Electronic word of mouth and its impact on online decision making (purchase intention)

Abstract

This dissertation investigates the impact of electronic word of mouth (eWOM) on online consumer purchase intentions. It examines how the credibility of the source, the nature of the information shared, and the frequency of review reading influence consumer behavior. The research is divided into a theoretical literature review and an empirical study. The literature review explores key aspects of eWOM, including its definition, types, and role in the online purchase decision process. The empirical study, based on a questionnaire of 311 respondents, tests four hypotheses: (1) buying-related information positively impacts customers' perception of reviews, (2) the credibility and nature of eWOM significantly influence purchase intentions, and (3) frequent review reading positively impacts purchase intentions. The findings confirm all three hypotheses, highlighting that detailed and credible eWOM enhances purchase intentions, while negative eWOM deters them. The study underscores the importance of frequent eWOM engagement in shaping consumer behavior and provides recommendations for businesses to optimize their eWOM strategies, such as encouraging detailed reviews, managing negative feedback, leveraging credible sources, and promoting regular consumer engagement. This research contributes to the understanding of eWOM and offers insights for businesses aiming to leverage eWOM effectively to influence consumer purchase intentions.