The impact of e-word of mouth communication on brand personality

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D. T. Rathnayake, Dinali Panawala The impact of e-word of mouth communication on brand personality with reference to the mobile phone industry in Sri Lanka

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Hosted by: The Impact of e-Word of Mouth Communication on Brand Personality; with reference to the Mobile Phone Industry in Sri Lanka D.I. Panawala1, D.T. Rathnayake2 Academic Partner

D.I. Panawala1, D.T. Rathnayake2:

D.I. Panawala 1 , D.T. Rathnayake 2 The Impact of e-Word of Mouth Communication on Brand Personality; with reference to the Mobile Phone Industry in Sri Lanka.

Content:

Content Introduction and the Background Purpose of the study. Literature Review. Methodology. Validation of measurement scales. Data presentation and analysis. Discussion.

1. Introduction & the Background:

1. Introduction & the Background Mobile phones has become the most preferred way of being connected and with the advancement of the technology smart phones replaced traditional phones all around the world. With the advancement of wireless technology, smart phones offer lots of facilities and apps to stay connected with loved ones, friends and most importantly with information.

Sri Lanka – Mobile phone usage:

Sri Lanka – Mobile phone usage Sri Lanka, after a three decades of war, is recording a rapid growth in mobile phone usage among the poor sector. Cellular subscriptions - 20,324,070 Smart phones in use (including tablets) - 650,000 Mobile penetration levels were higher than regional and world averages and mobile-cellular penetration was doubled during year 2006 to 2012.

Mobile-cellular penetration, 2006-2011, Sri Lanka in comparison:

Mobile-cellular penetration, 2006-2011, Sri Lanka in comparison Source: ITU World Telecommunication/ICT Indicators database .

Sri Lanka - Connectivity:

Sri Lanka - Connectivity 3.2 Million Internet Users (15% penetration into population). 20% from total users are using Fixed Broadband internet connections 53.15% visits internet from mobile devices and 46.85% visits internet from desktop/laptop devices. 1,537,600 Facebook Users (53% of Internet Users). 468,791 LinkedIn Users +1,170,842 YouTube Viewers (May, 2014) (TRCSL, 2012 and www.socialbakers.com)

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The purpose/objective of this study is; “ To examine the Impact of e-Word of Mouth Communication on Brand Personality; with reference to the Mobile Phone Industry in Sri Lanka.” 2. Purpose of the study

3. Literature Review:

3. Literature Review WOM Marketing WOM is considered as the world’s most effective, yet least understood marketing strategy (Misner, 1996. In the marketing context, WOM communications are defined as “informal communications directed at other consumers about the ownership, usage, or characteristics of particular goods and services and/or their sellers” ( Westbrrok 1987,).

3. Literature Review cont..:

3. Literature Review cont.. WOM is a consumer-dominated channel of marketing communication where the sender is independent of the market. It is therefore perceived to be more reliable, credible, and trustworthy by consumers compared to firm-initiated communications (Schiffman & kanuk, 1995; Arndt, 1967 referred by Brown, Amanda, Broderick, & Lee, 2007). WOM communication includes any information about a target object (e.g. company, brand) transferred from one individual to another either in person or via some communication medium (Brown, Barry, Dacin, & Gunst, 2005).

3. Literature Review cont..:

3. Literature Review cont.. Technological innovations have given marketers many new tools to harness electronic WOM for customer acquisition in the form of referrals. Overall referrals take many forms in both offline and online environments. Electronic WOM – Petrescu & Korgaonkar, 2011, mentioned that, “electronic consumer-to-consumer communication regarding a brand or product” plays an integral role in the way consumers interact with one another online.

3. Literature Review cont..:

3. Literature Review cont.. Social media tools have great utility for online consumers as a way to exchange with their networks of friends, family, colleagues (Dwyer, 2007; Petrescu & Korgaonkar, 2011) their individual opinions about and experiences with companies’ brands, products, and services (Ong, 2011). This ability to exchange information online is known as electronic word-of-mouth – sometimes referred to as “ online buzz ” (Liu, 2006) “Any positive or negative statement made by potential, actual, or former customers about a product or company, which is made available to a multitude of people and institutions via the Internet ”

3. Literature Review cont..:

3. Literature Review cont.. E-WOM Positive e-word of mouth Valence (Praise) Negative e-word of mouth Valence E-WOM Intensity (activity, volume, dispersion) Content

Conceptual Framework:

Conceptual Framework E-WOM Intensity Positive e-WOM Negative e-WOM Brand Personality H1 H2 H3 Content H4

4. Methodology:

4. Methodology Type of the study - Descriptive . Study setting – Non-contrived . Data sources – Primary & Secondary data . Research approach – Literature survey, pilot survey & field survey . Research timeline - Cross sectional. Unit of analysis – Individual .

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Sample - 200 individuals . Contact method – Online survey Data Collection Technique – Self Administered Questionnaire.

