The Influence of E-word of Mouth, Brand Trust, Brand Loyalty
on Purchase Intention: A Study of Shopee in Malaysia
Nursyazwina Aqilah1, Nurulhuda Maisarah2, Lin Kim Oh3, Nurul Amirah Hayati4
Universiti Sains Malaysia1,2,3
Jalan Sg Dua, 11800 Mindem, Pulau Pinang, Malaysia.
Correspondence Email: wina.aqilah02@gmail.com
ARTICLE INFORMATION
ABSTRACT
Publication information
Many consumers have shifted to online
shopping during the Covid-19
Research article
pandemic. Hence, online shopping is
expected to become mainstream in the
HOW TO CITE
post-pandemic marketplace. Shopee
Aqilah, N., Maisarah, N., Oh, L. K., Hayati, N. A. grabs the opportunity and seizes
(2022). Influence of e-word of mouth, brand trust, market share in Malaysia. This paper
brand loyalty on purchase intention: A study of aims to examine if e-word of mouth,
shopee in Malaysia. Journal of International brand trust and brand loyalty may
influence the purchase intention of
Conference Proceedings, Vol. XXX, No. XX.
Shopee users in Malaysia. We tested
DOI: (filled by editor)
hypotheses using SPSS, and 150
Shopee users participated in the online
Copyright@year owned by Author(s). Published by survey via a google form. The findings
JICP
show that e-word of mouth, brand trust
and brand loyalty impact the purchase
intention
of
Shopee
users.
Recommendations and implications
were discussed.
This is an open-access article.
License: Attribution-Noncommercial-Share Alike
(CC BY-NC-SA)
Received: 20 June 2022
Accepted: (Filled by editor)
Published: (Filled by editor)
Filled by editor
1
Keywords: E-word of mouth, brand
trust, brand loyalty, purchase intention,
Shopee.
INTRODUCTION
Covid-19 has changed the nature of business and has a significant impact on customer
behaviour. The pandemic has had an influence on the global socioeconomic environment,
including business communities, particularly SMEs, which are still struggling for survival (Hu
& Kee, 2021). Many SMEs in Malaysia cease operations during the movement control orders
but also bring positive impacts to some industries such as e-commerce. This pandemic is a
double-edged sword (Kee et al., 2022). Consumers have moved from offline shopping to
online platforms during the pandemic (Aryani et al., 2021). According to research, 52% of
consumers shifted to online shopping as they implemented social distancing to protect
themselves (Andrienko, 2020). Thus, online shopping platforms such as Shopee are widely
used in Malaysia (Yo et al.,2021) and cause rapid rise in online purchases. Online sales grew
by 28.9% year-on-year in April 2020 (The Star, 2020).
Shopee is a multinational technology company owned by Sea Group which focuses on the ecommerce sector, founded in Singapore in 2015. Shopee maintain rapid growth and expanded
its market to Malaysia, Indonesia, Vietnam, Thailand, Taiwan, and the Philippines due to its
responsive customer service, strong logistic support and “Shopee Guarantee”. “Shopee
Guarantee” is an arrangement where sellers only receive their purchases to keep the right of
Shopee users (Shopee, 2021). These characteristics successfully differentiate Shopee from
other online shopping platforms. In 2017, Shopee surpassed Lazada to become the best app
on both the Google Play and iOS App stores, replacing Lelong as the third most popular ecommerce portal. Apart from that, Shopee is leading ahead because they noticed some
aspects that the competitors do not do, such as intrinsic cues, physical characteristics, e-word
of mouth and the importance of the rating system (Boon, Fern, and Singh, 2021). As we are
entering a new digital-driven, e-word of mouth holds a great value of creation potential for
consumers as well as sellers. Previous research suggests that information provided by
consumers or e-word of mouth is more compelling than information provided by advertisers
since consumers have no personal stake, so it is fairer and more trustworthy (Thomas, Wirtz,
& Weyerer, 2019).
