Impact of Negative Ewom On Purchase Intention Among Millennials
Impact of Negative Ewom On Purchase Intention Among Millennials
Impact of Negative Ewom On Purchase Intention Among Millennials
Presented By:
Rohit Singh(1112)
Akshay Anand(1113)
Sushobhan Dutta()
Sankalp Gosawi(1130)
Raja Solanki(1157)
Mrinal Chawhan(1159)
INTRODUCTION
• In 2019, the millennials spent an average of 2 hours 22 minutes daily browsing
internet
• Great opportunity for businesses to advertise online.
• Thus great risk of fraud or faulty products being sold online.
• So consumers seek for information from sources other than company.
• These online sources are generally reviews, comments, experiences of other
consumers.
• This information is known as eWOM.
• In this research we will try to find if any, what are the impacts of negative eWOM
on purchase intentions of millennials.
Electronic Word of Mouth
• Traditional WOM with the introduction of internet.
• Multiple channels like blogs, product review websites, social media,
etc.
• eWOM has better reach and longer presence.
• Consumer-focused discussions have more credibility than content
produced by marketers.
Negative eWOM
• WOM used to communicate dissatisfaction or complaints about a
product, service or company is negative eWOM.
• Negative eWOM travels faster than positive eWOM, therefore it is
considered to have more influence than positive eWOM.
• It has been observed that consumers are more likely to share negative
experiences as compared to the positive experiences.
• Because of its characteristics to spread faster and have longer
presence, it is very destructive for companies.
Millennials
• Millennials or Gen Y is a group of people born between 1980-2000.
• They grew up with access to social networks, smartphones, tablets and
other digital technology in use today.
• 34% of Indian population is Gen Y.
• Millennials now make more than 54% of their purchases online.
• 8 out of 10 millennials never buy anything without first reading a review.
• 81.3% millennials said they shop online at least once in a month.
• 45% of them admitted that they prefer buying online because they can
run comparison on products.
Source: https://www.invespcro.com/blog/millennial-online-shopping-habits/
LITERATURE REVIEW
Literature on the impact of eWOM on consumer opinions and behaviour suggest that the influence of eWOM from an
interpersonal source is similar to offline interpersonal influence [2].
Many research show purchasers’ choices are fashioned via way of means of credible eWOM from interpersonal sources
consisting of friends, loved ones and co-workers or individuals who are categorised as client’s number one reference group.
A negative eWOM has a significant effect on purchasers’ mind-set to a brand and influences brand switching behavior,
reducing customer loyalty. Stronger eWOM ends in more effect on brand switching behavior.
The strength of the data contained in a negative eWOM influences the cognition, reliability, trust and belief of purchasers and
this considerably influences their brand.
In addition to the power of the eWOM, the frequency with which the receiver reads the negative eWOM impacts the
cognition and assessment of data and the possibility of brand switching behavior.
Most research establish the significance of word-of-mouth in customer behaviour via quantitative research wherein the
factors discover the presence of valence and strength.
In the consumer behaviour, the behavioural perspective model [4] systematically relates overt behaviours to the feelings of
pleasure, arousal, and dominance (PAD) that Mehrabian (1996) addresses as fundamental affective dimensions of human
performance
Search And Selection
Keywords: “Negative eWom”, “Purchase intentions of millennials”, Millennial purchase behaviour”,
“Effects of eWOM”, “eWOM impact”
Criterion Inclusion Exclusion
Study type Conceptual, Case Study and Empirical studies All others
Based on the literature review and the conceptual framework (Figure 1), the study proposed the following hypothesis:
H1: Negative eWOM has a negative and significant impact on the brand trust.
H2: Negative eWOM has a negative and significant impact on the purchase intention of millennials.
H3: Brand trust has a significant impact in the purchase intention of millennials.
REFERENCES
[1] Amblee, N. & Bui, T. 2008. Can brand reputation improve the odds of being reviewed online?
International Journal of Electronic Commerce, 12(3): 11-28.
[2] Blodgett, J.G. and others. 1993. The effects of perceived justice on complainants’ negative word of-
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[3] East, R., Hammond, K. & Lomax, W. 2008. Measuring the impact of positive and negative wordof mouth
on brand purchase probability. International Journal of Research in Marketing, 25:215-224.
[4] Wood, W., & Hayes, T. (2012). Social Influence on Consumer Decisions: Motives, Modes, and Consequences.
Journal of Consumer Psychology, 22 (3), 324-328.
[5] Jalonen, H., & Jussila, J. (2016). Developing a Conceptual Model for the Relationship Between Social Media
Behavior, Negative Consumer Emotions and Brand Disloyalty. In Conference on e-Business, e-Services and e-Society
(pp. 134-145). Springer International Publishing.
[6] Fu, X., Bin, Z., Xie, Q., Liuli, X., & Yu, C. (2011). Impact of quantity and timeliness of EWOM information on
consumer's online purchase intention under C2C environment.
[7] Gordon R. Foxall & Teresa C. Schrezenmaier (2005) Patterns of consumer response to retail price differentials, The
Service Industries Journal, 25:3, 309-335