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Abstract
The aim of this study is to determine the impact of Experts,
experienced and impartial recommenders effect on sale of skin
care product by word mouth recommendation.The population of
study includes students and staff of Iqra University and
friends and colleagues in our nearest surroundings. A sample
size of 150 consumers was taken randomly through simple
sampling method. The data of study is acquired via
questionnaire, interviews, and published material on subject
study.A Generalized Regression model is used to find out the
results. The model is estimated for the 2011 only. Hypothesis
was upheld as sale of skin care products significantly depend
on recommendations of study variables. Finally, study made few
recommendations and suggested needed research.
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Introduction
Background
Today the world is a consumer driven world. The vast amount of
information obtainable today has made considerable changes and
variations in balance linking companies and consumers. Since
the consumers have become over full, they are now more
doubtful about typical marketing and advertising of companies
and do not completely rely in companies say or write about
their products. This power shift shows that how consumers
these days are making any buying decisions about any product.
The main emphasis in marketing has shifted from captivating
new customers to the retention of current ones. For this
retention purpose it is necessary for the companies to create
awareness in the consumer mind and the best way to get it done
is by means of effective advertising that have an influence inthe mind of the consumer and affects the decision making
during buying behavior process.The globalization of saturation
of markets, competition and growth of information technology
have improved customer awareness and formed a situation where
long-term sensation is no longer achieved by means of
optimized product qualities and price. Instead, companies
build their achievement on a long-term retention of customer
relationship. Hence, the raise and retention of loyal
customers has turn out to be a key success factor for long-
term achievement of the companies (Nedungadi, 1990).
A consumer is defined as a rational thinker and intelligent
individual who evaluates and stores sensory stimuli to make a
logical decision. For example, customers tend to or in mainly
cases try to evaluate and analyze the motivation according totheir ability, and then they accumulate the information either
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for an immediate decision or future evaluation. The extent to
which customers analyze and evaluate stimuli depends on their
strength of involvement with the stimuli and how greatly
information they are able to regain. Information is
consequently stored in remembrance and then recalled with
other comparable episodes. The inevitable reaction is then
developed by the customer to a particular stimuli or situation
depending on the affair termed as consumer behaviour. It is
also eminent that a consumer is able to produce a deeds based
on a set of action or set of different activities, such as
those concerning multiple information processing and just a
simple product evaluation (Biehal and Chakravarti, 2006).
Word of mouth is an indication to the transient of information
commencing person to person. The term referred exclusively to
oral communication but now comprises any form of human
communication like telephone, email, face-to-face and text
messaging. Word of mouth is the unpaid spread of a marketing
message and it can take place using the human voice or else
can be transmitted by means of any communicative way for
instance through the internet or text message. Word of mouth
is considered as a powerful promotional tool and considered as
part of nearly every business marketing strategy.
Objective:
The objective of study is to know the impact of expert,
experienced and impartial users recommendation (i.e word of
mouth) on sale of skin care products.
Importance:
The importance of study can be well measured by the results
obtained so far. As the results are significant, as sale of
the skin products significantly depend on word of mouth
(recommendations) of variables under study.
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METHODOLOGY
To test the hypothesis that sale of skin care products dependon recommendation of expert, experienced and impartial users
recommendations by word of mouth. The population / scope of
study are recommendation of expert, experienced and impartial
users of skin care products in Iqra University and in its
surrounding. A sample of size 150 taken at random from
students of Iqra university, or consumers that we know as
friends or colleagues in our nearest surrounding. The sale of
skin care products under study is amount in 1000s. Whereas
recommendation of expert, experienced and impartial users is
taken as yes or no. Yes, being recommend and no being do
not recommends. A generalized regression Model is framed to
test the model.
Hypothesis:
H1: There is a positive effect of experts recommendation on
consumer acceptance the sale of skin care product by word of
recommendation.
H2:There is a positive effect of experts recommendation onconsumer acceptance the sale of skin care product by word of
recommendation.
H3:The Impartiality of recommender has positive effect on
consumer acceptance of skin care product by word of mouth.
Data collection:
The primary sources includes questionnaire and secondary
resource includes past research, journals, internet and books.