Yo et al. (2021) have examined customer satisfaction towards Shopee. In this paper, will focus
on Shopee to explore the impact of e-word of mouth, brand trust and brand loyalty towards
purchase intention. Hence, this study will analyze the previous studies by showing the basic
causal chain in more detail as well as revealing the critical levers for improving customer
purchasing intention in this context. Understanding customers' purchase intentions help
companies in management strategies to create long-term and profitable customer
connections. in order to stay competitive in the market
LITERATURE REVIEW
E-word of Mouth
Chu (2021) defined e-word of mouth as “consumers’ information sharing and exchange about
a product or company via the Internet, social media, and mobile communication” (Chu, 2015,
p. 11). Praharjo and colleagues (2016) explained e-word of mouth is basically an online
extension of traditional word of mouth and e-word of mouth activities is different in many ways
from those in the actual world. The emergence and spread of the internet have broadened the
scope of consumer comments and offered consumers with possibilities to offer their own
consumption-related advises through electronic e-word of mouth (Praharjo, Wilopo, &
Kusumawati, 2016). Moreover, word-of-mouth (WOM) is a method of spreading information,
which can help consumers make decisions. But when it occurs on the internet, it is known as
e-word of mouth. E-word of mouth can spread both good and bad reviews made by future,
existing, or previous consumers of a good or service available via the Internet (Al-Gasawneh
& Al-Adamat, 2020). Information communicated by e-word of mouth includes consumer
2
personal experiences, ratings, conversations, and suggestions related to information about
products, services, company brands, as well as other topics (Zhao et al., 2020).
A study conducted by Erkan and Evans (2016) found how positive information from e-word of
mouth directly influence consumers’ purchase intention based on the findings of a survey
among university students who use social media (Erkan & Evans, 2016). Besides that, Noraini
Sa’ait and colleagues (2016) conducted a study among 361 social media online respondents,
and they discovered that e-word of mouth elements like accuracy, timeliness, relevance and
comprehensive have a strong relationship with consumers’ purchase intention. Teenagers
trust on e-word of mouth consumers’ review prior to honest consumers’ review and information
on products or services before making purchase decision (Sa'ait, Kanyan, & Nazrin, 2016).
However, the information provided by e-word of mouth is inconsistent and consumers may be
influenced by low-quality information that will lead to bad purchasing decisions, resulting in
customer distrust (Zhao et al., 2020).
According to the studies conducted by Ye and colleagues (2009), indicate that e-word of
mouth can impact loyalty as the positive online comments can substantially increase the
amount of hotel reservations (Ye, Law, & Gu, 2009). Besides that, a study conducted by
Cantallops and colleagues (2018) in the hotel industry on e-word of mouth engagement and
loyalty found that customers’ intent to suggest or leave positive comments online is positively
connected with brand loyalty (Serra-Cantallops, Ramon-Cardona, & Salvi, 2018). As such, the
following hypothesis were developed:
H1: E-word of mouth is positively related to purchase intention.
H4: E-word of mouth is positively related to brand loyalty.
Brand Trust
Brand trust is significant in determining the brand loyalty of a customer (Le, Ngo, & AureliannoSilva, 2021). From the research by (Shin et al., 2019), customer trust the brand when the
believe the feeling of secure towards the brand and the reliance of the brand able to satisfy
the customers’ expectations. When a brand able to continuously meet the expectations of their
customers, this led to long-term relationship with the customers (Shin et al., 2019). In return,
the repetition of buying behavior by customers lead to brand loyalty (Le, Ngo, & AureliannoSilva, 2021). “Trust significantly mediates the relationship between perceived service quality,
website quality reputation, and online purchase intention” (Qalati et al., 2021, p. 1). As such,
the following hypothesis were developed:
H2: Brand trust is positively related to purchase intention
H5: Brand Trust is positively related to brand loyalty
Brand Loyalty
Brand Loyalty defined as a behavior of customers that are intentionally or nonrandom
response regarding a choice of brand (Le, Ngo, & Aurelianno-Silva, 2021) or measurement of
to what extends the customers bonds with the brands (Hansopaheluwakan, Oey, & Setiawan,
2020). Customers who are loyal to a certain brand mostly are less sensitive to changes of
prices because customers are more sensitive with product quality and value (Shin et al., 2019).
