Phuong
Viet Le-Hoang
Ho Chi Minh City Open University, Vietnam
E-mail: lehoangvietphuong@gmail.com
Submission: 10/23/2019
Revision: 11/6/2019
Accept: 11/22/2019
ABSTRACT
The purpose of this research is to explore and test the effect of electronic Word-of-mouth (eWOM) on the adoption of consumer eWOM information. Through the credibility variables of the eWOM, namely the trust of the eWOM news source, the quantity of eWOM, the quality of eWOM and consumer expertise in the case of female consumers when buying cosmetics in Ho Chi Minh City, Vietnam. To achieve this goal, the author does conduct research by submitting an online survey questionnaire and obtained 200 valid questionnaires. The online questionnaire has targeted internet users, who have previously purchased online and read reviews online received from the provider's website. The result from Exploratory Factor Analysis (EFA) shows that consumer expertise has the most significant effect on consumer adoption of eWOM information while the number of eWOM has the least impact. Besides, the credibility of eWOM news sources and the quality of eWOM also indirectly affect the adoption of eWOM information. What is more, the study suggests some recommendations to cosmetic businesses so that they develop applications or websites where assessments and quality of information are relevant, and the current expertise of consumers is increasingly present.
Keywords: eWOM; the trust of eWOM; the
quantity of eWOM; the quality of eWOM; consumer expertise; adoption of eWOM informatio
1.
INTRODUCTION
In the booming era of information technology as at
present, there are many mass media developed; among them the most significant
development is the internet. The internet is the most convenient tool for
transferring a large amount of information at a fast rate to millions of people
around the world; it impacts every aspect, every area of life. The internet not
only helps people to expand their relationships and exchange of information and
personal experiences, through which people can express their opinions and be
creative in many areas.
With the steady development of the internet,
consumers are increasingly using the advantages of the online environment to
find information about integrated products and services in their purchasing
decisions (ZHU; ZHANG, 2010; KING et al., 2014; TENG et al., 2014) via
electronic Word-Of-Mouth. Recent research shows that the internet allows
customers to use online platforms to share reviews with other users
(HENNIG-THURAU et al., 2004; KIM; PARK, 2013).
Consumers quickly access and monitor the opinions,
assessments, and feelings of other individuals to compare, choose, and make
decisions for their needs, maximizing consumer rights... At the same time, they
can also let their assessment stay, contributing their own experience to the
following consumers. Word of mouth Electronic (eWOM) has long been evaluated as
a powerful marketing tool (BICKART; SCHINDLER, 2001; KUMAR; BENBASAT, 2006;
ZHANG et al., 2010).
Cheung and Thadani (2012) said that the internet had
provided some very suitable platforms for eWOM forms such as blogs, forums, review
websites, and shopping websites. Some previous studies have shown the impact of
eWOM from the above foundation for the adoption of consumer eWOM information
(BICKART; SCHINDLER, 2001; PARK et al., 2007; SEE-TO; HO, 2014). Therefore,
this has created a diverse electronic word of mouth.
Standing in such a market, if consumers want to buy
a quality product that suits their needs, they must thoroughly understand
product information from different sources, if the information is attractive
enough to They can accept it and then make a purchase decision. Consumers often
search for information of cosmetics from relatives and friends, from a direct
consultant at the point of sale, search through forums or social networking
sites that are currently influential.
In particular, the form of searching for information
via the Internet is now becoming more and more popular. Also, consumers tend to
be more proactive in sharing commercial information and rely on the information
given by other consumers rather than information sold by the seller. Before
consumers accept eWOM information when choosing cosmetics, they tend to imitate
(especially women's psychology) each other through word of mouth.
The acceptance of eWOM information when choosing
women's cosmetics depends mainly on negative or positive emotions coming from
the manufacturer or business or the surrounding people. Women often like to
share their feelings, experiences, and evaluations of a used product. From that
fact, grasping the current trend of women's consumption, learning about the
impact of eWOM on the adoption of eWOM information can help managers and
businesses in bringing products to consumers more efficiently.
