Stats Project-1

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Impact of Social Media Usage, Electronic Word of Mouth, and Consumer
Trust on Online Purchase Intentions Regarding Cell Phones and their
Accessories in Pakistan
Contents
Abstract ......................................................................................................................................................... 1
1 .................................................................................................................................................................... 2
INTRODUCTION ............................................................................................................................................. 2
1.1.
Background of Study ..................................................................................................................... 2
1.2.
Gap analysis .................................................................................................................................. 5
1.3.
Problem Statement ....................................................................................................................... 5
1.4.
Scope of the Study ........................................................................................................................ 5
1.5.
Objective of the Study .................................................................................................................. 6
1.6.
Research Question ........................................................................................................................ 6
1.7.
Significance of the Study ............................................................................................................... 6
1.8.
Delimitations of the Study ............................................................................................................ 6
2 .................................................................................................................................................................... 7
LITERATURE REVIEW ..................................................................................................................................... 7
2.1.
Social Media Usage ....................................................................................................................... 7
2.2.
Electronic Word of Mouth ............................................................................................................ 8
2.3.
Consumer Trust ........................................................................................................................... 10
2.4.
Consumer Purchase Intentions ................................................................................................... 11
2.5.
Theoretical Framework ............................................................................................................... 12
2.6.
Hypothesis................................................................................................................................... 12
3 .................................................................................................................................................................. 13
RESEARCH METHODOLOGY ........................................................................................................................ 13
3.1.
Population ................................................................................................................................... 13
3.2.
Sample design ............................................................................................................................. 13
3.3.
Sample size.................................................................................................................................. 13
3.4.
Sampling technique .................................................................................................................... 14
3.5.
Unit of Analysis ........................................................................................................................... 14
3.6.
Research Instrument ................................................................................................................. 14
3.7.
Data analysis technique .............................................................................................................. 15
3.7.1.
Statistical tools used in study.............................................................................................. 15
3.7.2.
Regression Analysis ............................................................................................................. 15
3.7.3.
Correlation analysis ............................................................................................................. 15
3.7.4.
Measures............................................................................................................................. 15
4 .................................................................................................................................................................. 17
ANALYSIS & DISCUSSION............................................................................................................................. 17
4.1.
Demographics ............................................................................................................................. 17
4.2.
Correlation .................................................................................................................................. 18
4.3.
Regression Analysis ..................................................................................................................... 19
4.3.1.
Model Summary .................................................................................................................. 19
4.3.2.
Anova .................................................................................................................................. 21
4.3.3.
Coefficients ......................................................................................................................... 21
5 .................................................................................................................................................................. 24
DISCUSSION AND CONCLUSION .................................................................................................................. 24
5.1.
Discussion.................................................................................................................................... 24
5.2.
Conclusion ................................................................................................................................... 25
5.3.
Recommendations ...................................................................................................................... 26
REFERENCES ................................................................................................................................................ 27
Abstract
The objective of this study is to find out the impact of social media usage, consumer trust and
electronic word of mouth on the purchase intentions of consumers going for purchasing cell
phones and their accessories online in Pakistan. Social media usage, consumer trust and
electronic word of mouth are thus the independent variable of the study, whereas the dependent
variable is purchase intentions of consumers purchasing goods online. Primary data for this
study was collected via questionnaire from a sample of 200 respondents consisting of male
and females in Rawalpindi Islamabad. The units of analysis were thus male and females of
Rawalpindi. Pearson Correlation and simple regression analysis were undertaken to draw
conclusions. The results indicate that Social media usage and Electronic word of mouth are
highly effective and have significant impact on the consumer purchase intentions while
purchasing cell phones and accessories online while consumer trust has an insignificant impact
on the consumer purchase intentions. Statistically speaking one unit increase in Social media
usage will enhance the consumer purchase intentions to the extent of .169 units and Electronic
word of mouth with one unit increase will bring increase in Purchase intentions by .164 units but
there will be insignificant impact of Consumer trust on the Purchase intentions. These results
establish the first and third hypothesis of the research and reject the second hypothesis. The
pending research areas have been indicated in the report.
Key Words: Social Media Usage, Consumer Trust, Electronic Word Of Mouth, Consumer
Purchase Intentions, Cell Phones and Accessories.
1
1
INTRODUCTION
1.1. Background of Study
Social media has emerged as an exciting platform among the world as two-third of the world
companies use social media for providing products and services to their customers. Social media
helps in generation of useful information both for the customers looking forward for buying
goods and the companies collecting useful information for enhancing their products according to
the needs and demands of the customers. Social media is widely used across the world by large
companies including Dell, Comcast and etc for providing better services to their customers.
Social media has emerged as a virtual communication platform and number of business are using
it for providing their goods and services on these frequently used platforms. Many companies
use social media for selling goods online and a lot of people are slowly and gradually moving
towards purchasing goods online (Bernhardt, et al., 2012). When vast information about products
and services and experience related to them is available on the social media it eventually affects
the buying behavior of the consumers as well. The behavior of the customers is influenced by the
information available in the form of electronic word of mouth which helps in deciding either to
purchase that product or not (Heer, et al., 1991; Smith & Vogt, 1995; Chatterjee, 2001).
Kaplan & Haenlein (2009) stated that social media is an internet based platform used for
information sharing purpose by customers nowadays including Wikipedia, blogs, Youtube,
Facebook, and many others thus creating new place for millions of people around the globe to
communicate and share their personal experience with each other. Social media usage has helped
in getting good quality information within their homes instead of going somewhere in search of
something and purchase goods while sitting at their houses on a single click (Smith & Zook,
2011).
People are nowadays using social media for number of activities including information,
experience sharing, giving advice, opinions, warning for the other customers who are looking
forward for those products and services (Heinonen, 2011). Social media sites or social
communication platform includes certain communities like Wikipedia, Youtube, Flickr,
Myspace, Facebook, for process of communication (Jansen, et al., 2009; De Valck, et al., 2009;
Cox, et al., 2009). Social media has a great impact on the buying decision of the customers as
customers have started relying heavily on the electronic word of mouth and the information
available on the social media platforms for their decision making process from their friends and
the people they don’t know even (Wheat & Dodd, 2009).
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Electronic word of mouth is basically process of sharing information related to products and
services giving advice, recommendation and warning on the basis of personal experience in a
non-commercial message format using social media including Facebook, Twitter, email etc
(Alexandru, 2010; Wu & Wang, 2011). Social media platforms are accessed by millions of
people around the globe and they rely heavily on the electronic word of mouth considering
suggestions of people accurate and helpful (Zhong, et al., 2011; Counts & Fisher, 2010).
Electronic word of mouth is defined as word of mouth or the information shared by the actual or
past users of the products and it can be possibly positive or negative on the basis of their personal
experience (Hennig-Thurau, et al., 2004). Hoyer & MacInnis (2010) stated that electronic word
of mouth is basically tool of social media which provides both good and bad experience of the
customers or past users on a distance of a single mouse click.
