ELECTRONIC WORD-OF-MOUTH, EXPERIENTIAL MARKETING, BRAND IMAGE, BRAND … volume JITBM/chih.pdf ·...

International Journal of Information Technology and Business Management 29

th June 2017. Vol.60 No.1

© 2012-2017 JITBM & ARF. All rights reserved

ISSN 2304-0777 www.jitbm.com

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ELECTRONIC WORD-OF-MOUTH, EXPERIENTIAL MARKETING,

BRAND IMAGE, BRAND LOYALTY, AND PURCHASE INTENTION: A

STUDY OF INNISFREE 1Ying-Xuan Su,

2Chih-Chao Lai, Ph.D, Advisor

Dept. of Applied Foreign Languages, National Yunlin University of Science and Technology, Taiwan E-mail: [email protected]

Abstract

Owing to the impact of Korean drama and K-POP, Korean cosmetics in Taiwan are increasingly popular, also

widely accepted by Taiwan consumers. With the increase in female consuming ability, the demand for cosmetics

also increased, but how to attract consumers to buy their products cannot be ignored. In addition to through

eWOM / WOM, experiential marketing, how to retain the original customers, attract new consumers, the design

of the appropriate brand image, and raise the purchase intention are also important.

In this study, I used an online questionnaire to survey and SPSS as a tool to analyze data, such as: descriptive

statistics, reliability analysis, factor analysis, correlation analysis and regression analysis. The research aims to

explore the relationship between eWOM, experiential marketing, brand image, brand loyalty, and purchase

intention.

Keywords: e-WOM, experiential marketing, brand image, brand loyalty, purchase

intention

INTRODUCTION

Cosmetics have become indispensable to

women in their daily life. In recent years, with the

rise of Korean culture, Korean cosmetics industries

have been expanding to the world, further expanding

stores in Taiwan. Different to the Japanese,

European and American brands, Korean cosmetics

are more thoughtful on its packaging design,

stimulating customers’ desire to buy. Innisfree is the

naturalism cosmetics developed by AmorePacific

Corp., a South Korean cosmetics company. Innisfree

products is developed for urban women that desire

for the characteristics of the future of cosmetics:

natural, healthy, simple, and stylish.

Internet has become an indispensable tool for

people's lives, everyone almost cannot leave the

Internet environment and space. The internet plays

an important role in modern society, and people

increasingly use the internet to get the information

they need. With the increase in the number of online

shopper, more and more shopping sites and

comments easily make people hesitate to buy or not.

Word-of-mouth (WOM) information has an

overwhelming influence on consumers' purchasing

decisions, communication through the computer as a

communication medium is called

C o m p u t e r - M e d i a t e d C o m m u n i c a t i o n

[1]. Computer-mediated communication has a

nonlinear, non-synchronous, interactive, in addition,

can break the time and space constraints and other

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traditional media characteristics of the past. In

previous study, people who make decisions on the

Internet will first refer to the relevant comments

made by others on the Internet [2] [3] [4], therefore

the electronic word-of-mouth (eWOM) is worthy of

attention.

Owing to customers in the purchase

decision-making are no longer just pay attention to

products itself, but in the purchase process to bring

customers the experiential marketing. Therefore

traditional marketing emphasizes the performance of

products or service benefits of the way cannot

satisfied the needs of modern customers experience

already, only focus on the customer experiential

marketing experience can be achieved. Schmitt [5] is

the first scholar to propose experiential marketing

concept, compared to traditional marketing focus on

product performance and benefits, experiential

marketing will focus on the consumer experience, to

provide sense, feel, think, act and relate of the value.

Customers like to experience, and after they

recognized, will have further purchase behavior.

Sensitive and critical customers need to personally

experience to support the purchase behavior, thus

experiential marketing is a combination of rational

and emotional persuasion process.

Previous studies have pointed out that when the

brand image and brand loyalty into the relationship

between eWOM and purchase intention, the brand

image and brand loyalty will interfere with the effect.

On the other hand, studies have shown that these

extensive eWOM can provide customers with

enormous influence and enough to affect the brand

image[6][7]. Besides, the study proposed that

customers through the internet in the customer to

customer knowledge exchange and brand loyalty is

directly related [8].

