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Social eWOM: Does It Affect The Brand Attitude and Purchase Intention of Brands?

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Social eWOM: does it affect the brand attitude and purchase intention of
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DOI: 10.1108/MRR-07-2015-0161

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Management Research Review
Social eWOM: does it affect the brand attitude and purchase intention of brands?
Chetna Kudeshia, Amresh Kumar,
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purchase intention of brands?", Management Research Review, Vol. 40 Issue: 3, pp.310-330, https://
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MRR
40,3
Social eWOM: does it affect the
brand attitude and purchase
intention of brands?
310 Chetna Kudeshia
BIT, Noida, India, and
Received 10 July 2015
Revised 4 January 2016 Amresh Kumar
6 June 2016
Asia Pacific Institute of Management, New Delhi, India
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29 September 2016
Accepted 2 October 2016

Abstract
Purpose – The purpose of this paper is to examine how user-generated positive social electronic
word-of-mouth (eWOM) via Facebook affects brand attitude and, consequently, influences purchase intention
of smartphones. The spending patterns of consumers, particularly decision-makers, have been affected to a
substantial degree by the strong presence of brands on the web. eWOM, one among the shape of net product
reviews, exercises extensive influence not only on the consumers’ attitude towards the brand but also impacts
their buying intentions.
Design/methodology/approach – A survey-based empirical study was conducted to examine the
influence of social eWOM on brand attitude and purchase intention of consumers. Structural equation
modeling (SEM) was applied using data collected from 311 respondents comprising users of Facebook.
Findings – The research established that user-generated positive eWOM on social networking site,
Facebook significantly influences brand attitude and purchase intention of consumer electronics.
Research limitations/implications – The data set used for the study limits generalizing of results, as
the data are not representative across industries or across all social media applications. The study provides a
useful and interesting insight into the theory and practice of eWOM. It shows how social eWOM, an emerging
communication tool, not only helps twenty-first century marketers in reaching customers, but how it also
plays a vital role in affecting brand attitude and purchase intention of products.
Originality/value – This paper provides useful and valuable insights into the relationship between social
eWOM, brand attitude and purchase intention of consumer electronics, an area that largely remains
unexplored. The study can also be replicated for other products or services for future research.
Keywords Facebook, eWOM, Brand attitude, Purchase intention, Fan page, Social eWOM
Paper type Research paper

1. Introduction
Word-of-mouth (WOM) marketing has attracted both scholars and practitioners of
marketing to investigate its effect on brands, firms and buying behavior, both online and
offline (Brown et al., 2007). Electronic word-of-mouth (eWOM) takes place across numerous
online channels such as discussion forums, product reviews, social networking sites and
emails (Dwyer et al., 2007). It quickly becomes evident that eWOM is an augmentation of
traditional WOM communication, and social media networks have altered this face-to-face
communication into computer-mediated WOM communication (Jeong and Koo, 2015).
Management Research Review
Vol. 40 No. 3, 2017 Henning-Thurau et al. (2004) defined eWOM as:
pp. 310-330
© Emerald Publishing Limited
2040-8269
[…]any positive or negative statement made by a potential, actual, or former customer about a
DOI 10.1108/MRR-07-2015-0161 product or a company, available to a multitude of people and institutions via the internet.
With growing popularity of social networking sites, as interactive technologies evolve, Social eWOM
eWOM should not only be limited to customers’ own statements but it must also embrace
posts from retailers or other published sources, which are shared or reposted by potential,
current or former customers about a product or a brand (Hu et al., 2014).
On the basis of different functions and communication forums, Hu and Ha (2015)
categorized eWOM into the following four classes:
(1) specialized eWOM refers to customer reviews posted on the comparison-shopping or 311
rating websites which do not engage in product selling, e.g. Epinions.com;
(2) affiliated eWOM refers to customer reviews affiliated with retail websites,
e.g.customer reviews on Amazon and eBay;
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(3) social eWOM indicating any information related to brands/products exchanged


among the users of social networking sites; and
(4) miscellaneous eWOM which includes brand/product information exchanged on
other online social media platforms such as blogs and discussion boards.

