Who Decides Where to Go for a Coffee? e-WOM and Consumers' Purchase Intention

Abstract

The main purpose of this study was to examine the impact of eWOM on consumers' selection intention of a café in New Zealand. The factors of eWOM which may affect customers' selection intention have been identified, with a focus on cafes in New Zealand. A quantitative research approach was employed and a survey was conducted to collect data from 234 New Zealand consumers through an online questionnaire. The findings of this study indicate that the quantity, quality, valence and consistency of eWOM have a positive impact on consumers' purchase intentions. The perceived credibility and the perceived usefulness have some indirect effects on eWOM and consumers' purchase intention. Among them, the valence of eWOM is fully intervened by the perceptual credibility, and the quantity, quality and consistency of eWOM are partly influenced by perceptual credibility. The quality and valence of eWOM are partially mediated by the perceived usefulness, while quantity and consistency are not mediated by perceived trust. TAM model was used to study online consumers' purchase intention in the New Zealand café industry. In addition, the modified model of this study explains the mediating effect of customer perceived usefulness and perceived credibility in the sphere of eWOM. Future research may use this theoretical model to investigate other restaurants, and comparison studies can be explored in different types of restaurants. The study also provides some practical implications for café managers, especially in electronic marketing. The results of this study show that the volume, quality, valence and consistency of eWOM have a significant positive impact on consumers' purchase intention. Furthermore, eWOM should be considered by managers as one of the important marketing tools to promote their businesses.