Date: 3 June 2021 Level: Bachelor Thesis in Business Administration, 15 cr Institution: School of Business, Society and Engineering, Mälardalen University Authors: Battha Mohammed Jargalsaikhan Erdenebulgan                     (93/06/10)               (99/12/14) Title: The affect of eWOM on the brand image and purchase intention Tutor: David Freund Keywords: Electronic word of mouth (eWOM), word of mouth (WOM), brand image, smartphone Research question: Does eWOM affect a brand image? Purpose: The purpose of this research study is to determine eWOM affects on brand image concerning smartphone industries in Sweden Method: To fulfill the purpose of the research study used quantitative method. The quantitative method is used by applying questionnaires to collect the empirical data to answer the research question. A sample size of 168 respondents was selected and statistical analyses were carried out to show the distribution of the collected data. Conclusion: The study found that there is a strong affect of eWOM on the brand image of the smartphone industry in Sweden. The study concludes that it is important for firms and brands to invest in their technological marketing platforms where they can respond to customer concerns immediately.

Titel: Social Customer Relationship Management - En kvalitativ studie om hur svenska företag inom dagligvaruhandeln använder sociala medier för att skapa samt hantera kundrelationer   Nivå: Examensarbete på Grundnivå (kandidatexamen) i ämnet företagsekonomi   Författare: Jennifer Palm och Louise Wallsten   Handledare: Jonas Molin och Lars-Johan Åge   Datum: 2021 - maj     Syfte: Syftet med denna studie är att få ökad förståelse för hur företag inom dagligvaruhandeln arbetar med SCRM.     Metod: En kvalitativ forskningsansats tillämpas för denna uppsats. Det empiriska materialet har samlats in genom semistrukturerade intervjuer samt en mailintervju med respondenter som tillhör företag inom dagligvaruhandeln.      Resultat & slutsats: Studiens samtliga respondenter är överens om kundens centrala roll och betonar den framgång som sociala medier har bidragit med i skapandet samt hanteringen av kundrelationer. För att skapa dessa önskade kundrelationer används sociala medier som det kommunikationsverktyg där företagen kontinuerligt kommunicerar med sina kunder. Genom kundernas återkopplingar får företagen en ökad vetskap gällande hur relationer ska formas för att tillfredsställa kundens behov.      Examensarbetets bidrag: Det teoretiska bidraget för studien är den analysmodell som har utformats i syfte att minimera osäkerheten gällande företags implementering av SCRM. Vidare till det praktiska bidraget visar denna studie de positiva aspekter som finns vid implementeringen av SCRM och hoppas att företag inom dagligvaruhandeln kommer finna ett större intresse av SCRM då fördelarna med användningen överväger dess nackdelar.     Förslag till fortsatt forskning: Denna studie har ett empiriskt urval som består av respondenter från dagligvaruhandeln. Detta gör att resultatet för studien endast kan appliceras på företag som befinner sig inom liknande bransch. Vi finner därför att vidare forskning är intressant att genomföra för företag inom en annan specifik bransch i syfte att se hur dessa företag arbetar med sociala medier i koppling till kundrelationer     Nyckelord: Social Customer Relationship Management (SCRM), Sociala medier, Electronic-Word-Of-Mouth (eWOM) och Dagligvaruhandel