Loyal customers are vital for the growth of a company's clientele and have a significant
influence on purchase intent as well as profits (Tabaku & (Mersini), 2015). Loyalty is one of
the most desired qualities in a company plan, particularly when it allows the company to
become more productive. According to study of Hameed and Kanwal (2018), explained that
brand loyalty positively influenced on consumers' purchase intention (Hameed & Kanwal,
2018). Thus, the following hypothesis was developed:
H3: Brand loyalty is positively related to purchase intention
3
Purchase Intention
A consumer's attitude toward a specific purchase behaviour, as well as their willingness to pay
for the goods or service, is described as consumer's purchasing intention (Zhang, Zhou, & Liu,
2020). Purchase intention has been considered one of the most important aspects in the
business world. Furthermore, in order to further explore into their products and service
evaluations, purchase intention is responsible for determining if a product satisfies consumers’
needs and expectations. Consumers will be more satisfied when the goods and services
match their expectations and vice versa (Xiao, Yang, & Iqbal, 2018). When buying a product,
a number of factors affect the consumer's intents, and the final choice is based on the
consumer's intent in conjunction with significant outside factors. Product packaging will also
influence consumers’ purchase intention for example, simple packaging or attractive
packaging. These are also significant characteristics that have influenced consumers’
purchase intention (Fiore, 2008). Besides that, Karem (2020) conducted a study among 384
respondents across Lebanon found that factors such as trust, social commerce frameworks,
and online behavioural advertising is positively affecting purchase intention (Karem, 2020). In
addition, a study conducted by Pena-Garcia and colleagues (2020) on a cross-cultural
approach to examine purchase intention and purchase behaviour online in Columbia and
Spain shows that attitude toward e-commerce, perceived behavioural control (PBC),
perceived usefulness, and compatibility positively influenced consumers’ online purchase
intention in both countries (Pena-Garcia et al., 2020).
Figure 1. A total of five hypotheses were formulated based on the past literature review.
Figure 1 Our Research Model
RESEARCH METHOD
Sample and Procedure
Every researcher used different methods to collect data for research. In fact, research can
also use both primary and secondary data in their studies. Thus, this study used both primary
and secondary data. For primary data, an online survey was conducted through Google Form
to 150 Shopee users from Malaysia. This survey examines at the influence of e-word of
mouth, brand trust, brand loyalty on purchase intention. This survey was developed a
measure in the form of a five-point Likert scale (1= strongly disagree, 2= disagree, 3= neutral,
4= agree, and 5= strongly agree) and began the distribution in the end of April 2022. All
measures can be found in Appendix 1. IBM SPSS Statistics 26, descriptive and multiple
regression analysis were used to analyse the data. Furthermore, journals, articles, and the
internet those are secondary data that used to support this research.
4
Measures
In this questionnaire there are four sections, which are the demographic respondents, e-word
of mouth, brand trust, brand loyalty, and purchase intention.
Demographic respondents. In order to determine the background of respondents, we
used single-statement items, which included gender, age, ethnicity, occupation, monthly
income, frequency of using online shopping, and frequency of using Shopee services.
Dependant variable: Purchase Intention. There are four questions of five-point Likert
scale prepared in this section to measure how agree respondents are with those statements.
A sample item included “I intend to use Shopee again for the next purchase.”
Independent variables. We adapted a 17-item to assess e-word of mouth, brand trust,
and brand loyalty effect the purchase intention. The items included “E-word of mouth helps
me make a decision better in online shopping (e-word of mouth)”; “I feel comfortable and safe
when using Shopee for online shopping (brand trust)”; and “I would consider Shopee as my
first choice for an online purchase platform (brand loyalty)”.
