A System Dynamics perspective on firm growth through advertising and word of mouth

Gopalkrishna , B and Shiva Prasad, H C and Kamath, Giridhar B (2015) A System Dynamics perspective on firm growth through advertising and word of mouth. Indo-Global Journal of Commerce and Economics , 2 (4). pp. 178-180. ISSN 2393-9796

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Abstract

It is a universally accepted fact that advertising is the heart of marketing function and it can never be compromised upon. Researchers have also believed that the role of word of mouth can never be undermined. Customer goodwill that is reflected through the word of mouth is studied in this paper. It is a proven fact that customers who have had bad experiences share their experience with more number of people than those customers who have had better experiences. In this research word of mouth is considered as a dependent variable and many other independent variables impacting it is studied. This paper examines the impact of advertising and word of mouth on sales through simulations carried out using a stock and flow diagram built through system dynamics methodology. This paper highlights the importance of the roles played by advertising and the impact of positive word of mouth on the sales and profitability of the firms.

Item Type: Article
Uncontrolled Keywords: Word of Mouth, Advertising, Automobile, Customer, System Dynamics
Subjects: Engineering > MIT Manipal > Humanities and Management
Depositing User: MIT Library
Date Deposited: 10 Jul 2015 07:28
Last Modified: 10 Jul 2015 07:28
URI: http://eprints.manipal.edu/id/eprint/143312

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