A sample of size 150 taken at random from students of Iqra
university, or consumers that we know as friends or colleagues
in our nearest surrounding. The sale of skin care products
under study is amount in 1000s. Whereas recommendation of
expert, experienced and impartial users is taken as yes or no.
Yes, being recommend and no being do not recommends. A
generalized regression Model is framed to test the model.
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Variables.
Variables Name Units Co-efficient
Sale SCP Sale of Skin Care ProductRs. Thousand
Intercept Constant
REXPRT Experts Recommendation 0/1 1
REXPRD Experiends Recommendation 0/1 2
RIMPUSR Impartial Users Recommendation 0/1 3
The causal relationship is as follow:
Y = f(X1, X2, X3)
Y (Sale SCP) = f (REXPRT, REXPRD, RIMPUSR)
The Regression equation
Sale SCP = + 1 (REXPRT) +2 (REXPRD)+3 (RIMPUSR)+ . (a)
Equation a) elaborates the relationship between sale of skin care products and factors that causes it.
This shows that sale of skin care products is caused by Expert, Experienced and impartial usersrecommendations. The values of Beta being the coefficient of predictors and are error term to
capture the other independent variables.
Empirical Findings
SPSS results are as follow:
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Dependent Variable : Sale SCP
Independent Variables: REXPRT, REXPRD, RIMPUSR.
Method : Generalized Regression Model.
Included Observation : 150
Levene's Test of Equality of Error Variancesa
Dependent Variable:salescp
F df1 df2 Sig.
11.281 8 141 .000
The overall model is fit. As result of Levens Test
is significant. Which indicate the predictors are
better predicting the variation in dependent
variable.
Variable Coefficient
4.982
REXPRT- .982 (0), 0 (1)
REXPRD -.92 (0), 2.85 (1)
RIMPUSR -.889 (0), 1.2 (1)
0 and 1 in small brackets indicate do not recommend and recommend respectively.
Analysis of Findings
Since, the dependent variable in model is SCALE and all
predictors are being Categorical (nominal) in type. So, the
generalized regression model is used. The overall model is fit
since all results are significant for each predictor.
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Section - III
CONCLUSION AND RECOMMENDATION
Since overall model is fit. So, predictors better explain the
variation in sale of skin care products. But, since the scope
of the study is very narrow, as , it only include the staff
members, students and residents of near surrounding of Iqra
University, so results cannot be generalized.
References:
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Appendix
Q u e s t i o n n a i r e
PART-I
Situation I
1. Last time when you/some one close to youwanted to go to a high class expensiverestaurant, who was consulted first in thismatter? (Tick only one)
1.1. Family member (specify Relationship)
__________________________
1.2. Relative
1.3. Friend1.4. No idea or You were never involved(If
no idea then skip to Question No.3)
1.5. Neighbor
1.6. Any Other,please specify:___________________________
2. Why did the above mentioned personwasspecificallyconsulted?(Tick all that apply)
2.1. Because he/she has been to manysuch restaurants and knows them verywell.
2.2. Because he/she is an expert in suchcases (being a Professional chef,Restaurant owner etc)
2.3. Because you and the above mentionedperson share similar interest.
2.4. Because he/she will not benefit fromyour decision.
2.5. Because he/she is the one who givesyou advice all the time and he/she is rightmost of the time.
2.6. Any Other,please specify:___________________________
Situation II
3. Last time when you/some one close to youpurchased a car, who was the first person,consulted in this matter? (Tick only one)
3.1. Family member (specify Relationship)
__________________________
3.2. Relative
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3.3. You dont know or you were neverinvolved (If dont know then skip toQuestion No. 5)
3.4. Friend
3.5. Neighbor
3.6. Any Other,please specify:___________________________
4. Why did the above mentioned personwasspecificallyconsulted?(Tick all that apply)
4.1. Because he/she had experience ofhandling similar situations and/or knowswhere the best deal can be found.
4.2. Because he/she is an expert in suchcases (being a Mechanic, Mechanicalengineering etc)
4.3. Because he/she shares similar interest
with you/the person close to you.4.4. Because he/she will not benefit from
your decision.
