AN ASSESSMENT ON THE INFLUENCE OF WORD OF MOUTH MARKETING STRATEGY ON CONSUMER BRAND PREFERENCES IN CAMEROON (A CASE STUDY OF SWECOM PLC)

CHAPTER ONE

INTRODUCTION

Background of the study

Word of mouth (WOM) marketing has become a major factor in shaping consumer brand choices on a global scale, due to the fast changing consumer behaviour and marketing dynamics. Word-of-mouth (WOM) refers to informal communication among people on goods, services, and brands. It significantly influences consumer decision-making processes. The influence of word-of-mouth (WOM) marketing has grown even more significant due to the widespread use of digital technologies and social media platforms. This has allowed WOM marketing to surpass geographical limitations and reach a larger audience (Li, Wu & Li, 2018). Word-of-mouth communication is very significant since it is the most reliable source of information about products, content, and experiences for almost every customer worldwide. Consumers consistently place more credence in the viewpoints of their friends and those who have similar interests, rather than being influenced by marketing initiatives designed to encourage purchases. The phenomenon of word-of-mouth communication originated with face-to-face interactions and the sharing of personal preferences. It subsequently evolved to include written correspondence and many other modes of communication. Eventually, it progressed to the point where individuals could exchange their opinions and perspectives via internet platforms (Nielsen, 2015). The technique of Word of Mouth contact is widely recognised as one of the most powerful, efficient, and convincing effects in the market. This is mainly because buyers largely rely on informal means of communication and personal sources when making purchasing decisions, rather than formal or organisational ones like advertising campaigns and official websites. Recently, the marketing and advertising industry has been focused on gaining a better understanding of Word-of-Mouth and incorporating it into their daily development plans. This is because traditional methods of communication have grown less successful (Shi et al., 2016). Consumers are overwhelmed by the multitude of product options available on the market. To address this limitation and capture the attention of marketers effectively, an excellent approach is to use Word Of Mouth Communication. This strategy swiftly surpasses the distractions caused by other formal atypical techniques. In order for any transaction to occur, whether it be in a commercial setting or any other human context, there must be communication between two or more participants. The wide availability of various commodities, products, and services necessitates that consumers make a decision based on their unique requirements and efficiency at the time of disposal (Arif, Ahmed & Farrukh, 2015). Based on widely accepted understanding and undeniable evidence of verbal communication, customers have a greater sense of freedom and calmness when they have someone to converse with when making a purchase or choice. Additionally, they are more likely to trust recommendations from their friends and family members, leading to increased confidence. In the setting of Cameroon, a nation with a variety of cultural, linguistic, and socio-economic elements, it is crucial for companies operating in the area to comprehend the impact of word-of-mouth marketing on customer brand choices. Cameroon is characterised by a distinct market environment in which conventional marketing methods and rising digital platforms coexist. This creates a complex interaction of factors that impact customer behaviour (Kushwaha, 2015). Although the significance of word-of-mouth (WOM) marketing in influencing customer choices worldwide is becoming acknowledged, there is a lack of empirical study especially examining its effects in the Cameroonian market. Many existing studies tend to make broad conclusions based on research conducted in other areas, without taking into consideration the distinct socio-cultural environment of Cameroon. Hence, there is an urgent want for localised research that thoroughly investigates the intricacies of word-of-mouth marketing within the specific context of Cameroon and its consequences on consumer brand choices. Therefore, the researcher sought to assess the influence of word of mouth marketing strategy on consumer brand preferences in Cameroon (A case study of Swecom plc).

Statement of the problem

Word of mouth is a significant method of spreading knowledge. Both bad and good word of mouth may significantly influence customer behaviour. When used effectively, it may greatly contribute to the promotion of goods or services and establish a lasting impression that can negatively impact marketing efforts. Thus, the impact of word of mouth may be both detrimental and advantageous (Kushwaha, 2015). Nevertheless, in the last few years, word of mouth (WOM) marketing has surfaced as a potent instrument that impacts consumer behaviour and brand preferences on a worldwide scale. It is essential for companies in Cameroon to comprehend the influence of word-of-mouth (WOM) marketing techniques on customer brand preferences in order to succeed in the fast changing market dynamics of the country (Hanaysha, 2016). There is a lack of academic study on the particular impact of word-of-mouth (WOM) marketing on consumer brand preferences in Cameroon. Hence, the study assess the influence of word of mouth marketing strategy on consumer brand preferences in Cameroon (A case study of Swecom plc).

1.3 Objective of the study

The broad objective of the study is to assess the influence of word of mouth marketing strategy on consumer brand preferences in Cameroon (A case study of Swecom plc). The specific objectives is as follows:

Assess types of WOM marketing adopted by Swecom plc.

Identify key influencers whose WOM  recommendation impact consumer brand preference in Swecom plc.

Investigate the extent to which WOM impact consumer brand preference of Swecom plc

1.4 Research Questions

The following questions have been prepared for the following

What are the types of WOM marketing adopted by Swecom plc?

Who are the key influencers whose WOM  recommendation impact consumer brand preference in Swecom plc?

What is the extent to which WOM impact consumer brand preference of Swecom plc?

1.5 Significance of the study

The findings of the study will be significant to the following

The insights generated from this study will inform policy and regulation related to marketing practices in Cameroon, because when the impact of WOM marketing on consumer preferences is understood, policymakers can devise regulations that promote fair competition, protect consumer interests, and foster a conducive environment for business growth and innovation.

This study will contribute to the academic literature by filling a notable gap in research regarding the influence of word of mouth (WOM) marketing on consumer brand preferences. It will also serve as an additional library resources which can serve as a guide to researchers who might want to explore further by filling the gap on the topic.

1.6 Scope of the study

The study focuses on  the influence of word of mouth marketing strategy on consumer brand preferences in Cameroon (A case study of Swecom plc). Empirically, the study will assess types of WOM marketing adopted by Swecom plc, identify key influencers whose WOM  recommendation impact consumer brand preference in Swecom plc and investigate the extent to which WOM impact consumer brand preference of Swecom plc.

Geographically, the study is delimited to Swecom plc, Cameroon.

1.7 Limitation of the study

Like in every human endeavour, the researchers 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 (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.8 Definition of terms

Word of Mouth (WOM) Marketing: Refers to the informal communication between individuals, either in person or through digital channels such as social media, where they share their opinions, experiences, and recommendations about products, services, or brands. WOM marketing is often considered one of the most influential forms of marketing due to its perceived authenticity and credibility.

Consumer Brand Preferences: Denotes the subjective inclinations and tendencies of consumers towards certain brands or products over others. Brand preferences are shaped by various factors including personal experiences, perceptions, values, and external influences such as marketing messages and word of mouth recommendations.

Marketing Strategy: Encompasses the overarching plan or approach adopted by businesses to promote their products or services and achieve their marketing objectives. Word of mouth marketing strategies may include tactics such as incentivizing referrals, fostering brand advocacy, and leveraging social media platforms to encourage user-generated content and recommendations.

Demographic Factors: Pertains to characteristics of the population such as age, gender, education level, income, and occupation. In this study, demographic factors are considered as potential moderating variables that may influence the effectiveness of word of mouth marketing on consumer brand preferences in Cameroon.

Digital Platforms and Social Media: Refers to online channels and technologies that facilitate communication, interaction, and content sharing among users. Examples include social networking sites (e.g., Facebook, Twitter), online review platforms (e.g., Yelp, TripAdvisor), and messaging apps (e.g., WhatsApp, Messenger). These platforms play a significant role in amplifying the reach and impact of word of mouth marketing in contemporary consumer landscapes.