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British Journal of Marketing Studies
Vol.5, No.4, pp. 61-71, May 2017
___Published by European Centre for Research Training and Development UK (www.eajournals.org)
61
ISSN 2053-4043(Print), ISSN 2053-4051(Online)
INVESTIGATING EFFECTS OF VIRAL MARKETING ON CONSUMER’S
PURCHASING DECISION (CASE STUDY: THE STUDENTS OF THE
ADMINISTRATIVE SCIENCES COLLEGE
-
NAJRAN UNIVERSITY)
Dr. Eltaj Mohammed Mohammed Ali Hamed
Assistant professor in Business Administration, Business Administrations Department,
Administrations Science College, Najran University
ABSTRACT: The study aims to examine the effects of viral marketing on consumers
purchasing decision among the students of administrative science college at Najran
University. The population of this study is consisted of all the students of administrative
science college at Najran University, which is according to the latest data, a number of 710
individuals. In order to measure the variables used in this research, a questionnaire was used.
Validity of the above-mentioned questionnaire was confirmed by experts and their reliability
were measured using Cronbach's alpha coefficient that was respectively 0.697. Also,
Statistical methods were used for the analysis of final descriptive and inferential statistics
(methods like one-way sample test). The findings showed that there is a significant and positive
relationship between the viral marketing and the purchase decision; In other words, viral
marketing leads costumers to improve their purchase decisions.
KEYWORDS: Viral Marketing, Purchase decision
INTRODUCTION
Integrating marketing principles with IT suggests new developed models for the marketing
world such as viral marketing(Aghdaie, et al, 20012).The viral marketing is specifically related
to its use of existing digital networks, which are relatively inexpensive, fast, and easy to use,
and often include a global consumers. It is easy to target a viral message because they naturally
circulate among persons with common behaviors or interests where viral marketing exploits
existing social networks byencouraging customers to share product information with their
friends. The technique is valuable for both consumers and companies. Consumers get things
they want, such asdiscounts, free products, or valuable information and the companies getting
benefits.
Therefore, viral marketing (VM) assumes that as each new user starts using the service or
product, the advertising will go to everyone with whom that user interacts.Using the internet is
an ideal carrier for viral marketing (VM), the hosts (or personal computer users) are the ones
that actually do the hard work for the virus creators, spreading a virus via email and other social
media at the click of a button. A recipient (new host) may effectively spread a virus if that virus
is deemed worthy in their eyes, exponentially increasing the distribution and overall
effectiveness of the campaign.
The widespread use of the Internet by consumers to exchange information and pass it between
them and used it in online purchases is easy way through social media (intentionally or
unintentionally), makes them an effective tool to pass the advertising message between
them.According to the "small world" concept, "any pair of entities in a seemingly vast, random
British Journal of Marketing Studies
Vol.5, No.4, pp. 61-71, May 2017
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network can actuallyconnect in a predictable way through relatively short paths of mutual
acquaintance. (Aghdaie, et al, 2012)
Generally, viral marketing involves the spreading of amarketing message viaword of mouse,
ensuring that the receivershave the interest to pass along the message to their acquaintances. In
addition, (VM) demonstrates the features of current marketing trends includes customization
marketing, interaction marketing, relationship marketing and influencer marketing (Yang,
2012).Thus, viral marketing can be thought of as a diffusion of information about the product
and its adoption over the network. (Leskovec, et al, 2007)
Research problem
Viral marketing(VM) is a very current marketing that has grown tremendously in the last
decade.The internet has made a revolution in today’s advertising and now it is possible for
organizations and consumers to communicate online through social medias such as
communities and blogs for much less costs than the traditional old way with TV, radio and
commercial newspapers. Viral marketing takes the traditional roots of word of mouth
marketing and exponentially expanded the reach through social networks, blogs, and other
technological mediums.
Becauseofnewtechnology and telecommunicationrevolution the consumer’s role and purchase
power has increased as a result. Therefore, with certainty that social media is something that
business can no longer ignore, this study aims to answer this question:
How the consumers purchasing act are being affected when being exposed to this new type
of marketing, will it lead to a purchase act or will it lead to push the consumer further away
from a purchase act or no effects at all?
