Explaining the role of electronic word-of-mouth (Ewom) advertising on building trust and promoting online home business sales

Authors

Department of Management and Economics, Faculty of Humanities and Social Sciences, Golestan University, Gorgan, Iran

Abstract

Despite the importance of online home businesses in terms of employment and entrepreneurship, they face many challenges and problems that can jeopardize their survival and development. The purpose of this research is to explain the role of electronic word-of-mouth (eWOM) advertising on building trust and promoting sales. This research is applied, it is descriptive in terms of purpose. The members of the statistical population of this research were 386 consumers of Mazandaran with the experience of buying home business products at least once on the platform of social media, which was carried out using a non-random sampling method available and through eWOM questionnaires, sales and online trust were investigated. The reliability of the research instrument was measured and confirmed by examining its internal consistency and validity through convergent validity and divergent validity. Structural equation model was used to check research hypotheses. At the confidence level of five percent, the results showed that online trust has a direct, positive and significant effect on the promotion of online home business sales. The content dimensions of eWOM advertising and the positive attraction of eWOM advertising positively and the negative attraction dimension of eWOM advertising negatively affect the sales promotion. Also, eWOM advertising as a moderating variable can increase the effect of the online trust variable on the promotion. The findings of the present study showed that the promotion is highly dependent on online trust and this relationship is also affected positively or negatively by attention.

