The Relationship between Cultural Values and Word of Mouth Marketing Among Consumers of Dairy Products Pegah Co. in Isfahan

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1 The Relationship between Cultural Values and Marketing Among Consumers of Dairy Products Pegah Co. in Isfahan Seyed Yahya Seyed Danesh Department of Industrial Management, Payme noor University, Rasht Center, Rasht, Iran Hamid Reza Alipour Department of Business Management, Islamic Azad University, Rasht Branch, Rasht, Iran Sara Golban M.A. of Business Management, Islamic Azad University, Rasht Branch, Rasht, Iran (Corresponding Author) Abstract Nowadays, oral advertise have lot of importance as one of the most common tools in marketing and advertising. So that studies indicates oral advertising can be significant impact on the consumers' purchasing behavior and their satisfaction from products and services. On the other develop a positive attitude and lack of negative about f a product or new brand has a especially important for the successful release of the product in a population. Hence this study given the importance of issue and role of common cultural values in promoting of advertising or oral marketing is trying that examine relationship between cultural values and word of mouth marketing. In this regard, cultural values according to the four cultural values included individualism, power distance, masculinity, Hofsted's avoidance uncertainty, and also word of mouth marketing within the group and Out word of mouth marketing of group were measured between 384 people from customers of Pegah Dairy Products in Isfahan. Keywords: Marketing, Cultural Values, Individualism, Power Distance, Masculinity, Avoidance Uncertainty Introduction In today's world, conditions of new market will force people that think about purpose of advertising. Nowadays consultants that depict advertising programs have found that level of advertisers from advertising increased dramatically. However, advertisers do not know require to what a tool for achieve the most effective advertising: spending more funds in the media, attractive and unique design of advertising, or having a clear and specific purpose? (Asfarjani 2003) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 659

2 Between various methods of advertising and marketing oral or by word of mouth marketing has gained most important among marketers. So that some people believe oral advertising are including most effective and efficient ways of advertising in marketing. Because oral advertise to form of quite simple isn't nothing more than talking about products. But this type of advertise can be described from the point of view three terms Direction, Capacity and Size. Direction is concept of login oral advertising in decision making process, or results of purchase process. Capacity can be positive or negative. Finally Size depends to number of people that have received the message. Login oral advertising in decision making process when product has technical features more will be compared to when product is possible for assessed easily and consumers for reduce your risk follow recommendations and its input sources. (Ghafari Ashtiani Et al. 2009) Problem Statement Marketing namely search to find the most appropriate market and parts that organizations can be present there more useful and effectively and be responsive to the needs and demands of the people. In other words, marketing is a conscious effort for allocating resources and create a specialty in the market. Qua, in order to avoid wasting resources and various facilities and finding the most appropriate position in the available market should be benefit from appropriate tool to identify your product. Nowadays, one of the tools has attracted most attention is word of mouth advertising or word of mouth marketing. Because, this method of advertising for many years been as the main source of influence on something individuals knows, feel and do (Stokes and Lomax 2002). Given the importance of this issue and effective role of oral advertising in current marketing it seems should manage this phenomenon effectively and with deliberate measures will benefit from its benefits. Because, organizations without the knowledge of how consumer behavior and its understanding will not be have able to take appropriate action for meet the consumers' needs and demands. On the other, consumer behavior is stems from specific beliefs and attitudes. (Taylor 1891) Previous Research 1. The relationship between cultural values and smoothing profit of admitted companies in Tehran stock exchange Nourosh Et al The results of their study showed that there is a significant relationship between cultural values and smoothing profit of admitted companies in Tehran stock exchange. Namely, cultural factors have determining role in smoothing profit in Iran. 2. Cultural values and corporate governance Mashayekhi & Jalali 2012 The results of study showed that there is significant reverse relationship between manoriented index in organization and percent of board of director non-bound members. Also there is a significant relationship between individualism index in organization and percent of ownership institutional investors and a significant reverse relationship between avoidance uncertainty and percent of ownership institutional investors. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 660