Research importance
The research importance illustrates through the importance of the subject itself, as the viral
marketing subject boom in the world of marketing compared to traditional marketing, it has an
economic and social importance to business organizations.
Research objects
The main aim of this study is to specify the consumer trends towards viral marketing and its
role in affecting in online purchasing. As well, it tries to presentwhich factors are effective and
which ones are not regarding the trendsof consumers toward viral marketing.
Hypotheses
The main hypothesis: There are no statistically significant relationship between viral
marketing and purchasing decision of consumers of various goods and services.
Sub hypotheses
H01: There areno statistically significant relationship between using of internet websites and
purchasing decision.
H02: There areno statistically significant relationship between the online purchase obstacles
and making a purchasing decision.
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Vol.5, No.4, pp. 61-71, May 2017
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H03: There are no statistically significant relationship between not having a credit cardand
purchasing decision.
RESEARCH METHODOLOGY
The data was collected using a structuredquestionnaire. The questionnaire was designed
following a wide reviewof the literature on viral marketing. It was divided into four parts.
Thefirst part was based on personal profile of the students. The secondconsisted of 29 close
ended items based onfive point Likert scale (Strongly Agree – 5 to Strongly Disagree – 1).
Initially a pilot test was conducted on 30 respondentsto check the reliability of the questionnaire
using the Cronbach’s α test. As a general rule a coefficient greater than or equal to 0.6 is
considered acceptable and is a good indicator of reliability. The Cronbach’s Alpha for the
questionnairedimension was found (0.893). This proves that it is reliable and can beused for
further analysis. A total of 110 respondents were administered this questionnaire and responses
were generated.
CONCEPTUAL FRAMEWORK
Viral marketing definition
Viral marketing is the term used to describe the method of online marketing that encourages
individuals to pass on a marketing message to others (Devi, 2015). According to (Lekhanya,
2014) the term ‘Viral Marketing’ describes the phenomenon by which consumers mutually
share and spread marketing relevant information initially sent out deliberately by markets to
stimulate and capitalize on word-of-mouth behaviour." In other words, viral marketing is a
marketing strategy that focuses on spreading information and opinions about a product or
service from person to person, especially by using unconventional means such as the Internet
or email: Which online social networks can help with viral marketing?
Basic Principles of Viral Marketing
Experts say that there are six basic principles of any viral marketing strategy (Devi, 2015):
a. Gives away products or services
b. Provides effortless and easy transfer to others
c. Scales up easily
d. Exploits general behavior and common motivations
e. Works using existing networks of communication
f. Takes full advantage of resources that are others’
Viral marketing strategy
You need to market your online business on a regular basis if you want to get tangible results
from marketing your business online. Web site traffic started increasing steadily and getting
British Journal of Marketing Studies
Vol.5, No.4, pp. 61-71, May 2017
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more and more sales on a regular basis once stopped random marketing campaign and created
an online marketing plan. (http://websitetips.com/articles/marketing/onlinestrategy). Here is
how you can create an online marketing strategy to bring in steady Web site traffic and sales:
1. Take stock of marketing that you have already done. Spend some time reviewing
marketing you have done to date so that you will not have to do the same work twice.
2. Create an online marketing strategy for your business.Your strategy should consist of
a process that will reliably bring your potential customers to your Web site every single
day, and should outline different online marketing techniques, such as business
blogging, article marketing, search engine optimization, and others, and how you are
going to use them to bring your potential customers to your Web site.
3. Start implementing your online marketing strategy.You can't implement your strategy
in just one day. Instead, break your strategy into many manageable tasks that are easy
to complete and that you can add to your schedule.
The Viral marketing mix
For a viral marketing, DuFour,(2011) highlights the following important points the
companies have to focus on:
1. To propose valuable product or service: the attention has to be attracted by the “free”
element. It generates a wave of interest and generates it faster in order to sell
something.
2. The product or service has to be provided for an effortless transfer to others: it’s
easier when it’s easy to transmit. You have to work instantly because digital format is
easy to copy. So the message has to be simplified.
3. Use different types of scales: the transmission method has to be scalable from small to
very large. Mail servers must be added very quickly in a viral model.
