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International Journal of Advanced Scientific

e-ISSN: 2395-6089
Research & Development
Vol. 03, Spl. Iss. 03, Ver. I, Sep 2016, pp. 141 146

p-ISSN: 2394-8906

Impact of eWom on the Purchase Decision of the Consumers

Dr. V. SHANTHI
Associate Professor, Department of Corporate Secretaryship, Ethiraj College for Women,
Chennai.

K. KAVITHA
Senior Assistant Professor, Department of Corporate Secretaryship, Ethiraj College for Women,
Chennai.

K. VIJAYALAKSHIMI
Assistant Professor, Department of Corporate Secretaryship, Ethiraj College for Women,
Chennai.

ARTICLE INFO

ABSTRACT

Article History:

The era of information driven technology is on the constant

rise with changes in the approach of mankind to the
corporate world. The rise of new media channels during the
last decade has offered fertile ground for electronic word-ofmouth (e-wom) communication. More and more consumers
use Web 2.0 tools (e.g., online discussion forums, consumer
review sites, weblogs, social network sites, etc.) to
communicate their opinions and exchange product
information. This new form of word-of-mouth (WOM)
communication comprises both positive or negative
opinions of the potential, actual and former customers on a
product or a company via the Internet. Consumers make
evaluations and attributions of the source eWOM as they
determine how much weight to give the review in their
purchasing decisions. Hence it is imperative to analyse the
impact of eWOM on the purchase decision of the
consumers.

Received: 26 Sep 2016;

Accepted: 26 Sep 2016;
Published online: 28 Sep 2016.

Key words:
eWOM,
Purchase Decision,
Social Commerce

JEC Classification:

Copyright 2016 IJASRD. This is an open access article distributed under the Creative Common Attibution
License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original
work is properly cited.

INTRODUCTION
1.1 Information Technology
Information Technology (IT), a knowledge intensive industry, has the extensive
potential of becoming an engine of accelerated economic growth, productivity
enhancement for all sectors of the economy besides being a means of efficient control. It
How to cite this article: Shanthi, V., Kavitha, K., & Vijayalakshimi, K. (2016). Impact of eWom on the Purchase
Decision of the Consumers. International Journal of Advanced Scientific Research & Development (IJASRD), 03 (03/I),
[Special Issue Sep 2016], pp. 141 146.

Emerging Innovative Strategies in Business Creating a Competitive Edge | Organized by PG

Department of Banking & Insurance Management and Department of Bank Management,
Ethiraj College for Women (Autonomous), Chennai 600 008.

provides access to information, protects the consumers, provides access to government

services facilitates skill development makes training more effective, and promotes
transparency. It provides wide employment opportunities and linkages between
government and the people both at the rural and urban level. Investment in knowledge
based industries would determine the level of the countrys dominant position in the
world economy in the future.
1.2 Social commerce
Social commerce has effectively changed the dynamics of electronic commerce on
e-commerce. Establishing user generated feedback to accelerate the nature of
commercial transactions online has become a game-changer for many e-merchants.
Buyers community, group buying, purchase sharing, social advice and co shopping are
seen as some prevalent practices associated with social commerce.
Social commerce is emerging as an integral platform in e-commerce, primarily
due to the increased popularity of social networking sites such as FaceBook, LinkedIn
and Twitter. The understanding of users social sharing and social shopping intention in
social networking websites, social support and to assess the website quality positively
affects the users intention to use social commerce and maintain continuity in the use of
Social Networking Sites.
1.3 eWOM
Traditional (offline) word-of-mouth plays a major role in customers buying
patterns (Richins & Root-Shaffer, 1988).The initiation of the Internet has extended
consumers options to help gather unbiased product information from other consumers
and provides the pathway for consumers to offer their own consumption-related advice
for engaging in electronic word-of-mouth (eWOM).Given the distinct characteristics of
Internet communication (e.g., directed to multiple individuals, available to other
consumers for an indefinite period of time, and anonymous), eWOM deserves the serious
attention of marketing researchers and managers.
eWOM communication expressed on Web-based consumer-opinion platforms can
be expected to put forth a stronger impact on consumers than eWOM published through
other means because unlike news groups, such Web based consumer-opinion platforms
are comparatively easy to operate and require less Internet related knowledge on the
part of the consumer to obtain information. Also, rather than aiming at small groups of
consumers with expertise in specific fields of consumption (e.g., DVDs), Web-based
consumer-opinion platforms provide information on almost all areas of consumption
1.4 Need for the Study
In recent years as technology is on the rise, it is imperative for consumers to
interact in a global platform. Todays world is influenced by the Word of Mouth (WOM)
communication and conversation which are actively happening in the Social Networking
Sites. This WOM happening through internet is called electronic Word of Mouth
(eWOM). It refers to word of mouth over the internet where in the consumers interact
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Impact of eWom on the Purchase Decision of the Consumers

with each other and share their opinions about products and services. Electronic Word
Of Mouth takes place through various modes such as blogs, Social networking sites,
websites, e-mail, etc.
eWOM is considered one of most reliable source of information and this has a
major impact on consumers attitude and buying behaviour. It covers a
wide
geographical area and allows the consumers to search for information through eWOM
before they make any purchase decision be it major or minor.
1.5 Objectives of the Study
1. To study the most influential source of information through eWOM among the
consumers for product review
2. To study the impact of eWOM on consumers decision making process
1.6 Limitations of the Study
The data was collected from respondents only from Chennai city.
The accuracy of the study is purely based on the information as given by the
respondents
RESEARCH METHODOLOGY
Research is a systematized effort to gain new knowledge. The data for the
current study was collected from the primary sources; the target population is the online
users of Chennai city. The sample size is 250. Well-structured questionnaires were
issued to collect responses. Percentage analysis and Descriptive statistics were used to
analyse the data. The conclusions of these tests are given below:
Table No. 1. Frequency Distribution of Gender Classification of the
Respondents
Gender

