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Brand Image, eWOM, Trust and Online Purchase Intention of
Digital Products among Malaysian Consumers
Md Adnan Rahman (1*)
Senior lecturer
College of Business Administration
International University of Business Agricultural and Technology (IUBAT), Bangladesh
PhD Candidate and RA
Putra Business School, UPM, Malaysia.
Email: adnan.cba@iubat.edu
mdadnan.phd_mkt17@grad.putrabs.edu.my
Tanvir Abir, PhD (2)
Associate Professor
College of Business Administration
International University of Business Agricultural and Technology (IUBAT), Bangladesh
Email: tanvir.cba@iubat.edu
Dewan Muhammad Nur-A Yazdani (3)
Assistant Professor
College of Business Administration
International University of Business Agricultural and Technology (IUBAT), Bangladesh
Email: dewanm@iubat.edu
Abu Bakar Abdul Hamid, PhD (4)
Professor
Putra Business School, UPM, Malaysia.
Email: abu.bakar@putrabs.edu.my
Abdullah Al Mamun, PhD (5)
Associate Professor
UCSI Universiti, Malaysia
Email: abdullahAM@ucsiuniversity.edu.my
Abstract:
This study aims to investigate the effects of electronic word of mouth (eWOM), brand image
(BI), and trust in influencing the intention to buy any products from the online market in
Malaysia. This study adopted a cross-sectional design and collected the quantitative data
from 350 conveniently selected respondents in Malaysia. For data analysis, this study
analyzed the data using partial least square structured equation modelling (PLS-SEM). The
findings revealed that eWOM, brand image (BI), and trust have a significant positive effect
on online purchase intention (OPI). The results revealed the significant mediating effects of
trust between the following: 1) eWOM and OPI, and 2) BI and OPI. Finally, the findings
revealed the mediating effects of BI on eWOM and trust. Based on the empirical findings,
this study suggests that advertisers can prioritize eWOM to maximize the product's sales rate
that would affect customer purchasing intent. This study provides key insights for the online
sellers to focus on the Malaysian market by building trust, BI, and eWOM to improve the
intention of purchasing their products.
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4935
Keywords: eWOM; Brand Image; Trust; Mediation Analysis
Introduction:
The majority of Malaysians currently work full-time on working days and part-time on
weekends, which limits their time to spend on other things like shopping (Bakar, 2017).
Therefore, online shopping is one of the most preferred ways to buy products. Most
Malaysians are tech-savvy and use various social media and online platforms daily
(Steenkamp, 2017). Nowadays, person-to-person interaction and correspondence, product
and service reviews, electronic communication and exchange of ideas are becoming more
common (Brown et al., 2007). It is also evident that buying and selling online has gradually
become more of a practice. According to Statistic (2017), Malaysia emerged as the third
country with the highest percentage of internet users in the Southeast Asian region. The
present online user penetration in Malaysia is 62.1% is forecasted to reach 63.5% by 2023
(eCommerce Trends and Opportunities in Malaysia Uncovered!, 2020).
Users spend much more on social media platforms such as Facebook, Twitter, WhatsApp,
and Instagram. This situation motivates more retailers to set up their online shops on these
platforms to boost their selling (Zhu and Chen, 2015). On many occasions, online sellers do
not use any traditional marketing advertising methods to promote their companies; they focus
on the promotion of their customers (Chu and Kim, 2011). Thus, according to this situation
the purpose of human purchases fluctuates. The web has a relatively new and increasingly
important variable that provides the opportunities to share ideas, thoughts, and feedback that
serve the marketing purpose of consumers and corporates while making a purchasing
decision.
Brand image is considered a primary capital for online businesses (Hien et al., 2020;
Jalilvand and Samiei, 2012). It improves consumer confidence in sustainable decision-
making (Yoo and Donthu, 2011; Pickett‐Baker and Ozaki, 2008). In this regard, eWOM
becomes an interactive and vivid channel as the internet is influential in persuading more
purchasing intentions (Alalwan et al., 2019). All shopping experiences of consumers and
customer’s views of service quality have a direct impact on building the brand image. Users
cannot evaluate the services before using them, so they depend on the interactive effects of
eWOM (Racherla and Friske, 2012).