4. Meet common motivations and behaviors: a viral campaign must be love and
understand by people. The marketing strategy has to be designed and built on
common motivations and behaviors for its transmission.
5. Use existing communication networks: It’s not a secret anymore more people are
social. The human network is powerful and thanks to that, the message will be
multiply for its dispersion.
6. Take advantage through other resource: By using links on website, give away free
article on others web’s page etc. You can also multiply the view of the offer
Power of Viral Marketing
The viral marketing concept is to get customers to pass along messages to other people.The
company influences the message just in the beginning of the campaign, then whenthe virus is
taking over the companies holds little control over to who the message isbeing spread to.
Consumers will share their opinions towards brands with or without this being knownfrom the
companies. The power of a negative or a positive opinion towards a brand is ofhighly
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Vol.5, No.4, pp. 61-71, May 2017
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importance. Companies are therefore very interested in positively influencing the message
being advertised through integrated viral marketing strategies.
It is important that marketers and companies understand how the word of mouth isaffecting
their information about products, brands and firms (Brown et al, 2007). If a message gets a
positive effect through a viral marketing campaign this can be spread veryfast and maybe lead
to a purchase in the consumers buying act. On the other hand anegative word of mouth can be
spread just as fast but instead maybe push the consumerfurther away from a purchase in the
consumers buying act.
Effective Viral Messages
Messages in viral marketing could be a words, sounds, videos or images that compel the
audience to pass them along. If a company want people to consider and act on a communication
massage, first it have to gain the audience’s attention. Attention statements require sparks and
triggers. To design a message to go viral, consider these three factors (Noveck, J. 2009, June):
1. Does it have an emotional appeal that people will feel compelled to share?
2. Does it have a trigger (does it challenge, provide novelty, or incorporate humor to
motivate interest)?
3. Is it relevant to the audience?
The Consumer’s purchase decision-making Process (FEMA, 2005):
Keep in mind, however, that different people, no matter how similar they are, make different
purchasing decisions.Stages in the Consumer’s Purchasing Process outlines the buying stages
consumers go through, mentioned as follows:
Stage 1. Need Recognition: Marketers often try to stimulate consumers into realizing they have
a need for a product.
Stage 2. Search for Information: Maybe you have owned several backpacks and know what
you like and don’t like about them. Or, there might be a particular brand that you’ve purchased
in the past that you liked and want to purchase in the future. This is a great position for the
company that owns the brand to be in—something firms strive for. Why? Because it often
means you will limit your search and simply buy their brand again.
Step 3. Select an Alternative: The third step in the problem-solving model is to select one of
the alternativesexplored in Step 2 for implementation. After you have evaluated
eachalternative, one should stand out as coming closest to solving the problem withthe most
advantages and fewest disadvantages.
Step 4. Implementation: Implementing the solution may not be easy, however. There may
berepercussions, and you should complete a “reality check” to identify andevaluate the possible
consequences of implementing the solution. Carefullyconsider how the solution will be
implemented before selecting an alternative.
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Step 5. Evaluate the Situation:
Evaluation involves two parts; first monitoring progress, which leads to understand whether
the situation has changed, if there are more (or fewer) resources required, and if the different
alternative solution required are made. Monitoring the success and results of a decision is an
ongoing process that is critical to fine tuning a course of action. Secondly, evaluating the results
to know whether the purchase decisions are achieved its goals or not.
Previous studies
Chu (2011): This study examines the potential link of Facebook group participation with viral
advertising responses. The results suggest that college-aged Facebook group members engage
in higher levels of self-disclosure and maintain more favorable attitudes toward social media
and advertising in general than do nongroup members. However, Facebook group participation
does not exert an influence on users' viral advertising pass-on behaviors. The results also
identify variations in predictors of pass on behaviors between group members and
nonmembers. These findings have theoretical and managerial implications for viral advertising
on Facebook.
Zernigah & Sohail (2012): The research was conducted to investigate consumers’ attitude
towards viral marketing in Pakistan. The study findings indicate a positive relationship between
the independent variables of informativeness, entertainment and source credibility with the
dependent variable of attitude towards viral marketing, informativeness and source credibility
being the most important attributes affecting attitude towards viral marketing, whereas,
irritation has no significant effect on consumers’ attitude towards viral marketing.