Customers nowadays are surrounded by long list of products satisfying the same need and
electronic word of mouth helps in solving the problem of selecting suitable product from the
alternatives (McKinsey & Company, 2010). Social media plays a vital role in spreading word of
mouth all around the globe as the customers believe more the information shared by other people
on the basis of their experience as they feel their information source as reliable as that of family
members (Hoyer, et al., 2010). Mohammad & Neda (2011) stated that electronic word of mouth
is providing non-commercial information to the people who are looking forward with intention
of buying those products in future. Word of mouth can be positive incase of good experience and
bad incase of worst experience of users with the products.
Nielsen (2007) stated that customers trust the electronic word of mouth in the same way they
trust the popular websites and make decisions on the basis on word of mouth of people on social
media platforms. Gilly, et al. (1998) stated that when the useful information regarding the
product is not or less available the decision for buying that particular product is highly risky and
electronic word of mouth plays a helping role in reducing risk by providing useful information
(Chevalier & Mayzlin, 2006). Al-Zoabi & Al-Batayneh (2013) stated that consumer purchase
decision is influence by the reference groups and their friends and family. Sweden (2009) stated
that word of mouth from friends and family has significant impact on the purchase decisions
especially of the males as compared to the females.
Blau (1964) stated that an important key player that can affect the relationship building process
is trust as it plays a significant role in building and maintaining relationships with surrounding
society. The important reason for customers being incredulous regarding online sellers is trust
which makes people assure of the word given by the seller (Nefti, et al., 2005). The fear of
security of the personal data and transaction is due to lack of trust increasing on daily basis by
fraud incidents and ultimately affects the buying decision (Hoffman, et al., 1999).
There is a great difference in the outlook and designing of an online store as compared to a
physical store and is equipped with apparently vast inventory and useful information regarding
the products available at a single click anywhere (Spiller & Lohse, 1998). Product information is
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the center of attraction of consumers when it comes to buying products online and they go for indepth analysis of product using the information available (Lim & Dubinsky, 2004; Degeratu, et
al., 2000). An online retailer is considered to be credible only when it shows that it is interested
in getting loyal customers through good relationship building, which is possible through
customized, user-friendly and having a pleasing sensory effect (Koufaris & Sosa, 2004).
Gefen, et al. (2003) stated that the major factor in hindering online buying is the lack of trust on
the online sellers as trust plays a significant role in the developing better and long term
relationship among the online buyer and seller (Sonja, 2002). Trust is basically willingly giving
the other party approval to do certain thing as per the expectation of the trustee based on hope,
regardless of having the ability to control the other party (Mayer, et al., 1995). Likewise Lewis &
Weigert (1985) stated that trust is basically having a hope that the next person will do thing
honestly and skillfully while taking full risk involved.
Online buying behavior of people or decision making process basically includes the proper
evaluation all the possible alternatives by gathering information about them available on the
social media sites and then purchasing goods online. With emergence of internet and social
media people have shifted towards buying goods and services online instead of going to physical
market especially the shopping of garments online is much in trend. There are a lot of virtual
stores available of certain brands online where people can purchase goods just at distance of
single click.
Cell phones and accessories are of great importance for both male and female as they are more
interested in purchasing new and updated cell phones and their accessories around the globe.
Due to increase in number of virtual outlets for cell phones and their accessories available but the
trust factor and electronic word of mouth while using social media may stop them for
purchasing. So it is necessary to evaluate how social media usage helps them in changing their
purchase intentions as it either goes for motivating them to purchase new things by creating a
need or stops them from purchasing. Likewise the trust factor plays a vital role in changing the
purchase intentions of the both male and female and nevertheless the electronic word of mouth is
a key player in the purchasing of goods online and the study evaluates that how the electronic
word of mouth either motivates the consumers or stops them from purchasing goods online.
In Pakistan like rest of the world online shopping is increasing day by day and thousands of
people in whole Pakistan are purchasing goods including clothes, shoes, mobiles, accessories,
and getting other services online. There is a great influence of social media usage on the online
buying behavior of people; likewise trust and electronic word of mouth play a role in the online
purchase decision making of people. This study will basically focus on the impact of social
media usage, trust and electronic word of mouth on the purchase intentions of consumers
regarding online mobiles phones and accessories in Pakistan.
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1.2. Gap analysis
Online buying and selling of products is in trend after the emergence of internet and a lot of
people are moving towards buying goods online. There is huge research on the impact of
different factors on the e-commerce but little in impact of the social media usage on the online
purchase decisions of cell phones and their accessories in Pakistan. Likewise the customer trust
factor and the electronic word of mouth impact on the online buying decision of cell phones and
their accessories in Pakistan are not studied so far. As the majority of consumers having smart
phones and other gadgets goes for buying cell phones and their accessories online, so the
research focused on the impact of social media usage, electronic word of mouth and consumer
trust on the purchase decision of online cell phones and their accessories in Pakistan, focusing on
the male and females all over Pakistan.
1.3. Problem Statement
Due to increase in online purchases of cell phones and their accessories in Pakistan it is
necessary to study the factors affecting the purchase decisions. As the social media usage plays
an important role in creating needs for certain products and sometimes stops people from
purchasing certain goods by providing quick and useful, authentic information. Numerous
businesses use social media platforms for providing information about their products or directly
sell their products on facebook, twitter and instagram nowadays in Pakistan.
There is a wide range of business running on these social sites providing different cell phone
vendors have online profiles associated with certain brands and they are selling cell phones and
their accessories online either on the website or on the profiles on facebook or instragram.
Nowadays instead of going in the physical market people simply go for ordering certain products
online. But there is a trust factor involved in the purchasing of cell phones and their accessories
online. Lack of trust leads to people going in physical markets but if the trust is developed once
between the buyer and the vendor it will definitely change the purchase decision of the buyer.
Nevertheless electronic word of mouth is of mere importance as feedback and reviews quality
and quantity plays a significant role in the purchasing decision and if there is more negative
feedback people will definitely avoid such purchasing decision.
“To understand the degree to which the social media usage, electronic word of mouth and
consumer trust affects the decision of the young consumers while purchasing cell phones and
their accessories online in Pakistan”.
The study aimed to understand the impact of social media usage, consumer trust and electronic
word of mouth on the online purchasing intentions of consumers of Pakistan.
1.4. Scope of the Study
The study examines the impact of social media usage, electronic word of mouth and consumer
trust on the consumers online purchase intentions regarding cell phones and their accessories of
Pakistan. The other factors that may affect the study include the risk involved, security,
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transaction process, product quality bargaining and many others that are excluded from this
study.
1.5. Objective of the Study
Objective of this study is: To analyze the affect of social media usage on online purchase intention.
 To analyze the affect of electronic word of mouth on online purchase intention.
