Int. J. Services, Economics and Management, Vol. 9, No.

2, 2018 143

The effect of eWOM communication on brand image

and purchase intention towards lifestyle products in
India

Devkant Kala*
Department of General Management,
School of Business,
University of Petroleum and Energy Studies,
Dehradun, Uttarakhand, India
Email: devkant.kala@ddn.upes.ac.in
*Corresponding author

D.S. Chaubey
Department of Management,
Uttaranchal University,
Dehradun, Uttarakhand, India
Email: chaubeyds@gmail.com

Abstract: The exponential growth of the internet has empowered customers

and enhanced their interactivity. This has given pace for the phenomenal
growth of the electronic word of mouth (eWOM) communication. In this
easier, wider and faster medium of communication, the message itself performs
a critical role in building brand image and persuading purchase intention. The
present study is an attempt to explore the effect of eWOM on the brand image
of lifestyle products and subsequent customer purchase intention. Based on the
information obtained from 313 online customers, this paper analyses the effect
of eWOM on brand image and purchase intention in the Indian context. Using
structural equation modelling, this study confirms the significant effect of
eWOM on brand image and the moderating role of the brand image between
eWOM and purchase intention. The present study recommends that marketers
should emphasis on favourable eWOM communications to enhance the brand
image that subsequently would encourage customers’ purchase intention.
Keywords: electronic word of mouth; eWOM; purchase intention; brand
image; lifestyle products; India.
Reference to this paper should be made as follows: Kala, D. and Chaubey, D.S.
(2018) ‘The effect of eWOM communication on brand image and purchase
intention towards lifestyle products in India’, Int. J. Services, Economics and
Management, Vol. 9, No. 2, pp.143–157.
Biographical notes: Devkant Kala is an Assistant Professor (Selection Grade)
in the Department of General Management, School of Business, University of
Petroleum and Energy Studies, Dehradun, Uttarakhand, India. His research
interests are consumer behaviour and tourism and hospitality marketing.
D.S. Chaubey is a Professor in the Department of Management, Uttaranchal
University, Dehradun, Uttarakhand, India. His research interests are consumer
dynamics, strategic marketing and organisational development.

Copyright © 2018 Inderscience Enterprises Ltd.

144 D. Kala and D.S. Chaubey

1 Introduction

Word of mouth communication (WOM) is believed as a powerful element in the

consumer marketplace, particularly on consumers’ search for relevant information and
ultimate purchase decision (Money et al., 1998). The rise of computer-mediated
communication especially the internet has increased consumers’ opportunities to obtain
and express anonymous unprejudiced opinions on a multitude of platforms and improved
the possibilities to share these views to a large number of individuals across the globe
without any difficulty (Dellarocas, 2003; Hennig-Thurau and Walsh, 2004;
Hennig-Thurau et al., 2004; Goldsmith and Horowitz, 2006). The internet has provided a
modernised setting for WOM which offers a fertile ground for electronic word of mouth
(eWOM) transmission. eWOM is any favourable or unfavourable communication made
by prospective, existing or previous customers about a brand or organisation, which is
capable of reaching to millions of individuals and organisations through the internet
(Hennig-Thurau et al., 2004). The accessibility, reach, openness and simplicity of the
internet have provided opportunities to organisations to regulate the digital WOM. The
rapid advancement of the internet technologies, especially Web 2.0 tools has
considerably increased the degree and extent of WOM communication. eWOM
communication, usually attributed by written words, indirect interactions, anonymity, and
wide scope, offers higher reliability, better understanding and significance to shoppers
than commercial information sources on the internet created by marketers (Bickart and
Schindler (2001). As the number of internet users is increasing and individuals have
shown their willingness to post or share their experiences, internet-mediated
communication has become more and more important eventually and as result companies
are framing social marketing strategies (Kaplan and Haenlein, 2010). eWOM is
recognised as an effective tool for building brand awareness, creating hype in the
marketplace, influencing purchase decisions and developing brand loyalty (Fergusson,
2008).
This research work has been undertaken with the intention to examine the impact of
eWOM communication on brand image and intention to purchase lifestyle products in the
Indian context. Rising disposable income is the biggest driver of increasing consumption
and spending on lifestyle products and luxury items. Lifestyle products inspire and
encourage individuals, with the objective of their brands adding to the meaning of the
consumer’s way of life. ASSOCHAM (2017) study revealed that demand for electronic
appliances is predictable to grow at a CAGR of 41% during 2017–2020 to reach
$400 billion by 2020 in India. AT Kearney (2016) report highlighted that market of
Indian fashion and lifestyle products is expected to grow at 12% CAGR over the next
five years to reach INR 3,940 billion from the currently estimated INR 2,210 billion.
Since India is enjoying the demographical and socio-economical advantage, considered
as the second-largest emerging market for consumer goods, and generating high demand
for lifestyles products, a study of this nature is more contemporary and justifiable. In
addition, users of the internet, social media applications and smartphones are also
increasing in the Indian subcontinent. With more than 462 million users, India has been
ranked as the second-largest country after China. Total number of Facebook, Twitter and
LinkedIn users in India are 270, 27 and 47 million respectively as of July 2018
(http://www.statista.com). As per the Newzoo’s Global Mobile Market Report (2018),
with 386.9 million smartphones user and 28.5% smartphone penetration, India is the
world’s second largest smartphone market as of May 2018. The ambitious Digital India
 The effect of eWOM communication on brand image and purchase intention 145