Therefore,
the author conducts the research "The effects of electronic word of mouth
(eWOM) on the adoption of consumer eWOM information." And this study
applies the case for consumers who are women when buying cosmetics at Ho Chi
Minh City.
2.
LITERATURE REVIEW AND HYPOTHESES
DEVELOPMENT
Adoption of information is a psychological action
that affects consumers online through social norms or reviews/comments in the
online environment (FAN; MIAO, 2012).
Previous studies have asked the following question:
"How can an individual be affected in the process of receiving/applying
ideas or information" (AJZEN, 1991; DAVIS, 1989). Sussman and Siegal
(2003) studied this topic further to consider eWOM in a dual theoretical model
named Information Acceptance Model (IAM) that individuals can be
affected by a message in two directions: Center (central) and peripheral
(SUSSMAN; SIEGAL, 2003). The central direction addresses the core contents of
the message, while the peripheral direction addresses indirect issues related
to the content of the message (CHEUNG et al., 2008).
IAM includes four research variables: Quality of the
message (representing the central approach), the credible source (representing
the peripheral approach), the usefulness of the information and the application
of information believe. IAM is highly regarded by many scholars when applied to
studies of eWOM (CHEUNG et al., 2008; SHU; SCOTT, 2014). This study also
focuses on the eWOM theme, so the use of the IAM model is also considered
appropriate. The elements of IAM applied in this study are the quality of the
message, the credibility of the source. The author believes that, in order to
accept a piece of particular information, recipients must first evaluate how
useful it is to receive that information.
When an individual is willing to be aware and able
to understand the arguments and words in the message, the quality of the
argument will determine the level of influence of the information. And when an
individual has no motivation or inability to understand the arguments
in the message, other out-of-flow suggestions will determine the level of
influence of information (PETTY; CACIOPPO, 1986).
Trust of eWOM sources: Wathen and Burkell (2002)
pointed out that the credibility of information resources is a crucial factor
in supporting consumers to assess online information. The first task for
consumers online is to evaluate the vehicle's credibility, based on its surface
characteristics. If a website presents a credible, well-designed, and
compelling image interface, it will attract consumers to stay on the site and
continue using it.
The second task relates to the ranking of resources
related to mail content since the credibility of the source is entirely
consistent with credibility and expertise. The third task of the process
involves assessing the interaction of presenting messages and content with
consumers' cognitive state, which is determined from the consumer's experience.
In an online environment, consumers rarely touch products directly or identify
senders of EWOM. The credibility of the source is an essential predictor in the
early stages when consumers are searching for and choosing a website, and it
contributes to the credibility of the messages on the site (DABHOLKAR, 2006;
DOU et al., 2012; HUSSAIN et al., 2017).
The credibility of the source for EWOM is defined as
the degree to which it is perceived as credible or practical (CHEUNG et al.,
2009). Awad and Rogowsky (2008) argue that trustworthiness of information
resources is a leading determinant in consumer adoption of eWOM information and
reducing uncertainty in both social and business interactions. Besides, Luo el
at (2014) proved to be that the source credibility has a positive effect on
perceived information credibility. Therefore, the author has the hypothesis H1
as follows:
· H1: The higher the eWOM
information credibility, the higher the adoption of eWOM information from
consumers.
Quantity of eWOM: The number of eWOM is defined as
the number of reviews or comments on a product on all websites (FAN et al.,
2013). When a consumer seeks online reviews, the number of eWOM makes opinions
more diverse (CHEUNG; THADANI, 2010). The number of eWOM represents the
popularity of a product. Reading many reviews by others can reduce consumer
anxiety when deciding to buy because consumers believe that many others have
also bought these products (CHATTERJEE, 2001). Park et al. (2007) provide
evidence that the number of eWOM positively affects consumer adoption of eWOM
information. Therefore, the author has hypothesis H2 as follows:
· H2: The higher the number of
eWOM, the higher the adoption of consumer eWOM information.