 To analyze the affect of consumer trust on online purchase intention.
1.6. Research Question
Following are the research questions of this study
 To what extent the social media usage has positive or negative impact on the
consumer’s online purchasing intentions in Pakistan?
 To what extent the electronic word of mouth has positive or negative impact on the
consumer’s online purchasing intentions in Pakistan?
 To what extent the consumer trust has positive or negative impact on the consumer’s
online purchasing intentions in Pakistan?
1.7. Significance of the Study
Social media usage is basically using Facebook, Twitter and other social platforms or virtual
communities for communication purpose and getting information about certain products and
services offered online. Social media usage plays an important role in purchase decision as it
goes for either generating the demand or prohibiting the people from using certain products and
services which affects the purchase intentions. Similarly the consumer trust in purchasing things
online is of much importance as if there is lack of trust customers may not purchase cell phones
and their accessories online. Along with that the electronic word of mouth plays a vital role as
electronic word of mouth includes reviews, opinions and feedback from experts or already users
and negative feedback especially plays important role in purchase decision making of customers.
So the study considered these factors in Pakistani online cell phones and their accessories thus
evaluating the purchase intentions of consumers of Pakistan. This study will help the online
vendors in getting better information about the behaviors, perception of the people and enhance
their products and services accordingly.
1.8. Delimitations of the Study
As per the thesis time requirement the research was limited to 200 respondents using online
services only in Rawalpindi. The study was limited to the consumers of Rawalpindi. Numerous
consumers in Rawalpindi go for buying cell phones and their accessories online and majority of
them being familiar with online cell phones and their accessories prefer physical market so the
study basically focused on the impact of above mentioned factors on the online purchasing
intentions. Similarly due the thesis requirement the study only focused on the impact of
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independent variables on the dependent variable, no mediator or moderator was included in the
study.
2
LITERATURE REVIEW
2.1. Social Media Usage
Emphasis on the consumers and their behavior has been shifted from typical to technological
marketing, advertising and promotion due to technological development (Quelch & Jocz, 2008).
Technology has emerged as an important factor in market expansion and growth across the
globe. Promotion of the products is basically done by paying more attention to the psychology of
the target market using technological instruments especially social media. Rust, et al. (2010)
stated that there are different technological instruments for the better marketing and motivating
customers towards buying and revisiting their website. Social media plays a vital role in the
buying behavior and purchase decision of the customers. The most used social media platform
for shopping and branding are facebook, youtube, instagram and twitter (Shi, et al., 2014;
Muntinga, et al., 2011). Kozinets, et al. (2010) stated that social media plays a key role in the
information spreading, building relationships among the buyers and vendors online around the
globe and creating awareness of the brands across the geographical boundaries. Social media is
basically a medium generated and used by customers all over the world for the purpose of
sharing information within seconds (Kohli, et al., 2014). ). Social media usage affects the
behavior of customers regarding certain products and services on the daily basis by either
creating demand or stopping them from purchase of certain products from certain websites etc in
case of worst experience as negative feedback has more impact on buying decision as compared
to the positive feedback (Heinonen, 2011). Large number of people all around the world is using
social media for the purpose of sharing information. Social media includes mobile and web
based technology that is used for information sharing, discussing and motivating people towards
certain products (Kohli, et al., 2014). Nowadays companies are relying more on the social media
platforms for marketing their products and generating consumer’s loyalty. When the customers
provide reviews about products on social media there is vast information about the similar
products and their usage which ultimately affects the overall buying behavior of the new buyers
in online market.
Social media is a platform used by millions of people for sharing, editing, publishing certain
information about specific product or service. Krishnamurthy & Dou (2008) stated that social
media sites used for such purpose include blogs, video sharing sites, virtual game worlds etc
which enhances the involvement of the customers with the products and services. Heinrichs, et
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al. (2011) stated that online social media usage helps the people in getting information from the
already users of those products and services to make better decision about what to purchase and
what not to. Boyd & Ellison (2008) stated that facebook is one of the social media platform most
used by the customers nowadays where people with diverse profiles share their experience,
opinions and information on their profile, pages and in certain groups created for certain
products and services thus affecting the daily basis product and service related decision making
of people (Rogers, 2003).
Social media advancements have changed the interactions of people with eachother likewise the
interaction methods of companies with people have also changed as no more companies send any
type of push messages because of availability of vast information on the social media platforms
regarding the customers opinion and needs etc (Brown & Hayes, 2008). Instead of companies
providing information about the products the customers primarily trust the reviewers and the
people providing information about their experiences with certain companies (Jaffe, 2010).
Social media has a great impact on the buying decision of the customers as customers have
started relying heavily on the electronic word of mouth and the information available on the
social media platforms for their decision making process from their friends and the people they
don’t know even (Wheat & Dodd, 2009). When people are searching for the products to be
purchase they have number of people on social media who can help them in providing
information from their experience or the experts who provide good quality of information on the
distance of a single click (Parker, 2011). There is a wider range of tools available for searching
information regarding the products and services and consulting with the experts (Wheat & Dodd,
2009). When the customers have any desire unfulfilled only the any need is recognized by
triggering the customers using any certain platform. Nowadays social media sites are working as
a trigger for making people realize their unfulfilled needs or generating needs and desires by
marketing their products on these sites most used by the people (MacInnis, 2010). Like button on
facebook helps in generating new desires in the mind of customers as one person likes a page
and rest of his/her friends visit those pages and identify needs yet to be fulfilled.
2.2. Electronic Word of Mouth
Word of mouth is adequate practice for sharing point of view of users to the possible users or
buyer of that product (Park & Kim, 2008). In past product users used to share their personal
experience related to the product and its services with their family and friends to recommend
them or warn them for not using incase of worst experience. The most valid and convincing
reference group is our family and friends in traditional word of mouth. Even if the users are not
living with their families yet they share majority of their experience with family and friends
(Kotler & Keller, 2006). Internet has emerged as a game changer in the buying behavior of the
consumers (Riegner, 2007). Sen & Lerman (2007) stated that electronic word of mouth is the
frequent method used by the customers or product users using internet. While making purchase
decision electronic word of mouth is an important factor which helps the customers in making
8
their buying decision on the basis of the reviews. Electronic word of mouth has significant
impact on the purchase decision (Zhang & Tran, 2009).
