“Bachelors of Business Administration (BBA)”

Consumer Behavior
Course code: MKT 404
Section “A”
Final Report

Name: Touheed Abbas

ID: BB-6350
Submitted to: Ma’am Hanifan

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Content:
Word of mouth.
Buzz Buildings
The power of rumors
Opinion Leadership
How influential is an opinion leader
Types of opinion leader
How do we find opinion leader
The social media revolution
Social media and community
The structure of social networks
The power of online communications
Online opinion leaders
The diffusion of innovations
How do we decide to adopt an innovations?
Behavioral demands of innovations
What determines if an innovations will diffuse?
The fashion system

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Word of mouth
• Word-of-mouth marketing (WOM marketing) happens when consumers talk about a
company's product or service to their friends, family, and to others with whom they have
close relationships.
• WOM marketing is one of the most powerful forms of advertising as 88% of consumers
trust their friends' recommendations over traditional media.
Example of word of mouth
• Word of mouth marketing is a form of promotion that relies on happy customers and fans
to promote a brand organically. This can be done through many forms of media like
images, video, vlogs, etc.

Opinion leadership
• An opinion leader can make a career out of influencing their audience based on industry
trends, current events and consumer behavior within the market.
• Opinion leaders are respected, which allows us to have the ability to trust them. They
earn their level of trust by becoming experts in their field. 
Example of opinion leader
• Common examples of modern-day opinion leaders include social media "influencers,"
like Instagram celebrities and YouTubers.

The social media revolution

• Social media is by far one of the most defining technologies of our time. It has enabled
consumers to connect and discuss brands with each other quickly and easily.
• Businesses are able to develop deeper connections with their audience by being able to
show their ‘human side’, such as sharing behind-the-scenes insight into their businesses
and allowing them to communicate their message in an easy way.
Example of social media revolution
• Thanks to the digital revolution the powers of the customer have changed, new
communication modes, new technologies, new knowledge. All these changes force
marketers to push their new strategies towards a customer-oriented dialogue marketing
that is more and more zealous.

The diffusion of innovations

• Diffusion of Innovation (DOI) Theory, developed by E.M. Rogers in 1962, is one of the
oldest social science theories.
• The diffusion of innovation theory explains the rate at which consumers will adopt a new
product or service. Therefore, the theory helps marketers understand how trends occur,
and helps companies in assessing the likelihood of success or failure of their new
introduction.

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Example of diffusion of innovations
• All new products or innovations are not always easily accepted by consumers. Some
products gain easy acceptance or are easily accepted by consumers.
• For instance, Nirma detergent powder (when HLVs Surf was the market leader), Maruti
800 c.c. car etc. While there are other new products or ideas which took a long time to be
accepted.

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