This research aims to examine the relationships

among eWOM, experiential marketing, brand image,

brand loyalty and purchase intention by customers

who buy Innisfree products.

LITERATURE REVIEW

In the global recession, the Korean cosmetics

industry market trend contrarian growth of 1.9% in

2011 to reach 4.382 billion won [9]. In addition, the

Korean cosmetics exports continued to increase and

reached US $ 760 million in 2010 [10]. Korean chain

cosmetics brand are rapid expansion in Taiwan since

the introduction in 2004, the main reason not only to

high-quality and low-priced products, but through the

Korean drama and k-pop to help. Korean style is

widely favored by young women, also more

influential impact on other consumer groups

purchase intention [11]. According to the 2009

Taiwan's pharmacy statistics, Korean cosmetics in

just two to three years, has created a market value of

NT 168 billion, Korean dramas, trial supplies, and

low prices are successful factors [9].

Although the Korean cosmetics set off a boom

in Taiwan, the various brand's business approach are

similar, such as store design, Korean star

endorsement. In order to sustainable development,

the manufacturers must understand whether the brand

performance as expected, the minds of consumers

evaluation, the relevant brand competition situation,

whether the need to re-positioning, and how to

cooperate with marketing strategies, etc [11] [12]. At

the same time, the brand is also an important basis






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for consumers to purchase decisions.

Innisfree

Innisfree is a natural Korean brand that creates

products with highly quality ingredients made from

the island of Jeju, allowing for beauty and an

eco-friendly green life to preserve the balance of

nature. Innisfree is cosmetic that is generally

manufactured using all-natural, non-toxic ingredients

from Jeju. Many people believe that the products of

Innisfree are safer for consumers use and gentler to

the environment. People with sensitive skin may

benefit from the use of Innisfree, since the all-natural

ingredients used in them are often gentler on the skin.

Electronic Word-of-Mouth

When the internet into the community era, the

proportion of internet users use of time in the media

are significantly shifted to the community web sites,

and social media accounted for the vast majority.

Now in the choice of channels, in fact, it is difficult

to have differentiated products and all channels are

selling similar things, coupled with company may

have done a lot of marketing, media exposure or

news reports; however, in the end, consumers will

due to their friends or comments and give up the

products. Since more and more people will ask the

product comments to users through social media,

how to promote products has become the most

difficult problem to solve. Furthermore, a large

number of messages, comments, similar products and

brands will all to affect the consumers to purchase

intention, so the previous marketing 4P (product,

price, place, and promotion), 4C (consumer value,

consumer cost, communication, and convenience),

further evolved to 4S (sense, service, speed and

social network), show in Fig.1.

Arndt [13] defines WOM as an information

communication process in which a communicator

and a recipient do not have a commercial intention to

discuss a brand, product, or service. Cheung and

Thadani [14] have indicated that eWOM represents a

new form of communication between recipients and

senders. Dellarocas and Narayan [15] have defined

that eWOM as the spread of WOM through different

network platforms, the purpose is to provide

consumers aim to the products they interested and

write comments, in the meantime, consumers can

browse the internet to collect relevant information

about the products.

Fig.1 the evolution of marketing

By browsing the web, consumers can view the product information provided by others, and






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according to Gefen [16] pointed out when the

consumers shop in the internet will attention to the

comments of other consumers more than the

information provided by company. In addition, Bezos

[17] considered that creating experiential marketing

in a virtual environment is more important than a real

environment, since consumer will deliver a lot of

WOM through the internet after they experience.

Chao-Sheng [18] pointed out more higher the value

of the site experience, higher the willingness of

consumers to WOM of site. Moreover, a good

experience will make the consumer have a positive

behavioral intention (ex: WOM, loyalty, etc.). Turley

and Milliman [19] considered that the atmosphere

will affect the behavior of the consumer and the

consumer will respond the stimulus that they

received. On the other hand, Reynolds [6] and Urban

[7] indicated that the eWOM has a huge influence on

consumers, which further to affects the consumers'

brand image.

H1: eWOM has a positive impact on experiential

marketing.

H2: eWOM has a positive impact on brand image.