Ajzen (2005) stated that electronic word of mouth creates a perception about certain product and
service on the basis of certain experience thus associating it with certain characteristic. Social
influence plays a vital role in the trend setting regarding following the expectations and feelings
of others. Hansen & Lee (2013) stated that electronic word of mouth affects the purchase
decision of any product of certain brand they were about to purchase. Internet and other gadgets
of communication purpose have increased the possible ways of gathering information and
spreading personal experience all around the globe within seconds efficiently and effectively
(Dellarocas, 2003; Goldsmith & Horowitz, 2006). Electronic word of mouth helps in risk
reduction associated with purchase of certain product from certain specific vendor and helps in
making accurate and less risky decisions on the basis of the information available (Wang, et al.,
2012; Chatterjee, 2001). Berger, et al. (2010) stated that large number of people on social media
platform play an important role in the decision making regarding certain brand purchasing. When
products have useful reviews from the user it leads to better further purchases of the products of
that certain brand while negative reviews leads the customers towards other alternatives less
risky than this particular brand through their reviews and advices (Lee, et al., 2011; Park & Lee,
2008). Negative reviews about the products help the customers in making right decision about
what to purchase and are having more impact on the buying behavior of customers as compared
to the positive reviews and extremely useful for the customers in making purchase decision (Lee,
et al., 2011).
Jalilvand, et al. (2011) stated that word of mouth is simply a process of sharing personal
experience about the product and service to people around them and include advise,
recommendation and warning incase of negative experience (Walsh & Gremler, 2004).
Mohammad & Neda (2011) stated that electronic word of mouth is providing non-commercial
information to the people who are looking forward with intention of buying those products in
future. Word of mouth can be positive incase of good experience and bad incase of worst
experience of users with the products. For experience information purpose negative reviews play
a vital role in the decision making regarding the purchase of certain products on the basis of
those reviews. Negative word of mouth increases the risk associated with the products and
ultimately damages the sale of products (Park & Lee, 2009). Online information sharing leads to
changes in the buying behavior of other people as well as everyone using internet has access to
information shared anywhere in the globe (Chevalier & Mayzlin, 2006).
When considering different alternatives offered by vendors’ customers usually go for
considering their fellow members as nothing around us can occur without consulting our family
and friends specifically (Zeleny, 1982). There are three stages defines while making decisions
include pre-decision, decision and then post decision which include the thinking on what to
purchase, considering the related information available for evaluation of all alternatives to make
respective decisions. Friends and family sources provide you with the new products and services
9
in the market and information related to their usage and reduce the risk associated with the
shopping due to availability of perfect information available from trustworthy sources in less
time (Schiffman & Kanuk, 1997). Word of mouth plays an important role in decision making
before purchasing due to clear, efficient, effective, after use information available with somehow
same nature of purchases (Bansal, et al., 2000). Reviewers often provide their personal
information while providing information about any certain product or service which eventually
increases the trust of the customers on the information provided by them (Ong, 2012).
Facebook, Twitter and other social media sites have increased the people’s presence on social
media sites, using social media for gathering and providing information to the people. Social
media sites are basically user generated and primarily focus on the consumers (Zhang &
Daugherty, 2009).
2.3. Consumer Trust
Trust is defined by the Oxford dictionaries as the hope and expectation from the vendor about
honestly provide you with the required product without harming you. Kim, et al. (2009) stated
trust is an important factor for the building relationship among the customer and the vendor and
motivating them to repurchase the goods and use e-commerce for the shopping purpose
(Belanche, et al., 2014; Belanger, et al., 2008; Park, et al., 2015). Past studies on the impact of
trust on the consumer behavior states that trust decreases the risky feelings regarding the vendor
while purchasing goods online (Wang , et al., 2013). Suh & Han (2002) stated that trust
significantly affects the buying behavior of the customers in using the online services of banking.
Trust factor positively affects the purchase decision of the buyer and leads to loyal long term
relationships, and successful business in variety of cultures (Jarvenpaa et al., 2000; McKnight et
al., 2002; Balasubramanian et al., 2003; Reichheld and Schefter, 2000; Gefen et al., 2003;
Jarvenpaa and Tractinsky, 1999). Impact of trust on consumer buying behavior have been
studied in various aspects like bargaining, buyer seller relationship, research of market,
cooperation with alliances and channels for distribution of goods (Kim, et al., 2009; Belanche, et
al., 2014; Belanger, et al., 2008). Capability, benefaction and honesty are defined to be the
important factors used widely in the electronic commerce (Mayer & Schooorman, 1995; Lim, et
al., 2006; Gefen, 1997; McKnight, et al., 2002). Cheung, et al. (2006) stated that individuals
differ on the basis of their personality, culture, and experiences towards trust which is a major
contributing factor in the e-commerce (Lee, et al., 2001). Building trust in customers regarding
the online buying is necessary at it plays a vital role in reducing the risk associated with vendors
honesty and integrity (McKnight, et al., 2002). Building trust based relationship among buyer
and vendor leads to increase in online purchases, information sharing, recommending others and
affecting positively the purchase decisions (Lim, et al., 2006).
Chen & Barnes (2007) stated that trust is an important factor that significantly affects the online
buying of goods and it can be affected by issues in transactions, security, privacy leading to
distrust on the online vendors (Bhattacherjee, 2002; Koufaris, et al., 2004; Isaac & Volle, 2013).
Rosseau, et al. (1998) stated that trust plays a vital role in business to business and business to
10
customer relationship building and buying behavior (Doney, et al., 2007). Loyalty, commitment
and growth in the business are significantly affected by the trust in business to business trading
and it helps in building long term loyal relationships among the buyer and sellers (Fletcher &
Peters, 1997; Selnes, 1998). Increase in trust on the online vendors leads to reduction in the risk
associated with the buying decisions, due to security, safety, privacy, accurate information and
quality of the products and services, and leads to easily buying goods online (Jones & Kim,
2010). Plank, et al. (1999) stated that consumer trust is basically having expectation that the
seller of that certain company will deliver that specific product with respective qualities as
understood by the customer on the certain date. There are number of group buying websites
online in whole world where customers buy things in groups with great bargaining power and
large volume of discount from vendors thus helping vendors in getting entry in competition with
market. Trust is a key player in the reduction in concerned security risks and increasing the
positive trend towards online buying and selling (Shiau & Chau, 2013; Javernpaa, et al., 2000).
Chiu, et al. (2010) stated that there is a positive impact of trust on the buying behavior of
customer and leads to repeating purchases.
Online shopping in Pakistan is growing significantly on daily basis including variety of products
like shoes, mobiles, accessories, clothes and a lot of more. Trust is an essential factor in online
shopping which can affect the buying decisions due to less buyer and vendor interactions (Gefen,
2003). The major hurdle in success of online business is lack of trust as higher trust on vendors
reduces the risk involved in buying goods online (Li & Zhang, 2002; Comegys, et al., 2009;
Bulut, 2015).