3 3. Opposite effects of Negative word of mouth advertising in step of after consumption Chan Et al They showed that negative word of mouth advertising based on features have negative effects on the dissatisfied consumers and but, negative word of mouth advertising based on experience will be followed positive effects. Models of Research Figure 1 : Conceptual Model of Research The Research Hypotheses The main hypothesis: between cultural values and word of mouth advertising. The first sub-hypothesis: between cultural values of individualism versus gregariousness of consumer in word of mouth advertising within the group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 661

4 The second sub-hypothesis: between cultural values of individualism versus gregariousness of consumer in word of mouth advertising out of group. The third sub-hypothesis: between cultural values of manoriented versus woman-oriented of consumer in word of mouth advertising within the group. The fourth sub-hypothesis: between cultural values of manoriented versus woman oriented of consumer in word of mouth advertising out of group. The fifth sub-hypothesis: between cultural values of power distance with word of mouth advertising of consumer in word of mouth advertising within the group. The sixth sub-hypothesis: between cultural values of power distance with word of mouth advertising of consumer in word of mouth advertising out of group. The seventh sub-hypothesis: between cultural values of avoidance uncertainty with word of mouth advertising of consumer in word of mouth advertising within the group. The eighth sub-hypothesis: between cultural values of avoidance uncertainty with word of mouth advertising of consumer in word of mouth advertising out of group. Theoretical Research Advertising: It is a relationship between a receiver and communicator and it is perceived as a non-business related. (Shaw Et al. 2001) Advertising within the Group: It is advertising that occurs within the group such as family, relatives and close friends. (Wirtz Et al. 2002) Advertising Out of Group: It is advertising that occurs out of group such as family, relatives and close friends. (Matos & Rossi 2008) Cultural Values: It is general and complex concept that be encompasses knowledge, belief, art, morals, law, custom and any other capabilities that provide habits of a nation. (Moller & Antilla 1987) Individualism: It is criteria that indicates relationships between individuals and groups in a society. (Park Et al. 2009) Power Distance: It is criteria that indicates differences in power distribution among people and it is reflect the range (inequality) from the perspective of poor individuals in the community. (Groeschl & Doherty 2000) Man-Oriented: It is criteria that indicates amount of individuals tendency to the bold behave in contrast modest approach. (Hofstede 2001) Avoidance Uncertainty: It is criteria that indicates amount of individuals' anxiety in a community or organization in relation future uncertain status. (Bush Et al 2005) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 662

5 Research Methodology The present study in terms of aim is applied and in terms of data collection methods is descriptive and correlation type and based on the correlation of the two variables. The purpose of applied research is development of applied knowledge in a particular field (Sarmad Et al. 2008). The statistical population of this study is included all consumers of Pegah dairy products in Isfahan. According to being infinite of population size the sample size was considered 384 people. The data gathering tool in this study is questionnaire. Validated of Questionnaire In this study, for determine the reliability of the questionnaire has been used Cronbach's alpha coefficient. The desired outcome is as follows: Table 1: Cronbach's alpha coefficient Variables Number of Question Alpha Cultural Values Independent Dependent Individualism Power Distance Avoidance Uncertainty Man-Oriented Advertising Advertising within the Group Advertising Out of Group Methods of data analysis In this study has been used tests such as mean, Kolomogrov-Smirnov, correlation, T-test, single-factor ANOVA. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 663

6 Hypothesis Test s The main hypothesis: between cultural values and word of mouth advertising. Table 2: The Cultural Values Advertising 1.547** Cultural Values Advertising.547** 1 **The correlation coefficient is significant at level of Cultural Values and Advertising 384 % Confirmed According to the results can be seen that obtained significance level () is less than So can be said that the research hypothesis confirmed and this relationship is significant. Also can be said that strong correlation between the two variables is %54.7, it is represents direct relationship between the two variables. The coefficient of determination between two variables is 0.299, namely independent variable does predict %30 of dependent variable. The first sub-hypothesis: between cultural values of individualism versus gregariousness of consumer in word of mouth advertising within the group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 664