RESULTS
Table 1. Summary of Respondent's Profile (N=150)
Response
Frequency Percentage (%)
Gender
Female
102
Male
48
32
Age
Boomers: Born: 1946-1964 (Age: 58-76)
10
6.7
Gen X: Born: 1965-1980 (Age: 42-57)
12
8
Gen Z: Born: 1997-2012 (Age: 10-25)
110
73.3
Millennials: Born: 1981-1996 (Age: 26-41)
18
12
Ethnicity
Chinese
31
20.7
Indian
8
5.3
Malay
110
73.3
Siamese
1
0.7
Occupation
Employed
28
18.7
Homemaker
8
5.3
Self-employed
13
8.7
Student
96
64
Unemployed
5
3.3
Monthly Income
B40: RM4,850 and below
95
63.3
M40: RM4,851- RM10,970
46
30.7
T20: RM10,971 and above
9
6
Frequency of using online shopping service
Everyday
6
4
Often (2-3 times per week)
26
17.3
Once a month
46
30.7
Once a week
18
12
Sometimes (2-3 times per month)
54
36
Frequency of using Shopee services
5
Everyday
Often (2-3 times per week)
Once a month
Once a week
Sometimes (2-3 times per month)
4
24
42
22
58
2.7
16
28
14.7
38.7
Summary of respondents' demography in this research was shown in table 1. The sample
consisted of 102 (68%) female and 48 (32%) males. (N=150). The majority of respondents
(73.3%) were from gen z that ages between 10-25 years old whilst 12% of the respondents
were between 26-41 years old from millennials category. Then, followed by gen x (8%), and
boomers (6.7%). In terms of ethnicity, there were 110 of Malay respondents (73.3%) whilst 31
respondents were Chinese (20.7%), and 8 respondents were Indian (5.3%). Lastly, the ‘others’
of ethnicity made up 0.7% of Siamese respondent, which represented only one respondent.
The findings reveal that most of the respondents were students (64%) followed up with
employed (18.7%), and self-employed (8.7%). In addition, over half of the respondents were
from B40 of level (63.3%) followed by 46 respondents were from M40 level (30.7%), and 9
respondents were from T20 level of income (6%). In terms of using online shopping service
frequency, 54 of the response were “sometimes (2-3 times per month)” (36%), 46 were “once
a month” (30.7%), 26 were “often (2-3 times per week)” (17.3%), 18 were “once a week” (12%),
and 6 were “everyday” (4%). Apart from that, in term of using Shopee service frequency, the
survey findings show that 38.7% of the respondents purchase 2 to 3 times per month, 28%
purchase once a month, followed by 16% respondents purchase 2 to 3 times per week, 14.7%
respondents purchase once a week, and only 2.7% respondents purchase every day. The
number of purchases and repeated purchases could be another indication of their satisfaction
towards Shopee.
Table 2: Descriptive Analysis, Cronbach's Coefficients Alpha and Zero Order
Correlations All Study Variables
Variables
1
2
3
4
1. E-word of Mouth
0.883
2. Brand Trust
0.703**
0.865
3. Brand Loyalty
0.731**
0.775**
0.877
4. Purchase Intention
0.698**
0.781**
0.878**
0.897
No. of Items
7
5
5
4
Mean
4.49
4.40
4.43
4.52
Standard Deviation
0.58
0.60
0.64
0.59
Note: N = 150; *p<0.05, **p<0.01, ***p<0.001 Diagonal entries in bold indicate Cronbach's
Coefficient Alpha
To evaluate the effect of e-word of mouth, brand trust, and brand loyalty on purchasing
intention, we must understand the correlation between the variables, as well as the strength
or weakness of the correlation (Taufik et al., 2021). The descriptive statistics and
correlations among study variables were shown in table 2. Cronbach’s alpha for all four
variables were denoted a good reliability with a coefficient alpha range between 0.865 and
0.897.
Table 3: Summary of Regression Analysis
Variables
E-word of mouth
Brand Trust
Purchase Intention Brand Loyalty
0.053
.234***
6
.183**
.155*
Brand Loyalty
.657***
R2
F value
Durbin-Watson Statistic
0.797
191.201
1.844
0.806
202.105
1.902
Note: N=150, *p<0.05, **p<0.01, ***p<0.001
Table 3 presents the summary of regression analysis. As detailed in the table, e-word of
mouth, brand trust and brand loyalty were independent variables, while the dependent variable
was purchase intention. Brand trust and brand loyalty were positively related to purchase
intention with beta values of 0.234 and 0.657, respectively. Hence, H3 and H2 were supported.