2.4. Consumer Purchase Intentions
Belch & Belch (2003) stated that purchase intention and ultimate decision regarding purchasing
of certain goods and services leading to consumption of the goods is composed of certain stages
which have impact on the purchase intentions of the consumers. The certain stages from which
the consumer passes to making ultimate purchase decision includes first of all the identification
of the need and desire, then the consumers go for searching the information about the availability
of the products to meet those needs and desires, then the consumers deeply evaluate the certain
specific alternatives available for meeting the needs and desire and then eventually the
consumers go for making a decision of a specific product from all of the alternatives on the basis
of best suitable for solving the problem and after purchasing the product or service at the end the
consumer eventually goes for evaluating the products on the basis of their performance and think
of either to purchase in future, recommend others or not (Hoyer & MacInnis, 2010; Sternthal &
Craig, 1982). While making the ultimate purchase decision regarding a certain product or service
there are different internal and external factors that have significant impact on the purchase
intentions of the consumers (Belch & Belch, 2003). Consumer behavior is an important factor
with which the customers decides either to go for purchasing certain goods and services by
evaluating about the product, its alternatives, selection on the basis of criteria to meet the needs
of the customers (Schiffman, et al., 2013). It is defined as indentifying needs, searching the
11
products, viewing the alternatives, and selecting the certain products that may satisfy the needs
of the customers and at the end evaluating the products on the basis of their performance after
the purchase. Psychological factors including motivation, perception, learning, trust that may
affect the purchase intentions of the buyers. As internet development has lead to increase in the
online business making easy for people to get information about products and purchase from
their home on single click. Globally huge number of people is there purchasing goods and
services through web browsing including games, clothes, shoes, tickets, games and videos etc.
Online buying and selling of goods is a feasible medium where people can buy and sell goods
conveniently from their homes. It is basically used for enhancing the quality, value and
attractiveness of customers thus motivating them in buying goods online. Due to its convenience
online shopping is increasing day by day. Due to less transaction and search cost as compared to
that in physical market the value of online buying and selling is increasing day by day. As it is a
user friendly, easily accessible, having vast alternatives, low prices and fast buying and selling it
is increasing day by day (Cuneyt & Gautam, 2004). Due to reasons mentioned above it is
necessary to understand the behavior of customers and take actions to increase the positivity in
the buying decisions of customers. Kotler & Armstrong (2004) stated that purchase intention is
basically process of making decision either to purchase certain product and service or not. The
attitudes of the people and the unexpected situational factors have significant impact on the
purchase intentions and thus can either motivate or de-motivate the people from purchasing the
goods and services. Purchase decision starts from identifying the problem, collecting the
information, checking the certain alternatives, making the purchase and then evaluating the after
purchase behavior.
2.5.
Theoretical Framework
Social Media Usage
Online Purchase
Decision
Consumer Trust
Electronic Word of
Mouth
2.6.
Hypothesis
H1: Social media usage has a positive and significant impact on online purchase decision.
H0: Social media usage has no significant impact on online purchase decision
H2: Electronic word of mouth has a positive and significant impact on online purchase decision.
12
H0: Electronic word of mouth has no significant impact on online purchase decision
H3: Consumer trust has a positive and significant impact on online purchase decision.
H0: Consumer trust has no significant impact on online purchase decision
3
RESEARCH METHODOLOGY
In this chapter the focus is on the research design, population frame, sources of data, unit of
analysis, sample and sampling technique, collection, measurement, and data analysis. The main
objective of the study was to find out the impact of social media usage, electronic word of mouth
and consumer trust on the online purchase decision regarding cell phones and their accessories of
male and females of Pakistan. Primary data was collected through a questionnaire to answer the
vital question of the study that with social media usage (SMU), electronic word of mouth
(EWOM), and consumer trust (CT), whether the consumer’s online buying practices increases or
decreases.
3.1. Population
The research focused on the online cell phones and their accessories in Pakistan. The population
was male and females of Rawalpindi involved in social media platforms and how they get
affected by social media usage, customer trust and electronic word of mouth while making
purchase decisions regarding cell phones and their accessories online.
3.2. Sample design
Online cell phones selling sector of Pakistan is selected as it is a major business running online
all across the Pakistan and majority of people are switching to social media platforms and there
are a lot of online vendors with different male and female cell phones and their accessories’
brands available online. The study was conducted on all type of cell phones and their accessories
available online for consumers. Surveys are a very important part of the research study, survey
sampling was use to collect the data as sampling will be speedy, cost effective and appropriate
technique to collect the required data. The Rawalpindi male and females were selected to collect
the primary data. However, Secondary data can be described as data collected from already
existing data sources or some other source except than researcher, for example data provided by
the media.
3.3. Sample size
A sample of 200 questionnaires was distributed to the consumers of Rawalpindi for analysis of
impact of social media usage, electronic word of mouth and customer trust on online purchase
decisions.
13
3.4. Sampling technique
Convenient sampling was used to select sample from different consumers of Rawalpindi. The
current study was coorelational and descriptive in nature and conducted to find the impact of
social media usage, electronic word of mouth and consumer trust on the online cell phones and
accessories related buying behavior of consumers of Rawalpindi. This study followed the
positivist philosophy and deductive research approach was used and the Quantitative approach of
research was applied. Quantitative measures associated with mathematical measures, statistical
calculations.
3.5. Unit of Analysis
The unit of Analysis was both male and female of Rawalpindi. Question will be asked about the
impact of social media usage, electronic word of mouth and consumer trust on the online
clothes purchase decision of consumers of Rawalpindi. Every single male and female social
media user was considered as a target population and from all of them 200 was questioned as per
convenience.
3.6. Research Instrument
The Secondary data was collected through internet, articles and books, while primary data
was collected through questionnaire from the sample of 200 respondents distributed among
consumers of Rawalpindi to learn whether social media usage, consumer trust and electronic
word of mouth affects the online purchase decision or not.
The design of the questionnaire was adopted from the study of “Social Media Usage, Electronic
Word of Mouth and Purchase Decision Involvement” by Shantanu Prasad, Ishwar C Gupta,
Navindra K Totala (2017) Asia-Pacific Journal of Business Administration and “A Study of
Consumer Trust in Internet Shopping and the Moderating Effect of Risk Aversion in
Mainland China” by Ding Mao (2010), a not published research paper.
There are total twenty eight questions are in the questionnaire, first eight social media usage
related, next five are electronic word of mouth related, ten are for the consumer trust and in the
last selection are five purchase decision related, all these are to find the impact of social media
usage, electronic word of mouth and consumer trust on online cell phones and their accessories
purchase decision involvement in Rawalpindi. Likert scale is used for the measurement.
1
2
3
4
5
Strongly
Disagree
Disagree
Neutral
Agree
Strongly Agree
14
3.7. Data analysis technique
For the quantitative data analysis, validity and reliability analysis Microsoft Office Excel 2007
and Statistical Packages for the Social Science SPSS was used.
3.7.1. Statistical tools used in study
In this study, to test the hypothesized association, t-test was used to test the equality of means. Ttest is applied when the population is assumed to be normal distribution and have so small
sample size that statistic of sample on which hypothesis is based do not have normal distribution
and become uncertain estimate of population information.
