Introduction

All around of the world, people have constantly communicated, sharing and talk about everything with each other. It is easy to share point of experience, advices and disagreements to building communication. Therefore, the people can easy to talk their experience and give some advices about the products. With the fast development of the technology and internet, people using different way to communication with each other sharing point of more efficient and information easier. Everything is altering rapidly, much more products and services are fast becoming out of date. The customer’s behaviour and what they buy becoming more important. Most of companies through different publicity activities to encourage consumer-to-customer and customer- to- marker communication. As a new type of word-of-mouth information, online consumer product review is an emerging market phenomenon that is playing an increasingly important role in. (Yubo C, Jinhong X.2008).  Within this research proposal, we will research is to study the attention of the consumers in word-of-mouth and social media to power of their purchasing activities. The next research is to analysis the people influenced by interest of word-of-mouth and social media.

Background/Rationale

Most of consumers are keen creating an exchange and response of information and increasing more and more in word-of-mouth fact. Appreciation to the internet, consumer’s information to be successful in this way for companies. some marketers may be spending millions of ponds on elaborately conceived advertising, makes up a consumer’s mind is not free and simple. The word-of-mouth is recommendation from a trusted source. Too many products choices for consumers which means the word-of-mouth is quickly and effectively for traditional marketing. Word-of-mouth is the primary factor behind 20 to 50 percent of all purchasing decisions. (Jacques B, Jonathan D and Jargen V 2010). Today product review is posted online and opinions disseminated through social network. More and more people even create blogs or slide to discuss brands and products.

In the recent years, social media gives word of mouth wings. The impact of social medias in brand attitudes, awareness and social norms is so strong. The online communities, word-of-mouth increase in size, markets have come to recognize their importance. An index of brand’s power to generate messages that influence the consumer’s decision to purchase (2010). The right information building resonates in interested networks, influencing brand perceptions, market share and purchase rates. The online communications have significantly increased the potential and far-reaching momentum effects.

Proposed title

Social medias, word-of-mouth and their impacts on marketing in digital age

Research question

In the form of research proposal, the following general research question could be posed:

1. How marketers take word-of-mouth phenomenon and how to handle it?
2. How community utilizes and multiplies word of mouth information about online purchasing experience?
3. How communities perceive word of mouth and social media on marketing?
4. What is the effect of social medias to word of mouth?

Research objectives

1. To investigate of ratio analysis word of mouth and social medias impact on buying decision.
2. To analysis whether consumers are supposed to give more importance to negative word of mouth rather than positive.
3. To analysis the ratios which are commonly used, consumers are more likely to believe that social medias or word of mouth.
4. To predicting of higher importance in word of mouth and social medias marketing.

Literature review

Word of mouth is complex form and has many potential origins and motivation. It has an important impact of brand and products on consumer’s decision. Word of mouth has three forms on marketing should understand: consequential, experiential and intentional. Experiential has a powerful form of word of mouth, that its result from the consumer to direct experience product and services. But sometimes experience deviates from what is expected, because consumers rarely praise or complain a firm. Within the word-of-mouth form that the most using is consequential word of mouth.  The traditional marketing activities pass on massages to consumers and publicize their brands, those massages impact is very stronger on consumers for direct effect. Marketers should consider the pass-on effects and direct of word of mouth when their determining the massages and media mix that maximizes the return on their investment (2010). Last form is a less common form is intentional. Such as when the brand use celebrity endorsements to make position buzz for product. But just a few companies to invest in intentional word of mouth, because many marketers cannot sure they can successfully or unsuccessfully of intentional form campaigns. All the forms should to measure and understand its impact through markets.

Figure 2: Measuring the impact

Marketers have utilized various means to maintain the brand loyalty of their customers, including classical marketing mix variables, brand elements and new ways of marketing such as events, sponsorships, one-to-one marketing activities, internet marketing and social media marketing (irem E, Mesut C 2012). Social medias is a common form of marketing that is the process of companies to promote their products in websites or online social channels. In the today’s fast moving business and technology, should staying competitive power that needs stronger social medias strategy. Most of companies will to hire consultants to decide characteristics of their social medias environment. The aims of this research proposal are to understand on consumer perspective on the social media and word of mouth effects on marketing. For example, the Pepsi and Coca Cola, through applied online customer loyalty programs to offers special free and promotions on consumers. Most of consumers will view social medias sites and service channel to understand products and communication with brands. Some consumers would rather like to see undated content. Google company has changed for people required. Algorithm of their search system to enable customers to see the updated contents first (Freidman, 2011). Many social channel platforms will filter out the content that is not relevant to customers. Thus, improving relevant information and updated contents is one of the most important strategies. Today, the popularity of social media is the content among friends, applied word-of-mouth forms in social medias platforms to communication among consumers is another important reason for the customers to be engaged with brands and products.

