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Investigating the Role of Word of Mouth on Consumer Based Brand Equity Creation in Iran’s Cell-Phone Market

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  • Mehran REZVANI

    ()
    (Assistant professor, Faculty of Entrepreneurship, University of Tehran, Iran)

  • Seyed Hamid Khodadad HOSEINI

    (Associate Professor, Faculty of Management and Economics, University of Tarbiat, Iran)

  • Mohammad Mehdi SAMADZADEH

    (M.S of Entrepreneurship, Faculty of Entrepreneurship, University of Tehran)

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    Abstract

    This paper investigates the impact of Word of Mouth (WOM) on Consumer Based Brand Equity (CBBE) creation. WOM characteristics such as, volume, valence, and source quality are studied to find how intensely they each affect brand awareness, perceived quality, and brand association. This investigation has been conducted in Tehran-Iran, on the cell-phone market. The methodology selected for this study was structural equation and all the calculations were done using Lisrel 8.54. The results suggested that volume and valence, two elements of WOM, affect CBBE and no significant relationship between source type and brand equity was seen.

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    Bibliographic Info

    Article provided by ScientificPapers.org in its journal Journal of Knowledge Management, Economics and Information Technology.

    Volume (Year): 2 (2012)
    Issue (Month): 1 (February)
    Pages: 3

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    Handle: RePEc:spp:jkmeit:1241

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    Related research

    Keywords: Costumer-based brand equity; Word of mouth; Mobile market; Structural equation model;

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    1. Anderson, Eugene W & Salisbury, Linda Court, 2003. " The Formation of Market-Level Expectations and Its Covariates," Journal of Consumer Research, University of Chicago Press, vol. 30(1), pages 115-24, June.
    2. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    3. Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
    4. Valette-Florence, Pierre & Guizani, Haythem & Merunka, Dwight, 2011. "The impact of brand personality and sales promotions on brand equity," Journal of Business Research, Elsevier, vol. 64(1), pages 24-28, January.
    5. Brown, Jacqueline Johnson & Reingen, Peter H, 1987. " Social Ties and Word-of-Mouth Referral Behavior," Journal of Consumer Research, University of Chicago Press, vol. 14(3), pages 350-62, December.
    6. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
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