Aghdaie et al, 2012: The purpose of this study is to evaluate the consumers’ trust effect on
viral marketing acceptance, and verified the technology acceptance model too. It was followed
by some managerial implications for the companies in order to design their viral marketing
campaigns to be more successful. The study findings indicate that consumer's trust not
necessarily affects the consumer's perceived usefulness in engaging in viral marketing (VM),
but the trust affects the consumer's attitude and the consumer's intention to engaging in viral
marketing (VM).
Pescher, 2014: The study aims to identify and understand the factors that influence consumer
referral behavior via mobile devices. The authors analyze a three-stage model of consumer
referral behavior via mobile devices in a field study of a firm-created mobile viral marketing
campaign. The findings suggest that consumers who place high importance on the purposive
value and entertainment value of a message are likely to enter the interest and referral stages.
Koch & Benlian, (2015): The goal and main contribution of this paper are to shed light on the
potential of scarcity and personalization, and established promotional tactics from the offline
world in influencing consumer referral decisions and therefore to expand our understanding of
the antecedents of consumer referral behavior. The finding of the study support the premise
that scarcity due to social demand has a positive causal effect on consumers' propensity to
engage in referrals. Furthermore, they could specifically confirm that offer value acts as partial
mediator for the effect of scarcity on consumer referral likelihood.
Data Analysis:
For analyzing research data, several statistical tools are used include the followings:
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Vol.5, No.4, pp. 61-71, May 2017
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1. Cronbach’s Alpha to identify the reliability
2. Statistical descriptive analysis for percentage, means and standard deviations.
3. One way Anova to examine the study hypothesis.
The reliability
Reliabilitycoefficient extracted according to Cronbach’s Alphafor consistency as total for all
study variables where reliability coefficient values reaching (69.7%) higher than the acceptance
ratio (60%), this result reveals thatthe questionnairephrasesbecome a valid and appropriate for
the statistical analysis purposes as shown in the table (1).
Table (1) Cronbach’s Alpha results
The Variables
Phrases No
Cronbach's Alpha
Internet
6
0.800
Obstructions
7
0.671
Information
6
0.689
Purchase Decision
6
0.697
All variables
25
0.697
Descriptive Analysis:
Percentage and Frequencies of personal data:
Table (2) analysis results of personal data
Profile
Category
Frequency
Percent
Valid Percent
Cumulative
Percent
Specialty
Business
8
6.8
6.8
6.8
Public management
49
41.9
41.9
48.7
Accounting
18
15.4
15.4
64.1
Law
42
35.9
35.9
100.0
Total
117
100.0
100.0
Age
18 - 25 year
115
98.3
98.3
98.3
25 - 31 year
2
1.7
1.7
100.0
Total
117
100.0
100.0
Table (2) illustrate thatthe Specialty profile depicts that (41.9%) of respondents were Public
Management while Business specialty represents the lowest percentage among the respondents
with (6.8%). The Age Profile reveals that the majority of respondents were of age 18 - 25 years
(98.3%), followed by 25 - 31years (1.7%).
Means and Standard deviation:
To reach the study results, the means and standard deviations calculated for each variable. The
categories are as follows: 1 and less than 1.8 Strongly Agree, 1.8 Less than 2.6 agree, 2.6 Less
than 3.4 to some extent, 3.4 Less than 4.2 do not agree, 4.2 Less than 5 Strongly Disagree.
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Table (3) Mean & Std. Deviation Analytical Results
The dimensions
Mean
Std. Deviation
online purchase
1.9658
0.9141
online purchase obstructions
3.0527
1.1317
telling others specific informations to a brand
2.4933
1.0780
online purchasing decision
3.0271
1.4052
Total Average
2.6347
Table (3) shows the mean values for the variables. The total average respondentscore on overall
viral marketing reached (2.6347) on a five point Likert scale, which means that the respondents
agree to some extent for all questionnaire phrases. This is above the neutral score, which
implies that respondents’ overall attitude towards viral marketing and purchase decision is
positive.
Hypotheses Analysis and Test
The main hypothesis: There are no statistically significant relationship between viral marketing
and purchasing decision of consumers of various goods and services.
