AFFECTS OF E-WOM ON PURCHASE INTENTION, A CASE OF ACCOMODATION AREA. Nguyen Uyen Thuong-MA4N0224 Juliana Kriskova- MA4N0220

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1 AFFECTS OF E-WOM ON PURCHASE INTENTION, A CASE OF ACCOMODATION AREA Nguyen Uyen Thuong-MA4N0224 Juliana Kriskova- MA4N0220

2 Summary Introduction Research questions Summary of articles Subject Framework Hypothesis Questionnaire

3 1. INTRODUCTION

4 Do you check online reviews before the booking of accommodation?

5 Do you trust online reviews?

6 Purpose of the study To find out factors of electronic Word-of- Mouth (e-wom) which affect buying intention of customers in terms of booking hotel

7 BACKGROUND Word-of-Mouth (WOM): One of the most influential channels of communication in the market place Recommendation by a customer to the prospective customers of a good or service

8 BACKGROUND e-wom: Consumers using e-wom to seek accommodation Customers prefer user-generated content Travelers write online reviews (ORs) to share their experience Each year hundreds of millions of potential hotel visitors consults review sites Reducing risk Faster, lower costs Hotel companies shifted to Internet-based customer retention Researches focusing on e-wom and ORs

9 RESEARCH MOTIVATION Big changes in the marketing world Word-of-mouth moved to online world E-WOM plays important role in consumers product evaluation Number of young travelers is increasing More consumers read online reviews by their peers than by travel service providers

10 2. RESEARCH QUESTIONS

11 Research questions Do e-wom information affect booking intention of visitors? How do e-wom affect to booking intention of visitors? Do e-wom adoption affect booking intention of visitors? Is there any difference on booking intention among the variety of gender and nationality?

12 3. SUMMARY

13 Article 1: Establishing the Adoption of Electronic Word-of- Mouth through Consumers Perceived Credibility Yi-Wen, Yi-Feng Miao, Yu-Hsien Fang, Ruei-Yun Lin, International Business Research; Vol. 6, No. 3; 2013 Background: To determine factors influencing credibility of ewom perceived by customers and importance of credibility in adoption ewom by customer, including buying decision. Framework:.

14 Article 1 Research Method Taiwan Cosmetic products public cosmetic-related forums of a bulletin board system and Facebook 435 usable responses smart PLS for structure equation modeling analysis Conclusion The decision-making process of consumers is determined by the information content received. Source credibility, ewom quality, and ewom quantity can be for consumers, who perceived ewom credibility, highly influential. A high level of ewom credibility increase consumer s ewom adoption and attracts repeat visit to other reviews. Contribution understanding what factors influence adoption of ewom by consumer We used their research model

15 Article 2: The effect of E-WOM on destination image, satisfaction and loyalty Putu Yudi Setiawan, Eka Afnan Troena, Armanu, Noermijati (2014), International Journal of Bussiness and Management Invention, Vol. 3 Iss:1 pp Background The major premise : "the source of information may affect the destination image" The minor premise is: "ewom is a source of information" Framework

16 Article 2 Research Method Bali- Indonesia making surveys with 150 travelers, >18 years old Method analysis: SEM analysis Measuring destination image, satisfaction, loyalty Conclusion Positive and significant influence of e-wom on destination image No significant direct influence of e-wom on satisfation and loyalty. Satisfaction does not mediate the influence of e-wom on loyalty Contribution Help build models to measure destination image, satisfaction and loyalty relating to the electronic word of mouth Identify several indicators belonging to satisfaction, loyalty and destination image.

17 Article 3: Determining the impact of e-wom on brand image and purchase intention through adoption of online opinions Naimatullah Charo, Pershant Sharma, Saadullah Shaikh, Abdul Haseeb and Muhammad Zohaib Sufya, International Journal of Humanities and Management Sciences, Vol 3 Background: indicates factors that may influence and determine the adoption of online reviews on Facebook groups related to Food discussion impact of adopted information on Brand Image and Purchase Intention Framework:

18 Article 3 Research Method Pakistan posted on Facebook group of Karachi Food Diary convenience sampling method 244 responses were usable Cross tab Analysis, Linear and multiple regression Conclusion Timeliness of online reviews takes an significant role in adoption of that review and the impact of electronic word of mouth on brand image E-WOM has significant direct and indirect effect on buying intention Brand Image was found to have significant relationship with purchase intentions Contribution More knowledge about e-wom, brand image and purchase intention Help us to understand relationship of e-wom and buying intention

19 Article 4: E-WOM and Accommodation: An Analysis of the Factors That Influence Travelers Adoption of Information from Online Reviews Raffaele Filieri and Fraser McLeay, Journal of Travel Research 53; 2013 Background: Framework: Examine factors that influence the adoption of information from ORs.