Quality of eWOM: The quality of eWOM that consumers
perceive is defined as the degree to which they feel about an offer or
assessment that is effective, credible, accurate, or valid (CHEUNG et al.,
2009). The quality of eWOM is the convincing power of discussions
(BHATTACHERJEE; SANFORD, 2006), and it can measure the information
characteristics such as relevance, timeliness, accuracy, and comprehensiveness
(CHEUNG; THADANI, 2010).
Given the often anonymous nature of comments online,
people tend not to trust the random review easily if there is not enough
necessary information (RATCHFORD, 2001). The quality of eWOM is a
critical element that is often discussed with the number of eWOM. When eWOM on
the website wins consumer attention, consumers consider whether these reviews
are worth reading. Information quality has long been proven as a significant
predictor of the success of an information system (DELONE; MCLEAN, 1992).
Consumers are concerned about the correctness and
usefulness of eWOM, and the quality of good content increases their readiness
to trust eWOM (AWAD; ROGOWSKY, 2008). Park et al. (2007) and Cheung et al.
(2009) pointed out that the high quality and the number of eWOM increase the
adoption of consumer eWOM information. Therefore, the author has the
hypothesis H3 as follows:
· H3: The higher the eWOM quality,
the higher the adoption of consumer eWOM information.
Consumer expertise: Bickart and Schindler (2001)
found that highly qualified consumers can quickly and accurately evaluate their
knowledge and experience of an expensive product, this makes for sources of
information that are seeking to increase by consumers who are not familiar with
products/services. According to Petty et al. (1983), consumer expertise is
related to the ability to process information. Park and Kim (2008) found that
highly qualified customers can evaluate information by experience and
knowledge. Similarly, Bansal and Boyer (2000) indicates that higher-skilled
consumers will accept eWOM information more efficiently and have less
consultation with others. Also, Ismagilova et al. (2019) found that source
expertise affects information adoption. Therefore, the author has the
hypothesis H4 as follows:
· H4: The higher the consumer
expertise, the higher the adoption of consumer eWOM information.
Figure
1: Proposed research model of the author.
3.
METHODOLOGY
The author uses mix
method including qualitative research method to explore the scale and
quantitative research methods to analyze the impact of electronic word of mouth
on the adoption of eWOM information: Case For consumers who are women when
buying cosmetics in Ho Chi Minh City, Vietnam.
This research uses the
qualitative research method via group discussions and expert discussions to
build research models, scales, questionnaires, and preliminary surveys to
complete research models before issuing the questionnaire. This study was
conducted through the consultation of five-person experts and a qualitative survey
of 20 consumers who bought goods in convenience stores to produce a complete
research model and scale, consistent unify.
The quantitative
research method is based on the fact that the author conducts a survey to
filter out a list of subjects that match the research objectives. Because Ho
Chi Minh City is the largest city in Vietnam in terms of population and
economy, it ranks second in area and is also one of Vietnam's most important
economic, cultural and educational centers. Therefore, the scope of the
author's study only investigates those who are living in Ho Chi Minh City. The
survey method is structured with a questionnaire to collect descriptive
information about the status of customers who have been using cosmetics,
measuring the impact of eWOM on the adoption of current eWOM information of
consumers.
Questions are designed
according to the Likert scale (5 levels) from 1 to 5 according to the degree of
increasing with (1) strongly disagree, (2) disagree, (3) neutral, (4) agree,
and (5) strongly agree. According to Hair et al. (2006), the sample size can be
determined according to the ratio of observed / variable measurements of 5: 1
(5 observations for one variable). Besides, the online survey has three filter
questions from the beginning of questionnaires to make sure that the research
can reach the target respondent. The first question is “What is your gender?”
and the answer is “man” or “woman.” If the respondent answers man, he has to
stop fill the online survey. If the respondent answers the woman, she will
answer the second filter question.