Experiential Marketing

Experiential marketing is a concept that

integrates elements of emotions, logic, and general

thought processes to connect with the consumer. Also,

experiential marketing is to establish the connection

in such a way that the consumer responds to a

product offering based on both emotional and

rational response levels that directly

engages consumers and invites and encourages them

to participate in the evolution of a brand or a brand

experience. Experiential marketing is can be divided

into different forms. As show in Fig.2, Bernd H.

Schmitt called these different forms of experiential as

strategic experiential models (SEMs), there are five

different experiential: sense, feel, think, act, and

relate. And, cosmetic is belonging to relate

experiential. Relate experiential involves sense, feel,

think, and act four strategies. In addition, relate

experiential is beyond personal feelings, personality,

and coupled with personal experience. Produced the

relationship with people and group, thus, establish

the preferences of others on a certain brand. In the

meantime let the people who use the brand form a

group. In the end, the goal of experiential marketing

is to form a rational and emotional connection

between the consumer and the brand so that it may

generate consumer’s brand loyalty.

H3: Experiential marketing has a positive impact on

brand loyalty.

Fig.2 Strategy experiential modules


https://en.wikipedia.org/wiki/Consumer

https://en.wikipedia.org/wiki/Brand





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Brand Image

The brand image refers to not only the way as a

whole views as company or product, also the

consumer based on contact with the brand

information, through their own selection and

processing, further summing up formed in the brain.

Many companies attempt to create an impressive

brand that people can identify with a product, in

addition, also want their product to have a specific

image or to be looked upon in a certain way. This

brand image can shape how they release a product,

the type of product they make, the type of advertising

they do, and the type of customers they cater to. A

brand with high awareness and good image can

promote brand loyalty to consumers [20].

H4: Brand image has a positive impact on brand

loyalty.

Brand Loyalty

The America Marketing Association (2011) defines

brand loyalty as: “The degree to which a consumer

consistently purchases the same brand within a

product class.” Brand loyalty is a pattern of

consumer behavior; consumers of loyal consistently

purchase products from their preferred brands,

regardless of convenience or price. Therefore,

companies often use various marketing strategies to

cultivate loyal customer, including trials and

incentives. Companies cultivate loyal consumers

sometimes work with brand ambassadors, consumers

who market the brand and communicate with it

positively about it among their friends on internet.

This is free eWOM marketing for the company and is

usually an effective way of building brand loyalty. If

a product is less than ideal, consumers may move on

to a different brand. Some shopping sites like

UrCosme.com have user reviews on the product

listing page so that consumers can learn about

product ingredients and get brand comments from

other users. In the previous studies, Washburn and

Plank [21] further indicate that perceived quality and

brand loyalty have a highly connection, they will

positively influence purchase intention. Moreover, a

new view and evidence to the study of brand loyalty

that customer perceived quality will influence brand

trust and brand affect, and further to influence brand

attitude and purchase behavior [22].

H5: Brand loyalty has a positive impact on purchase

intention.

Purchase Intention

Purchase intention indicates that consumers will

follow their experience, preference and external

environment to collect information, evaluate

alternatives, and make purchase decision [23] [24]

[25] [26], moreover, can measure the possibility of a

consumer to buy a product, and the higher the

purchase intention is, the higher a consumer’s

willingness is to buy a product [23] [24]. MacInnis

[27] considered that endorser marketing can give an

endorsed product a brand new image and advance

consumer purchase intention. Moreover, consumers’

brand attitude and purchase intention will be higher

when a product has high preference image and

familiarity [28] [29]. Likewise, if a product has

higher brand awareness it will have a higher market

share and a better quality evaluation [23] [30].


http://www.investopedia.com/terms/w/word-of-mouth-marketing.asp





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Methodology

According to the motivation and purposes of the

research and literature reviews on above, the study

proposes the research framework as shown in Fig.3.

Fig.3 Research framework

The questionnaire was designed for this research.

Samples were collected from customers who either

purchase Innisfree’s products or not in Taiwan. A

total of 224 survey questionnaires were collected

from online survey. The data collection was

conducted during March 9 to April 18, 2017. A

questionnaire consists of three pages and a total of 42

measurement items was developed to collect the

responses from customers through the eWOM to

purchase the Innisfree products.

