Word of Mouth Marketing Strategy: Research and Analysis Report

This report investigates word-of-mouth (WOM) marketing, examining its definition, significance, and influencing factors. The research explores WOM's effectiveness compared to traditional advertising and analyzes the impact of brand loyalty, trust, and buzz creation. The report details research methods, including the use of interpretivism philosophy, an inductive approach, and a mixed research design incorporating literature review and interview strategies. Data collection methods include primary and secondary sources, with content analysis used for data analysis. Findings from interviews with marketing managers are presented, detailing participant demographics and responses regarding work experience. The report concludes with a discussion of the findings and their implications for WOM marketing strategies.

Running head: WOM 0
Word of mouth Marketing
JANUARY 17, 2020
STUDENT DETAILS:

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Contents
Introduction.................................................................................................................................................2
Research question....................................................................................................................................2
Research objective...................................................................................................................................2
Research Problem........................................................................................................................................3
Theoretical background -.............................................................................................................................3
Meaning of word of mouth marketing.....................................................................................................3
Importance of word of mouth marketing.................................................................................................4
Factors affecting word of mouth marketing strategy...............................................................................5
Research methods -.....................................................................................................................................5
Research philosophy................................................................................................................................6
Research approach...................................................................................................................................6
Research strategy.....................................................................................................................................7
Research design.......................................................................................................................................7
Data collection method............................................................................................................................8
Data analysis...........................................................................................................................................8
Findings.......................................................................................................................................................9
Discussion.................................................................................................................................................11
References.................................................................................................................................................13
Appendix...................................................................................................................................................15

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Introduction
The word of mouth marketing is effective strategy in the present world. Word of mouth
marketing is actively affected as well as motivated by the entities. As the name explains, the
word of mouth marketing is regarded as occasion where consumer shares data in relation to the
products and entities with others. The consumers share significant data by speaking or some
different mediums. The key significant element of recent word of mouth marketing is internet
communication, such as social media policy. Even though, the traditional word of mouth is based
on methods to establish interaction between consumers, such as in-person conversations or
telephone calls. In this research paper, research question, research objectives, problem of
research, theoretical background of research concern is discussed. The following parts also
discuss research methods, findings, as well as conclusion.
Research question
This paper is aimed at word mouth marketing. Following are the research questions –
 What is word of mouth marketing?
 What is significance of word of mouth marketing?
 What factors influence word of mouth marketing strategy?
Research objective
The research objectives are explained below –
 For discovering meaning of word of mouth marketing
 For exploring the importance of word of mouth marketing
 To know about factors affecting word of mouth marketing strategy

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Research Problem
Word of mouth marketing is known as word of mouth advertising. This is a procedure of
actively influencing along with encouraging organic word of mouth conversation in relation to
the brand, resources, entity, or events. The problem of the research is to search whether the word
of mouth marketing is more effective in comparison of the traditional advertising, media means,
and promotional occasions. This research paper discusses the factors influencing word of mouth
marketing strategy.
Theoretical background -
Meaning of word of mouth marketing
The word of mouth marketing is while interest of consumers in goods and amenities of
company is addressed in the day-to-day discussions. In fact, this strategy is considered as free
advertising made by the experience of customer that goes beyond the expectation. The word-of-
mouth marketing is motivated by various publicity functions set up by organisations (Maisam &
Mahsa 2016). In addition, it can be encouraged by getting different opportunities to establish
consumers-to-consumers communication as well as consumers-to-marketers communication.
The reinforcement on a part of entity can take one of different procedures. The effective manner
is to render them the purpose of talking, like exceeding expectation or giving internal skills or
data in relation to the products. Haenlein and Libai (2017) argued that other strategies involve
rendering consumers new manners to share info about the service and product of company, and
taking participation into conversation with the consumers, like with the help off standard
consumer services. It is stated by Groeger and Buttle (2016) that it is specifically beneficial with
the customer services based on social media that renders for seamless sharing and advancement.
It can see that the word of mouth marketing strategies involve viral, blogs, buzz, emotional along

