||The Relationship Between EWOM, Perceived Value, Brand Trust, and Purchase Intention—Taking catering as an Example.
||Department of Business Administration
According to National Development Council, the rate of Taiwanese, whose ages are older than 12 years old, using the Internet personally is 82.3%. The accessibility of the Internet has changed consumers’ habits. It is demonstrated that up to 81% of Taiwanese would search electronic word-of-mouth before they make purchase decisions, showing the importance of electronic word-of-mouth.
However, whether electronic word-of-mouth would change consumers’ perceived value and brand trust, and if perceived value and brand trust would change consumers’ purchase intention remain unknown, especially in the aspect of individual industry. Consequently, the present study aims to research the relationship between electronic word-of-mouth, perceived value, brand trust, and purchase intention in the aspect of catering.
The present study employs questionnaire to investigate the topic. The questionnaire is delivered through Facebook, and there are 302 responses collected. These responses are employed to conduct descriptive statistics analysis, factor analysis, reliability test, correlation analysis, and regression analysis to test the hypotheses. The results are as followings.
1.Electronic word-of-mouth would positively affect perceived value.
2.Electronic word-of-mouth would positively affect brand trust.
3.Perceived value would positively affect purchase intention.
4.Brand trust would positively affect purchase intention.
Key words: Electronic word-of-mouth, perceived value, brand trust, purchase intention, catering.
Table of Contents iv
Lists of Tables v
Lists of Figures vi
Chapter 1 Introduction 1
1.1 Research Background and Motivation 1
1.2 Research Objective 2
1.3 Research Process 3
Chapter 2 Literature Review 5
2.1 Electronic Word-of-Mouth (EWOM) 5
2.2 Perceived Value 6
2.3 Brand Trust 7
2.4 Purchase Intention 9
Chapter 3 Research Design and Methodology 12
3.1 Research Variables Definitions and Measurements 12
3.2 Questionnaire Design and Data Collection 27
3.3 Data Analysis Procedures 28
Chapter 4 Research Results 30
4.1 Sample Structure Analysis 30
4.2 Descriptive Statistics Analysis 34
4.3 Factor Analysis and Reliability Test 37
4.4 Correlation Analysis 42
4.5 Regression Analysis 43
4.6 Results of Hypotheses testing 48
Chapter 5 Conclusions 49
5.1 Research Conclusions 49
5.2 Managerial Implications 50
5.3 Limitations and Suggestions for Future Studies 52
Appendix A Formal Questionnaire 62
1.Alam, S. S., & Yasin, N. M. (2010a). The antecedents of online brand trust: Malaysian evidence. Journal of Business Economics & Management, 11(2), 210-226.
2.Alam, S. S., & Yasin, N. M. (2010b). What factors influence online brand trust: Evidence from online tickets buyers in Malaysia. Journal of Theoretical & Applied Electronic Commerce Research, 5(3), 78-89.
3.Aqueveque, C. (2015). The influence of experts' positive word-of-mouth on a wine's perceived quality and value: The moderator role of consumers' expertise. Journal of Wine Research, 26(3), 181-191.
4.Baker, A. M., Donthu, N., & Kumar, V. (2016). Investigating how word-of-mouth conversations about brands influence purchase and retransmission intentions. Journal of Marketing Research, 53(2), 225-239.
5.Barreda, A. A., Bilgihan, A., & Kageyama, Y. (2015). The role of trust in creating positive word of mouth and behavioral intentions: The case of online social networks. Journal of Relationship Marketing, 14(1), 16-36.
6.Bhuian, S. N. (2016). Extending consumer online brand trust research in the Gulf Cooperation Council (GCC) region. Journal of International Consumer Marketing, 28(3), 201-210.
7.Birim, B., Meral Anitsal, M., & Anitsal, I. (2016). Perceived value, satisfaction, brand equity and behavioral intentions: Scale development for sports spectatorship in US college football. Academy of Strategic Management Journal, 15(1), 1-11.
8.Bone, P. F. (1995). Word-of-mouth effects on short-term and long-term product judgments. Journal of Business Research, 32(3), 213-223.
9.Bradley, G. L., & Sparks, B. A. (2012). Antecedents and consequences of consumer value: A longitudinal study of timeshare owners. Journal of Travel Research, 51(2), 191-204.
10.Carlson, J., Rosenberger, P. J., & Rahman, M. M. (2015). Cultivating group-oriented travel behaviour to major events: Assessing the importance of customer-perceived value, enduring event involvement and attitude towards the host destination. Journal of Marketing Management, 31(9-10), 1065-1089.