The structure of questionnaire was illustrated in

the following Table 1.There were six parts

demographics’ including six questions, eWOM

comprises 10 items, experiential marketing has 9

items, brand image consists of 8 items, brand loyalty

contains 5 items, and purchase intention

composes o f 4 i tems . E-WOM, experiential

marketing, brand image, brand loyalty, and purchase

intention were carried out by a five-point Likert-scale,

ranging from strongly disagree (1) to strongly agree

(5).

Table 1: Structure of questionnaires

Section Question number Variable

I Question 1-6 Demographics

II Question 1-10 E-WOM

III Question 1-9 Experiential marketing

IV Question 1-8 Brand image

V Question 1-5 Brand loyalty

VI Question 1-4 Purchase intention

The data will be analyzed to examine the

relationship between eWOM, experiential marketing,

brand image, brand loyalty and purchase intention by

using the SPSS to examine the hypotheses in this

research. There are five statistical methods,

descriptive statistics, reliability, factor, correlation, as

well as, regression analysis.






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Result

This study utilized statistical software SPSS to

present results. The relationships among eWOM,

experiential marketing, brand image, brand loyalty,

and purchase intention were to be examined. The

totals of 224 questionnaires were collected from

online survey.

Description of Samples

As show in Table 2, the frequency and percentage of the value of each demographic factor are displayed.

Table 2 Demographic of the samples

Factor Value Frequency Percentage

Gender Male 25 11.2

Female 199 88.9

Age <18 10 4.5

18-24 132 58.9

25-30 43 19.2

>30 39 17.4

Occupation Student 93 41.5

Business 87 38.8

Housewife 8 3.6

Others 36 16.1

Income <15, 000 104 46.4

15, 000-22, 000 28 12.5

22, 100-35, 000 58 25.9

>35, 000 34 15.2

Gender

There were 199 female respondents which accounted

for 88.9%, and 25 male respondents which

comprised 11.2%, giving a total of 224 respondents.

The majority of the respondents in this sample were

females.

Age

The majority of respondents age was fell in 18 to 24

years old, in detail under 18 years old was 10 (4.5%),

18 to 24 years old was 132 (58.9%), 25 to 30 years

old was 43 (19.2%), and over 30 years old was 39

(17.4%).

Occupation

The occupation types of respondents fell in the field

of student, business, housewife, and others. In detail,

there were 93 student (41.5%), 87 business (38.8%),

8 housewife (3.6%), and 36 others (16.1%).

Income

This questionnaire classified the different income of

respondents into four categories from below 15, 000

NTD to more than 35, 000 NTD. Among the

respondents, there were 104 respondents (46.4%)

below 15,000 NTD, more than 15, 000 NTD and less

than 22, 000 NTD were 28 respondents (12.5%),

more than 22, 100 NTD and less than 35, 000 NTD






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were 58 respondents (25.9%), and more than 35, 000 NTD were 34 respondents (15.2%).

Descriptive Statistical Analysis

In order to realize the respondents’ perceptions of

eWOM, experiential marketing, brand image, brand

loyalty, and purchase intention, 36 questionnaires

were distributed to customer of Innisfree. EWOM

comprises 10 items, experiential marketing has 9

items, brand image consists of 8 items, brand loyalty

contains 5 items, and purchase intention

composes o f 4 i tems . The items were carried

out by a five-point Likert-scale, ranging from

strongly disagree (1) to strongly agree (5). Moreover,

mean and standard deviation of each construct on

table were showed in the following.

Descriptive Analysis of Electronic Word-of-Mouth

(eWOM)

As show in Table 3, these ten items were more than 3,

from mean＝3.76 (E2) to mean = 3.39 (E8). Hence,

(E1) to (E10) were efficient indicators of electronic

word-of-mouth (eWOM).

Table 3 Respondents’ Perception of eWOM

Items Description Mean Std. Deviation

E2 I would say that Innisfree's product is good. 3.76 0.89

E6 I think Innisfree's product is not good. 3.75 0.91

E4 I will tell other people Innisfree's positive information. 3.73 0.85

E10 I think it is safe to purchase product on Innisfree's website. 3.60 0.76

E9 I consider Innisfree's website usually provide in-depth

information.