Although online reviews by the customers have proved to be an effective eWOM in


marketing, researchers believe that social eWOM on various social networking platforms
also plays an important role (Hu et al., 2014). Social eWOM happens when consumers give or
explore informal product-related recommendations through distinctive applications of social
networking sites. The growing popularity of social broadcasting networks such as Facebook
and Twitter have transformed the way online WOM is disseminated and consumed in the
digital age (Rui et al., 2013). By posting recommendations and opinions about a product or
service in their profile pages on social networking sites, consumers attempt to induce friends,
acquaintances or potential consumers to see their opinions and, thus, influence their
networks’ decision-making. Thus, the distinct social nature of social networking sites
presents an interesting and proper context for examining eWOM behaviors. As this line of
examination is less explored, the first objective of the study is to extend the extant literature
of eWOM to social networking platforms.
The present study has taken Facebook as the online networking platform for examining
the effect of social eWOM on brand attitude and buying intentions (Nielsen, 2014). In
examining this effect, the study has not only considered the suggestions and
recommendations given on customers’ profile pages but also the eWOM taking place on
various fan pages of Facebook.
Fan page on Facebook is a distinctive development designed upon social media and is
considered by marketers as a very important tool to develop WOM communication because
of their community and interactive characteristics (Hu et al., 2014). Although past research
has focused on the role of fan pages on brand loyalty and brand love (Jahn and Kunz, 2012;
Kudeshia et al., 2016), studies investigating fan pages on Facebook from a WOM
communication perspective are scant.
The category of consumer electronics is selected for the study. Consumer electronics
refers to any electronic devices that are designed to be purchased and used by end users or
consumers for non-commercial or professional purposes (Techopedia, 2014). Owing to the
attributes of search good, consumers tend to depend on online reviews for purchasing
consumer electronics (Jung and Kim, 2012). These goods are thus found to be appropriate to
use in measuring consumers’ informational behavior (Jung and Kim, 2012).
The present study specifically focuses on smartphones as a variant, distinct from the
gamut of consumer electronic products. According to Credit Suisse Research Institute (2015),
two-thirds of internet access in India is through smartphones. There are almost 117 million
MRR smartphone users in India, the third largest in the world (KPCB report, 2014). Thus,
40,3 considering the significance and popularity of smartphones, this category was selected as
the study’s product. The paper also investigates the mediating role of brand attitude on
purchase intention (Augusto de Matos et al., 2007).
The paper begins with a detailed analysis of past studies on eWOM. The hypotheses
investigating the relationship between eWOM, brand attitude and purchase intention have
312 been developed on the basis of available theoretical research. Next, the study examines the
mediating role of brand attitude in influencing purchase intention. The sections that follow
explain the details of research methodology and present statistical results. The paper finally
summarizes the findings and discusses the implications for both, future research and
practice.
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2. Theoretical background
2.1 Social media
“Social media” is a broad term to describe an array of “Internet-based applications that build
on the ideological and technological foundations of Web 2.0, and that allow the creation and
exchange of user-generated content” (Kaplan and Haenlein, 2010, p. 61).
Mangold and Faulds (2009, p. 358) says:
[…] social media is a wide range of online, word-of-mouth forums including blogs,
company-sponsored discussion boards and chat rooms, consumer-to-consumer email, consumer
product or service ratings websites and forums, internet discussion boards and forums, moblogs
(sites containing digital audio, images, movies, or photographs), and social networking websites.
The abovementioned definitions divide the term “social media” into two parts, “social” and
“media.” “Social” includes all activities taking place among people, whereas “media” denotes
all the tools and technologies that are internet-enabled and are used to carry out such
activities.
On the basis of varied purpose social media can be categorized into the following three
classes:
(1) network-oriented social media which includes communication between family,
friends and colleagues; for example, YouTube, Pinterest and Facebook;
(2) collaboration-based media which facilitates exchange of non-personal information at
home or work settings; for example, blogs, wikis, webinars or forums like chats and
bulletin boards; and
(3) entertainment-based media primarily used by people for diversion but can also
involve interactions; for example, virtual world sites like Second Life, digital games
and online contests (Timmons, 2015).

Facebook, the focus of this study, is an example of a social networking site which includes
exchange of personal information between family, friends and colleagues. Ellison and Boyd
(2013, p. 158) defined social networking sites as follows:
[…] a networked communication platform in which participants have uniquely identifiable profiles
that consist of user-supplied content, content provided by other users, and/or system-level data; can
publicly articulate connections that can be viewed and traversed by others; and can consume,
produce, and/or interact with streams of user-generated content provided by their connections on
the site.
With different characteristics and audiences, each social networking platform engages with
its users differently (Tsimonis and Dimitriadis, 2014). Although all online networking
platforms emphasize connecting new people, these connections are often, but not always, Social eWOM
reciprocal (Ellison and Boyd, 2013). The “follow” feature of Twitter and Facebook’s
“subscribe” feature, for example, allow users to create one-directional connections. Many
studies in the past have focused on individual’s motivation for social media usage (Kudeshia
et al., 2016). Reasons for using a particular social networking site could be different for
different individuals. Extant literature on motivation behind using social network sites
found that these sites are often used to articulate existing relationships than meeting new
people (Boyd and Ellison, 2007). Comparing the application of various social networking 313
sites (Dwyer et al., 2007) found that on sites such as MySpace, users appeared more likely
than Facebook users to meet new friends. Twitter, which allows asymmetrical relationships,
is commonly used to follow accounts of those who one does not know personally (Marwick,
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2011). Facebook, the focus of this study, is found to be a popular platform for connecting close
friends rather than meeting new people (Ellison et al., 2011; Joinson, 2008).
Several internet-based research papers have focused on understanding various social
behavioral aspects taking place on these platforms, including social influence, social
interaction, social ties and social identity (Kwon and Wen, 2010; Shiue et al., 2010). Most of
the research in this area focuses on the role of social networking as a marketing
communication tool (Dholakia and Durham, 2010), but few studies show how social
networking influences the buying behavior intention and attitude of consumers toward
brand. The present study, therefore, intends to fill this gap by investigating how
communication taking place on these platforms affects brand attitude and buying intention
of its users.

