Influence Of Word Of Mouth Advertisement On The Purchasing Behaviour Of Consumers; A Comparative Study Of Mummy’s Kitchen In Novena University

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Influence Of Word Of Mouth Advertisement On The Purchasing Behaviour Of Consumers; A Comparative Study Of Mummy’s Kitchen In Novena University


Abstract


This study was carried out on the influence of word of mouth advertisement on the purchasing behaviour of consumers using mummy’s Kitchen as a case study. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of students of Novena University, who patronizes Mummy’s Kitchen. In determining the sample size, the researcher conveniently selected 160 respondents and 141 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, while the hypotheses were tested using chi-square statistical tool. The result of the findings reveals that word of mouth has a significant influence on consumers. The study also revealed that the extent at which word of mouth is utilized in Mummy’s Kitchen is high. Further findings showed that the use of word of mouth in Mummy’s Kitchen influences consumers purchase intention. And the use of word of mouth in Mummy’s Kitchen attracts more patronage compare to her competitor. Therefore, it is recommended that businesses should not solely rely on the word of mouth campaigns. They should also use formal means of communication such as newspapers, magazines, television and internet. To mention but a few.


Table of Content


Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypotheses
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organizations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.0 Data Presentation
  • 4.1 Analysis of Data
  • 4.2 Answering Research Questions
  • 4.3 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

Consumer behavior is a young discipline; the earlier books were written in 1960’s however, its intellectual forefathers are much older. Understanding of consumers is the consumption process provides a number of benefits. These benefits include assisting the manager in decision making and providing the marketing research with a theoretical base from which to analyses consumers in making better purchase decision. The study of consumer can help to understand more about psychological, sociological and economics factors that influence human behavior. A general knowledge of consumer behaviors also has personal value. It can help people to become better consumers by informing them of the way in which they and others go about their consumption activities. In addition it can assist consumers in the buying process by informing them about some of the strategies used by companies to market their products (Foxall & Goldsmith, 2014).

The field of consumer behavior explores why people make certain purchasing decisions, what products and services they buy, where they buy them, how they use them, the frequency with which they purchase them, and the consumer decision process in action. In this context, consumer behavior has been defined as the activities of people engaged in actual or potential use of market items-whether products, services, retail environment, or ideas (Berkman & Gilson, 2007).

One of the important means of dissemination for information is word of mouth. Word of mouth both negative and positive can have a profound impact on consumer behavior. If utilized correctly, it can go a long way to promote products or service and build a perception created through this method can persist for a long time and adversely effect to the marketing. Therefore the effect of word of mouth can be harsh as well as beneficial (Solomon, 1996). Word-of-Mouth Marketing progress align advertising campaign messaging and product releases with local market influencers, Trendsetters, and Tastemakers to craft mass opinion and purchase behavior.

Effective word of mouth marketing campaign connects with Influencers and Trendsetters who initiate consumer trends (e.g. Fashion trend, automobile purchase trends, consumer product trends, entertainment trends, and beverage consumption trends) that are followed by mainstream consumption trends) that are followed by mainstream consumers. Consumers value word-of-mouth twice as much as they value advertising. In a world in which we all are bombarded with advertising all day (and all night), what is the first thing we usually do to learn more about a business, a restaurant for example? We try to find someone we know who has been there, or someone who knows someone who’s been there. It’s true. Word of mouth does have more credibility than advertisers can even imagine, much less conjure up. And yet word of mouth suffers from the same virtue that makes it so strong. It is personal and therefore, limited in its reach (Pusateri, 2009). With regard to the above, this study seeks to ascertain the influence of word of mouth advertisement on the purchasing behaviour of consumers.


1.2 Statement of the Problem

The challenge of getting the attention of and remaining in the mind of the consumers have steadily increased, requiring organisations to create well-planned and comprehensive marketing communication programmes in order to achieve company objectives. All marketing efforts should be, market focused, consumer oriented, backed by integrated/co-ordinated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals to enhance competitive edge. The harsh realities we all have to confront requires organizations to be creative and innovative through word-of-mouth communication to enable consumers make positive purchases among competing alternatives, recognizing that consumers do not just buy products or services, they buy utility, they buy solution, they buy benefit. And where satisfaction is achieved the consumers become the organization’s best sales person; telling others through word-of-mouth about their experience. The challenge with the word of mouth strategy is apparently on the fact that marketers of many organizations in Nigeria lacks appropriate communication approach. While some are not polite, brief and convincing, many others play out their sole desire leaving the customers in doubts and confusion. However, the word of mouth strategy when properly utilized can facilitate sales and build organizational and brand reputation. From the aforementioned, the aim of this research project is to evaluate the influence of word of mouth advertisement on the purchasing behaviour of consumers.


1.3 Objectives of the Study

The general aim of this study is to examine the influence of word of mouth advertisement on the purchasing behaviour of consumers. Specifically, this study will;

  1. Find out whether word of mouth have a significant influence on consumers.
  2. Ascertain the extent at which word of mouth is utilized in Mummy’s Kitchen.
  3. Ascertain whether the use of word of mouth in Mummy’s Kitchen influences consumers purchase intention.
  4. Ascertain whether the use of word of mouth in Mummy’s Kitchen influences consumers purchasing behavior.
  5. Ascertain whether the use of word of mouth in Mummy’s Kitchen attracts more patronage compare to her competitors.