There is a lack of sufficient literature to explore the impacts of eWOM on the sales of online
business and its potential benefits. The findings in the literature indicate that eWOM can
affect the image of the product and the intention to buy it. This study intended to investigate
the effects of eWOM on online business brand image and purchasing intention in Malaysia
due to the lack of studies to explain these impacts.
The structure of this article is divided into the following sections: Literature Review,
Objectives, Rationale of the studies, Methodology, Analysis and Discussion, Conclusion,
Managerial implications and limitations of the study and Reference.
Literature Review:
Brand Image and Customer Purchase Intention
eWOM is capable of attracting more customers to digital businesses in Malaysia. It is
important to see how eWOM can affect brand image and customer retention of online
businesses in Malaysia. It was found that there is a lack of research on the link between
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eWOM, brand image, and purchase intention. The growth of internet resources has led to its
use to seek information regarding shopping items in online platforms that result in the rise of
eWOM. Cheung and Thadani (2012) argue that media network growth has led to a new form
of customer-to-customer interaction. Online networking such as social networks, discussion
forums, and consumer review sites are explored by more people to share experiences and
information on products and services. Customers rely on eWOM when searching for
information before making their purchasing decision compared to traditional media such as
TV advertising, radio, personal sales, and print advertising. Thus the following hypothesis are
formulated: eWOM can positively influence the creation of a brand image in Malaysia. Also,
eWOM can positively influence the increase in customers’ purchase intentions.
Customer Purchase Intention, eWOM, and Brand Image
Yap et al., (2013) argued that eWOM provides either positive or negative data as consumers
might either suggest or warn others about the goods based on their experiences. Positive
electronic word of mouth (eWOM) has a greater impact on consumers than negative eWOM
because it increases the positive view of brands and goods. It was also found that supportive
eWOM affects product buying decisions. The origin of WOM came from comments of
people and customers who are more inclined to believe information generated/publicized
from marketing or corporate sources (Tidd and Bessant, 2018; Hussain et al., 2017 and Chen
et al., 2016). Daugherty and Hoffman (2014) revealed that online communication includes
social media networks such as Facebook, Twitter, and YouTube. This source of media
creates new opportunities for customers to interact and become active participants in social
media instead of being passive observers through eWOM. Thus, customers become engaged
in eWOM by looking for correct information before making a purchase decision. Besides
that, they search for the lowest price to reduce the risk of confusion when purchasing
products and services. Thus the following hypothesis is formulated: Customer purchase
intention is greatly dependent on eWOM and customer trust.
Brand Image and Customer Purchase Intention
Brand image refers to the portrayal of a product in people’s minds and how the market
interprets the characteristics of a product (Chatterjee and Basu, 2020; Gabrielli and Baghi,
2016). Armstrong et al. (2018) argue that a communicated image can protect it from
competitions and establish the market place of a brand. A brand cannot be produced
overnight; however, the company’s word and the action should help in building the brand
image. The brand image feature has to be a long-term goal and become an asset to drive a
business successfully. Empirical evidence revealed that brand image and intention to
purchase could influence eWOM in many situations. However, there is only a small amount
of studies that assess eWOM's effects on brand image and intention to purchase. While e-
commerce continues to grow, there will be more competition among online retailers.
Potential customers can easily compare websites and search for goods that are better and
cheaper (Strauss and Frost 2016). Hence, marketers must be creative and keep an eye on the
attitudes of customers and their desires. Thus the following hypothesis are formulated: Brand
image can be a highly influencing factor to affect customer purchase intention. Also, the
Brand image can be a highly influencing factor to influence the customer’s trust.