3.7.2. Regression Analysis
To find the association between the two variables of study, regression analysis has been done
with the objective of forecasting future values. In other words it can be said that it finds the
future trend of the dependent variable with the help of independent variable. Social media usage,
electronic word of mouth and consumer trust is independent while purchase decision is
dependent variable.
3.7.3. Correlation analysis
Correlation analysis is used to find out the extent to which change in one variable is linked with
change in other variable. In this analysis coefficient Pearson product moment correlation
coefficient will be used having value always ranging from -1 to +1 without unit. The value near
to zero indicates the weak relation and value near to +1 indicates the strong relation. Positive
coefficient correlation means that increase in one variable will also bring change in second
variable while negative coefficient correlation means increase in one variable will bring decrease
in second variable. In this study, test of mean of equality was used on the basis of categorizing
employees in categories age, gender, income, job and qualification.
3.7.4. Measures
Demographics
Gender
Male
Female
Age
<20
20-30
30-35
>35
Qualification
Graduation
Masters
M.phil
PHD
Occupation
Student
Employed
Businessman
Other
Monthly Income
<20,000
20-35,000
35-50,000
>50,000
Social Media Usage: (Rapp, et al., 2013).
SMU1: Social media increases my brand relationship.
SMU2: Social media helps in monitoring other market players.
SMU3: Social media helps in providing information about different sale opportunities and
certain product promotions.
15
SMU4: Event detection can be done through social media.
SMU5: Companies and people approach you through social media platforms.
SMU6: Better relationships with different vendors can be developed through social media usage.
SMU7: Social media usage creates awareness of upcoming events and trends.
SMU8: Communication with different vendors and brands is easy through social media usage.
Electronic Word of Mouth: (Bambauer-Sachse & Mangold, 2011; Goyette, et al., 2010).
EWOM1: I always provide positive feedback about online product/brand purchasing.
EWOM2: I recommend other people purchasing goods/brands online.
EWOM3: Others reviews about good products and services are often considered by me.
EWOM4: I always speak well about the online products and services.
EWOM5: I always gain confident from others reviews while purchasing goods online.
Consumer Trust: (Connolly and Bannister, 2007; Harris and Goode, 2004: McKnight,
Choudhury & Kacmar, 2002)
CT1: I personally have a good online experience.
CT2: Online services provide me useful information.
CT3: I rely on social media because of its security and reliability.
CT4: I easily trust people and products/services provided online.
CT5: Internet usage and online services provide me great satisfaction.
CT6: Online business always did well to me.
CT7: Online business deals with me honestly.
CT8: Online business fulfills all of its commitments.
CT9: Online business is capable of providing desired outcomes.
CT10: Online business is secure and I am willing to provide my personal information.
Product decision: (Mittal, 1989; McKnight, Choudhury & Kacmar, 2002).
PD1: I primarily focus on what and from where to buy while purchasing goods online available
of various brands and types.
16
PD2: I always prefer making right product choice while purchasing online.
PD3: I select the products online on the basis of desired outcome of the product.
PD4: I prefer purchasing goods online using my credit card on the website.
PD5: I will be revisiting the online websites for purchasing goods in future.
4
ANALYSIS & DISCUSSION
Two Hundred (200) questionnaires were distributed to females in Rawalpindi and Islamabad and
only 150 questionnaires were returned. This gives the return rate of questionnaires is 75%. In this
study, 150 questionnaire data had been gathered and inserted to program SPSS version 18.0 for
analyzing purpose. The type of analysis that will be used is Quantitative. It is concluded with
survey with yes or no questions, and list of the questions in the questionnaire. The regression and
correlation is used for the data analysis to test the relationships between social media usage,
consumer trust and electronic word of mouth towards online purchase intentions of the
consumers in Rawalpindi. Regression and correlation are used to analyze the relationship of all
the independent variable: which is social media usage, consumer trust and electronic word of
mouth towards online purchase intentions.
4.1. Demographics
The table below shows the demographic analysis of the respondents.
Demographics
Gender
Age
Qualification
Occupation
Characteristics
Male
Female
<20
20-35
>35
Graduation
Masters
M.phil
PHD
Student
Employed
Business people
Others
Frequency
67
83
28
101
21
68
55
23
4
69
52
21
8
17
Percentage
44.7
55.3
18.7
67.5
14.0
45.3
36.7
15.3
2.7
46
34.7
14
5.3
Monthly Income
<20,000
20,000-35,000
35,000-50,000
>50,000
68
54
16
12
45.3
36
10.7
8
The above table 1 shows that out of 150 67 were male while 83 were female. likewise 28
respondents were under the age group of 20 which is 18.7 percent of the total respondents while
101 respondents range from 20-35 that is the 67.5 percent of total respondents and 21 were in the
age group of above 35 years showing 14.0 percent of the total population of respondents.
Similarly as shown in the table above 68 out of 150 were graduate which is 45.3 percent of the
total, 55 have done masters that shows the 36.7 percent of total respondents, 23 respondents out
of 150 are M.phil qualified showing 15.3 of total respondents population and 4 were PHD that is
2.7 percent of the total population. Likewise as per the table above 69 respondents were
university student which was 46 percent of the total respondent population, 52 out of 150 which
is 34.7 percent of total were employed. The table above shows that 14 percent which is 21 out of
150 were business people while 8 comes in the others category which is 5.3 percent of the total
respondents’ population. Likewise 68 were having monthly income less than 20,000 comprising
of 45.3 percent of the total population, 54 were having income ranging from 20,000 to 35,000
representing 36 percent of the total respondent population, 16 were having monthly income in
the range of 35,000-50,000 that is 10.7 percent and 12 were having monthly income above
50,000 which is 8 percent out of total respondent.
4.2. Correlation
Correlations
SMU
Pearson Correlation
SMU
EWOM
EWOM
CT
1
Sig. (2-tailed)
N
150
Pearson Correlation
.215**
Sig. (2-tailed)
.008
N
150
150
Pearson Correlation
-.005
.359**
Sig. (2-tailed)
.951
.000
1
CT
18
1
PI
PI
N
150
150
150
Pearson Correlation
.177*
.211**
.030
Sig. (2-tailed)
.031
.010
.718
N
150
150
150
1
150
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
In the table relationship between social media usage and purchase intentions is positive at a
significance level of P = 0.05. Hence, the correlation is statistically highly significant. The table
above shows that both variables have a positive correlation, which means that increase in social
media usage, will bring proportional increase of .031 in purchase intentions of consumers
positively. A change in one variable will bring suitable change in another variable; therefore they
are positively related among the consumers of Rawalpindi.
The second relationship between electronic word of mouth and purchase intentions is positive at
a significance level of P = 0.05. Hence, the correlation is statistically significant. Which means a
change in one variable will bring suitable change in another variable, or one unit change in
electronic word of mouth will bring positive change of .010 in the purchase intentions of
consumers of Rawalpindi.
