Influences of Online Negative Word of Mouth on Purchase Intention

Influences of Online Negative Word of Mouth on Purchase Intention

Yi-Fen Chen (Department of International Business, Chung Yuan Christian University, Taoyuan City, Taiwan), Chia-Wen Tsai (Department of Information Management, Ming Chuan University, Taipei, Taiwan) and Yi-Che Chaung (Department of International Business, Chung Yuan Christian University, Taoyuan City, Taiwan)
Copyright: © 2019 |Pages: 11
DOI: 10.4018/IJEA.2019010101

Abstract

This study presents two experiments that examine the influence of electronic negative word of mouth (e-NWOM). Experiment 1 investigated perceived credibility based on 2 (product awareness: high / low) × 2 (strength of WOM: high / low) × 2 (product type: search good / experience good). Experiment 2 investigated purchase intention based on 2 (product utility: high / low). The experiments involved 530 people from Taiwan. The results indicated that high product awareness and weak e-WOM have less influence on consumer perceived credibility of the e-WOM. E-NWOM for a search good has less influence on consumer perceived credibility than for an experience good. The results also indicated that high utility of products increase sales.
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2. Literature Review

2.1. Word of Mouth

Arndt (1967) defined WOM as communication from person to person of knowledge about a brand, product, or service. Swan and Oliver (1989) defined WOM as people telling other people about a particular product or service. WOM can be classified as positive WOM (PWOM), in which people praise the item, and negative WOM (NWOM), in which people who are dissatisfied with a purchase complain about it (Singh, 1990).

Gelb and Sundaram (2002) and Hennig-Thurau et al. (2004) considered consumers who actively participate in online message boards, chat rooms, and other electronic social media for noncommercial purposes such as sharing experiences, knowledge, and opinions about specific topics and gathering information about products and specific topics. E-WOM is propagation behavior in consumers’ online interactions with one another.

2.2. Perceived Credibility of WOM

Credibility is the recipient’s ability to believe the content of a message. Research in social psychology has shown that perceived credibility is an important factor in the persuasiveness of communication. The recipient judgment, or perception, of the disseminator’s credibility is a significant aspect of credibility’s effect on persuasiveness, because credibility is a basic component of trust (Stiff, 1994).

People who disseminate WOM want to make the recipient to trust the WOM. They want their WOM to have credibility (Smith et al., 2005). Perceived credibility of an e-WOM item can be measured based on whether the recipient believes it (Lim and Van Der Heide, 2015). Chang and Wu (2014) showed that the extent to which people believe e-NWOM is influenced by product awareness.

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