Table (4) F. test analyses results
Study
Variables
Sum of
Squares
df
Mean
Square
F
Calculate
d
F
tabulat
ed
Sig
.
Viral
marketing
&
Purchasing
Decisions
Between
Groups
2488.51
7
40
62.213
3.811
1.57
.00
0
Within
groups
1207.88
3
74
16.323
Total
3696.40
0
114
Table (4) illustrates that the value of (F) calculated (3.811) is more than (F) Tabulated (1.57)
at a significance level (p<0.05), therefore, this demonstrates that the independent variable
(viral marketing) have a significance relationship with the dependent variable of purchasing
decision, where sig value approve that (0.000). This means that the main hypothesis is rejected,
where the substituted hypothesis (H1: There are statistically significant relationship between
viral marketing and purchasing decision of consumers of various goods and services) is
accepted.
H01: There are no statistically significant relationship between using of internet websites and
purchasing decision
Table (5) F. test analyses results
Independent
variable
Sum of
Squares
df
Mean
Square
FCalcula
ted
FTabula
ted
Sig.
Internet
Between
Groups
353.986
15
23.599
0.709
1.77
0.77
0
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Within
Groups
3359.929
101
33.267
Total
3713.915
116
From the table (5) we can see that the value of (F) calculated (0.709) is less than (F) Tabulated
(1.77) at a significance level (p<0.05), therefore, this demonstrates that the independent
variable(internet) have no significant relationship with the dependent variable of purchasing
decision variables, where the significance value approve that (0.770) .This means that the H01
is accepted.
H02: There are no statistically significant relationship between the online purchase obstacles
and making a purchasing decision.
Table (6) F. test analyses results
Independent
variable
Sum of
Squares
df
Mean
Square
F
Calculated
F
Tabulated
Sig.
Obstructions
Between
Groups
1576.520
21
75.072
3.337
1.65
0.000
Within
Groups
2137.395
95
22.499
Total
3713.915
116
From the table (6) we can see that the value of (F) calculated (3.337) is greater than (F)
Tabulated (1.65) at a significance level (p<0.05), therefore, this demonstrates that the
independent variable (online purchase obstructions) have significant relationship with the
dependent variable of purchasing decision variables. This means that the H02 is rejected,
where the substituted hypothesis (H2: There are statistically significant relationship between
the online purchase obstacles and making a purchasing decision).
H03: There are no statistically significant relationship telling others specific informations to a
brand and purchasing decision.
Table (7) F. test analyses results
Independe
nt variable
Sum of
Squares
df
Mean
Squar
e
FCalcula
ted
FTabula
ted
Sig.
Informat
ion
Between Groups
572.663
17
33.68
6
1.046
1.73
0.41
8
Within Groups
3123.73
7
99
32.20
3
Total
3713.91
5
116
From the table (7) we can see that the value of (F) calculated (1.046) is less than (F) Tabulated
(1.73) at a significance level (p<0.05), therefore, this demonstrates that the independent
British Journal of Marketing Studies
Vol.5, No.4, pp. 61-71, May 2017
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ISSN 2053-4043(Print), ISSN 2053-4051(Online)
variable (telling others specific informations) have a significant relationship with the
dependent variable of purchasing decision variables.This means that the H03 is accepted.
CONCLUSION
Research findings showed that there is a significant and positive relationship between the viral
marketing and the purchase decision; In other words, viral marketing leads costumers to
improve their purchase decisions.
The findings also showed that the use of internet have no significant relationship with the
dependent variable of purchasing decision. This demonstrates that the independent variable
(using internet in online purchase) have no significant relationship with the dependent variable
of purchasing decision.
The findings showed that the variable (online purchase obstructions) have significant
relationship with the dependent variable of purchasing decision.
The findings also revealed that the independent variable (telling others specific informations)
have a significant relationship with the dependent variable of purchasing decision variables.
The research recommended that for the companies to attain the benefits of viral marketing
should encourage their customers to fully utilize viral marketing with the aid of social
networking websites and other social media outlets such as Facebook, Twitter, LinkedIn, and
individual blogs. The companies should also aware about obstacles that face the customers
when they were dealing online either with their products or to minimize negative comments.
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Internet:
http://websitetips.com/articles/marketing/onlinestrategy/