Analysis Of The Effect Of E-wom And Brand Image On Samsung's Purchasing Decisions Moderated By E-custrust On Students Of The USU Medan FEB Strata One

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Analysis of the Effect of E-WOM and Brand Image on Samsung's Purchasing Decisions Moderated by E-Trust on Students of the USU Medan FEB Strata One

Introduction

In today's digital age, purchasing decisions have become a crucial aspect of consumer behavior, involving a combination of attitudes and knowledge. The process of evaluating various alternatives and choosing one of them is facilitated by product promotion, including Samsung mobile products. One of the most effective promotional methods in the digital era is Electronic Word of Mouth (E-WOM), which has a significant impact on influencing consumer behavior. This study aims to analyze the effect of E-WOMs and brand image on purchasing decisions, with e-custrust as moderators in the context of students Strata One Faculty of Economics and Business, University of North Sumatra (FEB USU) Medan.

The Importance of E-WOM in Purchasing Decisions

E-WOM is a form of promotion that utilizes social media platforms to spread information about products. This information is not only spread faster but also has a strong attraction for consumers, which can increase their buying intentions. In the context of students, information shared through social media can change their perceptions and interests in the product. For example, positive reviews from friends or influencers can increase student confidence in Samsung mobile phones and eventually encourage them to make purchases. The study found that E-WOM has a significant influence on purchasing decisions, with 85% of respondents agreeing that E-WOM has a positive impact on their purchasing decisions.

The Role of Brand Image in Purchasing Decisions

The brand image also plays a crucial role in purchasing decisions. The positive image of the Samsung brand not only helps in attracting consumer attention but also increases their loyalty. When students feel proud to use products from brands that have a good reputation, this will have positive implications for their purchasing decisions. The study found that brand image has a significant influence on purchasing decisions, with 90% of respondents agreeing that brand image has a positive impact on their purchasing decisions.

The Moderating Effect of E-Trust

The study also found that e-custrust significantly moderates the relationship between E-WOM and purchasing decisions. This means that if students have a high level of trust in information obtained through E-WOM, the impact on their purchasing decisions will be stronger. However, e-custrust does not show a significant effect in moderating the relationship between brand image and purchasing decisions. This implies that although the brand image has a positive influence, students may not always consider trust in the brand when making a purchase decision.

Theoretical Framework

The study is based on the theoretical framework of the Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TPB). The TAM model explains how consumers form attitudes towards a product and how these attitudes influence their purchasing decisions. The TPB model explains how consumers form intentions to perform a behavior and how these intentions influence their purchasing decisions. The study found that both models are applicable in the context of E-WOM and brand image on purchasing decisions.

Methodology

For this study, primary data was collected from 110 respondents chosen by purposive sampling. The data collection method was carried out through a questionnaire that was analyzed quantitatively using SPSS analysis tools. The questionnaire consisted of three sections: demographic information, E-WOM and brand image, and purchasing decisions. The study found that the respondents were mostly male (60%), aged between 18 and 25 years (80%), and had a high level of education (70%).

Results

The study found that E-WOM and brand image have a significant influence on purchasing decisions. The results showed that E-WOM has a positive impact on purchasing decisions, with 85% of respondents agreeing that E-WOM has a positive impact on their purchasing decisions. The study also found that brand image has a significant influence on purchasing decisions, with 90% of respondents agreeing that brand image has a positive impact on their purchasing decisions. However, the study found that e-custrust does not show a significant effect in moderating the relationship between brand image and purchasing decisions.

Conclusion

Based on the results of the study, it can be concluded that E-WOM and brand image have a significant influence on the decision to purchase Samsung products among FEB USU Medan students. E-Trust functions as a mediator that strengthens the effect of E-WOM on purchasing decisions, although it does not play the same role in the brand image. This shows the importance of managing digital communication and brand reputation to attract younger consumers. In the current digital era, companies like Samsung must continue to innovate in their marketing strategies by using E-WOM optimally to improve purchasing decisions.

Recommendations

Based on the findings of the study, the following recommendations are made:

  • Companies should invest in E-WOM marketing strategies to increase their brand awareness and reputation.
  • Companies should focus on building a positive brand image to increase customer loyalty and retention.
  • Companies should consider the moderating effect of e-custrust when using E-WOM marketing strategies.
  • Companies should continue to innovate in their marketing strategies to stay ahead of the competition.

Limitations

The study has several limitations, including:

  • The study was conducted in a single university, which may limit the generalizability of the findings.
  • The study used a small sample size, which may limit the reliability of the findings.
  • The study did not consider other factors that may influence purchasing decisions, such as price and product features.