20 Article 4 Research Method: A Questionnaire had online form Distributed by A sample consists of academic and administrative staff from three Italian universities. Study use elaboration likelihood model (ELM) Conclusion Product ranking : the strongest predictor of information adaption from ORs. Travelers adopt both routes to information adoption, peripheral and also central. Travelers adapt information short cuts to reduce the number of choices. The most significant influence for adoption has Information accuracy, value-added information, and information relevance. Less significant: Information timeless was less significant, Not significant: information understandability and information completeness Contribution Helped us to understand the factors that influence the adoption of information from ORs. Showed us that travelers adopt peripheral and also central information adoption

21 Article 5 How Consumers Evaluate ewom (Electronic Word-of-Mouth) Messages Sun-Jae Doh, M.S. and Jang-Sun Hwang, Ph.D., CYBERPSYCHOLOGY & BEHAVIOR Volume 12, Number 2, 2009 Background: Customers tend to rely on e-wom messages, if the directions of them are all the same Reviews with high consensus tend to be more persuasive.. Framework:

22 Article 5 Research Method 143 respondents in South Korea Three universities Two product categories: movies and digital cameras Participants were exposed to experimental web site containing different types of e-wom messages Statistical analyse; ANOVA, GLM Conclusion A few negative messages in online reviews can be helpful, because it increase web site credibility Only positive reviews, some consumers tend to think that credibility is not high enough One negative message in 10-message set is not so harmful and can be beneficial. Contribution Helped us to understand the importance of positive and negative character of reviews in relation to source credibility

23 4. SUBJECTS

24 Subjects Taiwan

25 Subjects Research subject: International students in Tainan, Taiwan Space research: Online survey, through Internet. Time research: The collecting of data will last from April to June Primary information: from collecting the questionnaire

26 5. RESEARCH MODEL

27 RESEARCH FRAMEWORK

28 RESEARCH HYPHOTHESES H1: Source credibility affects the adoption of ewom by consumers. H2: Information credibility affects the adoption of e-wom by consumers. H3: Involvement of consumers affects their adoption of ewom. H4: Customers expertise affects their adoption of ewom. H5: Adoption of ewom affects the purchase intention of consumers

29 6. QUESTIONNAIRE

30 STRUCTURE OF QUESTIONNAIRE 3 parts: 1. Experienced respondents (Y) 2. Inexperienced respondents (N) 3. General information Age Gender Nationality School Frequence Websites

31 CONSTRUCT MEASUREMENT Factor Items Label Adapted from 1. Source credibility [1] Relationship with reviewers SC1 (Gunther, 1992) [2] Reviewers who had experience about the hotel SC2 [3] Attractive website interface SC3 [4] A well-known website SC4 [5] Credibility of only positive reviews SC5

32 CONSTRUCT MEASUREMENT 2. Information credibility [1] The information is clear IC1 (Cheung, M. Y., [2] The information is useful IC2 Luo, C., Sia, C. L., & Chen, H. (2009)) [3] The information is based on the real experience of reviewers IC3 [4] The information is positive IC4

33 CONSTRUCT MEASUREMENT 3. Involvement [1] Finding the information to book a hotel IN1 Batra and Ray, [2] Finding the information in many websites IN2 [3] Spending a lot of time to find information IN3 1985; Goldsmith and Emmert, 1991; Zaichkowsky, Consumer expertise [1] Know well about kinds of hotel and rooms CE1 (Petty, 1983). Park and Kim ( 2008) [2] Experience of booking a hotel CE2 [3] Know many famous booking/ hotel websites CE3 [4] Have ability to distribute and select the useful information CE4

34 CONSTRUCT MEASUREMENT 5. E-WOM adoption [1] There are many different opinions and viewpoints EA1 Cheung, M. Y., Luo, C., Sia, C. L., & Chen, H. (2009) [2] By this information, help to increase experience about choosing a hotel EA2 [3] Using this information (reviews) to choose the suitable hotel EA3 [4] It is useful to make a booking decision EA4 6. Purchase Intention [1] Thinking about booking accommodation PI1 Park and Lee (2009) [2] Making decision to book a room PI2 [3] Recommending to friends PI3

35 7. SAMPLE SIZE & METHOD COLLECTING DATA

36 SAMPLE SIZE & METHOD COLLECTING DATA Sample size: Survey is collected of 100 respondents. Questionnaire has online form and is created in Google Forms. Type of sampling: Non - random sampling Facebook students groups and through Facebook messages or Gmail. Snowball effect: Respondents will be asked for redistributing of questionnaire to another respondents

37 8. STATISTICAL METHOD

38 STATISTICAL METHOD SPSS 22 and AMOS 20. Process of analysis: Descriptive analysis Exploratory factor analysis (EFA) to miniature and summarize data for inclusion in the multivariate analysis procedures. Checking for reliability of scales (Cronbach s alpha reliability coefficient) Anova testing: to classify the difference of demographic variables under different group respondents Confirmatory factor CFA- Checking the quality of all measurement models of an SEM Structural equation modeling (SEM)- mediation test.

39 THANKS FOR YOUR LISTENING