2.2 Electronic word-of-mouth


Development of user-generated content through blogs, Wikipedia and social networking
sites has provided additional media management to customers taking active role in their
purchase selections (Chu and Kim, 2011).
The growth and popularity of social media tools have extended consumers’ options for
gathering product information, providing them with varied ways to offer their own
consumption-related recommendations by engaging in eWOM (Yaylı and Bayram, 2012).
Online reviews not only make the decision-making easier for consumers by reducing the
cognitive load but also simultaneously help in improving sales (Ye et al., 2011). However, this
effect on decision-making also depends upon the type of products and characteristics of users
of such products. In a study based on consumers of video games, Zhu and Zhang (2010) found
that the effect of eWOM depends upon characteristics of both the product as well as
consumers. This study revealed that eWOM significantly affects those video games that are
less popular, and also the ones whose players are highly active on the internet.
Many of the past studies have shown that the “valence” of the reviews also influences
consumers’ buying decisions. The valence of a review refers to the evaluative direction of the
review that can be positive, neutral or negative (Lee and Youn, 2009). Decision-making is
done on the basis of online reviews only if the users trust the reviewer (Xu, 2014). On eWOM
platforms, products with positive reviews get higher recommendations to friends as
compared to products with negative reviews (Lee and Youn, 2009).
Comparing the effect of positive and negative reviews on the choice of hotels by
customers, Vermeulen and Seegers (2009) emphasized that negative reviews of hotels result
in a negative attitude change. On the contrary, positive reviews improve customers’ attitude
toward the hotel. A study based on online shopping observed that positive eWOM not only
makes the relationship between consumers’ emotional trust and intention to purchase
stronger but also improves consumers’ perceived integrity and attitude (Cheung et al., 2009).
MRR 2.3 Social electronic word-of-mouth
40,3 Social eWOM or communication among consumers through social networking sites has
become one of the most frequently used digital media of the existing eWOM formats (Chu
and Kim, 2011). Unlike communicating with anonymous consumers through varied eWOM
formats such as opinion platforms, social networking websites which includes Facebook,
twitter, etc. provide consumers with unbiased product information through their personal
314 networks (Ellison and Boyd, 2013).
Social networking sites act as an effective vehicle for eWOM among consumers, serving
as an important source of product-related information and opinions. These sites have
changed the way consumers make purchase decisions, as they can easily and quickly
exchange product-related information and opinions with personal contacts (Graham and
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Havlena, 2007) without geographic and time constraints. Considering the popularity of these
sites, eWOM-based social network marketing has become a major part of brand
communication strategies (Chu and Kim, 2011), the potential impact of which on consumers’
decision-making cannot be ignored.
Consumers, while using social networking websites encounter a large amount of
information in addition to a variety of marketing messages and information posted by other
members. Such content is many a times forwarded to other users with the motivation to help
them (Poyry et al., 2013; Henning-Thurau et al., 2004). In the context of movie industry, Kim
(2014) showed that the relationship between eWOM volume on Twitter and Box Office
performance/home video sales are significant and positively related. The study further
observed that if the buying decision is low cost and less risky, customers have a casual
attitude toward online opinions. Another study by Rui et al. (2013) found that positive
Twitter WOM results in higher movie sales, whereas negative WOM is associated with lower
movie sales.
Examining the impact of visual elements, message valence and brand influence on
consumer attention on social media platform Pinterest, Hoffman and Daugherty (2013) found
that positive images of pizzas (a utilitarian, non-luxury product) are more attended to than
text-based reviews.
Growing acceptance of Facebook as an interesting online social networking service for
customers and businesses calls for new knowledge to understand its effect on consumer
behavior, and more importantly, how eWOM occurring via these sites influences consumers’
decision-making (Kudeshia et al., 2016). Companies’ fan pages are emerging as widely
accepted marketing channels and their contribution toward achieving sales has been found
to be significant (Poyry et al., 2013). Individuals who are associated and connected with
brands through Facebook are likely to build brand dedication and additionally produce
positive WOM (Swani et al., 2013). Associating with brands on online platforms like
Facebook positively affects consumer satisfaction and affective WOM behavior (Royo-Vela
and Casamassima, 2011).
Even though social media is a means through which brands and corporations can get
honest, instant and direct feedback from their customers, it has its own risks of online
“trollers” who can potentially hamper the image of brands by spreading negative WOM.
Social media platforms are not only used to share positive remarks or experiences, but
sometimes, these platforms are also used to generate negative emotions by individuals who
need publicity and attention. These individuals whom Noble et al. (2012) called trolls,
deliberately spread negative WOM, with the intention to damage an organization or
community. Closely monitoring the conversations of followers and fans on various social
media channels provides a better way to deal with trollers. Managing eWOM on various
social networking sites by experienced social media managers can be one of the ways to
tackle these challenges. Small-scale companies with low marketing budgets can easily Social eWOM
manage online conversation by having “House rules” as a common app on company
Facebook pages that establish codes of conduct early on in written form (Wisuri, 2014).
Thus, these platforms do not just give consumers the opportunity to enthusiastically
engage with the brands but also provide users with the opportunity to speak on behalf of
organizations, making them substance distributers. Hence, it is important for marketers to
understand what motivates followers to share brand content on these platforms and how it
influences product choices by other consumers (Yaylı and Bayram, 2012). Managing these 315
platforms well gives an excellent opportunity to a marketer to turn a negative comment into
an engagement opportunity.
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2.4 Observations from literature


