The Effect of Online Advertising and Electronic Word of Mouth on Purchase Intention through Brand Image as a Mediating Variable

Abstract

Due to the rapid advancement of information technology, consumers can exchange information in person and over the internet. This study aimed to examine the effect of Online Advertising and Electronic Word of Mouth (E-WOM) on Brand Image, which in turn had an impact on Purchase Intention for local cosmetic products in Indonesia. A questionnaire was distributed to 210 respondents who had been chosen using a purposive sampling technique. Subsequently, the data were analyzed employing Structural Equation Modeling (SEM) using AMOS 26 software. The primary finding in this research was that Online Advertising and E-WOM had a positive effect on Brand Image and Purchase Intention. In addition, Brand Image had a positive and significant effect on Purchase Intention and played a significant mediating role in Online Advertising and E-WOM.