The Third dimension of study shows the relationship between consumer trust and purchase
intentions is positive but not significant as the value exceeds .05 level (2-tailed) of significance
which is .718. Hence, the correlation its, statistically, not significant which means that increase
in consumer trust, will bring no proportional increase in purchase intentions of consumers of
Rawalpindi.
The statistical significance of the relationship between the independent variables, i.e. Social
media usage and electronic word of mouth with dependent variable, i.e. purchase intentions,
shows their direct and positive relationship while insignificant relationship between the
consumer’s trust and the purchase intentions of the consumers.
4.3.
Regression Analysis
4.3.1. Model Summary
Model Summary01
Mode R
R
Adjusted R Std.
Error Change Statistics
19
l
1
.177a
Square Square
of
the R Square F
df1
Estimate Change
Change
df2
Sig.
Change
.031
.62239
148
.031
.025
.031
4.765
1
F
a. Predictors: (Constant), SMU
Interpretation
Table above shows the value of r (co-efficient of multiple correlation) = 0.177 shows the joint
effect of Social Media Usage on the dependent variable i.e. Consumer Purchase Intentions.
R square (co-efficient of determination) = 0.031 means that the contribution of the Social Media
Usage is to explain the variation in, dependent variable, Consumer Purchase Intentions to the
extent of 31%. The remaining 69% variation is unexplained.
Model Summary02
Mode R
l
1
.211a
R
Adjusted R Std. Error Change Statistics
Square Square
of
the
df1
Estimate R Square F
Change
Change
df2
Sig.
Change
.045
148
.010
.038
.61810
.045
6.893
1
F
a. Predictors: (Constant), EWOM
Interpretation
Table above shows the value of r (co-efficient of multiple correlation) = 0.211 shows the joint
effect of Electronic Word of Mouth on the dependent variable i.e. Consumer Purchase Intentions.
R square (co-efficient of determination) = 0.045 means that the contribution of the Electronic
Word of Mouth is to explain the variation in, dependent variable, Consumer Purchase Intentions
to the extent of 45%. The remaining 55% variation is unexplained.
Model Summary03
Mode R
l
1
.030a
R
Adjusted R Std. Error Change Statistics
Square Square
of
the
df1
Estimate R Square F
Change
Change
df2
Sig.
Change
.001
148
.718
-.006
.63205
.001
20
.131
1
F
a. Predictors: (Constant), CT
Interpretation
Table above shows the value of r (co-efficient of multiple correlation) = 0.030 shows the joint
effect of Consumer Trust on the dependent variable i.e. Consumer Purchase Intentions.
R square (co-efficient of determination) = 0.001 means that the contribution of the Electronic
Word of Mouth is to explain the variation in, dependent variable, Consumer Purchase Intentions
to the extent of 1%. The remaining 99% variation is unexplained.
4.3.2. Anova
ANOVAa
Model
1
Sum
Squares
of df
Mean Square F
Sig.
.021b
Regression 3.785
3
1.262
Residual
55.390
146
.379
Total
59.176
149
3.326
a. Dependent Variable: PI
b. Predictors: (Constant), CT, SMU, EWOM
Interpretation:
The ANOVA test established the fitness of the regression model with F = 3.326 and significant
level= 0.021b. This shows that the model fits very well for the prediction of the dependent
variable. In other words independent variables, social media usage, electronic word of mouth and
consumer trust, are significant predictor’s of purchase intentions of consumers in Rawalpindi.
4.3.3. Coefficients
1: Coefficientsa
Model
Unstandardized
Coefficients
Standardized t
Coefficients
B
Beta
Std. Error
(Constant) 2.687
.313
SMU
.090
Sig.
8.580
.000
2.183
.031
1
.197
.177
21
a. Dependent Variable: PI
Interpretation:
Table above shows that social media usage coefficient is statistically significant (t = 2.183, p =
0.031), which means that one unit increase in social media usage will increase consumer
purchase intentions by 0.197 units.
This shows that H1 is accepted, which means that there is a positive association between social
media usage and consumer purchase intentions, these results proves the Conceptual Framework
as the value of beta =0.177 is highly significant and the value is positive among the consumers of
Rawalpindi.
2: Coefficientsa
Model
Unstandardized
Coefficients
Standardized t
Coefficients
B
Beta
Std. Error
(Constant) 2.598
.295
EWOM
.089
Sig.
8.799
.000
2.625
.010
1
.233
.211
a. Dependent Variable: PI
Interpretation:
Table above shows that electronic word of mouth coefficient is statistically significant (t = 2.625,
p = 0.010), which means that one unit increase in electronic word of mouth will increase
consumer purchase intentions by 0.233 units.
This shows that H2 is accepted, which means that there is a positive association between
electronic word of mouth and consumer purchase intentions, these results proves the Conceptual
Framework as the value of beta =0.211 is highly significant and the value is positive among the
consumers of Rawalpindi.
3: Coefficientsa
Model
Unstandardized
Coefficients
Standardized t
Coefficients
B
Beta
Std. Error
22
Sig.
(Constant) 3.232
.362
CT
.112
8.927
.000
.362
.718
1
.041
.030
a. Dependent Variable: PI
Interpretation:
Table above shows that consumer trust coefficient is statistically insignificant (t = .362, p =
0.718), which means that one unit increase in consumer trust will bring no change in consumer
purchase intentions.
This shows that H3 is rejected and null hypothesis is accepted, which means that there is no
significant association between consumer trust and consumer purchase intentions, these results
proves the Conceptual Framework as the value of beta =0.030 is insignificant and there is
insignificant relationship between consumer trust and purchase intentions among the consumers
of Rawalpindi.
23
5
DISCUSSION AND CONCLUSION
5.1. Discussion
Hypothesis 1: Social media usage has a positive and significant impact on online purchase
intentions. (Accepted)
1st hypothesis of study shows that there is a positive and significant relationship between Social
media usage and Purchase intentions. The result is calculated through regression model. It is
observed that social media usage has t-value is 2.210 and its P value is 0.028 which demonstrates
that the alternative hypothesis can be accepted and null can be rejected.
Hypothesis 2: Electronic word of mouth has a positive and significant impact on online
purchase intentions. (Accepted)
2nd hypothesis demonstrates that there is a positive and significant relationship between
Electronic word of mouth and Purchase intentions. This hypothesis is tested through regression
model. Regression model shows that Electronic word of mouth has a T-Statistic value is 2.166,
while P value 0.032. The result illustrates that alternative hypothesis can be accepted and null
can be rejected.
Hypothesis 3: Consumer trust has a positive and significant impact on online purchase
intentions. (Rejected)
3rd hypothesis shows that there is an insignificant relationship between Consumer trust and
Purchase intentions. Regression model is used for testing this hypothesis. It is observed that
Consumer trust has a T-value of .595, and its P value is 0.553 which signifies null hypothesis can
be accepted while alternative hypothesis can be rejected.
