Word of mouth and brand loyalty

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Word of mouth and brand loyalty

Presented by: Tanweer, waheed Murad & Rashid ali

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Variables

Independent variable Word of mouth

Dependent variable Brand loyalty

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Informal, person-to-person communication between a perceived noncommercial communicator and a receiver regarding a brand, a product, an organization, or a service” (Harrison-Walker, 2001)

WOM is informal communication about a product or a service; that can occur between two or more consumers (Ryu and Han, 2009).

Word of mouth

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Brand loyalty Brand loyalty is defined as positive

feelings towards the brand and intense dedication to purchase the same product/service repeatedly now and in the future from the same brand, regardless of competitors' actions or changes in the environment (Liu, 2007; Wood, 2004)

Brand loyalty means that consumers will repeatedly purchase the same brand (Chaudhuri and Holbrook, 2001).

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Problem statement What is the relationship between

word of mouth and brand loyalty that influence Pakistani consumers and also the overall relationship between brand loyalty and word of mouth?

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The aim of this study was to discover the

scope of word-of-mouth amongst the Pakistani consumer.

More specifically, we investigate both the relationship between word of mouth and brand loyalty.

Research objective

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Word of mouth:

In our research word of mouth means transmitting information and informal or formal way of communication through which people market different product through word of mouth, and people change their perception about brands. WOM is independent variable. Brand loyalty:The tendency of some consumers to continue buying the same brand of product rather than competing brands. A positive perception of consumers about a brand and their future commitment to buy a brand and brand loyalty is dependent variable.

Operational definitions:

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Hypothesis:

H0: There is no relationship between WOM and Brand loyalty.

H1: There is a positive relationship between Word of mouth (WOM) and Brand loyalty.

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Word of mouth has 13 items Brand loyalty has 8 items Age, gender and education was also mention The questionnaire was measured through a 5

point Likert scale (1 for Strongly Disagree, 2 for Disagree, 3 for neutral, 4 for Agree & 5 for Strongly Agree).

METHODOLOGY

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Statistical Tests Reliability was measured through

Cronbach’s alpha test Frequency tests were used for

checking the age, gender Correlation test was conducted to test

the hypothesis. Regression test was used to check the

variations in the data. Descriptive statistics conducted to

check the demographics of the dependent and independent variables

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SAMPLE SUBJECTTable 5.1 Gender of Subjects

Gender Frequency %age

Males 116 57.7

Females 85 42.3

Total 201 100.0

Table 5.2 Subjects Age

Age Frequency Percentage

17-20 years 38 18.9

21-23 years 125 62.2

24& above 38 18.9

Total 201 100.0

Table 5.3 Subjects Education

Education Frequency Percentage

Bachelors 62 30.8

Masters 126 62.7

M.Phill/PhD 13 6.5

Total 201 100.0

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Analysis of Data

Reliability

Table 6.1.1 Reliability Cronbach’s alpha Objects .610 21

Table6.1.2 Reliability of variables

Variables N Cronbach’s alpha Word of mouth 13 0.722 Brand royalty 08 0.553

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Descriptive statistics Table 6.1.3 Brand Loyalty (Age, gender, education of Respondents)

Ages Means N S.D 17-19 Years 3.23 38 .47

20-22 Years 3.24 125 .57 23 & above Total

3.27 3.25

38 201

.54

.54

Gender Male Female total Education Bachelors Masters M.Phill/PhDs total

3.25 3.24 3.25 3.19 3.27 3.29 3.52

116 85 201 62 126 13 201

.56 .52 .54 .54 .54 .63 .54

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Descriptive statistics

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Correlation

Table 6.5.1 Correlations WOM Brand Loyalty

WOM .192 Sig (2-tailed) .006 N 201 201

Brand loyalty

.192

Sig (2-tailed) .006 201 N 201

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RegressionTable 6.6.1 Coefficients

Model β Coefficients

Std Error

Standardized Coefficients

T Sig.

(Constant) 2.64 .22 11.82 .000 Word of Mouth .173 .06 .192 2.76 .006

Adjusted R Square .032

F test value 7.62 Sig level .006 Durbin Watson 1.71

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Findings:positive relationship between WOM and Brand loyalty

Discussion:Our findings are interrelated with the findings of (Taylor and Hunter, 2003), (Neal and Strauss, 2008). They also find positive relationship between word of mouth and brand loyalty

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Limitation of study:• small sample size• small Number of variables lack of resources• especially time resource was limited

Recommendation for future research:• consider personality traits as a sub variable • Sample size and the time limit should be

increase

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The article helps firms plan their marketing strategy

This research helps firms understand the context of brand loyalty in terms of looking at Pakistani consumers.

Managers can use Word of Mouth in order to promote the brand and to increase the loyalty among the consumers.

Managerial Implications

MANAGERAL IMPLECATIONS:

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Conclusion:

The research is conducted using different statistical tools and the reliability of research is good and the relationship find between two variables is positive which is also supported by previous research.

There are some limitations which can be taking into consideration for future research purpose like (take personality as a moderating variable).

Overall the result of research was satisfactory.

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