Impact of Electronic Word-Of-Mouth on Consumer-Based Brand Equity and Purchase Intention: Hotel Industry in Thailand

Abstract

Electronic word-of-mouth is a new form of informal communication where messages are disseminated to others using social media and other electronic platforms. This research investigates eWOM to determine its impact on the perception of brand equity and the intentions of consumers to purchase hotel services in Thailand. Using a quantitative approach and a non-probability sampling method, 410 Thai respondents aged 18 and above with relevant hotel experiences participated in this study. Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) were used to analyze the model fit and the validity and reliability of the variables. In addition, in order to investigate the relationship between the constructs, first-order and second-order approaches were used, in which eWOM was the second-order construct in the study, while its credibility, valence, and volume, were first-order constructs. The findings indicated that eWOM positively affects all brand equity dimensions and purchase intentions, showing the strongest significant positive effect on brand awareness. Additionally, brand equity dimensions were shown to mediate the effect of eWOM on purchase intentions. Details of the analyses and discussions are included in the latter part of this paper.