project of the Government of India will also act as a catalyst for the growth of electronic
communication in India. Therefore, the results of the present work will be beneficial for
marketers in designing suitable promotional and social media strategies in particular to
influence consumer decision-making process in this emerging economy.

2 Literature review and hypothesis development

2.1 Electronic word of mouth

WOM communication is widely acknowledged as a non-commercial and trustworthy
source of information that has a massive effect on consumer attitude formation and
intention to purchase. With the growth of the computer-mediated communication, eWOM
has emerged as a way for customers to engage in non-commercial advertising, share and
discuss direct experience about the specific product and brand (Chevalier and Mayzlin,
2006). eWOM provides information about brands experiences that hardly are available
from organisation-controlled sources, which makes this source of information particularly
useful. When eWOM communication about a brand is favourable, customers are
expected to consider the brand for the consumption purpose and vice-versa (Park and
Lee, 2008). In general, communication theory hypothesises that eWOM provides
user-oriented product information, reviews and recommendations by previous shoppers
and thus, can act as both informant and recommender (Park et al., 2007). These
inform and recommend function can play a powerful role because eWOM are
consumer-governed channels, sender is independent, information is considered as more
trustworthy (Brown et al., 2007) effectiveness is higher than traditional marketing
activities (Trusov et al., 2009) and reduces the consumer’s risk (Hennig-Thurau and
Walsh, 2004). Social media and product reviews are the most prevalent form of eWOM
and consumers seek such platforms while collecting initial purchase information about
the product and forming purchase intentions (Schindler and Bickart, 2005; Adjei et al.,
2009; Zhu and Zhang, 2010). Researchers argued that marketers must pay attention to
eWOM because of a wide coverage for an unlimited time span (Hennig-Thurau et al.,
2004), cost-effective (Dellarocas, 2003), prompt communication (Huang et al., 2011),
and thus, can improve brand awareness and image among consumers (Yang, 2013).
eWOM is extremely prevalent, and thus, if this form of communication is managed
effectively, it has an enormous potential to transcend a product from a small market to a
significantly larger one (Park and Kim, 2008).

2.2 eWOM and brand image

Brand image is a crucial competitive advantage that helps in creating and sustaining
value through differentiating the brand, forming purchasing justifications, developing a
sense and believes, and a significant value for organisations (Aaker, 1996; Keller, 2009).
It is established when consumers generate ideas, emotions, and anticipations towards
certain brands as they learn, remember and become habitual to them (Keller, 1993). Since
brands instigate confidence, feeling of trust, quality, durability, security and
distinctiveness (Aaker, 1996; Keller, 1993), subsequently it tends to be viewed as an
essential means for decreasing uncertainty and giving valuable information that can help
in guiding consumer decision-making procedures (Erdem et al., 2002). Brand image can
146 D. Kala and D.S. Chaubey

