0420 presentation (stan)

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0420 presentation (stan)

  1. 1. The impact of positive electronic word-of-mouth on consumer online purchasing decision. Instructor: Dr. Pi-Ying Teresa Hsu Presenter: Stan Chung Date: April 20, 2010
  2. 2. <ul><li>Cheung, C. M., Lee, M. K, & Thadani, D. R. (2009). The impact of positive electronic word-of-mouth on consumer online purchasing decision. WSKS 2009, 5736 , 501–510. </li></ul>
  3. 3. Contents Click to add Title 1 Introduction I Click to add Title 2 Methodology II Click to add Title 1 Results III Click to add Title 2 Conclusion IV Click to add Title 1 Reflection V
  4. 4. Introduction <ul><li>It is reported that 85% of the world’s online population has used internet to make a purchase. </li></ul><ul><li>(Nielsen, 2008) </li></ul>
  5. 5. Introduction <ul><li>77% of online shoppers in US reported using consumers-generated reviews and rating to aid their purchase decisions. </li></ul><ul><li>(Jupiter Research, 2008) </li></ul>
  6. 6. Introduction <ul><li>Past research on e-commerce has mainly focused on building trust in the online environment by minimizing risks associated with shopping online. </li></ul>
  7. 7. Introduction <ul><li>Little research on the role of positive eWOM in impacting trust as well as consumer purchase decisions. </li></ul>
  8. 8. Introduction <ul><li>Purpose of study </li></ul><ul><li>The purpose of this paper is to examine how positive online consumer emotional trust towards the retailer, as well as online purchasing decision. </li></ul>
  9. 9. Introduction Competence Integrity Emotional Trust Behavioral Intention Cognitive Trust (Komiak & Benbasat, 2006)
  10. 10. Introduction Competence Integrity Emotional Trust Behavioral Intention Cognitive Trust Positive eWOM H3 H2 H1
  11. 11. Methodology Instrument Controlled laboratory experiment Sampling Convenience sampling Place A local university in Hong Kong Participants 100 students(Male: Female = 50:50) Time 45 minutes Compensation US $7
  12. 12. Methodology <ul><li>The participants were asked to decide whether to make online purchases in a real UK watch selling website ( www.easyWatch.com ) </li></ul><ul><li>The hypothetical scenario: </li></ul><ul><li>“ Your friend is studying overseas and her birthday is coming. You are planning to use US$40 to buy her a watch as a birthday present”. </li></ul>
  13. 13. Methodology
  14. 14. Methodology Treatment group Control group Watch website (15 minutes) Online discussion forum (10 minutes) Complete questionnaire Introduction (10 minutes) Watch website (15 minutes) Without reading online discussion forum Complete questionnaire
  15. 15. Methodology 1 strongly disagree 7 strongly agree Questionnaire (14 items) 7 points Likert scale Part 1 (4) Cognitive Trust in Competence Part 2 (4) Cognitive Trust in Integrity Part 3 (2) Emotional Trust Part 4 (4) Behavioral Intention
  16. 16. Methodology <ul><li>Questionnaire items </li></ul>
  17. 17. Methodology <ul><li>Questionnaire items </li></ul>
  18. 18. Methodology <ul><li>Questionnaire items </li></ul>
  19. 19. Results Competence Integrity Emotional Trust Behavioral Intention Cognitive Trust Control Group (without reading eWOM) 0.51*** (t= 4.43) 0.24** (t= 1.82) 0.60*** (t=6.46)
  20. 20. Results Competence Integrity Emotional Trust Behavioral Intention Cognitive Trust Treatment Group (with reading eWOM) 0.46*** (t= 3.82) 0.35*** (t= 2.74) 0.69*** (t=11.02)
  21. 21. Results <ul><li>Path Comparisons between the Control Group and the Treatment Group </li></ul>
  22. 22. Conclusion <ul><li>Positive eWOM strengthens the relationship between consumers’ emotional trust and their intention to shop online, as well as the relationship between consumers’ perceived integrity and attitude. </li></ul>
  23. 23. Reflection <ul><li>Detailed description on research design and procedure. </li></ul><ul><li>Participants were evenly divided between male and female </li></ul>
  24. 24. Thank You !
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