As the correspondence environment has changed with the development of social networking
platforms, the concept of WOM is redesigned. Previous studies have contributed to the
understanding of eWOM behavior by examining online feedback mechanisms (Dellarocas,
2003) and consumers’ motivation to articulate themselves on consumer opinion platforms
(Henning-Thurau et al., 2004). Most of the studies exploring the impact of eWOM on
consumers’ product evaluation and decision-making focus mainly on specialized eWOM or
affiliated eWOM (Zhu and Zhang, 2010; Chu and Kim, 2011; Doh and Hwang, 2009;
Vermeulen and Seegers, 2009; Mauri and Minazzi, 2013); however, social eWOM has not been
explored much (Hu et al., 2014). The present study thus extends the previous studies on
eWOM to the platform of social networking sites, examining how positive social eWOM by
Facebook users influences the brand attitude and purchase intention of smartphone.

3. Conceptual framework and hypotheses


The conceptual framework of the study is outlined in Figure 1. Considering past studies, the
framework was built on prevalent ideas on social eWOM (Bambauer-Sachse and Mangold,
2011; Jalilvand and Samiei, 2012a, 2012b), brand attitude (Schivinski and Dabrowski, 2014;
Tang et al., 2011) and purchase intention (Schivinski and Dabrowski, 2014; Yoo et al., 2000;
Shukla, 2011).

3.1 Positive social electronic word-of-mouth and brand attitude


Brand attitude can be defined as “consumer’s overall evaluation of a brand” (Olson and
Mitchell, 2000). It is an assessment around favorable or unfavorable responses to

Figure 1.
Conceptual framework
MRR
40,3

316
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Figure 2.
Individual constructs
model

Figure 3.
Overall measurement
model

brand-related stimuli or conviction (Murphy and Zajonc, 1993). Brand attitude plays the
most critical part in customer-based brand equity (Lane and Jacobson, 1995; Morgan and
Hunt, 1994). Since many years, brand attitude has been an important subject of research in
marketing. Attitudes are stable and enduring predispositions to behave (Olson and Mitchell,
2000). Thus, marketers regard it as the most important predictor of consumer behavior
toward a product or service (Olson and Mitchell, 2000). A positive attitude toward a brand
resulting from its evaluation not only results in continuous preference of the consumer
toward those brands (Wu and Wang, 2011) but also has a positive effect on the purchase
intention (Aaker and Keller, 1990).
Online reviews can be very convincing in impacting the evaluation of products (Hong and Social eWOM
Park, 2012). eWOM, which is the most popular way of knowing more about the brands, is
definitely useful in influencing the consumer’s evaluation of the products (Chevalier and Mayzlin,
2006). Positive eWOM messages with higher source credibility demonstrated a superior brand
attitude than the eWOM message with lower source credibility (Wu and Wang, 2011). Doh and
Hwang (2009) demonstrated that positive reviews have a positive impact on attitudes toward the
website. Schivinski and Dabrowskia (2014) found that firm-generated communication affects the
brand attitude of products, whereas user-generated content significantly influences the brand 317
equity and purchase intention of reviewed products. Based on these discussions, the study
proposed the following hypothesis:
H1. There is a significant relation between positive social eWOM and brand attitude.
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3.2 Positive social electronic word-of-mouth and purchase intention


Purchase intention is the implied promise to one’s self to buy the product again whenever one
makes the next trip to the market (Tariq et al., 2013). Knowing the purchase intention for a brand
is of paramount importance because it depicts the impression of customer retention. Brand
attitude, brand image, quality, knowledge about the brand, attributes and brand loyalty are some
of the dimensions of the brand upon which purchase intention is predisposed (Tariq et al., 2013).
These functions have a strong influence on the purchase intention of customers. For our paper, we
are studying how brand attitude influences purchasing behavior.
With the development of electronic media emerging as a strong and reliable source of
information (Shukla, 2011), the influence of interpersonal interactions (eWOM) on buying
decisions has significantly increased (Lopez and Sicilia, 2014). Online reviews act as strong
informants and recommenders and significantly influence the purchase intention and actual
purchase (Park et al., 2007). While referring to the WOM given on various social media channels,
it is not only the quality but also the quantity of eWOM that influence the purchase decision of
consumers (Lin et al., 2013). Lee et al. (2011) examined that the stronger the perceived credibility
of online consumer reviews among potential consumers, the higher is the purchase intention. The
study further showed that online consumer reviews backed by trust in the online retailer
positively influence the purchase intention.
Examining the motivation for eWOM among university students, Themba et al. (2013)
observed that students get engaged in eWOM for seeking opinions which eventually and
positively influence their purchase decisions. Examining the effect of online reviews in
tourism industry, Jalilvand and Samiei (2012a, 2012b) found that online reviews significantly
impact travelers’ destination choice. Yaylı and Bayram (2012) found that reading reviews not
only positively affect buyers’ online buying decisions but also their purchase frequency.
Along these lines of discussion and aligned with the body of past research, the following
hypothesis is proposed:
H2. There is a significant relationship between positive social eWOM and intention to
purchase.