3.57 0.81

E1 I consider that purchase product on Innisfree's website is

worthy.

3.55 0.84

E7 Innisfree's website provides good and value service. 3.53 0.81

E5 I will tell other people Innisfree's negative information. 3.48 1.07

E3 I will strongly recommend other people to buy Innisfree's

product.

3.48 0.89

E8 Innisfree's website give respond immediately to customer. 3.39 0.75

Note: 5-point scale (1) strongly disagree; (5) strongly agree

Descriptive Analysis of Experiential Marketing

In items EM1 to EM9, the respondents perceived

high level of I like Innisfree’s product packaging

design (mean=3.83) in Table 3.1. Nine items were

above than 3, from mean= 3.83 (EM2) to mean=3.43

(EM8).






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Table 3.1 Respondents’ Perception of Experiential Marketing


EM2 I like Innisfree's product packaging design. 3.83 0.88

EM7 After I use Innisfree's product I am happy with its result. 3.82 0.89

EM5 Innisfree's product design has unique style. 3.79 0.82

EM1 The product of Innisfree always catches my attention. 3.77 0.84

EM6 I was impressed after the consumption in Innisfree. 3.63 0.88

EM3 Always have happy atmosphere in the shop. 3.62 0.85

EM4 Innisfree's staff attitude is excellent and have warm smile. 3.58 0.82

EM9 I think the process of using Innisfree's product will raise a lot

of fun in the life.

3.54 0.84

EM8 I consider using Innisfree’s product can make me find a sense

of belonging.

3.43 0.84


Descriptive Analysis of Brand Image

In Table 3.2, these eight items were answered above

3 in 5- point Likert scale ranges. The highest level of

respondents’ perception of brand image is I think

Innisfree has a positive image (mean= 3.90).

Table 3.2 Respondents’ Perception of Brand Image


I2 I think Innisfree has a positive image. 3.90 0.81

I6 I know that Innisfree is devoted to green life campaign. 3.88 0.89

I4 Innisfree's exterior packaging always appeal to me. 3.84 0.88

I1 The product quality of Innisfree is to be trusted. 3.81 0.81

I7 I know Innisfree have empty bottle-recycling campaign. 3.78 1.04

I3 Innisfree can satisfy my demands from the product. 3.70 0.83

I5 II think the price of Innisfree is reasonable. 3.46 0.80

I8 I know that as long as you buy a limited product of Innisfree,

Innisfree will donate a tree.

3.45 1.11


Descriptive Analysis of Brand Loyalty

As show in Table 3.3, I am willing to promote

Innisfree to others (L2, mean= 3.79), I am willing

give priority to choose Innisfree’s product again (L4,

mean= 3.54), I consider Innisfree to be my best brand

choice (L3, mean= 3.42), and I am a royal customer

of Innisfree (L1, mean= 3.17) were above 3 in

5-point Likert scale ranges.






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Table 3.3 Respondents’ Perception of Brand Loyalty


L2 I am willing to promote Innisfree to others. 3.79 0.89

L4 I am willing give priority to choose Innisfree's product again. 3.54 0.97

L3 I consider Innisfree to be my best brand choice. 3.42 0.95

L1 I am a royal customer of Innisfree. 3.17 1.08

L5 I am willing to choose other brand's product in next time. 2.68 0.85


Descriptive Analysis of Purchase Intention

Table 3.4 shows that the respondents tend to have a

high level of agreement with I am willing to buy

Innisfree’s product (P1, mean= 3.85). And, P2 (If

necessary, I would like to purchase Innisfree products

again.) was second high level (mean= 3.84) in Table

3.4.

Table 3.4 Respondents’ Perception of Purchase Intention


P1 I am willing to buy Innisfree's product. 3.85 0.89

P2 If necessary, I would like to purchase Innisfree products again. 3.84 0.90

P3 I will definitely try Innisfree's product again. 3.78 0.92

P4 I will recommend my friends and families to buy the product

of Innisfree.