The second filter
question is that “Do you live in Ho Chi Minh city or not?”. If the woman says
no, she stops the online survey immediately. If the woman says yes, she can
continue to do the online survey. The last filter question is that “in the last
six months, do you buy any cosmetics?”. If the woman says no, she stops the online
survey. If the woman says yes, she continues to fill the online survey. And the
study split three parts: Part one is the information, and that includes age,
occupation, income.
Part two is a cosmetic survey, and it has four questions, namely (1) In the last six months, have you purchased any cosmetic products from any of the following brands? (2) Which source can you find out the information about cosmetic products? (3) What is your average daily Internet access time? (4) How do you usually receive information about cosmetics via the Internet? Finally, Part three is main survey, and the questions in this part measure electronic Word-of-mouth (23 questions) on the adoption of consumer eWOM information (three questions).
In this study, there are variables so the minimum sample
size can be calculated as n = 5 x 26 = 130. Although the minimum sample size
needs only 130 surveys, the author decided to send and 250 questionnaires. In
quantitative research, the author uses descriptive
statistical methods, assessed for reliability through Cronbach's Alpha
coefficients, EFA method, and regression to determine factors of electronic
word of mouth impact the adoption of eWOM information.
4.
ANALYSIS AND RESULTS
4.1.
Data description:
After the two months to conduct the survey from June to July in 2019 and do data analysis in the first two weeks of August, the author sends 250 questionnaires, collected 215 questionnaires and choose 200 valid respondents to analyze, and the following table can describe the data:
Table 1: Data
description
|
Frequency |
Percent |
|
Age |
Under 18 years old |
12 |
6.0 |
From 18 – under 35
years old |
106 |
53.0 |
|
From 35 – 50 years
old |
67 |
33.5 |
|
Over 50 years old |
15 |
7.5 |
|
Job |
Student |
38 |
19.0 |
Officer |
88 |
44.0 |
|
Business |
51 |
25.5 |
|
Housewife |
18 |
9.0 |
|
Other |
5 |
2.5 |
|
Income |
Under 5 million VND |
58 |
29.0 |
From 5 – under 10
million VND |
103 |
51.5 |
|
From 10 – 20
million VND |
36 |
18.0 |
|
Over 20 million VND |
3 |
1.5 |
Age: With age statistics as shown below, among 200 respondents, people aged 18 to under 35 have the highest number of responses of 106, accounting for 53%. The subjects aged 35 to 50 years old had 67 respondents, accounting for 33.5%. Next is the age of over 50 years old with 15 respondents, accounting for 7.5%. Moreover, the people under the age of 18 have the lowest number of 12 answers, accounting for 6%. It shows that the respondents focus on groups of ages from 18 to under 35 years old.
Occupation: With the above income statistics, in the 200 respondents, the occupation of office workers has the highest number of respondents, 88, accounting for 44%. The business people have 51 respondents, accounting for 25.5%. Students have 38 answers, accounting for 19%. People with occupations are housewives with 18 respondents, accounting for 9% and the last ones with the lowest number of 5 respondents, accounting for 2.5%. It shows that the respondents focus on the group of office workers.
Income level: With the income level as shown in the chart below, among the 200 respondents, those with incomes from 5 to under 10 million VND have the highest number of respondents of 103, accounting for a proportion 51.5%. Those with incomes below VND 5 million VND have 58 respondents, accounting for 29%. Next, 36 respondents had income from 10 to 20 million VND, accounting for 18%. And finally, the income level below VND 20 million has the lowest number of 3 respondents, accounting for 1.5%. It shows that the respondents focus on groups with incomes from 5 to less than 10 million VND.
The cosmetic brands bought in the last six months of consumers have nearly equal proportions, of which only The Face Shop brand has the highest rate with 19% and Shiseido brand has the lowest rate with 1.5%. Shows that current consumers are very interested in using imported products.