11.Chang, H. H., & Liu, Y. M. (2009). The impact of brand equity on brand preference and purchase intentions in the service industries. Service Industries Journal, 29(12), 1687-1706.
12.Chatterjee, S. C., & Chaudhuri, A. (2005). Are trusted brands important? Marketing Management Journal, 15(1), 1-16.
13.Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81-93.
14.Chen, Z. (2017). Social acceptance and word of mouth: How the motive to belong leads to divergent WOM with strangers and friends. . Journal of Consumer Research, 44(3), 613-632.
15.CHEN, Z., & LURIE, N. H. (2013). Temporal contiguity and negativity bias in the impact of online word of mouth. Journal of Marketing Research, 50(4), 463-476.
16.Chiang, C.-F., & Jang, S. S. (2007). The effects of perceived price and brand image on value and purchase intention: Leisure travelers' attitudes toward online hotel booking. Journal of Hospitality & Leisure Marketing, 15(3), 46-69.
17.Chin, S.-L., & Goh, Y.-N. (2017). Consumer purchase intention toward online grocery shopping: View from Malaysia. Global Business & Management Research, 9(4), 221-238.
18.Chou, C.-M. (2014). How does manufacturing service perceived value influence customer satisfaction? An investigation of global semiconductor industry. International Journal of Production Research, 52(17), 5041-5054.
19.Dall’Olmo Riley, F., Pina, J. M., & Bravo, R. (2015). The role of perceived value in vertical brand extensions of luxury and premium brands. Journal of Marketing Management, 31(7-8), 881-913.
20.Delgado‐Ballester, E., & Munuera‐Alemán, J. L. (2001). Brand trust in the context of consumer loyalty. European Journal of Marketing, 35(11/12), 1238-1258.
21.Delgado‐Ballester, E., Munuera‐Alemán, J. L., & Yague-Guillen, M. J. (2003). Development and validation of a brand trust scale. International Journal of Market Research, 45(1), 35-54.
22.Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers' product evaluations. Journal of Marketing Research, 28(3), 307-319.
23.Duan, W., Gu, B., & Whinston, A. B. (2008). Do online reviews matter? — An empirical investigation of panel data. Decision Support Systems, 45(4), 1007-1016.
24.Gefen, D. (2002). Reflections on the dimensions of trust and trustworthiness among online consumers. ACM SIGMIS Detabase: the DATABASE for Advances in Information Systems, 33(3), 35-53.
25.Grewal, D., Krishnan, R., Baker, J., & Borin, N. (1998). The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions. Journal of Retailing, 74(3), 331-352.
26.Ha, H.-Y., & Swinder, J. (2014). The effect of customized information on online purchase intentions. Internet Research, 24(4), 496-519.
27.Ha, H. Y. (2002). The effects of consumer risk perception on pre-purchase information in online auctions: Brand, word-of-mouth, and customized information. Journal of Computer-Mediated Communication, 8(1), http://onlinelibrary.wiley.com/doi/10.1111/j.1083-6101.2002.tb00160.x/full.
28.Ha, H. Y. (2004). Factors influencing consumer perceptions of brand trust online. Journal of Product & Brand Management, 13(5), 329-342.
29.Ha, H. Y., & Perks, H. (2005). Effects of consumer perceptions of brand experience on the web: Brand familiarity, satisfaction and brand trust. Journal of Consumer Behaviour, 4(6), 438-452.
30.Haba, H. F., Hassan, Z., & Dastane, O. (2017). Factors leading to consumer perceived value of smartphones and its impact on purchase intention. Global Business & Management Research, 9(1), 42-71.
31.He, H., & Li, Y. (2011). Key service drivers for high-tech service brand equity: The mediating role of overall service quality and perceived value. Journal of Marketing Management, 27(1-2), 77-99.
32.Hennig-Thurau, T., Gwinner, K. P., Walsh, G., & Gremler, D. D. (2004). Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the Internet? Journal of Interactive Marketing, 18(1), 38-52.
33.Herbst, K. C., Finkel, E. J., Allan, D., & Fitzsimons, G. M. (2012). On the dangers of pulling a fast one: Advertisement disclaimer speed, brand trust, and purchase intention. Journal of Consumer Research, 38(5), 909-919.
34.Herr, P. M., Kardes, F. R., & Kim, J. (1991). Effects of word-of-mouth and product-attribute information of persuasion: An accessibility-diagnosticity perspective. Journal of Consumer Research, 17(4), 454-462.
35.Hidayanto, A. N., Ovirza, M., Anggia, P., Budi, N. F. A., & Phusavat, K. (2017). The roles of electronic word of mouth and information searching in the promotion of a new e-commerce strategy: A case of online group buying in Indonesia. Journal of Theoretical & Applied Electronic Commerce Research, 12(3), 69-85.