eWOM and Customer Trust
Earlier studies provided some insights; for example, Shirai, M. (2017) revealed that price is
the most conclusive aspect as consumers with a high sense of price consciousness are more
likely to browse several websites for the best price. Besides, Tsao and Hsieh (2012) found
that potential customers when visiting a website to make a purchase, would cancel the
Journal of Xi'an University of Architecture & Technology
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Issn No : 1006-7930
Page No: 4937
transaction if the website is poorly designed. They affirm that the website is the only platform
where companies have the opportunity to persuade potential visiting customers. Hence, the
website must have a professional look that reflects the company's overall competence. E-
commerce companies can influence the consumers’ intention to buy online by improving the
consumers’ confidence through the reinforcement of transaction faith. The author suggests
that e-commerce companies can ne in upper hand to reduce the perceived risks in online
purchasing intention compared to physical stores. If the consumer is confident with the online
messages and finds it reliable or credible, there is the possibility to improve consumers’
confidence in eWOM. Confidence in online messages can positively influence the intention
of consumers to write or share eWOM. Another consideration is the trust that is known to
have a positive effect on eWOM among social networking service (SNS) users. Trust can
function as an individual's motivation to act or obey others’ advice, facts, or knowledge.
Trust plays a key role in encouraging people to exchange opinions, data, or views on a
product or brand. Thus the following hypothesis are formulated: eWOM can positively
influence customers’ intention. Also, Customer trust can positively increase customer
purchase intention.
Objectives:
The aim of the research is to investigate the effects of Trust, Brand Image (BI), eWOM on
Online Purchase Intention (OPI) of digital products among Malaysian consumers.
Figure 1: Proposed research model
Source: The Author.
Rationale of the studies:
Previous studies showed the impact of Brand Image (BI), eWOM, Trust and Online Purchase
Intention (OPI) while making the online purchase. However, further research is needed to
define and validate different models which have a mixture of Brand Image (BI), eWOM,
Trust and Online Purchase Intention (OPI). Still, there is no significant research work has
been conducted on the development of Brand Image and Trust through various social media.
Moreover, previous studies have not emphasized to a great extent to identify the importance
of marketing through social media. So a lot of scopes are there to carry the research forward.
Research Methodology:
This research is a causal study aimed at exploring the impact of Electronic Word of Mouth
(eWOM), Brand Image (BI) and Trust on the Purchase Intention (PI) of the customer while
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4938
purchaisng products through Social Networking Sites (SNSs). The Population of this study is
Social Networking Site users. Everyone who has an account at Social Networking Site and is
an involved and regular user is a member of this study's population.
Sampling Technique
Everyone with a Social Networking Account and is a committed and regular user was part of
this study's population. The sample selected for this study consists of respondents over the
age of 18, with some online shopping experience, or knowledge on the online product
reviews information. Secondly, only those respondents who were social networking site users
were intentionally chosen. Due to this judgment or purpose, the sampling technique chosen
for this study falls in non-probability sampling technique type i.e. purposive or judgmental
sampling technique. The main feature of the purposive sampling technique is that it focuses
on the particular characteristics of the population which are of interest to the study and they
help best to answer the research questions (Neuman, 2014). Random sampling was not
possible because not every Social Networking user is an online shopper and this study aimed
to investigate the effect of eWOM on the purchase intention of products found in the digital
platform. The sample was chosen from two cities of Malaysia i.e. Kuala Lumpur the capital
city of Malaysia and the most populas city of Malaysia with 1,674,621 population (National
Census 2010) and Seremban from the social circle of the researchers also with a population
of 475,000 (Seremban, Malaysia Population 1950-2020, 2020).
Research Instrument
The questionnaire developed on a five-point Likert scale was used as a tool for data
collection. The first section of this questionnaire consists of the respondent's demographic
information in 5 five questions and the second section contains 17 (seventeen) questions
representing the four constructs i.e. eWOM, brand image, trust and, purchase intention. We
also used the five-point Likert scale, ranging from strongly disagree (1) to strongly agree (5).
For data analysis, SPSS and Smart-PLS softwares were used.
Data Collection
Data was collected by administrating a close-ended questionnaire. The method was used to
gather the data, was a questionnaire based on the web. "Google forms" were generated to
collect data electronically, and questionnaires circulated among the respondents through
social networking sites such as Facebook, WhatsApp, Twitter etc.. This sample size was
calculated using an online sample calculator with 95% confidence interval and 5% margin of
error. The Facebook users in 2019 (at the time of the study) were approximately 24.1 million
(Statista, 2019) users in Malaysia. Hence, using the formula, the recommended minimum
sample size was around 385. But after, removing the incomplete filled questionnaires, 350
samples were selected for the final study.