influence an organisation’s future income and cash-flow, consumers’ readiness to pay

higher prices, stock prices, competitive advantage, and marketing practices (Brakus et al.,
2009; Chen, 2010). Contrary to price-only models, Wang et al. (2016) advocated that
effective branding strategies make the brand distinctive, change customers’ preference
for brands, encourage them to pay premium prices and successfully discourage the new
entrant’s entry and pricing decisions. Keller (2003) advocated that a positive brand image
can be developed by connecting the distinctive and strong brand associations with
consumers’ memories of the brand and supported by effective marketing campaigns.
Bambauer-Sachse and Mangold (2011) recommended that online WOM
communication is a crucial element of online marketing strategy and adds to brand image
and the purchase behaviour of shoppers. While examining the effect of eWOM on brand
image and purchase intention, Jalilvand and Samiei (2012) found the strong influence of
eWOM on brand image and purchase intention. They advocated that favourable eWOM
communications enhance customers’ willingness to purchase, build a positive reputation
of the organisation and its products, and minimise marketing expenses in Iranian
automobile industry. Torlak et al. (2014) concluded that eWOM strongly affects the
relationship between brand image and intention to purchase the mobile phone. An
experimental study of Sandes and Urdan (2013) in the context of Brazil revealed that
online reviews (either favourable or unfavourable) influence brand image. Management
of negative reviews decreases the effect on the brand image but did not influence the
purchase intention. Krishnamurthy and Kumar (2018) found that customers evaluate
eWOM information more rigorously and devote additional time with eWOM to build up
a brand expectation/image. Further, high-involvement customers form greater
expectations or a superior image of the product in their minds. Using social media as a
platform of consumer expression, consumers are enthusiastically engaged in the
formation and enhancement of meanings of brands as shared objects (Jansen et al., 2009;
Hanna et al., 2011). Review of existing literature indicates the impact of eWOM on brand
image. Thus, it is hypothesised that:
H1 eWOM communication has a significant impact on brand image.

2.3 eWOM and purchase intention

eWOM messages effectively minimise the chances of risk and ambiguity while making
the purchase decision and thus, influences consumers’ subsequent intention to purchase
(Chatterjee, 2001; Wang et al., 2012; Tsimonis and Dimitriadis, 2014). Chevalier and
Mayzlin (2006) revealed that online information considerably influence customers’
intention to the make purchase. Berger et al. (2010) found the significant relationship
between the number of online comments and favourable purchase intention of consumers
towards the specified brand. Lee et al. (2011) found that products with more positive
reviews usually sell better. On the other hand, if the quantity of unfavourable comments
increases, customers will identify several weaknesses and develop a negative intention to
purchase the product (Park and Lee, 2008). Lee et al. (2011) emphasised that negative
reviews are strong determinants of consumer decision-making as these are quite powerful
than positive reviews. Thus, eWOM communication is exceptionally beneficial for
customers to build up their purchase decision about a particular brand. As the intensity of
internet-mediated WOM, opinions, online reviews, product consumption experiences has
increased, the new information generated by customers who have bought and consumed
 The effect of eWOM communication on brand image and purchase intention 147

the brand has grown into the main source of information search for customers. New
communication channels, such as review/recommendation sites, social media networks
and applications of Web 2.0 offer new possibilities for organisations to market their
brands. Nielsen (2013) report highlighted that 84% of consumers perceive WOM reviews
and recommendations most trustworthy, 68% consumer trust online opinions, and overall
trust of consumers in online advertising and promotion have grown. In this digital world,
the concept of eWOM gaining popularity by leaps and bounds and thus, organisations
must frame effective internet-mediated communication strategies for gaining competitive
advantage. Therefore, it is hypothesised that:
H2 eWOM communication has a significant impact on purchase intention.