3.78 0.90


Reliability Analysis

The reliability analysis of questionnaires was

evaluated by using Cronbach’s Alpha. If alpha is

greater than 0.7, it means that it has high reliability,

otherwise, if alpha is smaller than 0.3, then it

represented that there is low reliability (Hair Jr,

2006). In Table 4 showed the Cronbach’s Alpha

values for each scale, and the reliability of each scale

was above 0.7.

Table 4 Reliability of Each Scale

Variable Cronbach’s Alpha Items

E-WOM 0.859 10

Experiential Marketing 0.933 9

Brand Image 0.904 8

Brand Loyalty 0.805 5

Purchase Intention 0.965 4

Factor Analysis

To estimate the construct validity of the

questionnaire, factor analysis was utilized. The KMO

value of eWOM, experiential marketing, brand image,






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brand loyalty and purchase intention was

respectively .870, .915, .887, .827 and .868, which

was above 0.6 and the Bartlett’s test is significant (p

= 0).

Factor Analysis of E-WOM

As showed in Table 5, three factors (website eWOM,

positive eWOM, negative eWOM) were extracted

from eWOM. The total variance of eWOM

accounted for 76.503%.

Table 5 Factor Analysis of E-WOM

Items Factor 1 Factor 2 Factor 3 Eig % of variance

Website 4.961 49.606

7. Innisfree's website provides good and

value service.

.847

8. Innisfree's website give respond

immediately to customer.

.842

9. I consider Innisfree's website usually

provide in-depth information.

.826

10. I think it is safe to purchase product on

Innisfree's website.

.753

1. I consider that purchase product on

Innisfree's website is worthy.

.672

Positive eWOM 1.574 65.346

4. I will tell other people Innisfree's positive

information.

.874

2. I would say that Innisfree's product is

good.

.849

3. I will strongly recommend other people to

buy Innisfree's product.

.831

Negative eWOM 1.116

5. I will tell other people Innisfree's negative

information.

.924

6. I think Innisfree's product is not good. .730

Cumulative of variance 76.503

Factor Analysis of Experiential Marketing

All of the items were identified for the construct

measurement. Table 5.1 showed factor loading of

experiential marketing and 65.492% of the total

variance, which Eigen value greater than 1.

Table 5.1 Factor Analysis of Experiential Marketing






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Items Factor Eig % of variance

5.894

7. After I use Innisfree's product I am happy with its

result.

.885

6. I was impressed after the consumption in Innisfree. .868

9. I think the process of using Innisfree's product will

raise a lot of fun in the life.

.831

5. Innisfree's product design has unique style. .823

8. I consider using Innisfree’s product can make me find

a sense of belonging.

.816

2. I like Innisfree's product packaging design. .802

4. Innisfree's staff attitude is excellent and have warm

smile.

.799

1. The product of Innisfree always catches my attention. .792

3. Always have happy atmosphere in the shop. .644


Factor Analysis of Brand Image

After doing exploratory of factor analysis of brand

image, the results show in Table 5.2 with factor

loading and Eigen-value was higher than 0.6 and 1.

Additionally, the item 5 (I think the price of Innisfree

is reasonable.) was deleted because low factor

loadings.

Table 5.2 Factor Analysis of Brand Image


4.956

2. I think Innisfree has a positive image. .876

3. Innisfree can satisfy my demands from the product. .866

1. The product quality of Innisfree is to be trusted. .855

4. Innisfree's exterior packaging always appeal to me. .837

6. I know that Innisfree is devoted to green life

campaign.

.831

7. I know Innisfree have empty bottle-recycling

campaign.

.742

8. I know that as long as you buy a limited product of

Innisfree, Innisfree will donate a tree.

.655







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Factor Analysis of Brand Loyalty

The construct of brand loyalty contained one factor

with four items. Table 5.3 shows that all factor

loading were from 0.937 to 0.875, Eigen-value

(3.317) and cumulative percentage (66.344%) which

were higher than the principle of 0.6, 1, 0.6 (Hair Jr,

2006). In this study, item 5 was deleted because of

low factor loading.

Table 5.3 Factor Analysis of Brand Loyalty


3.317

3. I consider Innisfree to be my best brand choice. .937

4. I am willing give priority to choose Innisfree's product

again.