36.Jarvenpaa, S. L., Tractinsky, N., & Saarinen, L. (1999). Consumer trust in an Internet store: A cross-cultural validation. Journal of Computer-Mediated Communication, 5(2), JCMC526.
37.Kim, D., & Benbasat, I. (2003). Trust-related arguments in Internet stores: A framework for evaluation. Journal of Electronic Commerce Research, 4(2), 49-64.
38.Kim, K., & Prabhakar, B. (2000, December). Initial trust, perceived risk, and the adoption of Internet banking. Proceedings of the 21st International Conference on Information Systems, 537-543.
39.Kwon, H. H., Trail, G., & James, J. D. (2007). The mediating role of perceived value: Team identification and purchase intention of team-licensed apparel. Journal of Sport Management, 21(4), 540-554.
40.Lau, G. T., & Lee, S. H. (1999). Consumers' trust in a brand and the link to brand loyalty. Journal of Market-Focused Management, 4(4), 341-370.
41.Le, H. T., Nguyen, P. V., Dinh, H. P., & Dang, C. N. (2017). Effects of country of origin and product features on customer purchase intention: A study of imported powder milk. Academy of Marketing Studies Journal, 21(1), 1-19.
42.Liao, C.-H., & Hsieh, I. (2013). Determinants of consumer's willingness to purchase gray-market smartphones. Journal of Business Ethics, 114(3), 409-424.
43.Lien, C.-H., Wen, M.-J., Huang, L.-C., & Wu, K.-L. (2015). Online hotel booking: The effects of brand image, price, trust and value on purchase intentions. Asia Pacific Management Review, 20(4), 210-218.
44.Lim, K. H., Sia, C. L., Lee, M. K. O., & Benbasat, I. (2006). Do I trust you online, and if so, will I buy? An empirical study of two trust-building strategies. Journal of Management Information Systems, 23(2), 233-266.
45.Lim, W. M. (2015). The influence of Internet advertising and electronic word of mouth on consumer perceptions and intention: Some evidence from online group buying. Journal of Computer Information Systems, 55(4), 81-89.
46.Ling, K. C., Daud, D. b., Piew, T. H., Keoy, K. H., & Hassan, P. (2011). Perceived risk, perceived technology, online trust for the online purchase intention in Malaysia. International Journal of Business and Management, 6(6), 167-182.
47.Lis, B., & Horst, M. (2013). Electronic word of mouth impacts: A spotlight on customer integration. Journal of Media Business Studies, 10(4), 41-62.
48.Litvin, S. W., Goldsmith, R. E., & Pan, B. (2008). Electronic word-of-mouth in hospitality and tourism management. Tourism Management, 29(3), 458-468.
49.Mabkhot, H. A., Shaari, H., & Salleh, S. M. (2017). The influence of brand image and brand personality on brand loyalty, mediating by brand trust: An empirical study. Jurnal Pengurusan, 50, 1-18.
50.Mansor, F., & KaderAli, N. N. (2017). Crisis management, crisis communication, and consumer purchase intention post-crisis. Global Business & Management Research, 9(4), 60-79.
51.Mansour, K. B., Kooli, K., & Utama, R. (2014). Online trust antecedents and their consequences on purchase intention: An integrative approach. Journal of Customer Behaviour, 13(1), 25-42.
52.McCole, P., Ramsey, E., & Williams, J. (2010). Trust considerations on attitudes towards online purchasing: The moderating effect of privacy and security concerns. Journal of Business Research, 63(9-10), 1018-1024.
53.Miao, R., Xu, F., Zhang, K., & Jiang, Z. (2014). Development of a multi-scale model for customer perceived value of electric vehicles. International Journal of Production Research, 52(16), 4820-4834.
54.Moreau, C. P., Bonney, L., & Herd, K. B. (2011). It's the thought (and the effort) that counts: How customizing for others differs from customizing for oneself. Journal of Marketing, 75(5), 120-133.
55.Mosavi, S. A., & Kenarehfard, M. (2013). The impact of value creation practices on brand trust and loyalty in a Samsung Galaxy online brand community in Iran. International Journal of Mobile Marketing, 8(2), 75-84.
56.O’Reilly, K., MacMillan, A., Mumuni, A. G., & Lancendorfer, K. M. (2016). Extending our understand of eWOM impact: The role of source credibility and message relevance. Journal of Internet Commerce, 15(2), 77-96.
