The effect of electronic word of mouth on customer purchase intentions

This research project investigated the influence of electronic word of mouth (eWOM) on customer purchase intentions. It explores the influence of positive vs. negative word of mouth, the influence of varying online mediums and, finally the influence of varying composition variables within eWOM. To establish the various influences of eWOM quantitative research in the form of an online survey was carried out. It was anticipated that eWOM would influence the decision making process that consumes follow, particularly during the information search and evaluation of alternatives stages. eWOM was expected to alter consumer perceptions during these stages because of their access to information online. The survey results indicated that the influence of eWOM on consumers varies based on the relative involvement of the consumer with the eWOM and the type of product. This involvement affects the ability of eWOM to influence consumers as it alters the variables of interest and the chosen mediums, which affects the information that is considered when making a decision. The influence of PWOM and NWOM did not differ to that of traditional word of mouth. The existence of eWOM has provided consumers with a wider variety of information from which to base their decisions on, the decision making process has remained relatively unchanged, the main point to observe is that the presence of eWOM has allowed consumers to come to a more reasoned and rational outcome. eWOM provides businesses with some valuable indirect marketing, although it is hard for businesses to influence directly. Consumers place a great deal of emphasis on this form of communication because it is inter-peer reviewed instead of commercially biased. Therefore information is legitimatized and evaluated, and eWOM becomes invaluable for making informed purchase decisions, especially when concerning new products. Ultimately, to utilize these mediums businesses need to ensure they are providing products and services that maximise the consumer experience and thus gain favour with consumers