.933

1. I am a royal customer of Innisfree. .888

2. I am willing to promote Innisfree to others. .875


Factor Analysis of Purchase Intention

In Table 5.4, only one factor was extracted from

purchase intention. The total variance of the purchase

intention accounted for 90.488% and factor loading

were from 0.966 to 0.924.

Table 5.4 Factor Analysis of Purchase Intention


3.620

2. If necessary, I would like to purchase Innisfree

products again.

.966

1. I am willing to buy Innisfree's product. .957

3. I will definitely try Innisfree's product again. .957

4. I will recommend my friends and families to buy the

product of Innisfree.

.924


Correlational Analysis

H1: eWOM has a positive impact on experiential

marketing.

H2: eWOM has a positive impact on brand image.

In Table 6, the results of analysis demonstrated that

there was a positive relationship among all the

constructs. E-WOM and experiential marketing had

the highest correlation coefficient with 0.792.

Moreover, eWOM and brand image had the

correlation coefficient with 0.761. Hence, hypothesis

1 was supported, yet hypothesis 2 was partly

supported.






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Table 6 Correlations (Pearson r)

Constructs 1 2 3 4 5

eWOM

EM .792**

BI .761**

.835**

BL .724**

.788**

.754**

P .750**

.814**

.769**

.815**

Note: * p <.05;

** p<.01

Regression Analysis

In correlation analysis, all variables were strong

correlated with each other, which indicate that the

data was suitably correlated with the dependent

variable for examination through linear regression.

Multiple linear regression analysis is a process for

assessing the relationship among all variables.

Regression Analysis of Experiential Marketing and Brand Image Influencing on Brand Loyalty

H3: Experiential marketing has a positive impact on

brand loyalty.

H4: Brand image has a positive impact on brand

loyalty.

As show in Table 7, the result of analysis revealed

R2= 0.651; p < 0.001 and the β were subsequently

reviewed to evaluated the relative of the experiential

marketing and brand image in the prediction. Result

suggested that experiential marketing (β= .523, p

<.001) and brand image (β= .317, p <.001) had

significant predictions on brand loyalty. In addition,

the result suggested that experiential marketing was a

more powerful predictor of brand loyalty. Therefore,

hypothesis 3 was supported, yet hypothesis 4 was

partly supported.

Table 7 Regression Analysis of (EM) and (BI) Influencing on Brand Loyalty

B SE B β t Sig. R2

Experiential Marketing .544 .075 .523 7.231 .000

Brand Image .324 .074 .317 4.379 .000

a. Dependent variable: Brand Loyalty

b. Predictors: (Constant) Experiential Marketing, Brand Image

Note: * p <.05;

** p <.01;

***p <.001

Regression Analysis of Brand Loyalty Influencing on Purchase Intention

H5: Brand loyalty has a positive impact on purchase

intention.

Table 7.1 showed the regression analysis results of

the significant relationship among brand loyalty and

.651***






15

purchase intention (R2= 0.665; p < .001). In this

study, the result suggested that brand loyalty

(β= .815, p <.001) had significant effect on purchase

intention. Hence, hypothesis 5 was supported.

Table 7.1 Regression Analysis of Brand Loyalty Influencing on Purchase Intention

B SE B β t Sig. R2

Brand loyalty .980 .047 .815 20.985 .000 .665***

a. Dependent variable: Purchase Intention

b. Predictors: (Constant) Brand Loyalty

Note: * p <.05;

** p <.01;

***p <.001

Regression Analysis of All Variables Influencing on Each Other

In the Table 7.2, all variables were significant

relationship with each other. Result suggested that

experiential marketing (β= .792; R2= .627; p < .001)

and brand image (β= .761; R2= .580; p < .001) had

significant effect on eWOM. Experiential marketing

and brand image could predict 65.1% of brand

loyalty. It meant brand loyalty could enhance

experiential marketing (β= .523; p < .001) and brand

image (β= .317; p < .001). In addition, purchase

intention (β= .815; R2= .665; p < .001) had positive

relationship with brand loyalty. Hence, hypothesis 1

to hypothesis 5 was supported.

