1. introductionijrar.org/papers/ijrar_191168.pdf · then we see companies like lava and mi which...
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1. Introduction:
We in India, also pay weightage on who is conveying the message and how, so if there is a
prominent or eminent personality advertising in the form of a TV advertisement then people are
tending to believe or trust the product more because they saw their idol or someone much above
them to be using the same product. Hence the big business houses try to capture the majority of
the market via this strategy too. But with the change in technology every single day, people are
becoming more aware; they are becoming more knowledgeable. This leads the company to find
and come out with new strategies to reach out the market with every waking moment. We live in
an era where people are more focused and product conscious. Yes, there would be people who
are brand loyal but product conscious people are in the majority.
What we mean by this is that the past decade has seen the shutting down of companies like
Nokia and emerging companies like One Plus, who has also threatened the existence of Apple
products as their products are far much technologically advanced and value for money.
Then we see companies like Lava and MI which have come up with standardized affordable
smartphones for the likelihood and comfort for most. These companies are doing very well in the
Indian market; people are shifting form one brand to another and changing devices depending on
the better technology out there in the market with coherence to what they hear from their near
and dear ones.
1.1 Word of Mouth Marketing:
Oral or written recommendation by a satisfied customer to the prospective customers of a good
or service. Considered to be the most effective form of promotion, it is also called word of mouth
advertising which is incorrect because, by definition, advertising is a paid and non-personal
communication. Verbal publicizing is essential for each business, as each glad client can direct
many new ones your way. What's more, it's a standout amongst the most valid types of publicizing
on the grounds that a man puts their notoriety hanging in the balance each time they make a proposal
and that individual has nothing to pick up except for the energy about the individuals who are tuning
in.Physical, nonverbal explanations are the most trustworthy in activating informal. These
announcements can be building, motor or liberal, yet they should go a long ways past the limits of
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what's ordinary. In the event that you would prefer not to be normal, for what reason do you demand
being ordinary? Here are a few cases of these announcements:
Design. The piano store that resembles a colossal piano, with high contrast keys framing the long
canopy over the long entryway patio. The ejecting well of lava outside the Mirage in Las
Vegas.A glass-base floor that enables clients to perceive what's going on the floor underneath
them. Do you recall when McDonalds started constructing connected play areas to every one of
their eateries? It's worked like enchantment for over 20 years.
Dynamic.The hurling of new fish starting with one representative then onto the next at Pike
Place Market in Seattle. The enchanted, spinning blades of the tableside cooks at Benihana.
Kissing the codfish when you get "shrieked in" at any bar in Newfoundland. (A shriek is a
boisterous and amusing service amid which non-Newfoundlanders down a dose of shoddy rum,
rehash a few expressions in the neighborhood vernacular and kiss a codfish. Everybody who
visits that magnificent island returns home with an account of being "shrieked in.") While it 4
might at first appear like a motor verbal trigger is an infringement of #2 above, "Don't rely upon
your staff...," it's truly not. A motor verbal trigger is always perceptible by administration. It isn't
a "client benefit" encounter conveyed secretly, one on one.
Liberal. It is safe to say that you will end up plainly known as the eatery that enables its visitors
to choose - at no charge- - their selection of sweets from a costly pastry menu? You can take care
of its hard expense in the costs of your dishes and beverages. Flour, margarine and sugar are
shoddy publicizing. Is it true that you are the adornments store that will end up plainly known for
supplanting watch batteries at no charge, notwithstanding when the client hasn't bought anything
and didn't purchase the watch from your store? Word will spread. Also, watch batteries cost not
as much as a promoting.
1.2 The Smartphone Industry in India
India has piped the United States to wind up noticeably the world's second-biggest cell phone
advertise, after China, with more than 40 million units dispatched with 23% yearly development
in the second from last quarter of 2017, Singapore-based statistical surveying firm Canalys said.
The discoveries were like those of Hong Kong-based Counterpoint Research, which said India
transported a record 84 million units - cell phones and highlight telephones - amid the quarter
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finished September, and 75% of the units were privately made. At present, more than 100
manufacturing plants create telephones locally. Contradiction, be that as it may, said India
overwhelming the US in shipments is a transitory marvel. The market development was powered
by Chinese handset creator Xiaomi, which expanded its shipments by more than 290% to 9.2
million units in the quarter, additionally narrowing the piece of the overall industry hole with
Korean major Samsung, which dispatched 9.4 million units in the quarter, right around 30%
more than in second from last quarter a year ago. Canalys examiners now figure that Xiaomi
may soon overwhelm Samsung in India.
As indicated by experts, while shipments were solid ahead of the pack up to the merry season,
genuine deals were lukewarm, prompting stock heap up. They said Xiaomi seems to have
improved the situation than most, even in genuine deals. "Final quarter will be essential for
disconnected players as they have to streamline their stock levels, which they have collected in
front of Diwali.