Table 1. Survey Instrument
Derived Scale Items
Authors
eWOM
- Online discussions had a significant influence
- I followed the suggestion given in online discussions
- I agreed with the opinion given in online discussions
- I frequently gather information from online consumers’ product
reviews before I buy a certain product/brand
- If I don’t read consumers’ online product reviews when I buy a
product/brand, I worry about my decision
Bansal & Voyer,
2000; Cheung et al.,
2008; Bambauer-
Sachse and Mangold,
2011
Journal of Xi'an University of Architecture & Technology
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Issn No : 1006-7930
Page No: 4939
*Source: Developed by Author based on previous literature.
Multivariate Normality
The data should have multivariate normality as a requirement to use SEM-PLS as it is a non-
parametric analysis tool (Hair, Ringle, and Sarstedt, 2011). The test results confirm that the
data set is not as normal as Mardia’s multivariate coefficient p-value of less than 0.05.
Data Analysis Method
Due to the non-normal nature of the data, this study tested the research model using partial
least squares structural equation modelling (PLS-SEM, 3.1). PLS-SEM is a multivariate
analysis tool that evaluates path models that have latent constructs (Hair et al., 2019). Model
estimation is performed with r2, Q2, and the effect size f2that describes the path effect from
exogenous construct to endogenous construct (Hair et al., 2019).
Analysis and Discussion:
Demographic Characteristics of the Respondents
As noted in Table 2, in most cases with the results from the data, the respondents did not
want to reveal educational status. Looking at the data, in particular, many respondents
between the ages of "19 and 28" have unique relevance to "Electronic Word of Mouth"
because online shopping is fun/entertaining for the younger generation. In comparison, most
of the respondents did not reveal their race and most of the respondent's income was in the
"RM 5001 or higher" category, but there is also strong evidence in the "Dependent" income
group that is significant compared to the highest recurrent age group.
Table 2. Demographic Characteristics of the Respondents
Characteristics
Frequency
Characteristics
Frequency
Educational Status
Ethnicity
Prefer not to say
154
Prefer not to say
158
High School
9
Chinese
51
Undergraduate
85
Indians
35
Masters/ MBA
75
Malay
98
PhD/ DBA
27
Others
8
Brand Image
- In comparison to other products/brand, this product/brand has high
quality
- This product/brand has a rich history
- Customers (we) can reliably predict how this product/brand will
perform.
- I think this brand is well- known and prestigious.
Davis et al., 2009;
Keller, 2001
Online Purchase Intention
- I will buy online in the future
- 1 have a strong intention to purchase online in the future
- I am willing to recommend others to buy this product/brand
- I intend to purchase this product/brand in the future.
Kim and Park, 2005,
Shukla, 2010
Trust
- I would trust online word of mouth (benevolence).
- I would trust what reviews, comments, suggestion are found online
(ability).
- I would trust this organization to fairly represent its products
(integrity).
- Overall, I would trust this organization’s product (overall).
Mayer, Davis &
Schoorman,1995
Journal of Xi'an University of Architecture & Technology
Volume XII, Issue III, 2020
Issn No : 1006-7930
Page No: 4940
Age Group
Income Group
18 or Below
27
Dependent
93
19-28
244
Below RM 1000
26
29-38
53
RM 1001-3000
70
39-48
17
RM 3001-5000
62
49-58
8
RM 5001 or Above
99
59 or Above
1
Reliability and Validity
As shown in Table 3, all values of Cronbach’s alpha, composite reliability, and rho-A are
well above the threshold of 0.70 (Hair et al., 2019). These results signify that the constructs
are reliable and performed well. AVE for each construct are above 0.50, indicates the
convergent validity (Hair et al., 2019). Finally, all the VIF values are less than 3, establishing
the lack of multi-collerinallity issues among the study constructs.