3.3 Brand attitude and purchase intention


According to Miniard et al. (1983), “purchase intention is an intervening psychological variable
between attitude and actual behavior”. Studies have affirmed that if a consumer has a positive
attitude for a brand, it significantly impacts his buying aim and his readiness to pay a premium
value (Keller and Lehmann, 2006). Brand attitude is thought to be a marker of behavioral
intentions (Wu and Wang, 2011). The attitude of customer toward a brand has a significant effect
on its purchase intention, as brand attitude is the most important determinant of purchase
intention (Abzari et al., 2014). Wu and Lo (2009) concluded that factors such as brand awareness,
MRR core-brand attitude and consumer perception directly or indirectly affect consumer purchase
40,3 intention toward extended products. Considering the theory of reasoned action, Summers et al.
(2006) observed that attitude toward performing the behavior is one of the significant predictors
of purchase intention. The study further showed that purchase intention is high if a respondent’s
attitude toward behavior is favorable (Summers et al., 2006). Tang et al. (2011) examined that
attitude toward purchasing customized desktop positively influences behavioral intention.
318 Positive eWOM may result in positive evaluation of a brand prompting “re-trial” of that brand
(Machleit et al., 1990). Based on these discussions, the following hypothesis is proposed:
H3. There is a significant relationship between brand attitude and intention to purchase.

4. Research methodology
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To examine the effects of positive social eWOM on brand attitude and purchase intention, a
cross-sectional survey method was used to test the research model. The research instrument,
sampling and data collection method are detailed in the following sections.

4.1 Sample and data collection


Data were collected from the subjects using personally administered questionnaires based on the
findings of the literature review. The target respondents of this study were individuals who are
users of Facebook and are influenced by posts shared on the newsfeed and Facebook fan pages.
Owing to the absence of sampling frame, non-probability (judgment sampling) method was used.
This sampling is considered relevant in studies such as WOM, opinion leaders, network and buzz
marketing (Keller and Berry, 2003; Jeong and Koo, 2015). Facebook, being the most popular social
networking site in India (Nielsen, 2014), was selected as a platform for social eWOM in the present
study. Internet and Mobile Association of India (IAMAI Report, 2015) says that India, which has
the third largest internet user base in the world after China and the USA, has more than 462
million internet users. According to a new study by eMarketer, India is expecting the highest
social networking growth of 37.4 per cent in 2016. According to the report, Facebook user base in
India will be around 101.5 million, making it the second largest after the USA. A link of online
questionnaire was posted in the authors’ newsfeed and was also disseminated widely by friends.
Smartphone was chosen to examine the influence of positive social eWOM on purchase
intentions and consumers’ attitude toward it. There are almost 117 million smartphone users
in India, making it the third largest in the world. Thus, considering the popularity of
smartphones and significance of online reviews and assessments in consumer electronics
selection, this category was selected as the instrument product (KPCB report, 2014; Nielsen
Global Online Shopping Report, 2010).
All participants were informed that the study was on a voluntary basis, and that
information provided will be kept confidential. To provide an adequate level of confidence in
this study, a sample size of 300 respondents was targeted. A total of 325 questionnaires were
completed. Invalid and incomplete questionnaires were rejected, resulting in 311 valid
questionnaires.

4.2 Demographic data


Participants for the present study were adults in the age range of 18 to 55 years. However,
majority of the respondents were young people: 71 per cent of the respondents were in the age
group of 18-25 years, over 21 per cent of the respondents were in the age group of 25-35 years,
while the rest of the respondents were between 35 and 55 years. The gender ratio of the
respondents was 55 per cent male and 45 per cent female. The descriptive characteristics of
the respondents are shown in Appendix (Table AI).
4.3 Instrument development and pre-test Social eWOM
All items used in the present study were assessed using a 5-point Likert scale (1 ⫽ strongly
disagree to 5 ⫽ strongly agree). Items used in the study were adapted from relevant literature
with necessary modifications. The survey covered four areas, namely, social eWOM, brand
attitude, purchase intention and demographics. Items targeted at measuring social eWOM
were adapted from Bambauer-Sachse and Mangold (2011) and Jalilvand and Samiei (2012a,
2012b), whereas items measuring brand attitude were taken from Schivinski and Dabrowski
(2014) and Tang et al. (2011). Measures of purchase intention were derived from Schivinski 319
and Dabrowski (2014), Yoo et al. (2000) and Shukla (2011), and items pertaining to the
background information about the subjects, inclusive of gender and age were designed by
the researcher (as given in Appendix (Table AII)).
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Respondents were asked whether they use any of following sources of information on
Facebook before taking any buying decision (smartphone):
• taking suggestions from Facebook friends;
• reviews given on the brand pages by the followers; and
• content posted, forwarded or shared by “friends” on Facebook.

The questionnaires were pre-tested to ensure clarity and ease of comprehension.


Respondents were asked to evaluate the clarity of the wording, point out any vague words or
phrases and clarity of instructions for overall survey to minimize ambiguities and
communication errors. On the basis of responses received, confirmatory factor analysis and
path analysis (structural equation modeling [SEM]) were conducted using AMOS.