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with social media marketing. Ajorlou, Jadbabaie and Kakhbod (2018) argued that the WOM
marketing is different from natural word-of-mouth references to the products as well as services
of company in how this can come as an outcome of advancement, inspiration or other influences
by the organisation, otherwise considered as "seeding."
Significance of word of mouth marketing
There is great significance of WOM. The solid word of mouth strategy at a heart of business
may create basis on which to make the whole thing else from. The importance of WOM strategy
can be understood from following points –
1. More subsidy, more independence – the brands encourage long lasting devotion. In this
way, the repeat purchases can be helpful for the additional venture funding. The main
reason is that the Customer’s Acquisition Cost to Lifetime Value is known as significant
element of the healthy business model in earlier period development of business.
2. Increase revenue without spending on advertisements – Yaman (2018) stated that
different brands from The Hustle to Bangs Shoes as well as more use WOM strategy
increases revenue and fan base rather than spending on advertising.
3. Create the community instead of the commodity – the WOM marketing is useful to
make the involved fan base rather than the buy or bolt customers. It is mentioned by
O'Leary and Sheehan (2018) that the higher involved customer purchases more often and
mention the groups more often. It generates the higher customer long lasting devotion.

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Factors affecting word of mouth marketing strategy
There are different elements that put impact on WOM strategy. These key factors are
discussed as follows-
1. Brand loyalty- As per the National Law Review, the brand loyalty may cost five times
more to purchase the new customers in place of retaining current customers.
2. Brand trust – it can see that there are some people who do not believe on the
advertisements. On the other hand, some people have faith on the friends as well as
family members. It is evident there are also some persons who trust the reviews of
consumers. In the different terms, the individuals have faith on companions and family
members (even stranger) more than the advertisements. Sweeney (2018) states that word
of mouth marketing explains that brand is being suggested in the most possible
responsible context. In addition, the first time browsers are much more likely to have the
critical additional action of handing over the information of payment.
3. Creating buzz – this is good to have advertisement budgets and perfect revenue funnel.
However, the only manner to make the genuine buzz regarding the brand is to have
impartial people shouting in a media along with social networking sites. It can see that
good word of mouth marketing strategy strictly enhances likelihood of events (Chen &
Yuan, 2019).
Research methods -

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Research philosophy
Research philosophy is useful for researcher to evaluate different methods. The proper
selection of philosophy is essential for assessing different methodologies. According to the
research problem, the research philosophy includes positivism philosophy, realism research
philosophy along with interpretivism philosophy. The interpretivism philosophy is useful for this
research to get positive results about the use and factors of word mouth marketing strategy. In
addition, this philosophy helps the research scholar to become realistic in utilisation of research
techniques or collection of research methods (Li, et. al, 2018).
Research approach
The research choice is significant to understand how information is used for evaluation
measurement research. It also develops understanding that how to make sure that information is
secured. Furthermore, there are various research approaches. These approaches are inductive as
well as deductive approach. It gives permission to research scholar to validate utilisation of
specific data analysis and collection methods for the research. Moreover, the deductive approach
is relevant only while adoption of the positivism research philosophy. In opposition, the
inductive approach is appropriate in case of using interpretivism philosophy. For this research,
the research scholar has utilised inductive approach. The main reason of selection of the
inductive approach is that it enables the research scholar to enhance specific knowledge about
issue of research. However, inductive approach states flexibility because it is not essential to
create hypothesis regarding issue (Mohtasham, Sarollahi & Hamirazavi, 2017).

