CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Word-of-mouth (WOM) marketing has emerged as a crucial factor influencing consumer brand choices worldwide, especially given the rapid changes in consumer behavior and marketing landscapes. WOM refers to the informal exchange of information between individuals about products, services, and brands. This type of communication has a strong impact on how consumers make their purchasing decisions. The importance of WOM marketing has grown even further with the rise of digital technology and social media, which have allowed it to break geographic boundaries and reach a vast audience (Li, Wu & Li, 2018). Word-of-mouth is widely regarded as one of the most trustworthy sources of product and service information, with consumers often valuing the opinions of friends or those with similar interests over traditional advertising efforts. Originally, WOM was limited to face-to-face conversations and sharing personal preferences, but it has since evolved to include written forms and now, digital interactions through the internet (Nielsen, 2015). This marketing approach is powerful and convincing because buyers typically rely more on informal personal communication than on formal corporate messaging like advertisements or official websites. In recent years, marketers and advertisers have increasingly recognized the value of WOM, integrating it into their strategies as conventional communication methods have become less effective (Shi et al., 2016). With the market flooded by countless product options, WOM communication provides a clear and effective way to capture consumer attention, cutting through the noise of other marketing tactics. For any transaction to occur—whether commercial or otherwise—communication between parties is essential. The vast array of products and services available requires consumers to make choices based on their specific needs and the timing of purchase (Arif, Ahmed & Farrukh, 2015). Research shows that consumers feel more at ease and confident when they can discuss their choices with others, especially trusting recommendations from friends or family, which boosts their purchase confidence. In Cameroon, a country marked by diverse cultural, linguistic, and socioeconomic factors, it is vital for businesses to understand how WOM marketing influences consumer brand preferences. The Cameroonian market features a unique blend of traditional marketing and growing digital channels, creating a complex environment that shapes consumer behavior (Kushwaha, 2015). Despite global recognition of WOM’s influence on consumer choices, there remains a shortage of focused research examining its effects within the Cameroonian context. Much of the existing literature draws broad conclusions from studies conducted elsewhere, overlooking Cameroon’s distinct socio-cultural setting. Therefore, there is an urgent need for localized research to explore the specific dynamics of WOM marketing in Cameroon and how it impacts brand preferences. This study aims to fill that gap by investigating the influence of WOM marketing on consumer brand choices in Cameroon, using Swecom plc as a case study.
1.2 Statement of the Problem
Word of mouth is a critical channel for spreading information and can powerfully shape consumer behavior, whether positively or negatively. When harnessed well, it can significantly boost product or service promotion and create a lasting impact; however, negative WOM can harm marketing efforts (Kushwaha, 2015). Recently, WOM marketing has become a potent global tool affecting consumer behavior and brand preference. For businesses in Cameroon to thrive amid rapidly evolving market trends, understanding the effects of WOM marketing on consumer brand choices is essential (Hanaysha, 2016). Yet, there is a noticeable gap in academic research specifically focusing on how WOM marketing influences consumer preferences in the Cameroonian market. This study therefore seeks to evaluate the impact of WOM marketing strategies on consumer brand preferences in Cameroon, centering on Swecom plc as a case study.
1.3 Objectives of the Study
The primary goal of this study is to examine how word-of-mouth marketing influences consumer brand preferences in Cameroon, with Swecom plc as the focal point. The specific objectives are:
i. To identify the types of WOM marketing strategies employed by Swecom plc.
ii. To determine the key influencers whose WOM recommendations affect consumer brand preferences at Swecom plc.
iii. To analyze the extent to which WOM marketing impacts consumer brand preferences related to Swecom plc.
1.4 Research Questions
This study is guided by the following questions:
i. What types of word-of-mouth marketing strategies does Swecom plc use?
ii. Who are the key influencers whose WOM recommendations impact consumer brand preferences at Swecom plc?
iii. To what extent does WOM marketing influence consumer brand preferences for Swecom plc?
1.5 Significance of the Study
The outcomes of this research hold importance for several stakeholders. First, the insights could help shape marketing policies and regulations in Cameroon by clarifying how WOM marketing affects consumer preferences. This understanding can assist policymakers in crafting regulations that encourage fair competition, protect consumers, and promote a business environment conducive to growth and innovation. Additionally, the study will add to academic knowledge by addressing a notable research gap regarding WOM marketing’s influence on brand preferences, serving as a valuable resource for future researchers interested in this subject.
1.6 Scope of the Study
This research focuses specifically on the impact of WOM marketing strategies on consumer brand preferences in Cameroon, with Swecom plc as the case study. Empirically, it will investigate the types of WOM marketing Swecom plc uses, identify the main influencers whose WOM recommendations affect consumer choices, and evaluate how strongly WOM marketing influences these preferences. Geographically, the study is confined to Swecom plc’s operations in Cameroon.
1.7 Limitations of the Study
Like any research, this study faced some challenges. Limited funding restricted the researcher’s ability to source extensive materials and conduct a broader data collection using tools such as internet research, questionnaires, and interviews. Consequently, the researcher opted for a moderate sample size. Moreover, balancing this research alongside other academic commitments reduced the time available to dedicate fully to the study.
1.8 Definition of Terms
Word of Mouth (WOM) Marketing: Informal communication between individuals—either face-to-face or via digital channels like social media—where people share opinions, experiences, and recommendations about products, services, or brands. WOM marketing is highly influential due to its perceived trustworthiness and authenticity.
Consumer Brand Preferences: The subjective tendencies and choices consumers display towards specific brands over others, shaped by personal experiences, perceptions, values, and external factors like marketing and WOM recommendations.
Marketing Strategy: A comprehensive plan businesses use to promote products or services and meet marketing goals. WOM marketing strategies can include encouraging referrals, cultivating brand advocates, and leveraging social media for user-generated content.
Demographic Factors: Population characteristics such as age, gender, education, income, and occupation, which may moderate how effective WOM marketing is on consumer brand preferences in Cameroon.
Digital Platforms and Social Media: Online channels and technologies that enable communication and content sharing, including social networking sites (Facebook, Twitter), review platforms (Yelp, TripAdvisor), and messaging apps (WhatsApp, Messenger). These play a vital role in amplifying WOM marketing’s reach in today’s consumer environment
REFERENCES
Arif, H., Ahmed, S & Farrukh, M, (2015), “Factors Affecting Customer‟s Preferences to Buy Cellular Phone for Local versus International Brands: A Case Study in Pakistan” Journal of Marketing and Consumer Research, 10, 1, 111-119.
Hanaysha, J. (2016). Examining the link between word of mouth and brand equity: A study on international fast food restaurants in Malaysia. Journal of Asian Business Strategy, 6(3), 41.
Kushwaha, B P. (2015), “An empirical study on youth perceptions and preferences on smart phones” International Journal of Research in IT & Management, 5, 10, 82-90.
Li, Y., Wu, J., & Li, J. (2018). The Impact of Social Media Word of Mouth on Brand Purchase Intention and the Moderating Effect of Online Community Type: Evidence from China. Computers in Human Behavior, 83, 63-75.
Nielsen N.V .(2015). Global Performance; Word Of Mouth Recommendations Remain The Most Credible; 2015; Jakarta, Indonesia.
Shi W, Tang L, Zhang X, Gao Y, Zhu Y (2016) how does word of mouth affect customer satisfaction? Journal of Business & Industrial Marketing 31: 393-403.
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