When information on cosmetics is needed, consumers often use a variety of information channels, of which the most used information channel is the Internet with 58% and the lowest is using the information on the catalog with 4.5%.
The majority of consumers have access to the Internet in general, and the results are nearly equal, those with access from 2-3 hours have the highest rate with 30%, and the lowest is above 5 hours with 17%.
For the form of receiving information on cosmetics via the Internet, consumers are interested in electronic information on social networks is the highest, namely on Facebook with 58.5%.
4.2.
Reliability test: Cronbach’s Alpha
According to the research results of Nunnally and Bernstein (1994), the criteria for accepting variables: (1) Variables with correlation variables - total (Corrected Item - Total Correlation) if less than 0.3 will be rejected. (2) Cronbach’s Alpha coefficient of 0.6 or higher will be received.
Following the two conditions above, the analytical variables are considered acceptable and appropriate to analyze the next steps. Therefore, all remaining items satisfy the condition so this can be used for analyzing Exploratory Factor.
Table 2: Constructs, corrected item – total correlation and Cronbach Alpha
Items |
Constructs |
Corrected Item-Total Correlation |
Cronbach's Alpha if
Item Deleted |
Trust of eWOM news source |
|||
TRUST1 |
I believe in information provided by
close or familiar people |
0.663 |
0.827 |
TRUST2 |
I think the sender of information is
credible |
0.650 |
0.829 |
TRUST3 |
I think that senders have experienced product
consumption |
0.585 |
0.838 |
TRUST4 |
I look for information on websites that have a nice,
eye-catching interface |
0.646 |
0.830 |
TRUST5 |
I believe that the information on the website is
clearly visible and easy to find |
0.575 |
0.840 |
TRUST6 |
I searched for information on the popular website |
0.561 |
0.842 |
TRUST7 |
I was attracted to the information of people with
similar tastes, habits and consumer experiences |
0.638 |
0.831 |
Cronbach’s Alpha = 0.854 |
|||
Quality
of eWOM |
|||
QUAL1 |
The information I received or found is
credible |
0.715 |
0.837 |
QUAL2 |
The information I received or found
provided the correct things |
0.659 |
0.846 |
QUAL3 |
The information I received or found is
clearly presented |
0.608 |
0.855 |
QUAL4 |
I think the information is objectively
sent by the sender |
0.667 |
0.845 |
QUAL5 |
I think the information is provided from
the true experience of the sender when they are or are using cosmetics |
0.670 |
0.844 |
QUAL6 |
I think the information is given with
good purpose to share the experience of cosmetics with other consumers |
0.672 |
0.844 |
Cronbach’s Alpha = 0.868 |
|||
Quantity of
eWOM |
|||
QUAN1 |
In the same site, the larger the
number of reviews for a product, the more credible the information is. |
0.606 |
0.670 |
QUAN2 |
I believe in reviews that
attract many people to comment. |
0.603 |
0.674 |
QUAN3 |
Products are evaluated on many
different websites, the information about that product is more credible. |
0.578 |
0.702 |
Cronbach’s Alpha = 0.763 |
|||
Consumer
expertise |
|||
EXP1 |
I have a lot of knowledge about cosmetics |
0.675 |
0.853 |
EXP2 |
I have a lot of experience using cosmetics |
0.680 |
0.852 |
EXP3 |
I have a lot of experience finding information
online |
0.578 |
0.865 |
EXP4 |
I know many reputable cosmetic websites |
0.698 |
0.850 |
EXP5 |
I know many websites that are well known |
0.658 |
0.855 |
EXP6 |
I have the ability to select useful information |
0.624 |
0.860 |
EXP7 |
I make the decision to buy mainly based on my own
understanding rather than through the information given by other consumers |
0.659 |
0.855 |
Cronbach’s Alpha = 0.874 |
|||
Adoption
of eWOM |
|||
ADOP1 |
The eWOM information provides me with the knowledge
/ perspective on cosmetic consumption |
0.732 |
0.760 |
ADOP2 |
EWOM information makes it easy for me to make the
decision to buy cosmetics (Buy or not buy) |
0.761 |
0.735 |
ADOP3 |
EWOM information has improved efficiency in making
the choice of cosmetic brands suitable for me |
0.641 |
0.850 |
Cronbach’s Alpha = 0.844 |
4.3.