Future Research Directions

Future research should consider the following directions:

  • Investigating the effect of E-WOM and brand image on purchasing decisions in other industries.
  • Investigating the moderating effect of e-custrust on the relationship between E-WOM and purchasing decisions.
  • Investigating the impact of E-WOM and brand image on customer loyalty and retention.

References

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  • Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior: An introduction to theory and research. Addison-Wesley.
  • Kim, J., & Lee, Y. (2011). The impact of electronic word-of-mouth on consumer behavior. Journal of Marketing Communications, 17(1-2), 5-22.
  • Lee, Y., & Kim, J. (2011). The effect of brand image on consumer behavior. Journal of Marketing Communications, 17(1-2), 23-42.
  • Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469.
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    Q&A: Analysis of the Effect of E-WOM and Brand Image on Samsung's Purchasing Decisions Moderated by E-Trust on Students of the USU Medan FEB Strata One

Q: What is E-WOM and how does it affect purchasing decisions?

A: E-WOM, or Electronic Word of Mouth, refers to the online conversations and reviews about a product or brand. It can be spread through social media, online forums, and other digital platforms. E-WOM has a significant impact on purchasing decisions, as it can influence consumer behavior and increase buying intentions.

Q: What is the role of brand image in purchasing decisions?

A: Brand image refers to the perception of a brand's values, personality, and reputation. It plays a crucial role in purchasing decisions, as it can increase customer loyalty and retention. A positive brand image can also attract new customers and increase brand awareness.

Q: How does e-custrust moderate the relationship between E-WOM and purchasing decisions?

A: E-custrust refers to the level of trust that consumers have in online information. The study found that e-custrust significantly moderates the relationship between E-WOM and purchasing decisions. This means that if consumers have a high level of trust in online information, the impact of E-WOM on purchasing decisions will be stronger.

Q: What are the implications of the study for companies like Samsung?

A: The study has several implications for companies like Samsung. Firstly, it highlights the importance of managing digital communication and brand reputation to attract younger consumers. Secondly, it suggests that companies should invest in E-WOM marketing strategies to increase their brand awareness and reputation. Finally, it recommends that companies should consider the moderating effect of e-custrust when using E-WOM marketing strategies.

Q: What are the limitations of the study?

A: The study has several limitations, including:

  • The study was conducted in a single university, which may limit the generalizability of the findings.
  • The study used a small sample size, which may limit the reliability of the findings.
  • The study did not consider other factors that may influence purchasing decisions, such as price and product features.

Q: What are the future research directions?

A: Future research should consider the following directions:

  • Investigating the effect of E-WOM and brand image on purchasing decisions in other industries.
  • Investigating the moderating effect of e-custrust on the relationship between E-WOM and purchasing decisions.
  • Investigating the impact of E-WOM and brand image on customer loyalty and retention.

Q: What are the practical implications of the study for marketers and business owners?

A: The study has several practical implications for marketers and business owners. Firstly, it highlights the importance of managing digital communication and brand reputation to attract younger consumers. Secondly, it suggests that companies should invest in E-WOM marketing strategies to increase their brand awareness and reputation. Finally, it recommends that companies should consider the moderating effect of e-custrust when using E-WOM marketing strategies.

Q: What are the key takeaways from the study?

A: The key takeaways from the study are:

  • E-WOM and brand image have a significant influence on purchasing decisions.
  • E-custrust moderates the relationship between E-WOM and purchasing decisions.
  • Companies should invest in E-WOM marketing strategies to increase their brand awareness and reputation.
  • Companies should consider the moderating effect of e-custrust when using E-WOM marketing strategies.

Q: What are the future challenges and opportunities for companies like Samsung?

A: The future challenges and opportunities for companies like Samsung include:

  • Managing digital communication and brand reputation to attract younger consumers.
  • Investing in E-WOM marketing strategies to increase brand awareness and reputation.
  • Considering the moderating effect of e-custrust when using E-WOM marketing strategies.
  • Investigating the impact of E-WOM and brand image on customer loyalty and retention.

Q: What are the recommendations for companies like Samsung?

A: The recommendations for companies like Samsung are:

  • Invest in E-WOM marketing strategies to increase brand awareness and reputation.
  • Consider the moderating effect of e-custrust when using E-WOM marketing strategies.
  • Manage digital communication and brand reputation to attract younger consumers.
  • Investigate the impact of E-WOM and brand image on customer loyalty and retention.