Keywords

Main Subjects

References

ایران‌دوست، ع.، قوامی‌پور، م.، ابراهیم‌نژاد، ر.، حسین‌پور، د. 1392. عوامل کلیدی اثرگذار بر موفقیت کسب‌وکارهای خانوادگی اولویت‌بندی با روش تحلیل شبکه‌ای. توسعه کارآفرینی، 6(2): 55-74.
خسروی‌پور، ب.، دهقان‌پور، م. 1394. کارآفرینی در بخش کشاورزی از طریق ایجاد و گسترش مشاغل خانگی. کارآفرینی در کشاورزی، 2(3): 61-75.
خنیفر، ح.، کریمی، آ.، زین‌ساز، ع.، مبینی دهکردی، ع. 1401. ارائه چارچوب به‌کارگیری رسانه‌های اجتماعی در کسب‌وکارهای خانگی با استفاده از روش فراترکیب. توسعه کارآفرینی، 15(3): 441-457.
دامغانیان، ح.، سیاه‌سرانی کجوری، م. 1391. بررسی تأثیر امنیت ادراک‌شده بر اعتماد به بانکداری اینترنتی از سوی مشتریان زن (پیمایشی پیرامون بانک صادرات شهر سمنان). مدیریت فناوری اطلاعات، 4(13): 71-88.
نادری، ن.، امیری، ص. 1397. ارائه مدل فرآیندی بومی جهت توسعه کسب‌وکارهای خانگی در استان کرمانشاه. مطالعات کارآفرینی و توسعه پایدار کشاورزی، 5(2): 17-31.
نجفی، ب.، صفا، ل. 1393. بررسی کسب‌وکارهای خانگی کارآفرینانه و موانع و چالش‌های توسعه آن‌ها در مناطق روستایی. کارآفرینی در کشاورزی، 1(2): 61-73.
AbedRabbo, M., Hart, C. % Ellis-Chadwick, F. (2021). Do connected town Centre shopping journeys improve town Centre patronage?. International Journal of Retail and Distribution Management, 49(8): 1198-1212.
Ahmad, A., Abuhashesh, M., Obeidat, Z. & AlKhatib, M.(2020). E-WOM and airline e-ticket purchasing intention: mediating effect of online passenger trust. Management Science Letters, 10(12): 2729-2740.
Bagozzi R.P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science. 16(1): 74–94.
Bu, Y., Parkinson, J. & Thaichon, P. (2020). Digital content marketing as a catalyst for e-WOM in food tourism. Australasian Marketing Journal, 29(2), Article in Press.
Buil, I., Chernatony, L. D. & Martínez, E. (2013). Examining the role of advertising and sales promotions in brand equity creation. Journal of Business Research, 66(1): 115–122.
Burgess, S., and Paguio, R. 2016. Examining ICT application adoption in Australian home-based businesses: an Innovation-Decision Process approach. Journal of Enterprise Information Management, 29(2): 276-299.
Chaffey, D. & Ellis-Chadwick, F. (2019), Digital Marketing: Strategy, Implementation and Practice, 7th ed, Pearson, New York, NY.
Chang, H.H. & Wu, L.H. (2014). An examination of negative e-WOM adoption: brand commitment as a moderator. Decision Support Systems, 59(1): 206-218.
Clark, D. N., & Douglas, H. (2014). Micro-enterprise growth: Lessons from home-based business in New Zealand. Small Enterprise Research, 21(1): 82-98.
Dalman, M.D., Chatterjee, S. & Min, J. (2020). Negative word of mouth for a failed innovation from higher/lower equity brands: moderating roles of opinion leadership and consumer testimonials. Journal of Business Research, 115(3): 1-13.
Dennis, C., Alamanos, E., Papagiannidis, S. & Bourlakis, M. (2016). Does social exclusion influence multiple channel use? The interconnections with community, happiness, and well-being. Journal of Business Research, 693): 1061-1070.
Fan, Y.W., Miao, Y.F., Fang, Y.H. & Lin, R.Y. (2013). Establishing the adoption of electronic word of mouth through consumers’ perceived credibility. International Business Research, 6(3):58-65.
Fornell, C., & Larcker, D. F. 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1): 39–50.
Gauzente C., & Ranchhod A. (2002). Ethical marketing for competitive advantage on the internet. Academy of Marketing Science Review; 2001(10): 1-8.
Goyette, I., Ricard, L., Bergeron, J. & Marticotte, F. (2010). E-WOM scale: word-of-mouth measurement scale for e-services context. Canadian Journal of Administrative Sciences/Revue Canadienne Des Sciences de L’administration, 271): 5-23.
Ha S., & Stoel, L. (2009). Consumer e-shopping acceptance: Antecedents in an International. Journal of Contemporary Hospitality Management, 21: 752-765.
Hair, J.F., Anderson, R.E., Tatham, R.L., & Black, W.C. (1998). Multivariate Data Analysis, fifth ed. Prentice Hall, Englewood Cliffs, NJ.
Hall, A., Towers, N. & Shaw, D.R. (2017). Understanding how millennial shoppers decide what to buy. International Journal of Retail and Distribution Management, 45 (5): 498-517.
He, S.X. & Bond, S.D. (2015). Why is the crowd divided? Attribution for dispersion in online word of mouth. Journal of Consumer Research, 41(6): 1509-1527.
Hennig-Thurau, T., Gwinner, K.P., Walsh, G. & Gremler, D.D. (2004). Electronic word-of-mouth via consumer- opinion platforms: what motivates consumers to 65 articulate themselves on the internet?. Journal of Interactive Marketing, 18(1): 38-52.
Homburg, C., Schwemmle, M. & Kuehnl, C. (2015). New product design: concept, measurement, and consequences. Journal of Marketing, 79(3): 41-56.
