Impacts of Electronic Word-of-Mouth on Purchase Intention: A Partial Least Square–Structural Equation Model Analysis

Nguyen Thi Vinh Ha (), Dang Chau Anh, Ngo Hoang Giang, Pham Thi Hong Hue and Le Hong Ngoc
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Nguyen Thi Vinh Ha: Vietnam National University
Dang Chau Anh: Vietnam National University
Ngo Hoang Giang: Vietnam National University
Pham Thi Hong Hue: Vietnam National University
Le Hong Ngoc: Vietnam National University

Chapter Chapter 35 in Global Changes and Sustainable Development in Asian Emerging Market Economies: Volume 2, 2024, pp 613-630 from Springer

Abstract: Abstract Word-of-mouth (WOM) has been considered an important marketing channel. With the expansion of the Internet and modern technology, WOM has evolved into electronic word-of-mouth (eWOM), and its influence on consumers has grown. Hanoi plans to become a digital city and achieve 55% of the population participating in online shopping by 2025. Understanding the effect of electronic word-of-mouth is crucial for promoting e-commerce. This study employs a hybrid framework of the Information Adoption Model and Theory of Reasoned Action to explore the impact of eWOM on purchase intention. The Partial Least Square–Structural Equation Model is applied for analyzing survey data from 385 undergraduate students from various universities in Hanoi. The research indicates several factors of eWOM influencing students’ intention to buy cosmetic products: information usefulness, information needs, and source credibility affect the perceived information usefulness, which improves the acceptance of information and encourages purchase intention. Behavioral aspects such as subjective norms and attitudes toward eWOM also play essential roles in consumer intention to purchase. However, the eWOM quality has no impact on the perceived information usefulness of the buyers. The results propose implications to help Hanoi boost e-commerce and digital transformation.

Keywords: Electronic word-of-mouth; Information adoption model; Theory of reasoned action; PLS-SEM (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-3-031-68842-3_35

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