2.4 Brand image and purchase intention

Purchase intention can be acknowledged as one of the main components of customer
cognitive behaviour that indicates the consumer’s conscious blueprint to make an
inclination to purchase a brand (Spears and Singh, 2004). Researchers indicated a
significant association between the brand image and purchase intention (Shukla, 2010;
Wu et al., 2011; Lien et al., 2015). Jalilvand and Samiei (2012) and Torlak et al. (2014)
found that brand image has moderated the relationship between eWOM and intention to
purchase automobile and cell phones. Lien et al. (2015) indicated that brand image is a
significant driver that favourably affects hotel purchase intentions. Farzin and Fattahi
(2018) also found that eWOM significantly shaped brand image and subsequent
customers’ purchase intention. Numerous researchers have advocated that eWOM has a
favourable influence on purchase intention and brand image acts as a moderating variable
in this relationship. The argument presented above lead to the following research
hypothesis:
H3 Brand image has a significant impact on purchase intention.

3 Research methodology

The responses were gathered from Indian customers through an online survey. Data were
collected in April and May 2016. Customers were asked to participate in the study
through email asking prospective respondents to complete the questionnaire developed on
Google forms. Online survey facilitates prompt dissemination and turnaround as well as
considerable cost advantages. After excluding incomplete and insincerely answered
questionnaires, 313 valid questionnaires were used to analyse the effect of eWOM on
brand image and intention to purchase lifestyle products. Lifestyle product categories –
apparels, fashion accessories, and electronic appliances have been chosen for this study.
The review of previous studies helped in designing the survey questionnaire and
questions were carefully chosen from relevant research studies. Some questionnaire items
were altered for content validity and adjusted by researchers so as to focus on particular
information. The socio-demographic characteristics of the respondents were covered in
the first part of the questionnaire. The second section contained 12 attributes and
measured various aspects of eWOM, brand image and purchase intention using a
five-point Likert scale (1 – strongly disagree to 5 – strongly agree). Out of 12 attributes,
148 D. Kala and D.S. Chaubey

five were concerned with eWOM (Park et al., 2007; Wangenheim and Bayón, 2004;
Wallace et al., 2009), four were associated with brand image (Davis et al., 2009; Cho,
2011) and three variables were related to the intention to purchase (Shukla, 2010).
To ensure the content validity of the survey instrument, an initial questionnaire was
vetted and validated for face validity among six experts. Of these, four were
academicians, and two were industry professional of online marketing domain. These
experts judged the clarity of items meaning, the content of the questionnaire and
evaluated the connection of questionnaire items with study objectives. For reliability, a
pilot test was conducted using 25 randomly selected consumers. The value of Cronbach’s
alpha index was found 0.774 for the entire scale, which recommended the acceptable
level of reliability of the instrument. Thus, the questionnaire could be confidently
employed as it was found to be robust both in terms of reliability and validity. To address
survey objectives, all data received was systematically arranged, tabulated and analysed
using SPSS version 22.0 for descriptive statistics and AMOS 18.0 for structural equation
modelling.

4 Results

4.1 Sample profile

The profile of respondents (Table 1) indicates that 70.6% of respondents were from the
age group of 21–30 years. This is justified because India has the largest young population
of the world (356 million, i.e., 28% of the country’s population); young Indian consumers
are target customers for lifestyle products; they are the trendsetter and prefer lifestyles
products, and are inclined towards online purchase and reviews. Out of 313 respondents,
males dominate the sample with almost 70% of them included in the survey. 32.6% of
respondents were having graduation degree, 50.8% were post-graduate, and 16.6%
earned professional degrees. The majority of respondents (62.9%) were students.
Table 1 Demographical profile (N = 313)

F % F %
Age Up to 20 years 28 8.9 Education Graduate 102 32.6
21–30 years 221 70.6 Post graduate 159 50.8
31–40 years 43 13.7 Professionals 52 16.6
Above 41 years 21 6.7 Occupation Students 197 62.9
Gender Male 220 70.3 Private employees 101 32.3
Female 93 29.7 Government 15 4.8
employees