57.Palmer, A., & Huo, Q. (2013). A study of trust over time within a social network mediated environment. Journal of Marketing Management, 29(15-16), 1816-1833.
58.Parry, M. E., & Kawakami, T. (2015). Virtual word of mouth and willingness to pay for consumer electronic innovations. Journal of Product Innovation Management, 32(2), 192-200.
59.Pickett, A. C., Goldsmith, A., Damon, Z., & Walker, M. (2016). The influence of sense of community on the perceived value of physical activity: A cross-context analysis. Leisure Sciences, 2016(38), 3.
60.Reichheld, F. F., & Schefter, P. (2000). E-loyalty: Your secret weapon on the web. Harvard Business Review, July-August, 105-114.
61.Richins, M. L. (1983). Negative word-of-mouth by dissatisfied consumers: A pilot study. Journal of Marketing, 47(1), 68-78.
62.ROSARIO, A. B., SOTGIU, F., DE VALCK, K., & BIJMOLT, T. H. A. (2016). The effect of electronic word of mouth on sales: A meta-analytic review of platform, product, and metric factors. Journal of Marketing Research, 53(3), 297-318.
63.Rubab, N., Shoukat, S., Shaheen, M., & Sandhu, K. Y. (2018). The impact of website designing factors on online purchase intention: Evidence from fashion brands. IUP Journal of Marketing Management, 17(1), 53-72.
64.Ruparelia, N., White, L., & Hughes, K. (2010). Drivers of brand trust in Internet retailing. Journal of Product & Brand Management, 19(4), 250-260.
65.Sánchez-Fernández, R., & Iniesta-Bonillo, M. Á. (2007). The concept of perceived value: A systematic review of the research. Marketing Theory, 7(4), 427-451.
66.Suntornpithug, N., & Khamalah, J. (2010). Machine and person interactivity: The driving forces behind influences on consumers' willingness to purchase online. Journal of Electronic Commerce Research, 11(4), 299-325.
67.Swana, J. E., Bowersa, M. R., & Richardsona, L. D. (1999). Customer trust in the salesperson: An integrative review and meta-analysis of the empirical literature. Journal of Business Research, 44(2), 93-107.
68.Türk, B., & Erciş, A. (2017). 4A marketing mix impacts on organic food purchase intention. Serbian Journal of Management, 12(2), 189-199.
69.Tam, J. L. M. (2004). Customer satisfaction, service quality and perceived value: An integrative model. Journal of Marketing Management, 20(7-8), 897-917.
70.Tih, S., Chan, K.-T., Ansary, A., & Ahmed, A. (2016). Green advertising appeal and consumer purchase intention. Jurnal Pengurusan, 47, 1-19.
71.Vanwesenbeeck, I., Ponnet, K., & Walrave, M. (2017). Young adolescents' advertising literacy and purchase intention in social network games: Influence of perspective taking and need for cognition. Journal of Consumer Behaviour, 16(1), 23-33.
72.Ward, M. R., & Lee, M. J. (2000). Internet shopping, consumer search and product branding. Journal of Product & Brand Management, 9(1), 6-20.
73.Woodruff, R. B. (1997). Customer value: The next source for competitive advantage. Journal of Academy of Marketing Science, 25(2), 139-153.
74.Wu, H.-C., Li, T., & Li, M.-Y. (2016). A study of behavioral intentions, patient satisfaction, perceived value, patient trust and experiential quality for medical tourists. Journal of Quality Assurance in Hospitality & Tourism., 17(2), 114-150.
75.Xie, Y., Batra, R., & Peng, S. (2015). An extended model of preference formation between global and local brands: The roles of identity expressiveness, trust, and affect. Journal of International Marketing, 23(1), 50-71.
76.Xingyuan, W., Li, F., & Wei, Y. (2010). How do they really help? An empirical study of the role of different information sources in building brand trust. Journal of Global Marketing, 23(3), 243-252.
77.Yang, J., Mai, E. S., & Ben-Ur, J. (2012). Did you tell me the truth? The influence of online community on eWOM. International Journal of Market Research, 54(3), 369-389.
78.Yong, N. L., Ariffin, S. K., Nee, G. Y., & Wahid, N. A. (2017). A study of factors influencing consumer's purchase intention toward green vehicles: Evidence from Malaysia. Global Business & Management Research, 9(4), 281-297.
79.Yoon, Y., Polpanumas, C., & Park, Y. J. (2017). The impact of word of mouth via Twitter on moviegoers' decisions and film revenues: Revisiting prospect theory: How WOM about movies drives loss-aversion and reference-dependence behaviors. Journal of Advertising Research, 57(2), 144-158.
80.Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22.