7 Table 3: The Individualism Versus Gregariousness Advertising Within The Group Individualism Gregariousness Versus Advertising Within The Group Individualism Versus Gregariousness and Word of Mouth Advertising Within The Group 384 % Rejected According to the results can be seen that obtained significance level () is greater than So can be said that the research hypothesis rejected and this relationship isn't significant. The second sub-hypothesis: between cultural values of individualism versus gregariousness of consumer in word of mouth advertising out of group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 665

8 Table 4: The Individualism Versus Gregariousness Advertising Out of Group Individualism Gregariousness Versus Advertising Out of Group Individualism Versus Gregariousness and Word of Mouth Advertising Out of Group 384 % Rejected According to the results can be seen that obtained significance level () is greater than So can be said that the research hypothesis rejected and this relationship isn't significant. The third sub-hypothesis: between cultural values of manoriented versus woman-oriented of consumer in word of mouth advertising within the group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 666

9 Table 5: The Man-Oriented Versus Woman-Oriented 1.472** Advertising Within The Group Man-Oriented Woman-Oriented Versus Advertising Within The Group.472** 1 **The correlation coefficient is significant at level of Cultural Values and Advertising 384 % Confirmed According to the results can be seen that obtained significance level () is less than So can be said that the research hypothesis confirmed and this relationship is significant. Also can be said that strong correlation between the two variables is %47.2, it is represents direct relationship between the two variables. The coefficient of determination between two variables is 0.223, namely independent variable does predict %22.3 of dependent variable The fourth sub-hypothesis: between cultural values of manoriented versus woman oriented of consumer in word of mouth advertising out of group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 667

10 Table 6: The Cultural Values Advertising Out of Group 1.458** Cultural Values Advertising Out of Group.458** 1 **The correlation coefficient is significant at level of Cultural Values and Advertising 384 % Confirmed According to the results can be seen that obtained significance level () is less than So can be said that the research hypothesis confirmed and this relationship is significant. Also can be said that strong correlation between the two variables is %45.8, it is represents direct relationship between the two variables. The coefficient of determination between two variables is 0.209, namely independent variable does predict %20.9 of dependent variable The fifth sub-hypothesis: between cultural values of power distance with word of mouth advertising of consumer in word of mouth advertising within the group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 668

11 Table 7: The Cultural Values Advertising Within The Group 1.313** Cultural Values Advertising Within The Group.313** 1 **The correlation coefficient is significant at level of Cultural Values and Advertising 384 % Confirmed According to the results can be seen that obtained significance level () is less than So can be said that the research hypothesis confirmed and this relationship is significant. Also can be said that strong correlation between the two variables is %31.3, it is represents direct relationship between the two variables. The coefficient of determination between two variables is 0.098, namely independent variable does predict %9.8 of dependent variable The sixth sub-hypothesis: between cultural values of power distance with word of mouth advertising of consumer in word of mouth advertising out of group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 669

12 Table 8: The Cultural Values Advertising Out of Group 1.256** Cultural Values Advertising Out of Group.256** 1 **The correlation coefficient is significant at level of Cultural Values and Advertising 384 % Confirmed According to the results can be seen that obtained significance level () is less than So can be said that the research hypothesis confirmed and this relationship is significant. Also can be said that strong correlation between the two variables is %25.6, it is represents direct relationship between the two variables. The coefficient of determination between two variables is 0.066, namely independent variable does predict %6.6 of dependent variable The seventh sub-hypothesis: between cultural values of avoidance uncertainty with word of mouth advertising of consumer in word of mouth advertising within the group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 670

13 Table 9: The Cultural Values Advertising Within The Group 1.496** Cultural Values Advertising Within The Group.496** 1 **The correlation coefficient is significant at level of Cultural Values and Advertising 384 % Confirmed According to the results can be seen that obtained significance level () is less than So can be said that the research hypothesis confirmed and this relationship is significant. Also can be said that strong correlation between the two variables is %49.6, it is represents direct relationship between the two variables. The coefficient of determination between two variables is 0.246, namely independent variable does predict %24.6 of dependent variable The eighth sub-hypothesis: between cultural values of avoidance uncertainty with word of mouth advertising of consumer in word of mouth advertising out of group. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 671