1.4 Research Questions

The study will be guided by the following questions

  1. Does word of mouth have a significant influence on consumers?
  2. What is the extent at which word of mouth is utilized in Mummy’s Kitchen?
  3. Does the use of word of mouth in Mummy’s Kitchen influences consumers purchase intention?
  4. Does the use of word of mouth in Mummy’s Kitchen influences consumers purchasing behavior?
  5. Does the use of word of mouth in Mummy’s Kitchen attracts more patronage compare to her competitors?

1.5 Research Hypotheses

H01: The use of word of mouth in Mummy’s Kitchen does not influence consumers purchase intention.

H02: The use of word of mouth in Mummy’s Kitchen doss not influence consumers purchasing behavior.


1.6 Significance of the Study

The major consumer trends to rely on word of mouth for buying daily and long term consumption goods. The most family, close friend and acquaintances more influence on the decision of the consumers. It is revealed by the result that bad experience of any product, place and environment could be the reason of many problems for the organization in this all the main factor is word of mouth. One thing is getting quick acceptance among consumers as it is proved from the result this is Viral Marketing. At last negative word of mouth is moved faster than positive.


1.7 Scope of the Study

This study is structured to generally examine the influence of word of mouth advertisement on the purchasing behaviour of consumers. However, the study will further find out whether word of mouth have a significant influence on consumers, ascertain the extent at which word of mouth is utilized in Mummy’s Kitchen, ascertain whether the use of word of mouth in Mummy’s Kitchen influences consumers purchase intention, ascertain whether the use of word of mouth in Mummy’s Kitchen influences consumers purchasing behavior, and ascertain whether the use of word of mouth in Mummy’s Kitchen influences attracts more patronage compare to her competitors. The respondents for this study will be obtained from students of Novena University, who patronizes Mummy’s Kitchen.


1.8 Limitation of the Study

Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.


1.9 Definition of Terms

Consumer Behavior:

According to Loudon and Bitta (1994); the decision process and psychosocial activity individuals engage in, when evaluating, acquiring, using or disposing off goods and services. With growing numbers of consumers suffering from ‘confusion by over-choice’ and distrusting product claims, cutting through advertising “clutter” with a credible message has never been more important.

Word of Mouth:

It is not Street teaming, where people hand out freebies or flyers to you while you’re walking down the street. Word of mouth is not Shill marketing, where companies hire actors to create staged conversation with consumers, without telling consumers they’re staged (also known as “reaching marketing”). Word of mouth is not fake online marketing, where people send e-mails to individuals who don’t want them, or companies post fake opinions online in chat rooms, or review sites like Word of mouth is honest, real and powerful. Its something we all do everyday – it’s the way we communicate. It’s part of our social fabric. Word of mouth is shared opinion about a product or services between two or more people. Share your honest opinion, and you’re creating word of mouth (Balter, 2004).

Viral Marketing:

It is the most effective when promoting experiential, complex, premium, quirky and cool products. Given that most packaged goods products do not meet these criteria, marketers will benefit from devising campaigns that enhance consumers’ involvement in general product purchases and their emotional attachment.


1.10 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings to examine the influence of word of mouth advertisement on the purchasing behaviour of consumers using mummy’s Kitchen as a case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was on the influence of word of mouth advertisement on the purchasing behaviour of consumers using mummy’s Kitchen as a case study. The study was specifically set to find out whether word of mouth have a significant influence on consumers, ascertain the extent at which word of mouth is utilized in Mummy’s Kitchen, ascertain whether the use of word of mouth in Mummy’s Kitchen influences consumers purchase intention, ascertain whether the use of word of mouth in Mummy’s Kitchen influences consumers purchasing behavior, and Ascertain whether the use of word of mouth in Mummy’s Kitchen attracts more patronage compare to her competitors.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 141 responses were validated from the enrolled participants where all respondents are students of Novena University, who patronizes Mummy’s Kitchen.


5.3 Conclusions

Based on the findings of this study, the researcher made the following conclusion.

  1. Word of mouth has a significant influence on consumers.
  2. The extent at which word of mouth is utilized in Mummy’s Kitchen is high.
  3. The use of word of mouth in Mummy’s Kitchen influences consumers purchase intention.
  4. The use of word of mouth in Mummy’s Kitchen influences consumers purchasing behavior.
  5. The use of word of mouth in Mummy’s Kitchen attracts more patronage compare to her competitor.

5.4 Recommendations

Based on the findings of the study, the following recommendations are proffered.

  1. Businesses should not solely rely on the word of mouth campaigns. They should also use formal means of communication such as newspapers, magazines, television and internet.
  2. Consumers should also carry out proper survey apart from Word-of-mouth before buying expensive items.
  3. Bad experiences should always be shared among consumers so that others can also benefit from it.
  4. Consumers must always provide as honest opinion regarding product/services.
  5. Viral Marketing is an effective tool but should not be used in a negative way.

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