24
5.2. Conclusion
The objective of this research was to evaluate the impact of social media usage, electronic word
of mouth and consumer trust on the purchase intentions of the females of Rawalpindi and
Islamabad for purchasing clothes online. Social media usage, electronic word of mouth and
consumer trust were independent variables while the online purchase intention was dependent
variable of the study. Social media is an internet based platform widely used across the world for
the purpose of sharing information by different users including Wikipedia, blogs, Youtube,
Facebook, and many others thus creating new place for millions of people around the globe to
communicate and share their personal experience with each other (Kaplan & Haenlein, 2009).
People are nowadays using social media for number of activities including information,
experience sharing, giving advice, opinions, warning for the other customers who are looking
forward for those products and services (Heinonen, 2011). There is a significant impact of social
media usage on the consumer purchase intentions as stated by Riegner (2007), East, et al. (2008),
Kohli, et al. (2014). Social media has a significant impact on the purchase intentions of any
product or service around the globe. The social media and its impact on the consumer purchase
intentions are significant on different stages which lead to changes in purchase intentions. The
results of the study show that there is significantly positive association between social media
usage and the consumer purchase intentions of buying cell phones and accessories online in
Rawalpindi and supports the research of Riegner (2007).
Likewise Electronic word of mouth is basically process of sharing information related to
products and services giving advice, recommendation and warning on the basis of personal
experience in a non-commercial message format using social media including Facebook, Twitter,
email etc (Alexandru, 2010; Wu & Wang, 2011). The most valid and convincing reference group
is our family and friends in traditional word of mouth. Even if the users are not living with their
families yet they share majority of their experience with family and friends (Kotler & Keller,
2006). Internet has emerged as a game changer in the buying behavior of the consumers
(Riegner, 2007). Electronic word of mouth is word of mouth or the information shared by the
actual or past users of the products and it can be possibly positive or negative on the basis of
their personal experience (Hennig-Thurau, et al., 2004). Similarly Fan, et al. (6) stated that
electronic word of mouth significantly affects the consumer purchase intentions as it provides the
consumers with in depth information about certain products and services so better the quality and
quantity of electronic word of mouth more will be impact on the purchase intentions (Zhang &
Tran, 2009). Purchase intention of the consumers is highly influenced by the electronic word of
mouth like Facebook advertising has a significant impact on the purchase intentions of the
consumers (Dehghani & Tumer, 2015). The result of the current study shows that there is
significantly positive association between the electronic word of mouth and the consumer
purchase intentions of buying cell phones and accessories online in Rawalpindi.
However consumer trust is defined by the Oxford dictionaries as the hope and expectation from
the vendor about honestly provide you with the required product without harming you. Suh &
25
Han (2002) stated that trust significantly affects the buying behavior of the customers in using
the online services of banking. Mayer, et al. (1995) stated that consumer trust is basically
openness of the consumers to the online vendors based on the belief that the vendors will provide
the products and services honestly as per the promise of the vendor based on the interpretation of
the consumers about the products and services. In social network sites the trust plays a
significant role in changing the purchase intentions and decisions of the consumers. Trust plays a
significant role in motivating the people in going for purchasing goods online thus overcoming
the risk associated with purchasing goods and services from the online vendors. Different
researchers in previous studies stated that there is significant impact of consumer trust on the
purchase intentions of the consumers purchase intentions but this study evaluated that there is an
insignificant association between the consumer trust factor and the purchase intentions of the
consumers in Rawalpindi thus showing that while purchasing cell phones and accessories online
the consumers of Rawalpindi majority in the age group of 20 to 35 are not significantly
influenced by the consumer trust factor.
In nutshell, the study concluded that Social media usage and electronic word of mouth has
statistically significant influence over the Consumer purchase intentions. However, the study
suggested statistically insignificant relationship of Consumer trust and Consumer purchase
intentions among consumers of Rawalpindi.
5.3. Recommendations
This study is only limited to 3 independent variables while there are a lot of different variables
that by have significant impact on the purchase intentions of the consumers like risk associated,
online business websites designs, and many others which can be studied. Nevertheless the study
is only done in Rawalpindi limited to 200 females from which only 150 responded but the
research can be conducted using greater sample size and in other cities of Pakistan where due to
cultural differences the priorities and behaviors may differ and show different impact of social
media usage, consumer trust, electronic word of mouth and other variables on purchase
intentions.
26
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Questionnaire
I am a 3.5 year student of MBA in Army Public College of Management and Sciences
conducting a survey for final thesis concerning your opinion towards social media usage,
electronic word of mouth and consumer trust on the buying decisions of clothes online. The
information you provide will be only used for academic purpose only. Thanks for your
cooperation.
Part 1
Have you ever visited an online website? (if no this is end of questionnaire.)
Yes (continue)
No (end of questionnaire)
Have you ever purchased any good online? (If no end of questionnaire).
Yes (continue)
No (end of questionnaire)
Demographics
Age
Qualification
Occupation
Monthly Income
<20
20-30
30-35
>35
Graduation
Masters
M.phil
PHD
Student
Employed
Businesswoman
Other
<20,000
20-35,000
35-50,000
>50,000
Part 2
SNo.
Description
Social Media Usage
SDA DA N
36
A
SA
SMU1
SMU2
SMU3
Social media increases my brand relationship.
Social media helps in monitoring other market players.
Social media helps in providing information about
different sale opportunities and certain product
promotions.
SMU4
Event detection can be done through social media.
SMU5
Companies and people approach you through social
media platforms.
SMU6
Better relationships with different vendors can be
developed through social media usage.
SMU7
Social media usage creates awareness of upcoming
events and trends.
SMU8
Communication with different vendors and brands is
easy through social media usage.
Electronic Word of Mouth
EWOM1 I always provide positive feedback about online
product/brand purchasing.
EWOM2 I recommend other people purchasing goods/brands
online.
EWOM3 Others reviews about good products and services are
often considered by me.
EWOM4 I always speak well about the online products and
services.
EWOM5 I always gain confident from others reviews while
purchasing goods online.
Consumer Trust
CT1
I personally have a good online experience.
CT2
Online services provide me useful information.
CT3
I rely on social media because of its security and
reliability.
CT4
I easily trust people and products/services provided
online.
CT5
Internet usage and online services provide me great
satisfaction.
CT6
Online business will always do well to me.
CT7
Online business will deal with me honestly.
CT8
Online business will fulfill all of its commitments.
CT9
Online business is capable of providing desired
outcomes.
CT10
Online business is secure and I am willing to provide
37
my personal information.
Purchase Decisions
PD1
I primarily focus on what and from where to buy while
purchasing goods online available of various brands
and types.
PD2
I always prefer making right product choice while
purchasing online.
PD3
I select the products online on the basis of desired
outcome of the product.
PD4
I prefer purchasing goods online using my credit card
on the website.
PD5
I will be revisiting the online websites for purchasing
goods in future.
38
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