4.2 Structural equation modelling (SEM)

SEM combines multiple regression with confirmatory factor analysis (CFA) to examine
the series of dependence relationship simultaneously with the hypothesised model. This
multivariate technique has two mechanisms – the measurement model and the structural
model. The measurement model is designed for ensuring the reliability and validity of the
variables (latent and observed), and the structural model is meant for the relationship
 The effect of eWOM communication on brand image and purchase intention 149

between the latent variables and path strength. In the measurement model, the maximum
likelihood (ML) method was applied for parameters estimations and the overall fit-index.
The basic conditions assumed for the use of ML estimation are met or closely
approximated in the study (Byrne, 2001). The sample was adequately enough (n = 313),
over the recommended size of 200 cases (Medsker et al., 1994), a continuous scale was
used for observed variables, and no violations of multivariate normality were reported in
responses. Using AMOS 18.0, a CFA was performed by to test the measurement model.
Figure 1 shows the measurement model which contained three constructs, namely,
eWOM, brand image, and purchase intention. These three constructs are measured by 12
variables. To evaluate the internal consistency of constructs, the reliability of the
measurement items was confirmed employing the Cronbach’s alpha index (Table 2). The
value of the reliability index was found within the acceptable range (0.659 to 0.792).
Table 2 Item loading and reliability

Standardised
Construct and item
loading
Mean SD D

Electronic word of mouth (CR = 0.701, AVE = 0.245, ASV = 0.193)

eWOM 1 I understand a product better after 0.824 4.01 0.768 0.704
receiving relevant information about that
product on online reviews.
eWOM 2 A comment or update about a 0.635 3.94 0.718
product/brand on eWOM forms has an
influence on how I consider that product.
eWOM 3 I am likely to change my opinion about a 0.517 3.85 0.757
product/brand, after viewing a positive or
negative comment about that product on
eWOM forum.
eWOM 4 Given a choice between two products, 0.587 3.72 0.851
one recommended on eWOM forums and
the other not, I would always choose to
buy the recommended product.
eWOM 5 eWOM forms are important sources of 0.563 3.92 0.760
information for me.
Brand image (CR = 0.740, AVE = 0.524, ASV = 0.507)
BI 1 In comparison to other products/brand, 0.483 3.49 0.817 0.659
this product/brand has high quality.
BI 2 I can reliably predict how this 0.518 3.58 0.785
product/brand will perform.
BI 3 This brand comes to mind immediately 0.621 3.79 0.875
when I want to purchase the product.
BI 4 I feel connected to this brand. 0.596 3.43 0.914
Purchase intention (CR = 0.885, AVE = 0.607, ASV = 0.306)
PI 1 I would buy this product/brand rather than 0.749 3.47 0.884 0.792
any other brands available.
PI 2 I am willing to recommend others to buy 0.920 3.69 0.798
this product/brand.
PI 3 I intend to purchase this product/brand in 0.851 3.77 0.806
the future.
150 D. Kala and D.S. Chaubey

Figure 1 Measurement model (see online version for colours)

To measure the reliability of a construct, composite reliability (CR) was also used. CR is
a more presenting way of overall reliability and it determines the consistency of the
construct itself (Hair et al., 2010). CR of eWOM was 0.701, brand image was 0.740 and
purchase intention was 0.885 (Table 2). So it clearly identified that in measurement
model all construct had acceptable reliability. The extent to which indicators of the
particular construct have a high percentage of variation, in general, is assessed by
convergent validity. The convergent validity is calculated by standard regression weight
(Hair et al., 2010). The consequence of standard factor loading (standard regression
weight) estimates showed that the indicator variables significantly represent the latent
variables. The standard factor loading should always above 0.50 (Hair et al., 2010). At
the alpha level of 0.05, the standardised loading estimates of all measurement items
ranged from 0.483 to 0.920 which indicated the convergent validity of the model. The
degree to which a construct is actually different from other constructs is indicated by
discriminant validity (Hair et al., 2010). The discriminant validity is confirmed when
average variances extracted (AVE) of particular constructs are more than the average
shared variances (ASV) between the constructs. Table 2 indicated that AVE of all
constructs was more than the ASV. Overall, these measurement results were acceptable
and recommended that it was suitable to continue with the estimation of the structural
model.
 The effect of eWOM communication on brand image and purchase intention 151

4.3 Structural model

The model fit indices such as the comparative fit index (CFI), goodness of fit index
(GFI), normed fit index (NFI), Tucker Lewis index (TLI) and root mean square of error
approximation (RMSEA) were chosen to evaluate the model fit (Hair et al., 2010).
Values of goodness-of-fit statistics of the structural model and the acceptable value of
these model fit indices recommended that the structural model fitted the data practically
well (Table 3).
Table 3 Goodness-of fit statistics