4.5. Because he/she is the one who givesyou advice all the time and he/she is rightmost of the time.
4.6. Any Other,please specify:___________________________
Situation III
5. Last time when you/some one close to you
felt the need to purchase an expensive orlatest cell phone, who was consulted first inthis matter? (Tick only one)
5.1. Family member (specify Relationship)
__________________________
5.2. Relative
5.3. Friend
5.4. Neighbor
5.5. Any Other,please specify:___________________________
6. Why did the above mentioned personwasspecifically consulted?(Tick all that apply)
6.1. Because he/she has experience ofhandling similar situations
6.2. Because he/she is an expert in suchcases (being a sales person, working fora company that makes such items, etc)
6.3. Because he/she shares similar interest.
6.4. Because he/she will not benefit withyour decision.
6.5. Because he/she is the one who givesyou advice all the time and he/she is rightmost of the time.
6.6. Any Other,please specify:___________________________
Situation IV
7. Last time when you/some one close to youwanted to get a credit card, who was the
first person, consulted in this matter? (Tickonly one)
7.1. Family member (specify Relationship)
__________________________
7.2. Relative
7.3. Never wanted a credit card. (If No thenskip to question No. 9)
7.4. Friend
7.5. Neighbor
7.6. Any Other,please specify:
___________________________8. Why did the above mentioned person was
specificallyconsulted ? (Tick all that apply)
8.1. Because he/she has many cards andknows their benefits and flaws.
8.2. Because he/she is an expert in suchcases (being a Bank employee or creditcards department, etc)
8.3. Because he/she shares similar interest.
8.4. Because he/she will not benefit withyour decision.
8.5. Because he is the one who gives youadvice all the time and he/she and is rightmost of the time.
8.6. Any Other,please specify:___________________________
Situation V
9. Last time when you/some one close to youexperienced a medical emergency or had tovisit a hospital or consult a physicianurgently who was consulted first in thismatter? (Tick only one)
9.1. Family member (specify Relationship)
__________________________
9.2. Relative
9.3. Friend
9.4. Neighbor
9.5. No one
9.6. Any Other,please specify:
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__________________________
10. Why did the above mentioned personwasspecifically consulted?(Tick all that apply)
10.1. Because he/she has experience ofhandling similar situations
10.2. Because he/she is an expert in suchcases (being a Doctor, medical student,etc)
10.3. Because he/she shares similar interestwith you/some one close to you.
10.4. Because he/she will not benefit fromyour decision.
10.5. Because he/she is the one who givesyou advice all the time and he/she is rightmost of the time.
10.6. Any Other,please specify:___________________________
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PART-IIDemographic Information
Please provide the following demographic information. It will not be used for anything other than statistical
purposes nor will it be used for any kind of solicitation. Also, the information you provide will neither be given norsold to anyone under any circumstances.
1. Your name
1.1. ____________________________
2. Gender
2.1. Male
2.2.
Female
3. Your age? (Tick only one)
3.1. 20 years or less
3.2. 21 30 years
3.3. 31 - 40 years
3.4. 41 50 years
3.5. 51 years or more
4. Where do you live? (Tick only one)
4.1. Defence/Clifton4.2. KDA/Bahadurabad/PECHS
4.3. Nazimabad/North Nazimabad
4.4. Gulshan-e-Iqbal/Gulastan-e-Jahur
4.5. Any Other, please specify:
__________________________
5. Your Education (Tick only one)
5.1. Intermediate or less
5.2. Bachelor or equivalent
5.3. Masters or Equivalent
5.4. Any Other Please specify:
___________________________
6. Your household average income per monthin Pak Rupees? (Tick only one)
6.1. Rs. 20,000 or less
6.2. Rs. 21,00040,000
6.3. Rs. 41,00060,000
6.4. Rs. 61,00080,000
6.5. Rs. 81,000100,000
6.6. Above Rs. 100,000
7. May we contact you again for a follow-upsurvey?
7.1. Yes
7.2. No
8. A phone number where you can becontacted?
8.1. __________________________
Thank you.
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Consumers4