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Research strategy
It is important factor to authorise investigator to evaluate problem of study by rendering
appropriate replies to research questionnaires. For getting aims of research, the research scholar
can utilise various kinds of the research strategies, such as observation, literature review,
interview, experiment, case studies, as well as survey strategy. In this research, research scholar
used literature review along with interview strategy. The researcher used interview strategy
because it permits research scholar to get relevant and significant amount of information related
to the use and elements affecting word of mouth marketing strategy. By conducting literature
review, the researcher collected facts and data in least time. It is not costly strategy. It can say
that the literature review increases the excellence of research amongst different shareholders
(Chae, et. al, 2017).
Research design
The researcher according to the concern of research selects the investigation design. The
design is incorporated in context of research methodologies. The research design differs in length
as per the utilisation of research design. The research methods are qualitative research,
quantitative and mixed research. The qualitative research is a methodology of investigation to
develop understanding on the social science and human beings. In contradiction, the quantitative
research is known as research methodology that is useful for producing numerical data and hard
facts, by employing practical, mathematical method and statics. For this study, the research
scholar has used mixed research methods to get best outcomes (Keller & Fay, 2016).
Data collection method
The data collection technique is significant to get data logical manner by using several
sources to attain research aim along with objectives. The data collection methodologies are

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primary as well as secondary data collection method. For getting primary data, research scholar
uses group discussion, interview, survey method, case study, along with action research.
Alternatively, the secondary information is gathered from other entities and research scholar to
have objectives of investigation. The secondary data is considered as published data that is
accessible by the research scholar for getting the relevant data. There are different means for
researcher to acquire data, such as websites, journal, governmental article, reports, newspaper,
and book along with magazines. The researcher used mixed data collection methods. In this
relation, the primary data collection sources are helpful to make a direct relation with members
to get beliefs regarding research issue. On the other hand, the presentation of secondary data
collection methodology is useful to get detailed knowledge in regarding research concern (Dost,
et. al, 2019).
Data analysis
The researcher will assess data about problem of research. This study enables the
important manner to research scholar to distinct the collected data and evaluate them as per the
pre-determined objectives. This can say that it is helpful for the research scholar to organize and
measure data rationally by using proper data analysis techniques. By using this, the researcher
will be able to specify the data in a logical way to get positive results. There are different
techniques that can be useful to conduct research such as statistical analysis, content analysis,
thematic analysis, and informal analysis. The data are collected to make appropriate and
effective measurement of the collected information. For this study, the content analysis tool is
used to assess data. In this way, it was easy for researcher to analyse the data effectively as well
as properly (Subramanian, 2018).

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Findings
Interview questioners –
The researcher has conducted interview with 10 marketing managers of different entities.
These interview questions are discussed as follows-
Question 1
The interview was conducted with marketing managers of the different gender, such as -
Gender
Male 6
Female 4
It is assessed that the research scholar has chosen 6 male participants and 4 female
participants to know the responses.
Question 2
In the question regarding the age, the participants gave different responses that are stated as
follows -
Age
18-25 1
25-32 5
32-39 4
39 or older 0
Above table demonstrates that the most of the participants were belong to 25 to 32 years
old class. It is good to get reliable data in relation to issue of research.

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Question 3
The research scholar has asked about the respondents about work experience. In this relation,
the members provided the various responses that are below-
Experience (in years)
2-5 0
5-8 2
8-11 3
11 and more than 11 5
It is resulted that five members have 11 years and more than 11 years of experience. It is
effective situation because they can have great understanding regarding issue of research.
Question 4
In next question, the researcher has asked in relation to significance of WOM strategy. In
the response, all the participants were agreed with the statement that the WOM strategy is
significant strategy in the present world.
Question 5
Under this question, a researcher askes the members that the word-of-mouth marketing is
useful. It is resulted that 10 of 10 members were agreed with the statement.
Question 6
It is a last question of the interview where interviewers give responses about the factors
affecting WOM strategy. It is evaluated that most of participants stated that brand loyalty is more
powerful factor affecting WOM strategy.

