The Effect of Social Media Usage and Electronic Word of Mouth on Conviction and Its Impact on Purchase Intention and Customer Loyalty: The Role of Brand Reputation as A Moderator

Abstract

The purpose of this study is to propose the concept of conviction in online environment. It examines the vital role of conviction and brand reputation while understanding the impact of social media usage and E-WOM on purchase intentions on e-commerce platforms. Collecting data from respondents from DKI Jakarta using convenience sampling and questionnaires. Analyzed using Structural Equation Modeling (SEM) and empirically tested using Partial Least Square (PLS). The findings show that E-WOM and conviction have a positive effect on purchase intention and consumer loyalty. The results also revealed that social media usage does not have a positive effect on purchase intention. Furthermore, brand reputation (perceived by the customer) moderates the relationship between E-WOM and purchase intention in a manner that this relationship is significantly stronger if there is more positive brand reputation.