Table 7.2 Regression Analysis of All Variables Influencing on Each Other

Conclusion

This chapter shows the importance of researcher

findings, review methodology, and summarizes the

results of the study. Previous studies had indicated

that when the brand image and brand loyalty into the

relationship between eWOM and purchase intention,

the brand image and brand loyalty will interfere with

the effect. However, none of the studies have

investigated relationships among eWOM,

experiential marketing, brand image, brand loyalty

and purchase intention, and how these five items

Brand loyalty

Purchase

intention Brand image

eWOM

Experiential

marketing

0.792***

**

0.792***

0.761***

**

0.792***

R2=0.627

**

0.792***

R2=0.580

**

0.792***

0.523***

**

0.792***

0.317***

**

0.792***

R2=0.651

0.815***

**

0.792***

R2=0.665

Note: * p <.05;

** p <.01;

***p <.001






16

influenced on each other. This research aims to

examine relationship among these five items by

quantitative methods. The chapter is dividing into

three sections such as discussion of research results,

implications and limitations of the study.

Discussion of Research Results

This study attempted to examine the

relationships among eWOM, experiential marketing,

brand image, brand loyalty and purchase intention.

Based on the data analysis, the research found that

there were significant and influential relationships

among each variable. Moreover, this study examined

the perception of eWOM, experiential marketing,

brand image, brand loyalty and purchase intention in

Innisfree from the respond of the customers.

The study examined statistical software SPSS to

present the relationship among eWOM, experiential

marketing, brand image, brand loyalty, and purchase

intention. In previous study, the researchers

conducted in the previous study mainly focused on

eWOM, brand image, brand loyalty and purchase

intention with ignorance the factors of experiential

marketing, which also building a model for brand

image and brand loyalty to improve and enhance.

To test the validity of the questionnaire, factor

analysis was utilized, and Cronbach’s alpha (α > 0.7)

was utilized to evaluate the reliability. The study

applied Pearson correlation to explain the correlation

among eWOM, experiential marketing, brand image,

brand loyalty and purchase intention. Linear

regression analysis was used to examine if the factors

eWOM have a respectively influence on experiential

marketing and brand image, and test if brand loyalty

have influence on purchase intention. In addition,

multiple regression analysis was employed to test if

the factors experiential marketing and brand image

have an impact on brand loyalty. Moreover,

regression was utilized to determine all variables

have a positive effect on each other. Finally, the

results of the hypothesis testing were showed in

Table 8.

Table 8 The Results of the Hypothesis

H1 eWOM has a positive impact on experiential marketing. Supported

H2 eWOM has a positive impact on brand image. Partly supported

H3 Experiential marketing has a positive impact on brand loyalty. Supported

H4 Brand image has a positive impact on brand loyalty. Partly supported

H5 Brand loyalty has a positive impact on purchase intention. Supported

Implications

According the research model in this study,

experiential marketing had increase brand loyalty;

however experiential marketing also had strong

influence on brand image. In correlation analysis,

experiential marketing and brand image had highest

correlation coefficient with 0.835 than experiential

marketing and brand loyalty correlation coefficient

with 0.788. Therefore, it provides customers through

experiential marketing to enhance brand image then

affect customer purchase intention.

In this study, all variables had powerful

influence on purchase intention, especially






17

experiential marketing and brand loyalty; it can infer

from research results that new customers try

Innisfree products out or customer itself is loyal

customer; the customers can be stimulated upon

perception of experience and then affect purchase

intention.

In summary, although eWOM, experiential

marketing, brand image and brand loyalty could

improve purchase intention significantly, customers

still tend to first-hand experience than eWOM.

Limitations of the Study

The study was conducted to find out the

relationship among eWOM, experiential marketing,

brand image, brand loyalty and purchase intention.

The present study has findings that theoretical

implication; however its design is not without

shortcomings.

First, half of the participants answered the

questionnaires based on eWOM and WOM, rather

than the perception of used Innisfree products before.

Second, Innisfree's Taiwan official website does not

provide direct purchase; therefore, purchase the

Innisfree products must be on the Korean official

website or G-market. As the official website and

G-market registration process is complicated, so

most of the customers will tend to purchasing broker.

Hence, some of the items of eWOM questionnaire

may be confused to participants. Third, the sample

size of the study was small, with a sample size of 224

participants; it may not represent all the customers of

Innisfree in Taiwan.

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