‘Word of Mouth’ is considered more important while taking a purchase decision in developing markets than in developed markets.
Before going into details we will understand what Word of Mouth marketing is. It is nothing more than tapping into people’s natural desire to share their experience with family, friends and their circle. For example, I tried a steak at a new restaurant and I loved it and I shared my experience with my family and friends.
There is difference in developed and developing countries people and their decision making is quite different from each other. Major reason is literacy rate difference. In developed countries people are more literate and educated but in developing countries people are not that much literate and educated. In developed countries when person plans to buy something he first search on internet and acquire good amount information regarding his need and what sort of product is best for his need fulfillment but on the other hand in developing countries people are more into word of mouth marketing like what people say in their space or circle and that is why W.O.M is considered more important while taking a purchase decision in developing markets. Basically, there are 3 stages, if we talk about first stage initial consideration stage in this advertising have 30% impact and WOM is only 18% impact in developed nation on the other hand in developing market WOM has 18% impact and previous usage is 15%. In second stage which is active evaluation in which customer evaluate what is the best possible solution for me in this internet information has 29% impact and WOM has only 19% impact in developed nation, on the other hand WOM has 28% impact in evaluation stage and previous usage has only 13% impact in developing market.
If we look into stats while making purchase decisions in developed countries internet has 65 percent impact on the decision and W.O.M has only 10 percent. On the other hand, in developing market where they are influenced by people what they say and recommend is correct and they will most likely buy it. In stats W.O.M has 46 percent impact on decision making more than any other factor which can impact the decision making.
Let me explain with a scenario if a person from USA wants to buy a phone, he will search for the phone on internet which can fulfill his or her demand and he will find the best option for himself. But if you are from developing nation like Pakistan so if you want to buy a phone you will ask your friends or relative which phone I should buy and there is high probability that you will buy that phone that they have recommended to you.
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