This thesis is situated in the research field of electronic commerce, specifically the aspect of fast fashion brands. This has drawn consumer interest because they find struggles when shopping for clothes online due to their inability to try the product before purchasing from sellers, which tends to result in information asymmetry. Therefore, they may be more hesitant to purchase online due to the perceived risk that results in low level of trust while shopping clothes online; therefore, businesses should strive to alleviate their concerns. Previous research has shown that electronic word of mouth (e-WOM) can guide and increase confidence.  The purpose of this study is to gain a better understanding of how consumers perceive online reviews as ways of reducing information asymmetry and reduce risk in order to ensure that they will be satisfied with their purchase. Furthermore, many factors identified in previous research that could influence the use of online reviews were identified and analyzed in the context of fast fashion for this study. Therefore, the study discovered several factors that influenced the use of online reviews.  This study investigates the role of trust as a mediator between customers' perception of electronic word-of-mouth (eWOM) and their subsequent actions. Specifically, the study focuses on the influence of the perceived usefulness of online reviews on customer trust in fast fashion websites. To gain a comprehensive understanding of consumers' opinions on online reviews, a qualitative research approach employing semi-structured interviews was conducted. The interviews provided participants with the opportunity to elaborate on their responses and provide nuanced insights. The findings indicate that fast fashion brands should prioritize the inclusion of online reviews and enhance their mechanisms based on the factors identified in this study. By recognizing the importance of customer trust and addressing the perceived usefulness of online reviews, fast fashion brands can improve their relationship with customers and foster positive consumer actions. This study contributes to the existing literature on eWOM, trust, and online reviews, offering practical implications for fast fashion brands aiming to optimize their online platforms.

Yes / The aim of this research is to synthesise findings from existing studies on the characteristics of source credibility of electronic word of mouth (eWOM) communications in a single model by using meta-analysis. Findings from 20 research papers show that source expertise, trustworthiness, and homophily significantly influence perceived eWOM usefulness and credibility, intention to purchase, and information adoption. The results of this study add to existing knowledge of the influence of source characteristics on consumer behaviour, which will advance our understanding of information processing. Marketers can use the findings of this meta-analysis to enhance their marketing activities.

No / Electronic word of mouth (eWOM) significantly affects the consumer decision-making process. A number of studies investigated why consumers provide eWOM communications. Existing literature has contradicting factors regarding factors affect eWOM providing behaviour. This study aims to evaluate factors affecting eWOM providing behaviour by performing a systematic review and weight analysis of existing research outputs. Based on the result of weight analysis it was found that the best predictors of eWOM providing behaviour are involvement, self-enhancement, and trust in web eWOM services. Scholars can use the results of this study when making decisions regarding the inclusion of factors in their research. Practitioners can pay more attention to the best predictors.

Idag finns hög konkurrens på marknaden och detta gör att det är svårt för varumärken att bli sedda av sin kund. Dagens konsument rör sig mellan olika kanaler och kommunikationen från företag måste uppdateras och anpassas efter konsumentens beteende. Det är avgörande för företag att engagera sina kunder för att bli uppmärksammade. Konsumenter kommunicerar åsikter sinsemellan i form av electronic word of mouth (eWOM) som påverkar företaget. Komplexitet kan ligga i att veta vilka kanaler som är bäst utifrån sina förutsättningar. Syftet med denna kvalitativa studie är att undersöka vad små och medelstora e-handelsföretag (SMeF) har för förutsättningar till kommunikation digitalt och fysiskt. Vidare ämnar studien att undersöka hur en kombination av olika kanaler kan användas för att göra företaget synligt genom bruset på marknaden. Insamlad empiri består av åtta semi-strukturerade intervjuer med specifikt utvalda respondenter genom ett målstyrt urval och, till viss del, kedjeurval. Respondenterna valdes ut för att representera flera erfarenheter ur ett företagsperspektiv. Shannon och Weavers (1949) kommunikationsmodell med sändare, verktyg, brus och mottagare utvecklas till en analysmodell för ämnet. SMeF förutsättningar undersöks samt att fysisk närvaro kan skapa en interaktiv miljö för företaget och kunden att mötas i. Digitala verktyg kan vara ett kostnadseffektivt sätt nå ut till konsumenten. Dessa kan bilda en enad kundupplevelse genom omnikanaler. Slutsatsen av studien är att SMeF kan nå nu ut genom bruset genom att använda verktyg utefter en fokuserad omnikanalmodell. Strategiskt utvalda kanaler kan ge SMeF effektiv kommunikation som når genom bruset till kunden. Denna studie är skriven på svenska. / The high market competition today makes it difficult for brands to be seen by their customers. The consumer is drifting between channels and the way companies communicate has to be updated and adapted to this behaviour. It is crucial for companies to engage their customers in order to get noticed. Consumers also communicate opinions among themselves in the form of electronic word of mouth (eWOM) affecting the company. There is a complexity into which channels are best amended to face these circumstances. The purpose of this qualitative study is to investigate small and medium-sized e-commerce enterprises (SMeE) potential to communicate through digital and physical platforms. Furthermore, the study aims to examine how a combination of different channels can be used to make the company visible through the noise of competitors. Collected empirical data consists of eight semi-structured interviews with respondents specifically selected through purposive sampling and, to some extent, snowball sampling. The respondents were selected to represent several practises from a business perspective. Shannon and Weaver's (1949) model of communication consist of transmitter, tools, noise and receiver and is used as an analysing tool. The SMeE opportunities are explored as well as if a physical presence can create an interactive environment for the company and the customer. Digital tools can be a cost-effective way for SMeE to reach out to the consumer. These can in turn form a unified customer experience in creating an omnichannel. The conclusion of the study is that SMeE can reach through the noise by focusing the tools across an omnichannel model. Strategically selected channels can provide SMeE effective communication that penetrates the noise and reach the customer. This study is written in swedish.

