Understanding the Impact of E-Wom on Purchase behavior Using Information Acceptance Model

Abstract

Purpose: This study determines the influence of information gained from electronic word of mouth (e-WOM) on the purchase behavior of customers. Design/Methodology/Approach: The conceptual model developed has been derived from the Information Acceptance Model (IAM) and the work of other researchers. The pre-existing model has been modified by increasing the factors which augment the information usefulness of e-WOM. The factor of trust inclination towards information received through online forums has also been incorporated in the model to further develop an understanding regarding the variables in the purchase decision process. This study also highlights some aspects of theory of reasoned action and theory of planned behavior as a base for this work. Structural Equation Modelling (SEM) has been used to analyze the relationship between all existing variables in the linear model. Findings: The results show how usefulness of information obtained through social networking sites and other online media influence the adoption of this information, eventually leading to developing intention and terminal purchase behavior. However, the relationship of credibility of information, perceived risk and argument quality with information usefulness, as its antecedents, has been found insignificant, one of the primary reason for which is the unawareness of e-WOM among the general public. Implications/Originality/Value: The practical implications of this paper include guidance to manufacturers and service providers to understand the factors involved in influencing consumer purchase behavior when subjected to e-WOM.