consumer behavior

1. CONSUMER
BEHAVIOR
Instructor: Sir Mazhar Ali
Name: Fatima Khalid
Registration No. 2111233

2. “Word of
Mouth”
Reference:
"Word-of-Mouth Communications: A Study of Its Determinants and Application in the Context of
Consumer Behavior"Authors: Smith, J., Brown, K., & Johnson, M

3. Methodology
• The study used a mixed-methods
research approach
• The sample consisted of 500
consumers, selected using a random
sampling technique.
• The study employed a self-
administered questionnaire
• Semi-structured interviews to collect
qualitative data.

4. VARIABLES
• The study identified several key
variables that influence the
likelihood of consumers
engaging in WOM
communications. These include:
• Product involvement: The
degree to which consumers are
emotionally attached to a
product or service.
• Perceived risk: The level of
perceived risk associated with
the purchase and use of a
product or service.

5. Source credibility: The degree to which the source of the
WOM communication is perceived as trustworthy and
credible.
Social ties: The strength of the social ties between the
source of the WOM communication and the recipient.
Attitude towards WOM communication: The degree to
which consumers view WOM communication as a reliable
source of information

6. • The study employed a content
analysis approach to analyze
the qualitative data collected
through the semi-structured
interviews a qualitative research
method that combines
questions that prompt
discussion with the opportunity
for the interviewer to explore
particular themes or responses
further.
• The data was coded into
themes and patterns, allowing
for a comprehensive exploration
of the factors that influence
WOM communication
Quantitative
Analysis
• The quantitative data collected
through the self-administered
questionnaire was analyzed
using descriptive statistics and
regression analysis.
• The regression analysis (a
statistical method that shows
the relationship between two or
more variables) was used to
identify the key determinants of
WOM communication and to
test the hypotheses formulated
in the study

7. H1: Product involvement has a positive effect on WOM
communication.
H2: Perceived risk has a negative effect on WOM communication.
H3: Source credibility has a positive effect on WOM
communication.
H4: Social ties have a positive effect on WOM communication.
H5: Attitude towards WOM communication has a positive effect on
WOM communication

8. • Product involvement, perceived risk, and source credibility are important
determinants of WOM communication.
• Consumers are more likely to engage in WOM communication when they:
• Are emotionally attached to a product or service,
• Perceive a high level of risk associated with the purchase and use of a
product or service. (Experiences of others)
• When the source of the WOM communication is perceived as trustworthy and
credible consumers will engage with the brand.
• Social ties and attitudes towards WOM communication also influence the likelihood
of consumers engaging in WOM communication
Key Findings

9. • The findings of the study have several implications for marketers seeking to
harness the power of WOM communication in their marketing strategies.
• Marketers can use these insights to tailor their marketing messages to:
• Increase product involvement,
• Leverage the credibility of trusted sources (Ex; Social media Influencers),
• Encourage positive WOM communication.
• For example, marketers can focus on building emotional connections with their
target audience to increase product involvement and encourage WOM
communication.
• Overall, the study suggests that WOM communication is an important aspect of
consumer behavior, and marketers should focus on building emotional
connections with their target audience, leveraging the credibility of influencers
and other trusted sources, and encouraging positive WOM communication to
enhance their marketing strategies

10. Why was the Study Conducted
• To gain a deeper understanding
• By identifying the key determines of WOM communication.
• To identify the role of emotions in consumer behavior (product involvement
• Exploring the relationship.
• Marketing strategies.

11. Thank you!