Frequency

Percentage

Male

120

48

Female

130

52

Total

250

100.0

Source: Primary data

Table no 1 reveals that of the total respondents 52% are females and 48% are
males.
Table No. 2. Frequency Distribution of Educational Qualification of Students
Educational Qualification

Frequency

Percentage

HSC

39

15.6

UG

160

64.0

PG

51

20.4

250

100.0

Total
Source: Primary data
143

Volume 03, Special Issue 03, Version I | 28th September 2016

Emerging Innovative Strategies in Business Creating a Competitive Edge | Organized by PG

Department of Banking & Insurance Management and Department of Bank Management,
Ethiraj College for Women (Autonomous), Chennai 600 008.

From the above table, it is clear, out of the total respondents 15.6% of the
respondents have completed HSC, 64% of the respondents are undergraduates and
20.4% of the respondents are post graduates.
Table No. 3. Frequency Distribution of Respondents Who Use the Internet to
Purchase Products
Use of Internet to purchase products

Frequency

Percentage

Yes

190

76.0

No

60

24.0

250

100.0

Total

Source: Primary data

The above table indicates 76% of the respondents use the internet to purchase
products and 24% of the respondents dont use the internet to purchase products. Hence,
it is clear that a high a majority of the respondents use the internet to purchase
products.
Table No. 4. Frequency Distribution of Time Spent Online in a Day
Time spent online in a day

Frequency

Below 30 minutes

Percentage

56

22.4

30-60 minutes

100

40.0

60-120 minutes

60

24.0

Above 120 minutes

34

13.6

250

100.0

Total

Source: Primary data

It is evident from the above table that 22.4% of the respondents spend less than
30 minutes online, 40.0% of respondents spend 30.-60 minutes online. 24% of the
respondents spend 60-120 minutes online and 13.6% of respondents spend more than
120 minutes online in a day. Hence it can be concluded that a majority of the
respondents spend time online for a minimum of 30 minutes in a day.
Table No. 5. Frequency Distribution of Significance of eWOM in Decision
Making Process of Consumers
Significance of eWOM in Decision Making
Process of Consumers

Frequency

Percentage

Yes

221

88.4

No

29

11.6

250

100.0

Total

Source: Primary data

It is inferred from the above table that 88.4% of the respondents have expressed
their opinion that eWOM plays a significant role in the purchase decision of a product
whereas only 11.6% of respondents have disagreed with the same.
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Impact of eWom on the Purchase Decision of the Consumers

Table No. 6. Mean and Standard Deviation of the Various Sources of

Information for Product Review
Various Sources of Information

Mean

Std. Deviation

Blogs

3.52

.841

Consumer Forums

3.50

.771

Company Forums

3.20

.822

Video clippings

3.80

.909

Social Networking Sites(SNSs)

3.93

.912

Source: Primary data

It is clear from the above table based on the mean score value, Social Networking
Sites is a major source of information for the product review (3.93) followed by Video
Clippings(3.80) and Blogs (3.52) and Consumer Forums (3.50) and Company Forums
(3.20).
Table No. 7. Mean and Standard Deviation of factors influencing the Purchase
Decision based on eWOM
Factors influencing purchase decision
based on eWOM

Mean

Std. Deviation

Product Review

4.00

.778

Feature Comparison of similar products of

different brands

4.10

.642

Dependence on reviews for purchase decision

3.61

.800

Acceptance of Feedback/ Reviews expressed

3.30

.814

Source: Primary data

Based on the mean scores from the above table, Feature Comparison of similar
products of different brands is the most influential factor for purchasing decision based
on electronic word of mouth (4.10) followed by Product review (4.00) , Dependence on
reviews for purchase decision (3.61) and the least influential factor is Acceptance of
Feedback and Reviews expressed online (3.30).
CONCLUSION
The survey results and the analysis indicate that eWOM plays a significant role
before a consumer makes his decision of buying a product. Descriptive Statistics results
clearly indicate that eWOM has been strongly accepted by the respondents. Companies
should take into consideration the type of eWOM used to market their products. They
should increase the understanding of the e-WOM sources used by their consumers.
Online experts perceive eWOM communication as a credible source, where cognitive
information prevails.
Today people are more into what we call smart shopping. The customer today is
well informed about the product even before he purchases the same. The increase in
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Volume 03, Special Issue 03, Version I | 28th September 2016

Emerging Innovative Strategies in Business Creating a Competitive Edge | Organized by PG

Department of Banking & Insurance Management and Department of Bank Management,
Ethiraj College for Women (Autonomous), Chennai 600 008.

consumer awareness has contributed a great deal in cut throat competition among the
sellers. eWOM with a plethora of options would turn a consumer into an Informed
Consumer in this world that is based on demand.
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