5. Results
The research model was tested using SEM technique following the two-stage approach
suggested by Anderson and Gerbing (1988) using AMOS version 7.0. Firstly, a measurement
model was created subject to a series of validity checks. These measurement model validity
assessments included fit indices, convergent validity, discriminant validity and construct
reliability test. Secondly, upon establishing the model fit, the significance, direction and size
of each structural parameter were estimated.

5.1 Coefficient alpha and reliability


The Cronbach’s alpha value for each construct is shown in Table I. The alpha value for each
construct was well above the recommended value of 0.70, which is considered satisfactory
for basic research (Nunnally et al., 1967).

5.2 Convergent validity


The alpha value of all the three constructs was higher than 0.7. Average variance extracted
(AVE) of all individual constructs were found to be greater than 0.5. Further, in case of all
three individual constructs, the CR (alpha) statistic is significantly greater than their
respective AVE statistic (Table I). Thus, all individual constructs satisfied all pre-requisites
of convergent validity (Hair et al., 2010).

5.3 Discriminant validity


Discriminant validity is the degree to which the measures of different latent variables are
unique. Within the present study, maximum shared variance (MSV) and average shared
variance (ASV) for each of the three individual constructs have been determined. Thus,
measurement model was found to be majorly valid in terms of discriminant validity, as both
MSV and ASV of all three individual constructs have been found to be lower than their
MRR respective AVE estimates (Hair et al., 2010). The discriminant validity statistics for the
40,3 individual constructs were determined using Microsoft Excel-based validity concerns toolkit
developed by Professor Gakingston (Table I).

5.4 Model fit estimation – measurement model


320 Model fit indices for all the individual constructs were calculated, and the results have been
presented in Table II. All three constructs, i.e. social eWOM, brand attitude and purchase
intention generated good results with respect to all the specified indices and, hence, were
deemed fit (Table II).
Figure 4 shows the overall explanatory power, the standardized path regression
coefficients that indicate the direct influences of the predictor upon the predicted latent
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constructs for the model and associated significant values of the paths of the research model.
The model fit indices of the structural model and the cut-off value of those fit indices are
presented in Table III. The goodness of fit statistics shows that the structural model fit the
data reasonably well.
As the chi-square test is significant at p ⬍ 0.05, all the other statistics are within the
acceptable range. This indicates an acceptable model fit. Table IV presents the results of the
individual tests of the significance of the relationship among the variables. All three
relationships were significant at the (alpha) level of 0.05. Social eWOM had a significantly
positive impact on brand attitude, with ␤ ⫽ 0.533, p ⫽ 0.000, indicating that customers social
eWOM communication was an important antecedent of brand attitude. Social eWOM also
had a strong positive effect on purchase intention with ␤ ⫽ 0.452, p ⫽ 0.000. Finally, brand
attitude influenced purchase intention, with ␤ ⫽ 0.416, p ⫽ 0.000, indicating that brand
attitude was an antecedent of purchase intention.
Both brand attitude and social eWOM together explain purchase intention significantly.
The findings reveal that brand attitude mediates the effect of social eWOM on purchase
intention.

Construct CR AVE MSV ASV

eWOM 0.799 0.501 0.421 0.404


Table I. Brand attitude 0.807 0.513 0.387 0.378
Reliability and Purchase intention 0.780 0.542 0.421 0.395
validity for individual
constructs Source: Gakingston Statistical Toolkit Output

Model Recommended Purchase


Indices Fit Value eWOM Brand attitude Intention

CFI ⱖ 0.95 1.000 0.994 0.982


GFI ⱖ0.95 1.000 0.991 0.956
AGFI ⱖ0.80 0.998 0.954 0.920
CMIN/df ⬍3 0.052 1.628 2.630
p-value ⱖ0.05 0.949 0.196 0.000
RMSEA ⱕ0.05 0.000 0.061 0.072
Table II. P close ⱖ0.05 0.996 0.324 0.045
Model fit indices for
individual constructs Source: Gakingston Statistical Toolkit Output
Social eWOM

321
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Figure 4.
Structural model

Recommended
Indices Value Model fit indices

GFI ⱖ 0.95 0.994


p-value ⱖ 0.05 0.070
CFI ⱖ 0.95 0.979
CMIN/df ⬍3 1.343
AGFI ⱖ 0.80 0.85
RMSEA ⱕ 0.05 0.05 Table III.
P close ⱖ 0.05 0.05 Model fit indices
(overall measurement
Source: AMOS Output model)

Estimate SE CR p

Brand_Attitude ⬍– eWOM 0.533 0.040 13.364 ***


Purchase_Intention ⬍– Brand_Attitude 0.416 0.082 5.074 ***
Purchase_Intention ⬍– eWOM 0.452 0.061 7.437 *** Table IV.
Summarized statistical
Source: AMOS Output results

We ran another test to find out whether it had a partial or full mediating role in the model. We
added direct relationship from social eWOM to brand attitude and then further to purchase
intention (Figure 5). In testing the new model, all the new relationships were found to be
significant, and the model fit improved (Table V). This implies that brand attitude partially
mediates the effect of Social eWOM on purchase intention.
MRR
40,3