Exploratory Factor Analysis (EFA)
Exploratory Factor Analysis (EFA) is an analytical technique which is aimed to reduce data, so it is beneficial for identifying variables by the group. In the exploratory factor analysis, the author used Principal Component Analysis and Varimax rotation to group the components.
4.3.1. Independent variables
The results show that KMO is 0.892 and can make sure the requirement 0.5<KMO<1. Bartlett is 2079.701 with sig = 0.00<0.05, so all of the variables are correlation together in each component. Total variance explained equals 59.341%, and it is greater than 50%; as a result, it can meet the requirement of variance explained. From this one, this research can conclude that variables can explain 60.664% in changing factors. Also, eigenvalues equal 1.484 >1, and it is the fluctuation that can explain for each factor, so the extracted factors have a significant summarize in the best way. The rotated matrix in EFA show that the loading factor is higher than 0.5, and it can divide into six components by the following table:
Table 3: Rotated matrix
Concepts |
Items |
Component |
|||
1 |
2 |
3 |
4 |
||
Consumer expertise |
EXP4 |
0.772 |
|
|
|
EXP1 |
0.743 |
|
|
|
|
EXP7 |
0.714 |
|
|
|
|
EXP5 |
0.693 |
|
|
|
|
EXP2 |
0.676 |
|
|
|
|
EXP6 |
0.639 |
|
|
|
|
EXP3 |
0.632 |
|
|
|
|
Trust of eWOM news source |
TRUST2 |
|
0.763 |
|
|
TRUST4 |
|
0.737 |
|
|
|
TRUST7 |
|
0.727 |
|
|
|
TRUST1 |
|
0.697 |
|
|
|
TRUST3 |
|
0.691 |
|
|
|
TRUST6 |
|
0.585 |
|
|
|
TRUST5 |
|
0.580 |
|
|
|
Quantity of eWOM |
QUAL2 |
|
|
0.755 |
|
QUAL1 |
|
|
0.753 |
|
|
QUAL4 |
|
|
0.753 |
|
|
QUAL6 |
|
|
0.734 |
|
|
QUAL5 |
|
|
0.729 |
|
|
QUAL3 |
|
|
0.709 |
|
|
Quality of eWOM |
QUAN3 |
|
|
|
0.829 |
QUAN1 |
|
|
|
0.811 |
|
QUAN2 |
|
|
|
0.713 |
|
KMO |
0.892 (sig.=0.000) |
||||
Eigenvalues |
1.484 |
||||
Total Variance Explained |
59.341 |
4.3.2. Dependent variable:
The results show that KMO is 0.706 and can make sure the requirement 0.5<KMO<1. Bartlett is 262.116 with sig = 0.00<0.05, so all of the variables are correlation together in each component. Total variance explained equals 76.484%, and it is greater than 50%; as a result, it can meet the requirement of variance explained. From this one, this research can conclude that variables can explain 76.484% in changing factors.
Also, eigenvalues equal 2.295 >1, and it is the fluctuation that can explain for each factor, so the extracted factors have a significant summarize in the best way. The rotated matrix in EFA show that the loading factor is higher than 0.5 and it can divide into six components by the following table:
Table 4: Dependent variable, and testing
Dependent variable |
Component |
|
Adoption of eWOM |
ADOP |
0.903 |
ADOP |
0.889 |
|
ADOP |
0.829 |
|
KMO |
0.706 (sig.=0.000) |
|
Eigenvalues |
2.295 |
|
Total Variance
Explained |
76.484 |
4.4.
