Professional Documents
Culture Documents
Appendix:: Minor Research Project
Appendix:: Minor Research Project
APPENDIX:
1) CONCEPTUAL FRAMEWORK
2) REVIEW OF LITERATURE
5) METHODOLOGY
6) REFERENCES
7) QUESTIONNAIRE
CONCEPTUAL FRAMEWORK:-
Earliest uses of the current term viral marketing is attributed to the Harvard Business
School graduate Tim Draper and faculty member Jeffrey Rayport.
The term was later popularized by Rayport in a 1996 Fast Company article The Virus
of Marketing, and Tim Draper and Steve Jurvetson of the venture capital firm Draper
Fisher Jurvetson in 1997 to describe Hotmail's e-mail practice of appending
advertising to outgoing mail from their users.
The assumption is that if such an advertisement reaches a "susceptible" user, that user
becomes "infected" (i.e., accepts the idea) and shares the idea with others "infecting
them," in the viral analogy's terms. As long as each infected user shares the idea with
more than one susceptible user on average (i.e., the basic reproductive rate is greater
than one—the standard in epidemiology for qualifying something as an epidemic), the
number of infected users grows according to an exponential curve.
REVIEW OF LITERATURE:-
Viral marketing can be thought of as a diffusion of information about the product and
its adoption over the network. Primarily in social sciences there is a long history of the
research on the influence of social networks on innovation and product diffusion.
However, such studies have been typically limited to small networks and typically
a single product or service. For example, Brown and Reingen [BR87] interviewed the
families of students being instructed by three piano teachers, in order to find out the
network of referrals. They found that strong ties, those between family or friends,
were more likely to be activated for information flow and were also more influential
than weak ties between acquaintances.
Similar observations were also made by DeBruyn and Lilien in [DL04] in the context
of electronic referrals. They found that characteristics of the social tie influenced
recipients behavior but had different effects at different stages of decision making
process: tie strength facilitates awareness, perceptual affinity triggers recipients
interest, and demographic similarity had a negative influence on each stage of the
decision-making process.
The study by Villanueva, Yoo & Hanssens looks at The Impact of Marketing-Induced
vs Word of Mouth Customer Acquisition on Customer Equity Growth. Villanueva et
al looked at how customer value grew for a web hosting company depending upon
whether they were acquired by traditional marketing or word of mouth marketing. Not
surprisingly, they found that although customers were quicker to acquire through
traditional marketing, word of mouth marketing acquired customers who were twice
as valuable over the longer-term.
Social networks can be composed by using various information, i.e. geographic
Similarity, age, similar interests and so on. Yang and Allenby showed that the
geographically defined network of consumers is more useful than the demographic
network for explaining consumer behavior in purchasing Japanese cars. A recent study
by Hill et al found that adding network information, specifically whether a potential
customer was already “talking to” an existing customer, was predictive of the chances
of adoption of a new phone service option.
For the customers linked to a prior customer the adoption rate of was 3–5 times
greater than the baseline.
Factors that influence customers’ willingness to actively share the information with
others via word of mouth have also been studied. Frenzen and Nakamoto surveyed
a group of people and found that the stronger the moral hazard presented by the
information, the stronger the ties must be to foster information propagation.
Also, the network structure and information characteristics interact when individuals
form decisions about transmitting information. Bowman and Narayandas found that
self-reported loyal customers were more likely to talk to others about the products
when they were dissatisfied, but interestingly not more likely when they were
satisfied.
With increasing use of internet among the youth the buying pattern of the young
customers is changing rapidly. Internet has revolutionized the transaction process.
METHODOLOGY
Type of study -120 people was given questionnaires asking them various questions
which helped us in calculating the preferences of customers towards viral marketing
and traditional marketing.
The study is exploratory in nature as the major emphasis of the study is exploration of
ideas and insight. The experience survey technique is used.
Sample Size-120
Tool used for data analysis : multiple regression analysis because when there are two
or more than two independent variables, the analysis concerning relationship known
as multiple correlation and the equation describing such relationship as the multiple
regression equation. Multiple regression equation describes the form:
Y=a+b1x1+b2x2
REFERENCES
Research on viral market manuscript by Colin Klinkert.
Dynamics of viral marketing by Jure Leskovec (machine learning dpt, Carnegie
university USA)
The impact of Social networking sites to facilitate the effectiveness of viral
marketing by Lada A. Adamic.
The review of the theory of viral stealth marketing by C. Swanepoel.
Word of mouth advertising, credibility of learning in networks by Kalyan
Chatterjee and Bhaskar Dutta.
Questionnaire on “Preferences Of Youth Among Viral Marketing And
Traditional Marketing”
Dear Sir/Madam,
N.B. We assure you to that the data given by you will be only used for academic and
research purpose and will be kept confidential.
1) Name: ________________
2) Address: _____________
A) Regularly
8) Do you write blogs? If yes, how often you write the blogs?
9) To what extent you make use of social networking web-sites for promotional
purposes?
10) Did the information you get about a product on various social-networking sites
persuade you to buy the product? Yes/no/maybe
11) would you like a company making the use of Blogs to mention in details about the
various features associated with the product?
Yes/no
\12) To what extent you make use of social-media tools in your daily work
(b)Regularly
14) what are the other sources which made you aware about the product?
(a)Once a month
16). Please rank in order of importance which kinds of emails you are more likely to
open. Place a“1” next to the option that is the most likely, a “2” to the option
that is the next most likely, and so on.
Funny
Important
Entertaining
Helpful
Relaxing
Exciting
17) Is any other kind of email you particularly you like to receive?
………………………………….
Is any other kind of email you particularly you like to receive?
18) Please rate how frequently you forward this kind of email on a 1-6 scale where 1
means “Never” and 6 means “Always”
1 Never 2 3 4 5 6 Always
Jokes (work,
gender issues, .
computer, etc.)
Chain letters
(luck, advice,
etc.)
Funny/interesting
videos
Funny/interesting
adverts
Games
Corporate
messages
Yes
No
Maybe, I can
remember
20) In which media have you seen it?
I received the link by email but I watched it on Youtube or other broadcast site
TV adverts
TV programs
Yes No
22) Please rate the degree of liking of these videos according to you on a 1-6 scale
where 1 means "I dislike" and 6 means "I like very much"
1 I 6 I like
2 3 4 5
dislike very much
McDonald–“ I
am love in it”
Pepsi–“ Changes
the game”
Surf Excel –“
Daag achche hain”
23) After watching these videos how much likely are people to buy these brands?
Please rate these videos on a 1-6 scale where 1 means “very likely” and 6 means
“very unlikely”.
1
6 Very
Very 2 3 4 5
unlikely
likely
McDonald– “ I
am love in it”
Pepsi –“ Changes
the game”
Surf Excel –“
Daag achche hain”
•Yes
• No
• Traditional methods
• Direct Methods
• Both
26) Do you feel the internet is replacing traditional marketing such as TV and in
newspapers etc. ?
• Yes
• No
• Don’t Know
• Yes
• No
• Myspace
• Bebo
………………………………………………..
• Yes
• No
• Don’t Know