2. Literature Review:
Kristopher Floyd, Ryan Feeling, Saal, (2010) Research conducted by Kristopher Floyd, Ryan
Freling and SaalAlhoquil shows that has emerged on online product reviews and their ability to
elicit performance outcomes desired by the Smartphone manufacturers. Scholars continue to
navigate an array of studies assessing different design elements of online product reviews, and
various research settings and data sources. They undertook a meta-analysis of 26 empirical
studies yielding 443 sales elasticity to examine how these variables relate to retail sales. The
results of our meta-analysis reinforce the old retailing adages that “the customer is always right,”
and yield practi- cal implications for retailers. First, our findings highlight the importance of
providing a quality product that delivers on its brand promise and meets or exceeds consumers’
expectations.
However, it is important that retailers encourage positive eWOM without appearing to engage in
unethical or deceptive practices. While extant research on the “gaming” of review sites is
primarily anecdotal, there is some evidence of retailers posting fake positive reviews to boost
their ratings and unfavorable reviews deni- grating competitors (Fisman 2012). Such
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transgressions breed mistrust among consumers, and are likely to prompt a negative backlash in
the marketplace (Moyer 2010).
Tourism Department, (2011) The research article from the Tourism Dept. from Tourism
Hospitality School talks about the positive effect of Word of Mouth marketing has surprised the
negative effects and has been comprehensive in pursuing the consumer decision making while
making purchase. Research shows that the consumers who have been customers of the
organization since a long period of time add more value to the organization than the conventional
customer or marketing strategies. The study has provided with a detailedunderstanding of the
word of mouth and found to be highly significant in influencing the purchase decision of the
consumers. The study has proven that word of mouth marketing has yielded positive relations
from the consumers and shows that in today’s technology age: word of mouth marketing and
aggressive social media marketing are the key tools towards positive consumer behaviour.
ShirkodaiMaisam, Rasgoodeylami Masha, (2001) Research article conducted by
ShirkodaiMaisam and Rastgoo – deylamiMahsa speaks about the importance for the company to
pay for word of mouth marketing before they decide to invest on other forms of marketing. 30
stories were selected in the city centre and 384 questionnaires were distributed with sampling
available in different stores. Amos 22 was used to test the conceptual model. The results show
that the value congruity of the brand consumer has a positive impact on the brand image and
brand commitment. Moreover, brand love and brand commitment have a significant positive
impact on positive word of mouth. But the impacts of brand image and brand love on brand
commitment are rejected. In the above research, the meaningful effect of congruence variable of
brand and consumer`s values on the brand image and commitment, and two of the mentioned
hypotheses have been accepted; hypothesis 1) the effect of brand congruity on the brand image,
hypothesis 2) the effect of brand congruity on the brand commitment. Every consumer has a
unique personality and the brands found it preferable to deal and approach the consumers
accordingly personalising their pitch.
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Rick Ferguson, (2013) The author of the research paper Rick Ferguson’s purpose for the
paperwas to study the emerging market trends like that of word of mouth marketing and viral
marketing and attempt to determine the measurability in terms of return on investment (ROI).
The study examines real life campaigns from well-known companies and attempt to measure
consumer response beyond merely viewing or participating in the campaign. The paper found
that word of mouth marketing or viral marketing are not always the safest bet. But a well placed,
proactive and calculated campaign can take the markets for the years to come for the following
product or the company and could be the most effective in the non terminal mediums like that of
the internet. The paper suggests that many smartphone brands have only come back into the
market because of the good word of mouth marketing strategies like that of the brand Nokia
when they launched their new series in the Android version, their advertisements were not that
good or effective whereas the spread of the word that they are entering or have already entered
the markets created a bigger storm.
Yakov Bart, (2013) The author Yakov Bart, Assistant professor of Marketing, Northeastern
Universiry Boston in his paper relates and talks about product seeding when it comes to
smartphone with its customers and potential customers. So seeding is a form of marketing that is
conducted in the form of or in the name of research and aims to place the product to its target
customers or target market to understand and analyse its feasibility and the trend in the market.
In the past decade a lot of smartphone brands have gone around and over this concept. Starting
from the brand OnePlus, they only let out invitations to a selected few potential applicants tosee
their response and also to see if the product and brand is able to position themselves as
something exclusive for the market. And in their very first attempt and first product their
calculated sales were to be somewhere around 30,000 which exceeded and final sales number
was above and around 1,50,000 all across the globe which is 5 times the expected and calculated
sales. Similar was the case with Motorola, after them vanishing from the market, the tech giant
Google bought the company to come back to the market with a storm. They launched three
models of the product simultaneously and only made it available in platforms like that of Flipkart
and Amazon, again making the product to seem as exclusive.
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Moreover the fact that very few people but analysts know is that Motorola was a pilot project for
Google. Once the understood and saw the market and became the reason for the success of
Motorola phones, they sold the company to Lenovo and launched their own product: Google
Pixel. Now they knew what they were getting into and how to rule the market. And word of
mouth was already doing wonders for them as everyone knew the success entity behind Motorola
phones is none other than Google which gave the product Pixel 1 and 2, a head start in the
market. They still have a long way to go and compete with OnePlus and Apple though. Nokia is
trying to enter the markets as well.