In the earlier, online shopping has crossed the space for business become major purchasing behaviour. Thus, quality concern and other risks appeared on e-shopping. Consumers who want buying products on online market, they need to find positive, honest and evaluation for products. With the development of new technology, some new technology changed human life style and communication way with people. People now much more using a various of social medias platforms, for example Instagram, Facebook, email and social networking websites. Within the companies, word of mouth and social medias effect is the customers purchase behaviour. Word of mouth and e-word-of-mouth is effective way for brand long time develop can to catch the attention of new consumers. If the consumer never thought to buy a product or heard a brand, some connection suggest to this brand will most likely affect consumer behaviour and guide consumer to choose another product. Many consumers will ask recommendation from other people in the buying before. They will trust family member, and give more response with experiences and information to someone. The persons most affected by this are people in towering uncertainty-avoidance culture (Osmonbekov.et.al. 2010). One of the most important for the marketing is word of mouth. When you have any experiences for a brand you will based by someone recommendation who will tell you some negative or positive about a pick product. If you have yourself prefer brand, you will be less tempted by other brand that a advises you to purchase. Usually, messages passed within tight, trusted network have less reach but greater impact than those circulated through dispersed communities (2010). We are family members and trust friends has a high correlation. After all, one person with 100 friends on Facebook may be ignore the advice of 80 of them. It is the small size, close-knit network of trusted friends that has the real influence.

H1 word of mouth and social media platforms has positively effects of the consumers buying behaviour and standard marketing,

H2 word of mouth and social medias message has a straight positive outcome with consumers to communication.

H3 most of consumer’s minds is associated to their engagement in word of mouth and social medias behaviour in making decision based on marketing.

H4 when the brands and product appears on social media platforms is positively affected for customers.

H5 when the brand offers advantageous, relevant information and updated content that the consumer buying behaviours is positively affected on social medias

Methodology

 

Research design

Impact of word of mouth and social medias on the consumer’s buying behaviour of communities will be seen in this research proposal. And descriptive research will be done on the consumer’s buying behaviours and attitudes in relation to entertainment, personal productivity and shopping. Consumers are generally influenced by other people opinions when in a buying behaviour. Thus, the consumer will be depend on information from word of mouth and social media communication in following:

1. When products have a higher transparency.
2. When verification by objective evaluation is difficult.
3. When the products or brand is complicated of information.

Most people go online shopping the reason is to find and understand information, because the internet has become popular resource of collecting information about buying behaviour and reduction.

 

Data collection

This research proposal data will be collected just through the use of secondary sources. Secondary research data will be included help taken from research papers, articles and blogs and so on. All result was manually depurated including journal, institution, author name and others. To avoid misspelling in author’s names and to normalize keywords and surname, methodology and data analysis techniques. After obtaining permission site at which the data will be gathered. We will be borrowing some about this study books throughout the Coventry university public library.

Data analysis

Figure 3: adaptive structural equation model (Chairman, Brad F 2014)

This model is highly effectively method to understanding the complex causal relation of the word of mouth. And consider the multiple touch-points included in word of mouth and social medias effects and the chained effects onto other marketing levels and nosiness marketplaces of the promotion brand. In the last two years, about word of mouth academic research interest has a significant. Followed by social medias platforms highlighting the importance of word of mouth.

Figure 4: word of mouth both a direct and indirect role in driving business performance.( Chairman, Brad F 2014)

This figure illustrates that word of mouth is directly impact of business performance. this research interesting to note the amplification that word of mouth has offline medias and online medias, which to impacts business performances. Thus, the word of mouth also drives websites traffic and search. Furthermore, we found that two thirds of word of mouth’s impact is direct with one third acting as an amplifier of medias (Zoe B, 2015). Some research shows that word of mouth has a more immediate impact than social media. Thus, this demonstrates the immediate nature of recommendations and conversation.

Figure 5: framework of consumers decision-making【from: (Nawaz A, 2015)】

The figure 5 illustrates that word of mouth and social medias approach is stronger than pallid printed information. And shows that has been made of three main parts, first one is the process of customer’s decision making. Second one is individual behaviour determinants, and the last one is environment influencing. Some negative word of mouth information will be decreased of familiarity with the products. Most consumer acquires more detailed from word of mouth information as the conclusion, they have more diversity than when that was received general information or limited information.

Contribution of the study

This research proposal tries to describe and identify their impact of word of mouth and social medias for consumer’s behaviours, and focuses on the business marketplaces. This research proposal can help the people to have a better understanding its impacts of word of mouth and social medias on marketing so as to provide better quality and values products give consumers. In addition, the study may help the brand to evolve their products. This is just a bases work on the impact of word of mouth and social medias on marketing. Social media platforms are a very dynamic and progressive platform. Today, has a potential to change the way of characteristics and business of social medias is arrived.