Digital platforms such as blogs and social networking sites provide new means for individuals to gather and spread information about products and services through electronic Word of Mouth (eWOM). Within those platforms, individuals have the potential to emerge to become influential actors with the power to affect the behaviours and attitudes of others. Despite the growing interest in online influence, there is still a limited understanding of how key individuals share and engage in eWOM. This study looks at tech-bloggers as an emerging actor category that create and develop consumption oriented online content such as product reviews using blogs and associated technologies. This thesis presents an in depth qualitative investigation to understand how this emerging actor category have been able to establish an influential status. Existing literature often labelled bloggers as “opinion leaders” obscuring what is new and different about them. Building a practice based discussion of these emerging actors aims to capture activities and processes in a wider, natural setting. Paired with the exploratory nature of research, this thesis draws on a conceptually grounded, qualitative research approach utilising interviews with key tech-bloggers, marketers and blog analysis. Findings show that these emerging actors engage in three distinct but interrelated practices centred on audience construction, content development and network formation. Audience construction requires emerging actors to develop quality content utilising existing networks composed of other actors within the same category and the audience. As a consequence, emerging actors are socially embedded in a multiplicity of interactions online and offline to develop their blog and their content. This study contributes to existing concepts in eWOM by showing how emerging actors develop a particular expertise, distinct from consumers, in attracting an audience. Furthermore, these emerging actors transform from being knowledge replicators to become knowledge producers developing communication content in line with a wider audience. As tech-bloggers become more established as emerging actors, tech companies are adapting their marketing to account for these practices. The result is a co-creation of product news and advice on new products between emerging actors, marketers and the audience. Thus, this work gives a more nuanced account of eWOM and the role of emerging actors shaping communication in this sector.

