The Impact of Observational Learning and Electronic Word of Mouth on Consumer Purchase Decisions: The Moderating Role of Consumer Expertise and Consumer Involvement

Author(s):  
Christy M.K. Cheung ◽  
Bo Xiao ◽  
Ivy L.B. Liu
Author(s):  
Sheena Lovia Boateng

Generation Z (Gen-Z) consumers have been averred to rely on electronic word of mouth (eWOM) for making purchase decisions and expect integrity in brand communication. A significant question bearing both theoretical and practical implications, however, is how the tendency of these consumers to associate brand image with brand integrity influences the impact of eWOM on their purchase intentions, which remains unanswered. Also, studies focusing on a specific gender of Gen-Z consumers are limited. Using the signaling theory and a survey, the study suggests that eWOM signals play a significant role in influencing purchase intentions among female Gen-Z consumers, as well as their perceptions of the brand image and the brand integrity of makeup brands. For female Gen-Z consumers, eWOM signals that enhance the perceptions of brand integrity and brand image tend to equally matter in their makeup purchase decision making. These findings have implications for an industry that is marked by increasing demand for transparency and responsible marketing communication.


2021 ◽  

The concept of electronic word-of-mouth (eWOM) was introduced in the mid-1990s, when the Internet was beginning to change the ways consumers interacted with each other. eWOM can be generally defined as consumers’ information sharing and exchange about a product or company via the Internet, social media, and mobile communication. eWOM has been recognized to lead to high retransmission intentions because it is easy for consumers to generate conversations online. It also allows information to be passed along globally and quickly. Because of the impact of eWOM on consumer behavior, academic research on eWOM has been documented in disciplines such as advertising, marketing, communication, management, and electronic commerce. Over the past few decades, research has demonstrated the impact of eWOM on sales, product evaluations, purchase decisions, customer satisfaction and loyalty, and consumer-brand relationships. Research has also examined antecedents and motives of eWOM. Factors such as consumers’ desire for social interaction, desire for economic incentives, concern for other consumers, and the potential approval utility have been identified as important motives that drive consumers’ eWOM behavior. In addition, individuals’ social relationship factors (e.g., social capital), as well as message source and characteristics, are antecedents that lead to eWOM behavior. In this article, eWOM is considered in many different formats, such as product review sites, emails, discussion boards, user-generated content, social media, and online communities. This article begins with citations concerning the Role of eWOM in Advertising, Communication, and Marketing. Next, Special Journal Issues on eWOM and Overview Articles are presented. Finally, key research areas are highlighted: Social Media–Based eWOM and Purchase Intentions; the Role of Influencers as a new source of eWOM; the impact of eWOM on Corporate Reputation and Corporate Social Responsibility (CSR); and Cross-Cultural Differences in eWOM. These areas together explain the antecedents and consequences of eWOM.


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