The value of R2 was 0.797, which means that 79.7% of the variation of purchase intention is
explained by brand trust and brand loyalty. The highest beta value was 0.657 which is brand
loyalty. The findings revealed that brand loyalty is the variable that impacting Shopee users’
purchase intention in Malaysia, followed by brand trust with a beta value of 0.234. Meanwhile,
e-word of mouth did not influence purchase intention. Thus, H1 is not supported.
Besides that, the findings revealed that e-word of mouth and brand trust influenced purchase
intention via brand loyalty. The relationship among e-word of mouth and brand trust was
positively and strongly associated to brand loyalty with beta values of 0.183 and 0.155,
respectively. Thus, H4 and H5 were supported. While the value of R2 is 0.806, which means
that 80.6% of the variation of purchase intention would be affected by brand loyalty. The
summary of our hypothesized model is shown below in Figure 2.
Note: *p<0.05, **p<0.01, ***p<0.001
Figure 2: Our Hypothesized Model
DISCUSSION
According to the findings, e-word of mouth has no significant impact on purchase intention on
Shopee. E-word can occasionally be fake and unhelpful to the customer. Thus, some buyers
will lose interest and confidence to purchase the product when they perceived the comments
and reviews cannot be trusted. The prior research findings also showed that e-word of mouth
had no impact on purchasing and stated that this result is new to the e-word of mouth literature
(Slamet, Prasetyo & Azmala, 2022). Referring to Hennig-Thurau et al. (2004) electronic word
of mouth e-word of mouth still in its infancy and requires more attention from marketing scholar
and practitioners. In the case of Shopee, consumers may prioritize product quality more than
Shopee's e-word of mouth when deciding to purchase the product.
7
This paper also indicates that brand trust has a strong impact on consumers’ purchase
intention on Shopee. Most of the consumers stated that they feel comfortable and safe when
using Shopee and that makes them purchased many products on Shopee. Consumer who
trusts a company will ensure that the service performance is good, so the intention to
repurchase will increase too. It can be said that Shopee has success to satisfy consumers’
need by fulfilling their desire, protecting user’s right and personal information, and meeting
expectations. Previous studies also revealed that brand trust has a significant positive
influence on purchase intention (DAM, 2020). High trust in online shopping includes the
features of belief, confidence, assurance, sincerity as well as purchase intention. Thus, brand
trust is a significant element that influences consumers’ purchase intention.
Moreover, result had proven that brand loyalty has significant correlation with purchase
intention. Most consumers stated that they loyal customer of Shopee and will recommend
Shopee to people around them. It can be said that “while businesses aim to interact with their
loyal consumers, influence brand community members' perceptions regarding the brand,
spread information, and obtain information from them, applications performed online and
offline by customers have gained value” (Gummerus et al., 2012, p.857). On the other hand,
it cannot be denied that brand with loyal customer will get a warm response from people.
Therefore, this loyalty will probably influence consumer purchase intention on Shopee.
Next, the result shows that e-word of mouth has significant influence on brand loyalty. People
will easily be influenced by other people’s opinion and suggestion through e-word of mouth.
Shopee provides a feature for their customers to comment of the product they have
purchased. This helps new customers to decide to be loyal or not to a product after reviewing
feedback shared by the existing customers on Shopee. Customer loyalty to the brand will be
significantly increased by positive comments about the business or brand. This result is in
agreement with Ngoma and Ntale (2019) who argue that positive e-word of mouth feedback
dispels uncertainty, builds customer engagement, and may even act as a switching barrier,
preventing clients from discontinuing their relation. Customers feel more confident in the
company and its products as a result, and it helps them feel like they made the right choice.
(Ngoma & Ntale, 2019). In addition, e-word of mouth influences purchase intention indirectly
through brand loyalty. In other words, the extent to which e-word of mouth influences purchase
intention through brand loyalty. In this case, brand loyalty is a mechanism that explains why
e-word of mouth can promote purchase intention.
In addition, the result had proven that brand trust has a significant impact on brand loyalty.