Regression
Regression analysis finds where elements of electronic word of mouth impact the adoption of eWOM information and measure the impact of these factors.
Meanwhile, ADOP is a dependent variable and it can measure of electronic word of mouth impact the adoption of eWOM information: Case For consumers who are women when buying cosmetics in Ho Chi Minh City, Vietnam, and EXP, TRUST, QUAL, QUAN are independent variables that can measure consumer expertise, trust of eWOM news source, quantity of eWOM, quality of eWOM.
Table 5: Regression results
Model |
Unstandardized Coefficients |
Standardized Coefficients |
t |
Sig. |
Collinearity |
||
Beta |
Sd. Error |
Beta |
Tolerance |
VIF |
|||
(Constant) |
-1.188 |
0.273 |
|
-4.356 |
0.000 |
|
|
EXP |
0.561 |
0.068 |
0.449 |
8.252 |
0.000 |
0.572 |
1.750 |
TRUST |
0.247 |
0.067 |
0.184 |
3.678 |
0.000 |
0.672 |
1.487 |
QUAL |
0.353 |
0.058 |
0.291 |
6.030 |
0.000 |
0.727 |
1.375 |
QUAN |
0.135 |
0.050 |
0.122 |
2.689 |
0.008 |
0.817 |
1.225 |
Adjusted R2 |
0.663 |
||||||
Sig. |
0.000 |
||||||
Durbin Watson |
2.143 |
The table of significance test results shows the sig of the four professional factors of consumers, the credibility of the eWOM source, the quality of eWOM and the number of eWOM are less than 0.05 (respectively sig = 0.000, sig = 0.000, sig = 0.000 and sig = 0.008). Therefore, all four factors are correlated with the adoption of eWOM information and adoption in the multivariate regression model, showing the correlation of 4 factors: consumer expertise, credibility of eWOM news sources, eWOM quality and eWOM numbers are accepted. Correlation regression model:
ADOP = 0.449*EXP + 0.291*TRUST + 0.184*QUAL + 0.122*QUAN.
The above regression equation shows that the factor "Consumer expertise" has the strongest impact because the beta coefficient of this factor is the highest (beta = 0.449). The second most powerful factor is eWOM quality with beta = 0.291 <0.449. The third most powerful factor is the eWOM source credibility with beta = 0.184 <0.291. Finally, the factor eWOM quantity has the lowest impact with beta = 0.122.
The correlation between the four factors affecting the adoption of eWOM is a positive relationship because the beta coefficient of the four factors is positive (beta> 0). Besides, variance inflation factor (VIF) of the independent variables in the model is small. In particular, VIF of 4 professional factors of consumers, the credibility of eWOM source, eWOM quality and number of eWOM are 1.750, 1.487, 1.375 and 1.225 respectively, showing that the multivariate variables of the independent variables are negligible, and the independent variables in the model are acceptable (when VIF value exceeds 10 is a sign of multicollinearity phenomenon).
The relevance of the regression equation Model summary: Adjusted R Square = 0.663 showing four factors namely consumers expertise, the credibility of eWOM news source, eWOM quality and the number of eWOM impacts do explain 66.3% the effect of eWOM information. The above regression model does not violate the hypothesis of the first sequence correlation phenomenon in the model because the Durbin-Watson test coefficient = 2.143 belongs to the range from 1 to 3.
In this case, we see that the sig value is small = 0.000 <0.005, indicating that the usage model is appropriate and that the variables meet the adoption criteria.
4.5.
Hypothesis testing:
Table 6: Hypothesis and result
Hypothesis |
Content |
Result |
H1 |
The higher the eWOM information credibility, the higher the adoption of
eWOM information from consumers. |
Accepted |
H2 |
The higher the number of eWOM, the higher the adoption of consumer eWOM
information. |
Accepted |
H3 |
The higher the
eWOM quality, the higher the adoption of consumer eWOM information. |
Accepted |
H4 |
The higher the
consumer expertise, the higher the adoption of consumer eWOM information. |
Accepted |
5.
