Electronic word-of-mouth (eWOM) and its impact on online purchases : taking a study of the Maltese generation Z population in the fashion retail industry

Abstract

Purpose: The study aims to investigate whether electronic word-of-mouth influences the purchase intention of members of the Generation Z population in Malta, focusing on the online fashion retail industry. This shall be done in terms of positive and negative of electronic word-of-mouth to identify the effect of valence. Moreover, the study shall also identify the influence of credibility and sidedness on the impact of electronic word-of-mouth in terms of purchase intention. Research Design: A review of secondary data through a literature review is followed by an analysis of primary data. This was implemented though a quantitative methodology in the form of an online survey. The survey was successfully completed by 325 respondents who were Maltese, aged between 16 and 25 and have engaged in purchasing from the fashion retail industry at least once. Research findings: Positive and negative electronic word-of-mouth were both found to influence consumers’ purchase intention, but negative electronic word-of-mouth had a higher level of influence. Additionally, credibility was found to influence purchase intention after reading positive electronic word-of-mouth and two-sided electronic word-of-mouth was found to be more powerful in terms of credibility and purchase intention. These findings were true for the sample population. Practical implications: Electronic word-of-mouth is a tool which provides companies with critical feedback on how to improve the organisation. It should be monitored, acted upon and encouraged for the better of the organisation.