Purchase decision of generation Y in an online environment

Abstract

PurposeThe purpose of this paper is to propose the concept of conviction in online environment. It examines the vital role of conviction and firm’s brand reputation while understanding the impact of social media usage and electronic word-of-mouth (EWOM) on purchase decisions of Generation Y.Design/methodology/approachLiterature review resulted in six constructs – social media usage, EWOM, conviction, firm’s brand reputation and purchase intention and customer loyalty. The authors adopted the concept of conviction from another field of enquiry (organizational learning), conducted a qualitative study and an e-mail survey with post-graduate management students (Generation Y) of a university to examine the impact of social media and EWOM on customer purchase decision. Data were collected and analyzed with the help of structural equation modeling.FindingsResults indicated that impact of social media usage and EWOM on purchase decision is mediated by conviction. Firm’s reputation as brand (perceived by the customer) moderates the relationship between EWOM and purchase intention in a manner that this relationship is significantly stronger if there is more positive brand reputation.Originality/valueThis study validates the concept of conviction in online environment. The purchase decision is defined as purchase intention and loyalty of the customer.