Hong, Z., Li, M., Han, X. & He, X. (2020). Innovative green product diffusion through word of mouth. Transportation Research Part E: Logistics and Transportation Review, 134(3): 101-113.
Ismagilova, E., Slade, E.L., Rana, N.P. & Dwivedi, Y.K. (2019). The effect of electronic word of mouth communications on intention to buy: A Meta-analysis. Information Systems Frontiers, 22(1): 1203-1226.
Jewell, D.V. 2001. Guide to evidence-based physical therapist practice (2nd edition). Jones & Bartlett Learning: Ontario.
Kim, S., Kandampully, J. & Bilgihan, A. (2018). The influence of eWOM communications: an application of online social network framework. Computers in Human Behavior, 80(1): 243-254.
Kock, N. (2011). Using WarpPLS in e-Collaboration Studies: Mediating effects, control and second order variables and algorithm choices. International Journal of e-Collaboration, 7(3): 1-13.
Lahm Jr, R.J. (2020). The Small Business Landscape: The Gig Economy in 2020 and Beyond. Paper presented at the ARBS 2020 Proceedings 7th Annual Conference March 26-27, 2020 Eastern Kentucky University Richmond, KY.
Lamberton, C. & Stephen, A.T. (2016). A thematic exploration of digital, social media, and mobile marketing: Research evolution from 2000 to 2015 and an agenda for future inquiry. Journal of Marketing, 80 (6): 146-172.
Lemon, K.N. & Verhoef, P.C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6): 69-96.
Luo, Y. (2009). Using internet data collection in marketing research. International Business Research, 2(1): 196-202.
Nadarajan, G., Bojei, J. & Khalid, H. (2017). The study on negative eWOM and its relationship to consumer’s intention to switch mobile service provider. Procedia Computer Science, 124: 388-396.
Nam, K., Baker, J., Ahmad, N. & Goo, J. (2020). Determinants of writing positive and negative electronic word-of-mouth: Empirical evidence for two types of expectation confirmation. Decision Support Systems, 129(1): 113-119.
Nguyen, H.T. & Chaudhuri, M. (2019). Making new products go viral and succeed, International Journal of Research in Marketing, 361): 39-62.
Pantano, E., Priporas, C.V. & Dennis, C. (2018). A new approach to retailing for successful competition in the new smart scenario. International Journal of Retail and Distribution Management, 46(3): 264 -282.
Qalati, S. A., Yuan, L. W., Khan, M. A. S., & Anwar, F. (2021). A mediated model on the adoption of social media and SMEs’ performance in developing countries. Technology in Society, 64(3): 101-113.
Reuschke, D., & Mason, C. (2020). The engagement of home-based businesses in the digital economy. Futures, 135(1), 1-13.
Saleh, Y. 2020. ICT, social media and COVID-19: evidence from informal home    based business community in Kuwait City. Journal of Enterprising Communities: People and Places in the Global Economy, 15(3): 395-413.
Schindler, R.M. & Bickart, B. (2005). Published word of mouth: referable, consumer-generated information on the internet. Online Consumer Psychology, 32: 35-61.
Seo, E.J., Park, J.W. & Choi, Y.J. (2020). The effect of social media usage characteristics on eWOM, trust, and Brand equity: Focusing on users of airline social media, Sustainability. 124): 1691-1705.
Sparks, B.A. & Browning, V. (2011). The impact of online reviews on hotel booking intentions and perception of trust. Tourism Management, 32 (6): 1310-1323.
Stephen, A.T. & Lehmann, D.R. (2009). Why Do People Transmit Word-of-Mouth? The Effects of Recipient and Relationship Characteristics on Transmission Behaviors. Departamento de Marketing, Universidade da Columbia.
 
Tipple, G. (2006). Employment and work conditions in home based enterprises in four developing countries: Do they constitute decent work? Journal of Employment and Society, 20: 167-179.
Van Eck, P.S., Jager, W. & Leeflang, P.S. (2011). Opinion leaders’ role in innovation diffusion: a simulation study. Journal of Product Innovation Management, 28(2): 187-203.
Verhoef, P.C., Lemon, K.N., Parasuraman, A., Roggeveen, A., Tsiros, M. & Schlesinger, L.A. (2009). Customer experience creation: Determinants, dynamics and management strategies. Journal of Retailing, 85(1): 31-41.
Wang, F., Cai, R. & Huang, M. (2010). Forecasting movie-going behavior based on online pre-release WOM and opening strength, 2010 2nd International Workshop on Intelligent Systems and Applications: 1-4.
Wen, I. (2009). Factors affecting the online travel buying decision: a review. International Journal of Contemporary Hospitality Management, 21: 752-765.
Journal of Studies in Entrepreneurship and Sustainable Agricultural Development
Volume 10, Issue 3 - Serial Number 30
September 2023
Pages 168-185

Files

Share

How to cite

Statistics