322
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Figure 5.
Effect of Ewom on
Purchase Intention in
presence and absence
of Brand Attitude

eWOM -⬎ e-WOM -⬎ BrandAttitude -⬎ eWOM, Purchase


Purchase Brand Purchase Intention -⬎
Hypothesis Intention Attitude Intention Brand Attitude Result

eWOM -⬎ Sig (0.674) Sig (0.533) Sig (0.853) Sig (0.506) Partial
Brand_Attitude -⬎ mediation
PI
Table V.
Mediation result Source: AMOS Output

6. Discussions and implications


The aim of this research was to examine how user-generated positive social eWOM affects
brand attitude and, consequently, influences purchase intention of smartphones.
Furthermore, the study also examined the mediating role of brand attitude on purchase
intention. As consumers found user-generated eWOM to be more trustworthy and reliable
than firm-generated communications, only user-generated positive social eWOM was
considered for the study (Jeong and Koo, 2015).
On the premise of earlier studies, we examined the relationship between positive social
eWOM generated on Facebook, brand attitude and purchase intention. The study developed
a model that was validated, supported and tested. The results indicated a direct and positive
relationship between positive social eWOM, brand attitude and purchase intention, and
support H1, H2, H3 and past research.
Although the proposed model showing the effect of WOM on shaping attitudes and
affecting consumers’ buying intention has been tested and confirmed to be valid in previous
studies, this research tested the model on social eWOM via Facebook taking the category
of smartphones. Social eWOM in the present paper includes any of the positive talk about
smartphones that occurs on the newsfeed of Facebook users as well as on the fan pages of
smartphones. The findings of the study indicate that positive WOM taking place on
Facebook affects brand attitude. This is similar to a study conducted by (Wu and Wang,
2011) in the context of specialized eWOM, which found that positive eWOM message with
higher message source credibility indicates a better brand attitude than an eWOM message
with lower message source credibility. The same results were also found in the study by Lee
et al. (2008) conducted on affiliated eWOM, which observed a significant effect of negative Social eWOM
online consumer reviews on product attitude in the category of FMCG goods. The findings of
the study also showed that positive eWOM significantly affects purchase intention, which is
partly the same as those used by Park et al. (2007), which observed that quantity and quality
of reviews posted on the company websites significantly and positively influence purchase
intention. Also, the fact that brand attitude influences purchase intention (Schivinski and
Dabrowski, 2014) is verified in our study.
In summary, our findings on social eWOM correspond with the research done on the other 323
type of eWOM, including affiliated and specialized eWOM (Hu and Ha, 2015), and
demonstrate that user-generated positive social eWOM plays a significant role in affecting
consumers’ attitude toward a brand and intention to purchase it. Organizations can thus
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significantly influence brand attitude and impact the purchase intention of their customers
by leveraging social networking site, Facebook as a channel for generating content that
reflects support for their brands.

6.1 Theoretical implications


Although previous studies on eWOM have examined its effect on customer – brand
relationships (Park et al., 2007; Vermeulen and Seegers, 2009; Wu and Wang, 2011), a similar
relationship remains majorly unexplored in the category of social eWOM. Among all the four
classes of eWOM by Hu et al. (2014), extant literature on eWOM is mainly focused on the first
and second categories of eWOM, i.e. affiliate and specialized eWOM, but studies on the effect
of social eWOM on consumer buying decisions are scant. The present study thus builds upon
previous studies on eWOM in a new context, i.e. social eWOM (Hu et al., 2014), which
includes WOM taking place on various social networking sites. Our theoretical contribution
refers to the finding that eWOM given on Facebook significantly influences brand attitude
and purchase intention of the product (smartphone). The findings on social eWOM thus
correspond with the research done on the other types of eWOM occurring via blogs, rating
and company websites (Ballantine and Au Yeung, 2015; Jeong and Koo, 2015).
The present study also contributes significantly to the literature of Facebook and fan
page. Though existing academic research has significantly advanced our understanding of
Facebook fan pages, much of it is focused on examining the reasons for Facebook usage
(Kudeshia et al., 2016) and motivation to post on the Facebook page of brands (Shao and Ross,
2015; Luarn et al., 2015). Regardless of the potentially powerful influence of social eWOM on
brand communications, most consumer behavior research has not examined the effect of
product-related eWOM behavior occurring on Facebook on its users’ purchase behavior.
Our study bridged the gap and investigated how comments and reviews about products
on Facebook affect brand attitude and purchase intention of potential consumers. In
examining this effect, the study not only considers the comments shared by Facebook friends
but also communication taking place on various brand pages which account for a large part
of social eWOM (Lin and Lu, 2011).

