Abstract

This study aims to analyze the implications of e-WoM components (intra-personal ties, homophile, credibility) on consumer purchasing decisions both directly and through mediating consumer preferences. Previous experience of consumer purchases conveyed by word of mouth can be a preference for other consumers in buying products or services. The development of digital communication makes electronic Word of Mouth (e-WoM) play an important role in influencing consumer preferences, especially for those who have to make purchasing decisions for products with many features such as gadgets. A total of 300 questionnaires were distributed around Jakarta using simple random sampling and obtained 102 complete responses from respondents. Data analysis was performed using descriptive statistical methods, correlational and multiple regression with the help of SPSS software. The results showed that the gadget purchase decision was partially influenced by consumer purchasing preferences and credibility sources, but this purchase preference was not as dominant as the credibility source. Gadgets are designed unusual and have many advanced technological features compared to conventional products, therefore the results of this study may not be valid for products outside of the gadget. Further research is needed whether e-WoM has the same influence on consumer purchasing decisions of conventional products.

Highlights

  • Deciding to buy a new product with a lot of technology features is not a simple matter

  • Research is focused to examine the relationship between variables of electronic Word of Mouth (e-WoM) components, indirectly towards customer purchase decisions through customer preference while the direct influence of source credibility will be investigated as well to the customer purchase decisions

  • As one of the predictors, customer preference is affected by the source of credibility, but this source of credibility goes to the customer purchase decision

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Summary

Introduction

Deciding to buy a new product with a lot of technology features is not a simple matter. Consumers often face problems if they want to buy a gadget This is caused by their lack of understanding of the various features offered since the product contains some new technology. Someone who wants to buy a gadget in the form of a smartphone, often faced with so many features that must be chosen such as built quality, processor speed, display quality, camera reliability, battery endurance, user interface, storage capacity, security system, audio/speaker quality and many others. In this situation, consumers tend to rely on information from consumers who have experience with similar goods

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