Operationalisation of e-WOM:

Operationalisation of e-WOM Dimension Indicators Literature   Intensity   Speak frequently than any other social network Speak frequently than any other website Speak to many individuals     Can J Adm Sci 27(1), 5–23 (2010) e-WOM Scale: Word-of-Mouth Measurement Scale for e-Services Context   Positive Valence   Recommend the social network to others Speak of good side Proud to be a member Recommend features Say favorable things     Word of mouth: understanding and managing referral marketing JOURNAL OF STRATEGIC MARKETING 6 241–254 (1998)

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Dimension Indicators Literature   Negative Valence   Say unfavorable things   FRANCIS A. BUTTLE Manchester Business School, Booth St. West, Manchester, M15 6PB, UK   e-WOM Scale: WOM Measurement Scale fore-Services Context Canadian Journal of Administrative Sciences      Content   Friendliness Security Features Ease of use Easy access     e-WOM Scale: WOM Measurement Scale fore-Services Context Canadian Journal of Administrative Sciences(2010)

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Dimension Indicators Literature Sincerity Down to earth Honest Cheerful The Nokia and Samsung Brand Personality in China Wendian Shi1**, Yanhong Luo2 and Liheng Yang2 1Educational School,Shanghai Normal University, shanghai, China 2Educational School, Ningxia University, Yinchuan, China. Excitement   Courage Spirited Imaginativeness Up to date Examination of brand personality and brand attitude within the apparel product category Received (in revised form): 24th January. 2000, Hye -Shin Kim. Operationalisation of Brand personality

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Dimension Indicators Literature Competency Reliable Intelligent Intelligent Consumer-brand relationships in sport: brand personality and identification Brad D. Carlson John Cook School of Business, Saint Louis University, St Louis, Missouri, USA D. Todd Donavan College of Business, Colorado State University, Fort Collins, Colorado, USA, and Kevin J. Cumiskey William S. Spears School of Business, Oklahoma. Sophistication Upper class Delightful The Nokia and Samsung Brand Personality in China Wendian Shi1**, Yanhong Luo2 and Liheng Yang2.

5. Validation of measurement scales :

5. Validation of measurement scales Reliability Stability was ensured through test-retest reliability. The internal consistency was tested through Cronbach's Alpha. The standardized Cronbach's Alpha value is 0.7 ( Sekaran,2007)

Reliability:

Reliability 5. Validity of measurement scales cont.. No Dimensions No of items Cornbach’s alpha E – Word Of Mouth 01 E-WOM Intensity 04 .809 02 Positive e-WOM 07 .928 03 E-WOM Content 06 .898 Brand Personality 01 Excitement 04 .892 02 Competency 03 .861

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No Dimensions No of items Correlation Coefficient E – Word Of Mouth 01 Negative e-WOM 02 .702 Brand Personality 01 Sincerity 02 .623 02 Sophistication 02 .796

Validity:

Validity Content validity Content validity is a function of how well the dimensions and elements of a concept have been delineated ( Sekaran , 2003). Rigorous literature review was conducted to ensure the representativeness of the domain of the construct. Construct validity Construct validity testifies to how well the results obtained from the use of the measure fit the theories around which the test is designed ( Sekaran , 2003). Factor loading was performed to test the construct validity.

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Dimensions No of items KMO value Chi-square significance IR = FL² of each indicator CR AVE     >.05 <.05 >.5 >.7 >.5 E – Word Of Mouth   E-WOM Intensity 4 .694 .000 WOMI1=.830 .993 .780 WOMI2=.818 WOMI3=.939 WOMI4=.659 Positive e-WOM 7 .848 .000 PWOM1=.911 .969 .816 PWOM2=.840 PWOM3=.836 PWOM4=.762 PWOM5=.876 PWOM6=.855 PWOM7=.801

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Dimensions No of items KMO value Chi-square significance IR = FL² of each indicator CR AVE E-WOM Content 6 .703 .000 .956 .786 WOMC1=.903 WOMC1=.920 WOMC1=.844 WOMC1=.793 WOMC1=.874 Brand Personality Excitement 4 .826 .000 BPE1=.914 .961 .862 BPE2=.844 BPE3=.887 BPE4=.861 Competency 3 .692 .000 PBC1=.826 .955 .875 PBC2=.927 PBC3=.909

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Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .625 a .391 .385 .47551 2 .664 b .440 .430 .45795 6.Data Presentation & Analysis

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Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) 2.088 .219   9.543 .000 MeanPWO .495 .059 .625 8.329 .000 (Constant) 1.925 .217   8.857 .000 MeanPWO .339 .077 .428 4.415 .000 MeanINten .213 .069 .297 3.072 .003

6.Data Analysis and Findings cont..:

6.Data Analysis and Findings cont.. BP= β 0 + β 1 PV + β 2 IN BP= 0.339 Poitive Valance + 0.213 Intensity Among the above variables positive valance of E-WOM and E-WOM intensity have a significant impact on the Brand Loyalty.

7.Discussion:

7.Discussion E-WOM can be effectively used to build and enhance customer relationship. Customers tend to sort out their problems via on line without wasting their time. Therefore mobile phone companies need to update their web sites, blogs, web pages and on line profiles to make a platform to sort out consumer’s problems. This will leads to create positive WOM via online.

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If marketers can gain insight into the structure of social networks – in order to improve their understanding of the key influencers within those networks – then it would help them communicate more effectively with customers, and build stronger relationships with them. This, in essence, is a way to apply best practices in relationship marketing to social networking and social media.

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Thank you !

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