The use of e-mail communication between consumers has been growing and companies are seeking to increase their understanding of this type of private communication medium between consumers. The privacy and cost-effectiveness characteristics of e-mail make it an important communication medium for consumers. Consumers use e-mail to exchange a variety of information including electronic word of mouth (eWOM) about products, services and organisations. The travel industry, the context of this study, is increasingly being delivered online. Understanding what influences consumers and how consumers evaluate eWOM will increase the travel industry’s knowledge about its consumer base. This study aims to contribute to existing knowledge on the impact of eWOM on consumer purchase intention. Its focus is on an interpersonal context where eWOM is sent from the source to the receiver in an e-mail about holiday destination. The study, which was undertaken from a positivist perspective, used qualitative and quantitative research techniques to better understand the influence of eWOM on purchase intention. The literature on word of mouth (WOM) and eWOM was initially examined to identify the major factors that have an influence on the receiver of eWOM. Consistent with previous studies, both perceived expertise and similarity were identified as source characteristics that have an influence on the receiver’s purchase intention. The literature also indicated that trustworthiness belief would have a key effect on the influence of eWOM on the attitude of the receiver. Consequently, this study examined each trustworthiness dimension – ability, benevolence, and integrity – with respect to its role in the influence of eWOM on purchase intention. The literature review also revealed that certain receiver characteristics were important in the process of influence, especially consumer susceptibility to interpersonal influence. The relationships between the variables identified were further developed into the research model, which has its roots in the theory of reasoned-action (Fishbein and Ajzen, 1975) and the dual process theory of influence (Deutsch and Gerard, 1955). Methodologically, a scenario-building approach to developing authentic e-mail was used. The qualitative data gathered from eight focus group discussions were analysed using “framework analysis” (Ritchie and Spencer, 1994) to develop eight scenarios. This was then used to manipulate the moderating variables in the scenario. Three manipulations, each with two levels, were included: eWOM direction “positive and negative”; source characteristic of “expert/non-expert”; and source characteristic of “similar/non-similar”. These scenarios formed part of a questionnaire. The questionnaire was used to collect data from a sample of University of Bradford students. The final number of usable questionnaires was 477. Structural equation modelling was used to determine the validity of the conceptual model and test the hypotheses. In particular, multiple group analysis was used to assess both the measurement and structural models, and to identify the impact of the eWOM direction. The theoretical model that describes the relationships between the exogenous variables (source’s and receiver’s characteristics) and the endogenous variables (trustworthiness dimensions, interpersonal influence and purchase intention) was accepted. The research findings provided empirical evidence on the difference in the impact of positive and negative eWOM on purchase intention. The source’s and receiver’s characteristics and related trustworthiness beliefs, (i.e. ability, benevolence, and integrity) are influenced by the direction of eWOM. The findings show that positive and negative eWOM differ with respect to how they impact on consumers’ attitudes and intentions. For instance, consumers have more belief in the credibility of a source who provides negative eWOM. However, the overall influence of the source’s characteristics tends to be stronger with positive than with negative eWOM. The findings of this study provide insights for both academics and practitioners to understand the potential of eWOM. This might be tailored to help develop more private relationships with customers through e-mail marketing strategies that incorporate eWOM. Negative eWOM is more credible but less directly useful to marketers. Nevertheless, it is important for marketers to realise the significance of managing dissatisfaction and to harness the power of negative eWOM. Similarly, positive eWOM is effective especially when the source is both expert and similar. This might be translated into online marketing campaigns that use consumer-to-consumer discussions in addition to viral marketing. Future research might test the model in different contexts, (e.g. financial services), to provide a more comprehensive picture of the influence of eWOM on purchase intention.

Abstract The rapid technological developments have changed how companies market themselves and how consumers search for information. Furthermore, the internet provides companies with a variety of channels to share information and products. For a long time, “word of mouth” which consumers recommend via mouth-to-mouth, has been one of the most effective marketing techniques. According to studies, the effect of positive and negative electronic Word of Mouth on consumers differs, with negative electronic Word of Mouth having a greater impact on consumers. Positive electronic word-of-mouth can be beneficial for companies whereas negative can be detrimental. This thesis investigates what companies should do to continue spreading positive eWOM and reduce the negative eWOM. Further, this thesis aims to investigate how the positive and negative eWOM affects a company and what their current strategy is so that a recommended strategy can be built for the companies.  Thus, a qualitative study of six SME companies was designed to understand how eWOM affects companies and how they can reduce the effect of negative eWOM. The data was gathered through online semi-structured interviews, and the findings indicate that companies are affected differently by eWOM due to whether it is a product-based or service-based company. According to the study, two components that all companies lacked were resources and time. Companies should be more visible, have weekly marketing meetings, and a platform for reviews, according to the new strategy. Keywords: electronic word-of-mouth (eWOM), Social networks sites (SNS), Valence, Online reviews, impact, and consequences of eWOM

