Determinants of word-of-mouth communication and purchase intention of trade offices in kish Island (Case of Mica Mall)

Abstract

Word of mouth (WOM) is becoming recognized as an important form of promotion and an important source of information influencing consumer’s purchase behavior. The purpose is to survey the effect of WOM on touristcustomers’ decision for purchasing Trade Offices of Mica Mall in Kish Island. Data was collected through a field research among 145 customers who have invested in Mika Mall offices, and the data were analyzed using correlation and structural equation modeling. The survey period was from Jun 2 to Jun 29, 2015. A questionnaire was provided for theories test by researcher. The validity and reliability of questionnaire was confirmed consequently by experts and Cronbach's Alpha by SPSS software. SEM was used for hypotheses testing. Two findings have been concluded in this survey. First, tie strength, source expertise, and reference group are the main antecedents of WOM seeking behavior. Second, WOM seeking behavior is the main determinant of purchase intention of Mika Mall trade offices. Managers should develop the completely understanding of WOM and try to stimulate WOM about trade offices among potential customers, because most customers are influenced by information which achieved from informal resources.Keywords: word-of-mouth, expertise, reference group, tie stnegth, purchase intention, mica mall