Model fit statistics Structural model Acceptable value

2
χ /df 2.686 1.0–3.0
GFI (goodness of fit index) 0.959 > 0.90
NFI (normed fit index) 0.947 > 0.90
CFI (comparative fit index) 0.977 > 0.90
TLI (Tucker Lewis index) 0.970 > 0.90
RMR 0.026 < 0.50
RMSEA (root mean square of error approximation) 0.050 < 0.08 good fit

Figure 2 Standardised regression coefficients – proposed model (see online version for colours)
152 D. Kala and D.S. Chaubey

Table 4 presented the results of the individual tests of the significance of the relationship
between the variables. At the alpha 0.05 level, two relationships were found significant,
and one was found insignificant. The impact of eWOM on the brand image (E = 0.491
and p = 0.045) found significant, showing that eWOM helps in creating the favourable
brand image (H1 accepted). Brand image had the considerably favourable influence on
intention to purchase, with E = 0.917 and p = 0.000, indicating that brand image is the
main precursor of purchase intention of lifestyle products (H3 accepted). The impact of
eWOM on purchase intention (E = 0.075 and p = 0.430) found insignificant, signifying
that eWOM does not help in encouraging the intention to purchase lifestyle products (H2
rejected).
Table 4 Maximum likelihood estimates for model (N = 313)

Independent Dependent Standardised Standard

t-statistic p-value
variable variable estimate error
eWOM Brand image 0.491 2.127 2.458 0.045
eWOM Purchase intention 0.075 0.659 0.788 0.430
Brand image Purchase intention 0.917 0.150 6.697 ***
Note: Significance levels: *p < 0.05; **p < 0.01; ***p < 0.001.

5 Discussion

The accelerating popularity of electronic transmission of information and specifically

eWOM has transformed the means by which customers seek product-related information,
appraise options, and make the judgement. With the substantial growth of eWOM in
India, researchers and marketing practitioners are making an effort to better understand
how eWOM might influence consumer’s willingness to purchase. In the context of WOM
research, this empirical study explored the possible effects of eWOM influences on brand
image and purchase intention towards lifestyle products. It has been observed that
consumers who feel uncertainty toward the brand have a tendency to search for the online
information. Analysing online information and reviews are useful in making a more
informed and confident purchase decision. Clear, persuasive and facts-based
reviews/recommendations have the strong positive influence on brand image and
subsequent intention to purchase. The findings revealed the significant impact of eWOM
on brand image, indicating that consumers deliberate the reviews or information obtained
from eWOM channels and use the information in forming the brand image. Our results
clearly mirror previous findings which recognised eWOM as a significant factor that
affects brand image (Jalilvand and Samiei, 2012; Torlak et al., 2014; Krishnamurthy and
Kumar, 2018). The findings indicated that brand image is formed through favourable
WOM recommendations from others who had prior experiences with the brand. It has
also emerged from this study that eWOM communications do not have a direct
significant effect on consumers’ intention to purchase. This finding is contrary to the
findings of Chevalier and Mayzlin (2006) in the USA, Park et al. (2007) in South Korea,
Jalilvand and Samiei (2012) in Iran but similar to the results of Torlak et al. (2014) and
Farzin and Fattahi (2018) in Turkey and Iran respectively. The effect of the brand image
is more significant on purchase intention compared to eWOM highlighting the decisive
role of brand image in persuading customers to purchase the product. It can be
 The effect of eWOM communication on brand image and purchase intention 153