14 Table 10: The Cultural Values Advertising Out of Group 1.537** Cultural Values Advertising Out of Group.537** 1 **The correlation coefficient is significant at level of Cultural Values and Advertising 384 % Confirmed According to the results can be seen that obtained significance level () is less than So can be said that the research hypothesis confirmed and this relationship is significant. Also can be said that strong correlation between the two variables is %53.7, it is represents direct relationship between the two variables. The coefficient of determination between two variables is 0.288, namely independent variable does predict %28.8 of dependent variable Conclusions The present study by one main assumption and eight sub-hypothesis examined relationship between cultural values and word of mouth advertising of dairy products consumer in Isfahan Pegah Co. Hypothesis test results showed that at level of 0.05 error second sub-hypotheses of first and second are rejected and at level of 0.01 error or at level of %99 confidence subhypotheses of third, fourth, fifth, sixth, seventh, and eighth along main hypotheses are confirmed. Suggestions of Research Companies and business owners should deal to study of culture in various regions and understanding complex nature of your products consumer identity. Because, understanding of the culture is essential component in development of marketing effective strategies and marketing superior performance. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 672

15 Suggestions for Future Research 1. It is suggested in future studies be used other methods of data collection such as interview. 2. It is suggested in design of used scales for factors this study be used other models and dimensions of cultural values. 3. It is suggested in similar research, word of mouth marketing be examined according to its positive and negative consequences. Limitations of Research Lack of access to a number of case studies in order to increase the generalizability of results COPY RIGHT 2013 Institute of Interdisciplinary Business Research 673

16 References 1. Asfarjani, Shahrzad Aims of Advertising. Journal of Tadbir. Seventeenth Years. No Bush, Victoria D., Bush, Alan J., Clark, Paul., and Bush, Robert P., (2005), Girl power and word-of- Mouth Behavior in the flourishing sports market«, Journal of consumer Marketing, Vol. 22 No Ghafari Ashtiani, Peyman Et al The role and effectiveness of oral Advertising and Viral Marketing. Publicatin of Management. No. 41. PP Chan Et al Opposite effects of Negative word of mouth advertising in step of after consumption 5. Groeschl, S. & Doherty, L. (2000). Conceptualizing culture. Cross Cultural Management An International Journal, 7(4), Hofstede, G. (2001). Culture s Consequences: Comparing Values, Behaviors, Institutions & Organizations Across Nations, 2nd edn. Sage: Thousand Oaks, CA. 7. Mashayekhi. Jalali Cultural values and corporate governance 8. Matos CA, Rossi CAV (2008). Word-of-mouth communications in marketing: a meta-analytic review of the antecedents and moderators. J. Acad. Mark. Sci, 36: Moller, K. and Antilla, M. (1987), Marketing Capability A Key Success Factor in Small Business, Journal of Marketing Management, 3 (2): Nourosh Et al The relationship between cultural values and smoothing profit of admitted companies in Tehran stock exchange 11. Park Cheol, Lee Thae Min, (2009), Information direction, website reputation and ewom effect -Journal of Business Research Sarmad, Zohreh. Bazargan, Abas. Hejazi, Elahe Research methods in the behavioral sciences. Seventh Edition. Tehran. Publication of Agah. 13. Shaw, M. J., Subramaniam, C., Tan, G. W. and Welge, M. E. (٢٠٠١), Knowledge Management and Data Mining for Marketing, Decision Support Systems, ٣١, pp.١٢٧-٣٧ 14. Stokes, David, Lomax, Wendy. (2002), Taking control of word of Mouth Marketing: the case of an entrepreneurial hotelier, Journal of Small Business and Enterprise Development, Vol. 9 No Taylor, E.B. Anthropology: An introduction to the study of man and civilization. London: Watts, Wirtz, Jochen. and Chew, patricia. 2002,»The Effects of Incentives, Deal proneness, Satisfaction and Tie strength on word-of-mouth Behavior«, International Journal of service Industry Management, Vol. 13 No. 2. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 674

Abstract. Keywords: SERVICES, SERVICE QUALITY, CUSTOMER PERCEPTIONS AND EXPECTATIONS OF CUSTOMERS. Introduction

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