Table 3. Reliability Analysis
Variables
Number
of Items
Cronbach’s
Alpha
Composite
Reliability
Rho-A
Average
Variance
Extracted
Variance
Inflation
Factor
eWOM
6
0.859
0.859
0.904
0.703
2.312
Brand Image
4
0.873
0.876
0.913
0.724
2.446
Trust
4
0.853
0.854
0.901
0.694
2.328
Online Purchase Intention
4
0.873
0.877
0.905
0.613
-
The item loading and cross-loading reported for validation of construct discriminant validity
(See Table 4). Additionally, Fronell-Larcker criterion value for each contract is less than 0.70
to establish discriminant validity for each construct (Hair et al., 2019). HTMT ratio
essentially is less than 0.90 to provides the evidence for discriminant validity for study
constructs (Henseler et al., 2016). Table 3 shows that the study has evidence of discriminant
validity.
Table 4. Outer Loading and Cross Loadings
Brand
Image
Online Purchase
Intention
Trust
eWOM
Brand Image 1
0.832
0.452
0.562
0.598
Brand Image 2
0.864
0.491
0.546
0.615
Brand Image 3
0.845
0.522
0.560
0.566
Brand Image 4
0.811
0.522
0.691
0.582
Online Purchase Intention 1
0.514
0.859
0.638
0.556
Online Purchase Intention 2
0.488
0.872
0.618
0.508
Online Purchase Intention 3
0.516
0.856
0.622
0.519
Online Purchase Intention 4
0.506
0.817
0.539
0.490
Trust 1
0.674
0.505
0.836
0.616
Trust 2
0.625
0.540
0.850
0.565
Trust 3
0.507
0.631
0.816
0.531
Trust 4
0.552
0.688
0.830
0.575
eWOM1
0.435
0.481
0.492
0.725
eWOM2
0.503
0.483
0.556
0.807
eWOM3
0.549
0.534
0.559
0.830
eWOM4
0.614
0.527
0.623
0.814
Journal of Xi'an University of Architecture & Technology
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Issn No : 1006-7930
Page No: 4941
Path Analysis
The r2 value for the three input variables (i.e. eWOM, brand image and trust) on the OPI
explains that average 53.5% percent of change in OPI can be explained by eWOM, brand
image and trust. The predictive relevance (Q2) value for the part of the model is the average
0.467 indicating a medium predictive relevance (Chin, 2010).
Table 5. Hypothesis testing
Hypothesis
Coefficient
t-
values
Sig.
Decision
Q2
r2
f2
1
eWOM BI
0.705
21.960
0.000
Accept
0.452
0.497
0.988
2
eWOM Trust
0.374
6.660
0.000
Accept
0.570
0.163
3
BI Trust
0.444
8.779
0.000
Accept
0.444
0.231
4
eWOM OPI
0.189
2.972
0.003
Accept
0.033
5
Trust OPI
0.512
8.173
0.000
Accept
0.506
0.538
0.244
6
BI OPI
0.099
1.504
0.033
Accept
0.029
Note: eWOM: Electronic Word of Mouth, BI: Brand Image; OPI: Online Purchase Intention
Figure 2. Research Model
eWOM5
0.543
0.432
0.515
0.765
eWOM6
0.653
0.401
0.466
0.749
Fronell-Larcker Criterion
Brand Image
0.638
-
-
-
Online Purchase Intention
0.594
0.651
-
-
Trust
0.657
0.612
0.633
-
eWOM
0.670
0.610
0.686
0.683
Heterotrait-Monotrait Ratios
Brand Image
-
-
-
-
Online Purchase Intention
0.685
-
-
-
Trust
0.823
0.820
-
-
eWOM
0.811
0.697
0.792
-
Note: eWOM: Electronic Word of Mouth, BI: Brand Image; OPI: Online Purchase Intention
Journal of Xi'an University of Architecture & Technology
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Study standardized path values, t-values, and significance level depicted in Table 5. The path
coefficient between eWOM and BI (β = 0.705, p = 0.000), indicating a significant and
positive effect of eWOM on the BI. The path value for the eWOM on trust (β = 0.374, p =
0.000), this shows the impact of the eWOM on trust is positive and statistically significant.
The path value for the BI on the trust (β = 0.444, p = 0.000), this shows the impact of the BI
on trust is positive and statistically significant.
