The Effect of Word of Mouth Marketing on Customer loyalty & Product sales

Abstract

Word of mouth marketing (WOMM) is a valuable and most powerful form of marketing. It differs from naturally occurring word of mouth, in that it is actively influenced or encouraged by organizations. The concept of word of mouth marketing has now gained more popularity as it acts as a trustable way to influence customers. This paper discloses the effects of word of mouth marketing on customer loyalty and product sales. This study also analyzes the terms of word of mouth, word of mouth marketing, marketing performances. This study reveals that word of mouth marketing has a significant effect on building customer loyalty and increasing product sales. Explorative research design and secondary data has been used for this study. To prepare this study, relevant literatures are reviewed. The available literatures show that the proper implementation of word of mouth marketing can significantly affect increasing sales level and building customers’ loyalty. As a new marketing tool, company need to have adequate knowledge for the proper implementation so that business success can be achieved.