Nothing sways an Indian buyer’s choice more than a word of reassurance from the people he knows. Even for the purchases like cars, mobile phones and home loans, majority of the consumers in India rely on the references from their friends and relatives while making their decisions. The story is different in developed economies. Take the case of automobiles. In markets like the US, Canada and Japan, more people are influenced by conventional advertising by automobile companies, in developing markets like India, Malaysia and Thailand it’s the neighbor or the colleague who tips the scales one way or the other. “In case of luxury goods, the psyche of Indians has always been different. Buying a car is a family decision, so it is only natural that all the members of the family will talk to all the other users of a similar products, who they know”, General Motors India director P Balendran said. When the whole world is going crazy with Internet and mobile marketing, it is interesting that for Indians it’s still conventional advertising and various campaigns sway their choices. Unlike in the West, Indians come from a very closely-knit society where people get influenced by their peers, relatives and local celebrities. People are more than willing to accept a brand if it’s endorsed by their favorite superstar or is recommended by their close associates.

In countries like India where a buyer's choice is swayed by the words of reassurance from the people he knows, according to you, which of the following is linked to what is happening in India?

Word of mouth

In countries like India where a buyer's choice is swayed by the words of reassurance from the people he knows, the phenomenon described is linked to: Option 2: Word of mouth

The passage highlights that in countries like India, consumers rely heavily on references and recommendations from friends, relatives, and acquaintances when making purchasing decisions. This reliance on personal recommendations from trusted individuals is commonly referred to as "word of mouth" marketing.