The use of e-mail communication between consumers has been growing and companies are seeking to increase their understanding of this type of private communication medium between consumers. The privacy and cost-effectiveness characteristics of e-mail make it an important communication medium for consumers. Consumers use e-mail to exchange a variety of information including electronic word of mouth (eWOM) about products, services and organisations. The travel industry, the context of this study, is increasingly being delivered online. Understanding what influences consumers and how consumers evaluate eWOM will increase the travel industry’s knowledge about its consumer base. This study aims to contribute to existing knowledge on the impact of eWOM on consumer purchase intention. Its focus is on an interpersonal context where eWOM is sent from the source to the receiver in an e-mail about holiday destination. The study, which was undertaken from a positivist perspective, used qualitative and quantitative research techniques to better understand the influence of eWOM on purchase intention. The literature on word of mouth (WOM) and eWOM was initially examined to identify the major factors that have an influence on the receiver of eWOM. Consistent with previous studies, both perceived expertise and similarity were identified as source characteristics that have an influence on the receiver’s purchase intention. The literature also indicated that trustworthiness belief would have a key effect on the influence of eWOM on the attitude of the receiver. Consequently, this study examined each trustworthiness dimension – ability, benevolence, and integrity – with respect to its role in the influence of eWOM on purchase intention. The literature review also revealed that certain receiver characteristics were important in the process of influence, especially consumer susceptibility to interpersonal influence. The relationships between the variables identified were further developed into the research model, which has its roots in the theory of reasoned-action (Fishbein and Ajzen, 1975) and the dual process theory of influence (Deutsch and Gerard, 1955). Methodologically, a scenario-building approach to developing authentic e-mail was used. The qualitative data gathered from eight focus group discussions were analysed using “framework analysis” (Ritchie and Spencer, 1994) to develop eight scenarios. This was then used to manipulate the moderating variables in the scenario. Three manipulations, each with two levels, were included: eWOM direction “positive and negative”; source characteristic of “expert/non-expert”; and source characteristic of “similar/non-similar”. These scenarios formed part of a questionnaire. The questionnaire was used to collect data from a sample of University of Bradford students. The final number of usable questionnaires was 477. Structural equation modelling was used to determine the validity of the conceptual model and test the hypotheses. In particular, multiple group analysis was used to assess both the measurement and structural models, and to identify the impact of the eWOM direction. The theoretical model that describes the relationships between the exogenous variables (source’s and receiver’s characteristics) and the endogenous variables (trustworthiness dimensions, interpersonal influence and purchase intention) was accepted. The research findings provided empirical evidence on the difference in the impact of positive and negative eWOM on purchase intention. The source’s and receiver’s characteristics and related trustworthiness beliefs, (i.e. ability, benevolence, and integrity) are influenced by the direction of eWOM. The findings show that positive and negative eWOM differ with respect to how they impact on consumers’ attitudes and intentions. For instance, consumers have more belief in the credibility of a source who provides negative eWOM. However, the overall influence of the source’s characteristics tends to be stronger with positive than with negative eWOM. The findings of this study provide insights for both academics and practitioners to understand the potential of eWOM. This might be tailored to help develop more private relationships with customers through e-mail marketing strategies that incorporate eWOM. Negative eWOM is more credible but less directly useful to marketers. Nevertheless, it is important for marketers to realise the significance of managing dissatisfaction and to harness the power of negative eWOM. Similarly, positive eWOM is effective especially when the source is both expert and similar. This might be translated into online marketing campaigns that use consumer-to-consumer discussions in addition to viral marketing. Future research might test the model in different contexts, (e.g. financial services), to provide a more comprehensive picture of the influence of eWOM on purchase intention.