Nothing Beats Word of Mouth in India Nothing sways an Indian buyer's choice more than a word of reassurance from the people he knows. Now even high octane media blitz. A global online survey conducted by ACNielsen puts word of mouth communication and referencing as the biggest influence than conventional adveretising on consumers in their buying decisions. In big ticket purchases like cars, mobile phones and home loans, the study says that almost 50% of consumers in India rely on the references from their friends and realtives While making their decisions. The story is different in developed economies. Take the case of automobiles. In markets like the US, Canada and Japan more people are influenced by conventional advertising by automobile companies, in developing markets like India, Malaysia and Thailand it's the neighbour or the colleague who tips the scales one way or the other. "In case of luxury goods, the psyche of Indians has always been different. Buying a car is a family decision, so it is only natural that all the members of the family will talk to the other users of a similar products, who they know", General Motors India director P Balendran said: "No wonder, large automakers in India spend as much on customer satisfaction as advertising, and recognitions like the JD Power Customer Satisfaction awards taken so seriously."When the whole world is going crazy with Internet and mobile marketing, it is interesting that for Indians it's still conventional advertising and word of mouth campaigns that sways their choices. Unlike in the West, Indians come from a very closely-knit society where people get influenced by their peers, relatives and local celebrities. People are more than willing to accept a brand if it's endorsed by their favourtie superstar or is recommended by their close associates, " AC Nielsen (south Asia) ED Sarang Panchal says. " However, in markets like the US, previous experience with the products is the strongest influencer overall and particularly when it came to buying cars (49%) , choosing a banks (46%) , mobile phone (39%) and loans (35%) . World of mouth is a priority while buying weight loss products and mobile phones." Which element of Marketing Mix is discussed in the given case.