Limitation

This research proposal provides fundamental insights on the development for word of mouth and social research regarding to: methodology, keywords and sources research line. While this research builds upon the word of mouth and social medias, but have some limitation should be noted. Any quantitative synthesis is constrained by the nature and scope of the original studies on which it is based and this shortcoming should be born in mind when interpreting findings presented here.

 

Conclusion

Impact of word of mouth on marketing arises due to social medias, that the consumers see comments of the people who did shopping from such place. They will consider whether or not to buying those products and see whether or not it would be effective. Today, marketer aware of the consumer’s choices and they will try to change or improve better quality for products.

The aims of this research proposal were to understand impact of social medias and word of mouth on marketing. it was from perspective of the consumers. Social media can be defined as a new form for building relationship with consumers is a rapidly growing platform, become forming positive image of brand. The result of this research show that social medias and word of mouth are most significant driver of marketing and business marketplaces, followed is popularity of the content among friends and family members, and appearing on different social medias platforms to providing applications. The marketer will consider the values and benefits, advantages they offer to the people in their campaigns, makes the consumers more prefer to their brand or products. But consumer loyalty of brand also impacted positively by the different social media platforms and word of mouth. That is meanings consumers are asking for creative, variety and differences for engaging with the brand on social media platforms. Thus, most of companies work on creation, interesting and participative applications. Impact of word of mouth in marketing is non-negligible, especially in online environment (Gruen at al, 2006).

Ethical considerations

This research proposal just only use secondary research and data, we do not have any interview, questionnaires and any others type of primary research. Therefore, we need not any consent forms and participant information. The secondary research date collected publically available business date. That is meanings no sensitive data and information. Some data and words from about business article This research will be a low risk, no living participants and any secondary research data is nature. Furthermore, this research will be using of specialist equipment for example google scholar, Coventry university locate, SPSS, Microsoft and FAME databases. Therefore, no special requirements are needed.

Timetable

This figure show that the estimated timescale of this research proposal. This research proposal is estimated to commence on the week beginning 04/04/2017 and estimated completion date is the week beginning 03/05/2017.

Figure: timetable of dissertation

Task/week commencing

05/04/2017

06/04/2017

07/04/2017

08/04/2017

09/04/2017

10/04/2017

11/04/2017

12/04/2017

13/04/2017

14/04/2017

15/04/2017

16/04/2017

17/04/2017

18/04/2017

19/04/2017

20/04/2017

21/04/2017

22/04/2017

23/04/2017

24/04/2017

25/04/2017

26/04/2017

27/04/2017

28/04/2017

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30/04/2017

01/05/2017

02/05/2017

03/05/2017

04/05/2017

Reviewing literature

Writing up dissertation

Find articles about WOM and social medias sources

Select sample size

Analysis the results

Conclusion

 

Reference

1. Jacques B, Jonathan D and Jargen V (2010). A new way to measure word-of-mouth marketing. [online] available at: http://vandymkting.typepad.com/files/2010-4-mckinsey-a-new-way-to-measure-word-of-mouth.pdf
2. YuBo C, JinHong X (2008). Online consumer review: word of mouth as a new element of marketing communication mix. [online] available at:

http://pubsonline.informs.org/doi/abs/10.1287/mnsc.1070.0810

3. Fatma N (2014). Word of mouth and its impact on marketing. [online] available at: http://www.ijsrp.org/research-paper-0114/ijsrp-p25121.pdf
4. Irem E, Mesut C (2012). The impact of social media marketing on brand loyalty. [online] available at: http://www.sciencedirect.com/science/article/pii/S1877042812045818
5. Freidman, A. (2011), Freshness Update + Social Media = Happy Users, retrieved from http://searchengineland.com/freshnessupdate-social-media-happy-users-102880 (accessed on 20 March 2012).
6. ] T. W., Osmonbekov, T., &Czaplewski, A. J. (2006). eWOM: The impact of customer-to-customer online know-how exchange on customer value and loyalty. Journal of Business research, 59(4), 449-456.
7. Gruen T. W., T. Osmanbekov, A.J. Czaplewski (2006), eWOM: The Impact of Customer-to-Customer Online Know-how eExchange on Customer Value and Loyalty, Journal of Business Research, Vol: 59, pp: 449-45
8. Nawaz A, Jolita V and Rizwan Raheen A (2014). Impact of word of mouth on consumer buying decision. [online] available at: https://www.researchgate.net/profile/Nawaz_Ahmad3/publication/267631614_Impact_of_Word_of_Mouth_on_Consumer_Buying_Decision/links/5454fa1a0cf2bccc490cc6f9/Impact-of-Word-of-Mouth-on-Consumer-Buying-Decision.pdf

 

9. Zoe B (2015). New research: measuring the precise return on word of mouth marketing. [online] available at: http://blog.contagiousagency.com.au/womma-research/
10. Chairman, Brad F (2014). Return on word of mouth. [online] available at: https://womma.org/wp-content/uploads/2015/09/STUDY-WOMMA-Return-on-WOM-Executive-Summary.pdf