Effect of E-Referral and E-Wom on Purchase Intention: An Empirical Study in Indonesia

Tanprajna, Ryan Frederick and Ellyawati, Jeanne (2020) Effect of E-Referral and E-Wom on Purchase Intention: An Empirical Study in Indonesia. In: 11th International Conference on Modern Research in MANAGEMENT, ECONOMICS and ACCOUNTING, December 18-20, 2020, Oxford, United Kingdom.

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Abstract

This study aims to analyze the effect of electronic referral (e-referral) and electronic word of mouth (e-WOM) on purchase intentions. Besides, this study also examines the role of brand image as a variable that mediates the effect of e-referral and e-WOM on purchase intention. The sampling method used non-probability sampling with a combined sampling method, purposive sampling, and snowball sampling technique. Data were collected from undergraduate students who have bought and used laptop ASUS brand at various universities in Yogyakarta. Some 300 respondents were recruited using an online and offline survey design with a structured questionnaire. To verify the hypothesis, data were processed using the statistical program SmartPLS. The results of this study found that e-referral and e-WOM has a positive and significant effect on purchase intentions and brand image. Brand image has a positive and significant effect on purchase intention. The study also found that the effect of e�referral on purchase intentions was greater than the effect of e-WOM on purchase intentions The further finding showed that brand image has a complementary partial mediation effect on the relationship between e-referral and e-WOM on purchase intentions. The e-referral variable has a greater total effect than the e-WOM variable. It means that the brand image has a higher mediating effect through e-referral and purchase intentions than through e-WOM and purchase intention.

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