Imtiaz Ali, WajeehaAslam, (2014) The prime purpose of the article authored or written by
ImitiazArif, WajeehaAslam and Muhammad Ali was to explore how social needs, and social
convenience affect the dependence on smartphones and purchasing behaviour amonguniversity
in India’s emerging economy as the product smartphones in itself is directly in relation with the
selfesteem of the people buying them and also play a role in increasing or acting in favor of
higher social status. Apple in all these years has been tapping on the social factor of its customers
only. Which has led Apple to become a status symbol today rather than being placed at any other
position? The overall findings or conclusion for this research paper was that social need, social
influence and convenience significantly affect the buying behaviour or the purchase decision of
not only students but also other adults is it male or female. Their decisions are primarily affected
by the influence their family members and friends have over them. The paper also dwells upon
the fact that some notions are conscious and some are made or developed unconsciously like
people are not aware of the fact that if they are then why they are indulging into some purchase
decision or how their buying behaviour is influenced or much rather affected. The research
methodology used for this research article was via survey methods and non-profitability
purposive sampling were used to collect data from about 337 respondents, and structural
equation modeling was used to test the hypothesis. It was discovered that social impact, social
needs and comfort fundamentally influenced understudies' reliance on cell phones.
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James Smith, Ross Taylor, (2001) this outcome shows that social impacts and social need do
impact the sum which college understudies utilize cell phones and this makes a reliance to the
degree that they would purchase a cell phone on the off chance that they trusted it would help
them to fit in better with their social gathering. This finding is steady with the conclusions drawn
by Park and Chen (2007). This current examination's outcomes likewise found that comfort is
another imperative factor that influences understudies' reliance on cell phones. The examination
analyzed understudies' reliance on cell phones and the impact of that reliance on their acquiring
conduct with the assistance of a SEM. Social need, social impact and accommodation were
analyzed to evaluate understudies' reliance on cell phones while their buying conduct was
estimated by taking understudies' reliance as an affecting variable. It was discovered that social
impact, social needs and comfort fundamentally influenced understudies' reliance on cell phones.
3. Research Methodology
Scope of Study:
It will be in the form of Questionnaire that will be collected within the area of Hulimavu and the
research will target people aged from 18-25.This study will determine the factors taken into
consideration by consumers while buying smartphones.
Objectives:
Primary Objectives:
1. Study the impact of Word of Mouth on this Smart Phone industry.
2. To study the best kind of marketing for the people in the Indianmarkets.
Secondary Objectives:
1. To study and analyses company’s strategies into dwelling into word of mouth.
2. To study the influence of the peer, environment, friends and family members on the
purchase decision of the consumer.
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Limitations of Study:
It’s not possible every time to measure the impact of WOM and calculate ROI. And another
limitation is the area or the number of people. So the result generated after the study cannot be
generalized.
Sampling Technique
Convenience Sampling
Data collection Method
Questionnaires
4. Analysis and Interpretation:
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According to the survey 92.8% of the people do consider their friends and family before making
the Smartphone purchase. This is a very large chunk of population. This shows that WoM do
take place while making any purchase.
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The above figure shows that 52.2% do not have any influence but if we look closely around 48%
do get influence, which can bring us to a conclusion that advertisements are important as people
do look up to their stars and then go for the product.
Around 44.3% people do consider their acquaintances review and then buy. But 21.4% people do
consider other factors.
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This study shows that around 48.6% of the people sometime their life has given preference to
friends over critique. This is a very important factor that should be taken in consideration that
every company should present themselves out in the most positive light to the consumer. This
will not only help them in increasing their sales but also loyal customers.
5. Findings and Suggestions:
The conclusion of the research paper can be concluded by saying that yes all the factors and
variables studied in the study are correlated to each other. And the null hypothesis is rejected.
The influence of word of mouth from the friends and family member on to the individual plays
an important role and that is what this paper aimed to find. Mostly people in the age bracket of
18-25 years of age dwell into seeking consultation from friends, peer and family members as
most of them in that age bracket have better and best access to technology and its usage.
Majority of the people in this age bracket are students who are also very self-aware about their
social standing and social acceptance.
If people do seek consultation and advice for the recommendation from the people, they know.
That does not always mean that they rely on just that information. With this millennial
generation, every individual does or at least tries to do all the research he or she can do
beforedeciding on the best product for himself. With the growing number of options in today’s
time, it has also become difficult for the consumer to choose from. And the best part is the
smartphone industry still has a lot of scope because entrants of brands like that of One Plus,
Xiomi, MI, Oppo, Vivo etc is not even a decade old. Smartphone industry has seen the most
rapid changes as compared to any other industry.
Especially in a country like India, it is believed whatever is seen or visible could be or is sold.
Hence the market players have to look for ayes to make their products accessible along with
making them affordable. The more accessible it is the more chances of those products sold
would be there.
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