Influence of Word of Mouth on Consumer Behavior: Analysis on the Telecom Industries in Pakistan

Abstract

This research is carried to analyze the power of word of mouth on consumer behavior in the perspective of the telecom industry of Pakistan. For this study, five mobile telecom companies were chosen, these are Ufone, Telenor, Warid, Zong and Mobilink. Data is collected through primary and secondary source. In primary source, structured questionnaires were used to analyze the study. In secondary source, previous literature and articles are reviewed to support the research. 175 Questionnaires were distributed and information is collected from the students of Islamabad universities and from the general public of Islamabad and Rawalpindi. To check the reliability of the data, anova, regression and correlation statistical test are used. Through four hypothesis, relationship of independent variable on each dependent variable is observed and conclusion is drawn after applying different tools and models to check the reliability of data collected. The result indicates that word of mouth has significant effect on three dependent variables i.e. consumer behavior, consumer preference and cognitive dissonance and insignificant effect on one variable i.e. consumer perception. So, results show that three hypothesis are accepted and one hypothesis is rejected.