Exploring the Influence of Positive- and-Negative Electronic Word of Mouth on Online Consumer Behaviour and Customer Loyalty

Abstract

This study aims at investigating the effect of both positive and negative electronic word of mouth (eWOM) on online consumer buying behaviour, customer satisfaction, and customer loyalty. A conceptual model is developed and tested with the data collected from 652 respondents from a developing country. After checking the psychometric properties of the survey instrument, hierarchical regression was performed to test the hypothesized relationships. The results indicate that (a) positive eWOM has a positive effect and negative eWOM has a significant negative effect on online consumer buying behaviour, (b) online buying behaviour is positively associated with customer satisfaction, which, in turn, is related to customer loyalty, and (c) trust in information moderates the relationship between (a) positive eWOM and online buying behaviour, and (b) negative eWOM online buying behaviour. The findings also suggest that trust in the product increases the strength of the positive effect of online buying behaviour and customer satisfaction. The theoretical contribution of this article stems from highlighting the importance of trust in information and trust in products in strengthening the relationship between eWOM and online buying behaviour. The conceptual model developed and tested in this study provides valuable insights into the effects of both positive and negative eWOM on customer satisfaction and loyalty. The study recommends that e-retailers identify the most appropriate platforms where the potential buyers interact with others and exchange reviews and comments that may profoundly affect online buying behaviour.