates. Strong ties between consumers were found to play an important role in consumer attitudes.

SOME FINDING RELATED TO WOM • • •

According to E – Marketer( www.emarketer.com), two – third of all economic activity in the US is influenced by shared opinion about a product, brand, or service. According to researchers at northwestern University, 15% of every conversation includes something about a product or a service. An April 2005 survey by CMO magazine , which asked marketers what type of digital media they were either using or planning to use, found that 43% planned to employ WOM campaigns within the next six months.

RESEARCH METHODOLOGY This chapter deals with the methodological steps adopted in the present study. The research procedures followed are described under the following headlines: a) b) c) d) e) f)

Selection of locale Selection of sample Time dimension Tools and techniques used in the study Procedure for data collection Statistical analysis

a) Selection of locale: The present study will be conducted in the Agra city. b) Selection of samples: Sampling is the most important phase in any research .Samplings known as the foundation of a research project. A sample is that part of universe which we select for the purpose of investigation. The sample should exhibit the characteristics of the universe, that is it should be a ‘micros’ [small universe]. 

Sampling Unit : A person /resident of Agra city

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Sampling Size : The main criteria of sampling will be to select 200 men and women both between 20-50 years of age.

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Gender:

Male/Female

Age:

(20-30)/(30-40)/(40-50)

City:

Agra (Utter Pradesh)

Sampling Method: In this project the random sampling method of Probability is used.

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Sampling Area : Study Shall cover Different Area of Agra city

c) Time dimension – Cross sectional d) Tools and technique used in the study Primary Data : Questionnaire and Personal Interview. Secondary Data : Journals and other research reports. Interview Interview is a Screening of information through a professional conversation with an individual for a research study or to aid in social diagnoses or treatment. The interview is in a sense , their foundation upon which all other elements rest, for it is the data gathering phase. Interview schedule: Keeping in view the nature of the problem under investigation and the kind of information required for the study, the interview schedule technique will be adopted. e) Procedure for data collection: After identifying the respondent the next step will be to interview them. Pilot study: To avoid error and significant hypotheses, present Performa is necessary in data collection. Interview schedule prepared will be presented on a small sample of male and female consumer to know the reliability and validity of the interview schedule. The sample of pilot study will not be included in the actual sample. Actual study: After modification of the schedule on the basis of the pilot study actual study will be conducted among the selected subjects. The interview schedule method will be adopted by the investigator. The investigator will conduct the study by survey in Agra city. The schedule will be filled personally by asking them questions. Statistical Analysis: After collecting the required information from the subjects, the schedules will be coded numerically and data will be classified into simple and complex tables. For the tabulation work data will be fed in the computer and tabulation will be done accordingly. Keeping in view the objectives of the study, the data will be analyzed

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by applying- Mean, Co-efficient of Correlation, and Chi-square for drawing the conclusion.

RESULT (EXPECTED) Buying behavior of consumer are influenced to a greater extent by the suggestions or references given by their friends and near than the information obtained by advertising or any other medium. In formal terms this suggestions and references which make a person his or her buying decision, can be termed as word of mouth . When we see the aspect of consumer on the gender basis, we saw a major difference, that is male consumers’ are less affected than to female. Female consumers rely on WOM too much than male consumers, this is because female consumers comprises thing more and than take decision regarding any purchase. We consider same circumstances for male and female consumers, and find more positive response towards WOM than male consumers. Effect of word of mouth on consumer defiantly affect market. If the response towards any product is positive, it’ll increase its sale. And help in making consumers hard core loyal. More satisfied consumer increase more sale, and less satisfied consumer lesser the sale of product. Word of mouth is a cost effective , fast moving, well accepted medium of communication.capatalizating on this medium, is not only spread the information but also affect the sales.

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REFERENCES Harsh arora (2007). “ Word of mouth in the world of marketing”, the Icfai Journal of Marketing Management, vol.6 , No. 4 , pp. 51-65. César A. Hidalgo, A. Castro and Carlos Rodriguez-Sickert, 'The effect of social interactions in the primary life cycle of motion pictures,' New Journal of Physics, April, 2006 Yubo Chen and Jinhong Xie, 'Online Consumer Review: A New Element of Marketing Communications Mix,' , July, 2004. Wangenheim Florian V and Bayon Tomas (2004), “The Effect of Word of mouth on Services Switching Measurement and Moderating Variables” , European Journal of Marketing , vol.38, Nos.9/10, pp. 1173-1185. .Frederick F. Reichheld, 'The One Number You Need to Grow,' Harvard Business Review, December, 2003. M, Kay. (Jan 1, 2001 )Face=+Bold Gender Identity in Consumer Behavior Research: A Literature Review and Research Agenda Face=-Bold Goldenberg Jacob, libai barak and muller eitan (2001), “talking of the network: A complex system looks at the Underlying process of word of mouth”, Marketing letters, vol.12, no. 3 pp 211 – 223. Ennew Christine t, banerjee Ashish k and Li Derek (2000), “ Manageing Word of mouth Communication Empirical Evidence from India”, International journal of Bank marketing, vol. 18, No. 2, pp. 75-83 Engle james F, Kegerreis Robert J and Blackwell roger D (1969), “ Word of mouth communication by the Innovator”, Journal of marketing, Vol. 33 no. 3 pp. 15- 19. www.google.com www.pdfcoke.com www.wikipedia.com

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APPENDICS QUESTIONNAIRE

Date : Name : Occupation : Address : Phone number : Hi ! I am a MBA student representing HINDUSTAN INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES. I am doing a research to assess A STUDY ON “THE IMPACT OF WORD OF MOUTH ON FEMALE CONSUMER’S BUYING BEHAVIOR COMPARED TO MALE CONSUMERS”. I will be obliged if you spare few minutes from your time to fill up this questionnaire. I assure you that the information imparted by you will be kept confidential.

1. Do you plan your purchase a) Always b) sometimes c) never d) rarely e) do not know 2. Do you stick on your purchase decision a) always b) sometimes c) Never d) rarely e) con not say b) 3. Do you prefer word of mouth information while buying or purchasing. a) every time b) sometime c) never d) rarely e) cant say. 4. Do you think that word of mouth give a true picture of product being marketed. a) Always b) sometimes c) Never d) rarely e) do not know 5. Word of mouth information creates an inert feeling to try out a product. a) Always b) sometimes c) never d) rarely e) Do not know

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6. If an unknown person gives you word of mouth information regarding a product about which you do not know, you go with it. a) Always b) sometimes c) never d) rarely e) Do not know 7. If you are to choose a product either on your own preference or on your relatives word of mouth information, then you choose word of mouth information. a) Always b) sometimes c) never d) rarely e) Can not say 8. You prefer word of mouth information for FMCG products. a) Always b) sometimes c) never d) rarely e) Do not know 9. You prefer word of mouth information for durable products. a) Always b) sometimes c) never d) rarely e) Do not know 10. Whom you find more reliable for word of mouth information. a) male b) female 11. Who you think is more affected by word of mouth information. a) Male b) female 12. Do you find impact of word of mouth information always positive a) Yes b) no 13. For whom the impact of word of mouth information always positive. a) consumers b) marketers

14. Your suggestions …………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… …...

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