The impact of positive electronic word-of-mouth on consumer online purchasing

decision.

Instructor: Dr. Pi-Ying Teresa Hsu

Presenter: Stan ChungDate: April 20, 2010

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Cheung, C. M., Lee, M. K, & Thadani, D. R. (2009). The impact of positive electronic word-of-mouth on consumer online purchasing decision. WSKS 2009, 5736, 501–510.

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Contents

Click to add Title1 IntroductionI

Click to add Title2 MethodologyII

Click to add Title1 ResultsIII

Click to add Title2 ConclusionIV

Click to add Title1 ReflectionV

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Introduction

It is reported that 85% of the world’s online population has used internet to make a purchase.

(Nielsen, 2008)4

Introduction

77% of online shoppers in US reported using consumers-generated reviews and rating to aid their purchase decisions.

(Jupiter Research, 2008)

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Introduction

Past research on e-commerce has mainly focused on building trust in the online environment by minimizing risks associated with shopping online.

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Introduction

Little research on the role of positive eWOM in impacting trust as well as consumer purchase decisions.

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IntroductionPurpose of study

The purpose of this paper is to examine how positive online consumer emotional trust towards the retailer, as well as online purchasing decision.

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Introduction

Competence

Integrity

Emotional Trust

Behavioral Intention

Cognitive Trust

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(Komiak & Benbasat, 2006)

Introduction

Competence

Integrity

Emotional Trust

Behavioral Intention

Cognitive Trust Positive eWOM

H3H2H1

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Methodology

Instrument Controlled laboratory experiment

Sampling Convenience sampling

Place A local university in Hong Kong

Participants 100 students(Male: Female = 50:50)

Time 45 minutes

Compensation US $7

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MethodologyThe participants were asked to decide

whether to make online purchases in a real UK watch selling website (www.easyWatch.com)

The hypothetical scenario:“Your friend is studying overseas and her

birthday is coming. You are planning to use US$40 to buy her a watch as a birthday present”.

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Methodology

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Methodology

Treatment group

Treatment group Control groupControl group

Watch website(15 minutes)

Online discussion

forum(10 minutes)

Complete questionnaire

Introduction (10 minutes)

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Watch website(15 minutes)

Without reading online

discussion forum

Complete questionnaire

Methodology

Questionnaire (14 items)

7 points Likert scale

Part 1 (4)

Cognitive Trust in Competence

Part 2(4)

Cognitive Trust in Integrity

Part 3(2)

Emotional Trust

Part 4(4)

Behavioral Intention

1 strongly disagree

7 strongly agree

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MethodologyQuestionnaire items

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MethodologyQuestionnaire items

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MethodologyQuestionnaire items

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Results

Competence

Integrity

Emotional Trust

Behavioral Intention

Cognitive Trust

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Control Group (without reading eWOM)

0.51*** (t= 4.43)

0.24** (t= 1.82)

0.60*** (t=6.46)

Results

Competence

Integrity

Emotional Trust

Behavioral Intention

Cognitive Trust

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Treatment Group (with reading eWOM)

0.46*** (t= 3.82)

0.35*** (t= 2.74)

0.69*** (t=11.02)

ResultsPath Comparisons between the

Control Group and the Treatment Group

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ConclusionPositive eWOM strengthens the

relationship between consumers’ emotional trust and their intention to shop online, as well as the relationship between consumers’ perceived integrity and attitude.

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ReflectionDetailed description on research

design and procedure.

Participants were evenly divided between male and female

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