As for the factor effecting OPI, the findings presented in Table 5 shows that effect of eWOM
on OPI (β = 0.189, p = 0.003) is positive and statistically significant. The path coefficient for
trust on OPI (β = 0.512, p = 0.000), depicting the effect of trust on OPI as significant and
positive as well. Finally, the path coefficient for the BI on OPI (β = 0.099, p = 0.033),
depicting the effect of BI on OPI as significant and positive as well.
Mediating Effects
As noted in Table 6, mediation effect of trust between the eWOM and OPI reveals that trust
mediates the relationship between eWOM and OPI (β = 0.267, p = 0.004). The relationship
between the BI and OPI mediated by the trust. The result depicts that trust mediates the
relationship between BI and OPI (β = 0.402, p = 0.000). The relationship between the eWOM
and trast mediated by the BI. The result shows that BI mediates the relationship between
eWOM and trust (β = 0.437, p = 0.000).
Table 6. Meditating Effect
β
t-value
Sig.
Decision
HM1: eWOM Trust OPI
0.267
2.928
0.004
Mediation
HM2: BI Trust OPI
0.402
3.688
0.000
Mediation
HM3: eWOM BI Trust
0.437
5.069
0.000
Mediation
Note: eWOM: Electronic Word of Mouth, BI: Brand Image; OPI: Online Purchase Intention
Conclusion:
This study has some limitations, such as small sample size when comparing the eWOM users
in Malaysia due to the lack of resources and time shortage. This study examines the function
of eWOM and brand image in the expectation of buying from the internet and the relationship
between them in Malaysia. eWOM is a critical factor in marketing success that affects
customer purchasing behavior. Consequently, eWOM affects the assessment of products and
services by consumers, as well as the final purchase decision and post-purchase review. The
analysis reveals the effect of trust between eWOM and the intention of purchasing the
products from the internet. eWOM can create a brand image for an organization, build trust
among buyers, and expand the purpose of obtaining it.
Furthermore, this study reveals that eWOM significantly affects the improvement of an
organization's brand image among buyers in Malaysia. The brand image and confidence can
affect the eWOM of customers and the purchase plan. Typically, eWOM serves as an
informal form of advertising for online businesses. Successful and supportive eWOM can
affect customers’ decisions and improve digital businesses’ buying interest and brand image.
Due to the increasing number of online companies in Malaysia, the effective use of eWOM
can support and encourage the growth of such companies. Hence, it is suggested that
promoters should organize eWOM to increase the business rate expertise of the product,
which would eventually affect the expectation of customers.
Journal of Xi'an University of Architecture & Technology
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Issn No : 1006-7930
Page No: 4943
Managerial Implications:
In this research, it was found that Trust, Brand Image, eWOM play important roles which
improved the marketing landscape, and it also showed that consumption power has shifted to
customers with the capability to influence and interact with the purchase intention. Marketers
with an effective social media platform should be concerned about the customers while
developing Brand Image and Trust.
The rapid growth of social media may become the most important factor to influence
marketing in the coming years which could enable and improve business practices to
persuade future customers. It may also connect the companies with future customers and help
customers in control and influence the Trust and Brand Image.
Brand image and trust can play an extremely significant role in improving digital marketing
in today’s world. Thus it can be claimed that Brand Image and Trust can help customers to
develop the ability to interact and influence customer’s purchase intension on a digital
platform.
Limitations of the Study:
The study can make significant offerings in perspectives of both theoretical and practical
viewpoint. Some of the limitations of the study are as follows:
Future studies may be improved by using other measurement components that could help
constructing future models such as the user’s demographic profiles or the consequences of
technology acceptance. It indicates another area of research where the future researchers
could assess the consequence of social group pressure to use social media and its impacts on
the intention of the customers while purchasing.
Acknowledgements:
The author is thankful to the anonymous referees of the journal for their tremendously
valuable suggestions to develop the excellence of the article. Habitual disclaimers apply.
Declaration of Conflicting Interests:
The author declared no probable conflicts of interest with regard to the research, authorship
and/or publication of this research paper.
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