How are eWOM Credibility and Purchase Intention Inter- Related? A PLS-SEM Analysis

Abstract

Advanced technologies such as smart phones and 4G internet have created more opportunities for e-shopping. Individuals are switching their purchases from traditional to digital with the help of electronic commerce. The customer usually evaluates a product by reading other user recommendations on blogs, online sites, and some other social media platforms, commonly termed as eWOM (electronic word of mouth). Reviews and ratings on the internet influence a traveler's decision to reserve an accommodation. The research study examines the influence of eWOM credibility on the purchase intention. The research also examined the role of trust and perceived risk as mediating factors between eWOM credibility and purchase intention. The Questionnaire study was carried on 687 individuals over the age of 18. PLS-SEM was used to examine the data. The eWOM credibility significantly impacted traveler purchasing intentions. The mediator in the relationship between eWOM credibility and purchase intention was trust, not perceived risk. The study recommends that marketers validate the source of information and prioritise the reviews that are perceived as more credible and establish a favourable intention towards online booking.