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Discussion
WOM strategy –
The word-of-mouth marketing is a way to tell in relation to customers’ experience in
detail. It can say that the word of mouth marketing does not break at initial communication.
However, it tends to lead to the flow of follow-on the interaction. This is found that the word-of-
mouth marketing is helpful in better promotion. It can say that this marketing strategy is more
effective than advertisement. The reason is that the WOM strategy is more trust worthy rather
than advertisements.
Importance of WOM strategy –
The study shows that the strategies like word of mouth marketing plays significant part in
increasing sales. That is why; it is required to expand on this strategy across the world. It is
helpful in developing the business. It is found that the consumers are more expressively attached
with the entity while they realize that they are listened by the organisation. That is why various
organisations would have sales representative to explain products as well as services with
consumers at personal level by the feedbacks on phone call. This type of communication along
with promotional events can encourage the conversation regarding the services or products of
company.
Factors affecting WOM strategy -
As per the above analysis, it can be concluded that there are some factors that have
significant role in development of word of mouth marketing strategy. These factors are brand
trust, brand loyalty as well as establishment of buzz. These factors develop confidence and trust
in the costumers. It is found that these are helpful in taking decision related to purchase of the

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products and avail services of some specific companies. The effective WOM strategies are
reliable, social, repeatable, quantifiable along with courteous. In this way, there is no reason for
untruthfulness and corruption in word of mouth marketing strategies.

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References
Ajorlou, A., Jadbabaie, A., & Kakhbod, A. (2018). Dynamic pricing in social networks: The
word-of-mouth effect. Management Science, 64(2), 971-979.
Chae, I., Stephen, A. T., Bart, Y., & Yao, D. (2017). Spillover effects in seeded word-of-mouth
marketing campaigns. Marketing Science, 36(1), 89-104.
Chen, Z., & Yuan, M. (2019). Psychology of word of mouth marketing. Current opinion in
psychology, 23(9), pp. 234-345
Dost, F., Phieler, U., Haenlein, M., & Libai, B. (2019). Seeding as Part of the Marketing Mix:
Word-of-Mouth Program Interactions for Fast-Moving Consumer Goods. Journal of
Marketing, 83(2), 62-81.
Groeger, L., & Buttle, F. (2016). Deciphering word-of-mouth marketing campaign reach:
Everyday conversation versus institutionalized word of mouth. Journal of Advertising
Research, 56(4), 368-384.
Haenlein, M., & Libai, B. (2017). Seeding, referral, and recommendation: Creating profitable
word-of-mouth programs. California Management Review, 59(2), 68-91.

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Keller, E., & Fay, B. (2016). How to use influencers to drive a word-of-mouth strategy. Warc
Best Practice, 1-8.
Li, P., Yang, X., Yang, L. X., Xiong, Q., Wu, Y., & Tang, Y. Y. (2018). The modeling and
analysis of the word-of-mouth marketing. Physica A: Statistical Mechanics and its
Applications, 493, 1-16.
Maisam, S., & Mahsa, R. D. (2016). Positive word of mouth marketing: Explaining the roles of
value congruity and brand love. Journal of Competitiveness, 8(1), 19-37.
Mohtasham, S. S., Sarollahi, S. K., & Hamirazavi, D. (2017). The effect of service quality and
innovation on word of mouth marketing success. Eurasian Business Review, 7(2), 229-
245.
O'Leary, S., & Sheehan, K. (2018). Building buzz to beat the big boys. Australia: Praeger
Publishers.
Subramanian, K. R. (2018). Social media and the word of mouth publicity. Science, 3(2), 95-100.
Sweeney, J. C. (2018). Word-of-mouth marketing. The Oxford Handbook of Advice, 343.
Yaman, Z. (2018). The effect of word of mouth marketıng on the purchase behavıor vıa brand
image and perceıved qualıty. Montenegrin Journal of Economics, 14(2), 175-182.

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Appendix
Interview Questionnaires
1. To which gender identity do you most identify?
2. What is your age?
3. How many years of experience do you have?
4. Do you think the WOM strategy is significant?
5. What is use of word of mouth marketing strategy?
6. What factors affect WOM strategy?