6.2 Managerial implications


Earlier it was difficult for marketers to observe WOM conversations, but in the era of social
media networks, marketers can not only analyze and observe these communications but also
manage them better by providing a platform for presenting useful and positive messages
about the brand. This study makes several practical contributions. Considering the effect of
eWOM on Facebook users and its role in affecting attitude and purchase intention, our
research shows that engagement through social media platforms can play a very important
role in building brand relationship. First, with respect to the results found, the study
recommends managers to properly manage and encourage user-generated positive WOM on
MRR social media platforms. The findings further suggest marketers to embrace the philosophy of
40,3 “consumer advocacy” whereby firms should strive to provide useful and complete
information to consumers to have a positive WOM, resulting into a favorable attitude for
their brands (Zhu and Zhang, 2010).
WOM on social media platforms not only acts as an informant giving product information
but also as recommenders giving reviews of experienced consumers (Park et al., 2007).
324 Reviews by a strong influencer can help a lot in changing a lead into a prospective customer.
Managers are advised to get the database of those consumers that can be identified as
“influencers” using tools like Google alert, Sysomos and many more. According to a report on
the ethical issues of social media research, every social media user agreed to the term and
conditions containing clauses on how ones data may be accessed by the third party and, thus,
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could be considered as public data (Townsend and Wallace, 2015). Thus, there are no ethical
issues if data marketers’ need to access is not sensitive, i.e. related to some criminal activity,
financial problems, etc. and is not held within a group that needs password (Townsend and
Wallace, 2015). These “social influencers” or “market mavens” in social networking sites can
later be encouraged to spread positive product information (Chu and Kim, 2011).
To encourage and enable reviewers to post high-quality reviews, companies must use the
platform of Facebook for various promotional strategies like Sweepstakes, online events and
contests. Marketers should concentrate on “social care” for solving consumers’ queries in
which companies should try to embrace all the opportunities to provide customer support
using dedicated social media channels like Facebook, Twitter, blogs, etc. (Telus
International, 2011). The more a company is able to solve queries through these tools, the
more it will be engaged with its customers resulting in positive WOM. Most companies are
still at the early stages of social care (Telus International, 2011). Facebook could thus be an
effective online communication platform to judge eWOM behavior as well as to adapt
various advertising strategies to build strong consumer– brand relationships (Chu and Kim,
2011). As the respondents of this study were mainly from younger age groups, i.e. up to age
35, the results of the study suggest that managers should engage with the young respondents
on Twitter and Instagram, which are popular among the age group (Dazeinfo, 2015).

7. Limitations and future of the study


This study has a couple of restrictions that make it ready for future exploration. First, as the
study concentrated on the effect of positive social eWOM on the purchase intention of
smartphones, this constrains generalization of the findings to other products. Taking some
other category of product/services in which social eWOM plays an important role can give
new insights into this area of research.
By examining the effect of social eWOM on purchase intention, the present study tests
what people assume, not what they do. Thus, there is no actual examination of customers’
action of purchasing. A future empirical measurement of the impact of social eWOM on
actual purchase will help managers understand the effect of eWOM on actual sales and
implement their social media strategies in a better way.
Each social networking site has different characteristics having different set of audiences.
It transmits message and engages with its users differently (Tsimonis and Dimitriadis,
2014). Companies’ social media activities are not only limited to Facebook, they have strong
presence on Twitter, YouTube and other platforms too. While the present study discusses
solely how social eWOM on Facebook affects customer– brand relationships, an extension of
the impact of social eWOM taking other social media sites such as Twitter or Pinterest would
be an interesting future direction.
Further, the current study used a judgmental sampling in which the respondents were Social eWOM
taken from the social networking site, Facebook. Even though these respondents represent
the set of customers whose buying decisions get affected by social eWOM, sample was
skewed toward younger consumers, which is common in internet survey samples (Wu and
Wang, 2011) because of more frequent use of social networking sites by youngsters
(Dazeinfo, 2015). A more diverse sample of potential users in different age categories and
taking some product less popular than smartphone should be examined for the future
research. Additionally, as the target respondents of this study were Facebook users, 325
newsfeed of the authors’ Facebook account was taken as the sampling frame. The current
sample is thus centered toward the authors’ close and extended social network. Taking
respondents directly from the fan pages of brands could shed new insight into a similar study
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framework. Data can be collected by sending the web-link of the questionnaire directly to the
inbox of the followers of brand pages not known to the authors.

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MRR Appendix
40,3

Variables Frequency (%)

330 Age (years) less than 25 220 70.73


25-35 64 20.57
36 and above 27 8.68
Total 311 100.0
Gender Male 171 54.98
Table AI. female 140 45.01
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Demographic Total 311 100.0


characteristic of
respondents Source: Compiled from SPSS Output

(Social eWOM 1)I often read other consumers’/friends


Social eWOM post to make sure I buy the right product/brand.

(Bambauer-Sachse and Mangold, (Social eWOM 2)I often read other consumers’/friends
2011; Jalilvand and Samiei, 2012) post to know what products/brands make good
impression on others
(Social eWOM 3) I often read other consumers’/friends
post to gather information about products/Brands
(Social eWOM 4) I often read other consumers’/friends
post to have confidence in my buying decision
Brand attitude (Schivinski and (BA 1) I have a pleasant idea of this brand
Dabrowski, 2014; Tang et al., (BA2) This brand has a good reputation
2011) (BA3) I prefer this brand
(BA 4) This brand is sensible
Purchase intention (Schivinski (PI1) I would buy this product
and Dabrowski, 2014; Yoo et al., (PI2) I would buy this product rather than any other
Table AII. 2000;Shukla, 2011) product available
Summary of measures (PI3) I intend to purchase this product in the future also

Corresponding author
Chetna Kudeshia can be contacted at: ckudeshia@yahoo.com

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