Most customer feel comfortable and safe when using Shopee for online shopping, and they
trust Shopee protect user’s right to protect their personal information and financial transaction
when using the application. Besides that, the findings also show that customers have
purchased many products on Shopee as it meets their expectation. A study conducted by
Bozbay and Baslar (2020) on young consumers of a large sportswear company in Istanbul
revealed that, brand trust really does influence brand loyalty. Customers become loyal
customers because of their positive perceptions of the brand and their trust in it (Bozbay &
Baslar, 2020).
CONCLUSION
During this pandemic Covid-19, online shopping platforms such as Shopee becomes
increasingly popular among consumers. Thus, business communities need to expand their
business not only in physical stores but also through online shopping platforms. To ensure the
successful growth of business especially SMEs, factors affecting consumers’ purchasing
behavior that leads to purchase intention. Four variables were identified in this study namely
e-word of mouth, brand trust and brand loyalty as the independent variables and purchase
intention as the dependent variable, and the five hypotheses were formed. From the study of
8
Shopee consumers, brand loyalty and brand trust directly influence the purchase intention of
consumers while purchase intention was affected by brand trust and E-word of mouth via
brand loyalty. Products that fulfilled their needs and expectations develop feelings of trust and
loyalty towards the brand. With the strong correlation between brand loyalty and purchase
intention, E-word of mouth and brand trust also becomes significant in determining the
purchase intention of consumers. Even though E-word of mouth cannot influence the purchase
intention of consumers directly, customer reviews can help them in choosing the brand for
purchase and thus the intention to purchase. Hence, E-word of mouth, brand trust and brand
loyalty had been pointed out to be the key factors in determining the purchase intention of
consumers that will help in understanding consumer buyer behavior and strengthen the
relationship with customers.
LIMITATION
The study's findings must be viewed in light of significant limitations. Firstly, the sample size
in this study is considered insufficient, and it may not be representative of the entire target
population. Furthermore, this study exclusively focuses only target country is Malaysia, to
investigate the link between factors influencing consumers' purchase intention. As a result,
the overall findings may contain limited information. Thus, future studies should increase the
sample size utilised in the study and include respondents from other Malaysian states to
represent the whole target population, achieve more meaningful results due to differences in
nation and culture. The higher the target respondents, the more accurate the conclusion
finding.
As this research only focuses on e-word of mouth, brand trust, and brand loyalty, a similar
empirical inquiry may be conducted to investigate other factors. Thus, future studies should
include value perceptions, customer satisfaction, and brand experience in their studies to get
a deeper understanding of consumers’ purchase intention based on different factors.
In addition, forthcoming studies should focus on distributing questionnaires to different age
groups. Given that the data collected for this research paper was mostly answered by
Generation Z which were mostly students, it is definitely because this group is more exposed
to social media and has knowledge of it.
ACKNOWLEDGMENT
N/A
DECLARATION OF CONFLICTING INTERESTS
The Author(s) declare(s) that there is no conflict of interest.
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APPENDIX 1
E-word of mouth
1. E-word of mouth helps me make a decision better in online shopping.
2. E-word of mouth makes my online purchase enjoyable.
3. E-word of mouth helps me in choosing a quality product.
4. I will read other consumers’ online product reviews before online purchases.
5. I will share my product review to help other consumers in online shopping.
6. Consumers online product reviews will influence my purchase decision.
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7. I am confident with my purchase decision if I read reviews from other consumers.
Brand trust
1. I feel comfortable and safe when using Shopee for online shopping.
2. I have purchased many products on Shopee.
3. Shopee protects user’s rights.
4. Products in Shopee meet my expectations.
5. Shopee safely protects users’ personal information.
Brand loyalty
1. I would consider Shopee as my first choice for an online purchase platform.
2. I am loyal customer of Shopee.
3. I will not purchase on other platforms if the same product is available as Shopee.
4. I recommend Shopee to people around me.
5. Shopee provides the quality products at an affordable price.
Purchase intention
1. I intend to use Shopee again for the next purchase.
2. I am likely to use Shopee compared to other brands.
3. I am happy to use Shopee.
4. Shopee provides good quality customer service.
Note: Responses to each item are based on the five-point Likert Scale with a scale ranging
from (1) Strongly Disagree to (5) Strongly Agree.
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