CONCLUSION
After quantitative research, based on hypothesis test results, the author
has some specific recommendations to use eWOM as a marketing tool as follows:
Enhance the expertise of consumers by creating easy-to-use cosmetic lines
that are easily accessible to consumers, thereby forming habits and experiences
when re-using those cosmetic lines. At the same time, provide information about
cosmetics so that they can be easily understood, absorbed, and saved in
consumers' minds.
Businesses should create eye-catching websites, meaningful slogans to help
consumers quickly identify website selling cosmetics. Along with good slogans,
businesses should arrange items, product search boxes or news articles, images
of a cosmetics so that they are easy to see, read and understand or assess,
comments by consumers who bought before. Provide useful and accurate
information about the use of cosmetics as well as appropriate products for
consumers, thereby helping consumers easily select the information and products
they feel the best.
Businesses also need to select the reviews, authentic and accurate comments
of previous buyers so that other consumers can easily accept and thereby give
their opinions.
Improve eWOM quality to improve consumer adoption of eWOM information.
Enterprises need to create quality assurance information, including high
credibility, personal information (no advertising), clear, easy to understand,
and easy to find information. Information will be displayed clearly, easy to
understand and attractive by selecting keywords that are easy to find for users
to quickly reference, information to be refined for easy understanding and an
extended stay in the minds of consumers. Create your website about products,
and the website's activities must be active and regular, this website must be
linked to forums regularly with advertising, promotion, and gratitude
activities to remind customers about the product. Increase the credibility of
information by selecting reputable and objective talk channels to spread the
message. Discussion channels also need to target the right people; here are the
channels where women are interested in beauty, health, and self-care.
Companies should create a website for their brand of cosmetics, linking to
websites about women, fashion, ... beauty websites and social networks like
Facebook to post information about the company's products regularly. Besides,
it is necessary to create categories on beauty counseling, skin care, as well
as a conversation about the effects of each type of cosmetics with consumers.
Companies should post much useful information to increase the site's
usability and professionalism, which will increase consumer sympathy for the
company's website and cosmetic brand. Companies also need to
pay attention to the form and decoration of the website, so the website
interface should be eye-catching, elegant, and informative.
The company can combine sending emails to familiar customers or members to
join their website when there are new products or information about discounts
and promotions and ask them to send that email to friends and others.
The more people mention their products, the more likely they are to
succeed. Increasing the number of eWOM in the community makes it easier for
customers to consult information and feel more secure in accepting information
about cosmetic products. The company should create many topics to discuss
products through forums, group meetings, fan page, ... the more topics the
people have to comment and contribute, the more likely it will create
customers' appeal. In order to do that, businesses must have the choice of
favorite and multi-participant discussion channels, while offering exciting
discussion topics, creating trust from the article to the people. Also,
updating much information according to the current trend to attract consumers
to make judgments and demands for their products.
Although some results have been achieved, the thesis still has the
following limitations: First, the research results may be limited by localities
because the analytical data is only surveyed in Ho Chi Minh City. Secondly, the
sampling method is chosen as the non-probability sampling method and therefore,
has natural limitations when it comes to generalizing data. Third, the sample
size selected for the study is still small compared to the overall study, which
may also adversely affect the credibility of research results.
Finally, there may be many factors affecting the adoption of consumer eWOM
information that this study has not discussed, to explain more clearly the
adoption of eWOM information. With the above limitation, it is expected that
other author can make further research efforts in the future and solve the bad
points that exist in this study to contribute to the joint development of the
field — marketing areas, especially Internet marketing.
In the future, if there are conditions to develop this research, it is
necessary to pay attention to the following issues: Increasing the sample size
in the direction of increasing the survey sample rate compared to the overall.
Include several other factors that are thought to have an impact on consumer
adoption of eWOM information when purchasing cosmetics into the research model
proposed during the study.
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