understood that the influence of eWOM on purchase intention can be better described via
brand image. Similar to Jalilvand and Samiei (2012) and Torlak et al (2014), the present
study also reports that brand image moderated the effect of eWOM on intention to
purchase lifestyle products.
The association between eWOM and purchase intention indicates that although usage
of internet is growing among Indians, Web 2.0 tools are not enough in influencing
customer purchase decisions. However, these points out that online reviews and
information do not motivate customers to purchase the products directly, but this
information helps marketers in building the favourable image of the brand which
indirectly leads to positive purchase intention. By receiving positive comments from
other individuals whom customers can believe, a greater degree of trust is expected
towards the brand. Such confidence influences customers’ purchase behaviour and results
in favourable purchase intentions. This finding can be justified by the fact that the
internet has gained popularity in India of late. The internet penetration in India was 18%
in 2014, 27% in 2015 and 34.8% in 2016. In BRICS countries the penetration is 66.4%
(Brazil), 71.3% (Russia), 52.2% (China) and 52% (South Africa) in 2016. In the case of
the USA, South Korea, Iran and Turkey internet penetration is 88.5%, 85.7%, 48.9%, and
58% respectively in 2016. Changing demographical patterns, nascent stage of online
retailing, weight to aesthetic values in product purchase, lack of trust on anonymous
information providers, and significance of past experiences with the brand may also be
the reasons for the poor association between eWOM and purchase intention especially for
lifestyle products. It seems that most consumers search for online information and
reviews for better understanding the brand and its features but do not purchase the
product only on the basis of information provided in this open and uncontrollable
platform. Thus, it is believed that as the penetration of internet increases, certainly, this
would be one of the best sources for customers to search, evaluate and purchase the
products.
This empirical work offers some new insights for organisations to use the
digitalisation of WOM as a strategy in their marketing programs in attracting new
consumers, retaining the existing ones and creating the favourable image of brands.
Customers now want to be partners in marketing rather than be marketed at. eWOM can
significantly help in forming the brand image which consequently leads to customer’s
positive purchase intention, so organisations should not overlook the proliferation of
customer-to-customer information sharing in the computer-mediated environment.
Particularly, favourable WOM is extremely considered as the determining factor in brand
selection and vice versa. Marketers can motivate satisfied and loyal customers to register
their positive experiences and write online reviews about the features and functions of
products with the aim of maximising brand acceptance that consequently would influence
consumers’ intention during the purchase. Non-financial motivations (e.g., letters of
appreciation), and even financial (e.g., free gift) should be offered. As Doh and Hwang
(2009) reveal that the dominance of positive information confines the credibility of
information, customers should be encouraged to write more balanced reviews, including
both favourable and unfavourable comments, so as to increase trustworthiness. The
strong brand image formed because of eWOM can also reduce the promotional
expenditures of the organisation on traditional media to a great extent. Taking into
account the cost-effective, wider reach, promptness and greater anonymity of eWOM, it
appears that as time advances, a majority of customers will either search for or just be
154 D. Kala and D.S. Chaubey

exposed to the recommendations of online opinion leaders. Additionally, managers can

strengthen the brand image of lifestyle products by increasing assortment, improving
quality, offering rational price-value tradeoff, and offering post-sales services pleasantly.
These strategic advancements directly encourage the intention to purchase lifestyle
products.

6 Conclusions

With the growing usage of internet and communication technologies, customers are
progressively moving towards computer-mediated forms of information to finalise
purchase decisions. Researchers advocated that favourable eWOM play a significant part
in creating a positive image of the organisation and its brand, increasing customers’
purchase intentions, and reducing promotional expenditures. The study depicts three
important conclusions; first, eWOM does not lead to purchase intention of customers
towards lifestyle products; second, customers’ purchase intention do get affected by
brand image and; third, brand image functions as a moderating variable between eWOM
and purchase intention. Since internet-generated WOM communications act both as
informants and recommenders, these can be employed as a strategic communication
network. Customers’ reviews/opinions are capable enough to influence other customers
purchase decisions, so marketers must be attentive to the potential of this method, and
should attempt to influence this form of communication. They are advised that electronic
and customer-generated communication should not be considered as a substitute for
traditional forms of promotion, but rather be used as a component of the organisation’s
comprehensive promotional mix strategy. Marketers and brand managers can take the
better advantage of Web 2.0 applications to interact with customers and increase the
brand visibility. It is advocated that if eWOM communications are managed effectively,
these have enormous potential to metamorphose the marketing activities and outcomes
for the organisation. In case of developing country like India, where online shoppers,
internet and smartphone users are increasing promptly, it is advisable that organisations
and brand managers must concentrate on eWOM communication as an important
marketing tool that affects brand image, purchase intention, the degree of
competitiveness, and long-term success.

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