Word of Mouth

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

ID: 25-7244

Tutorial number: T01

Name of Supervisor: Monica Sami

Date: 02.01.2014

Topic: Word of Mouth as tool of marketing.

* Contents

1. Introduction:…….. 3

2. Literature Review:……. 5

2.1 What is Word of Mouth (WOM)? 5

2.1.2 Importance of WOM 6

2.1.2 Positive (PWOM) and Negative (NWOM) Word Of Mouth (WOM) 9

2.1.2.1 Emotional Involvement 10

2.1.2.2 Level of Expectations 10

2.2 Consumer Purchasing Decisions process 11

2.2.1 Consumer Decision Making 11

2.2.1.1 Need Recognition 12

2.2.1.2 Information search 12

2.2.2 Influence factors affect consumer purchasing 13

2.2.3 Impulse Purchasing… 17

2.2.3.1 Impulse purchasing overview 17

2.3 Effect of WOM on consumer Purchasing Behavior 17

2.3.1 Tie Strength overview 17

2.3.2 PWOM & NWOM… 18

2.3.3 WOM communication on consumer purchasing behavior 19

2.3.3.1 Decision making process 19

2.3.3.2 Impulse purchasing 20

2.3.4 Research gap………. 21

3. Methodology……… 21

4. Conclusion:………. 24

5. References:………. 25

6. Appendix:………… 28

Table of figure:

Figure 1: Decision Making Process……… 13

Figure 2: Consumer purchasing influence factors. 15

Figure 3 Social Factors. 16

Figure 4: Maslow hierarchy of needs. 17

Introduction:

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,...