The influence of online consumer reviews on purchasing intent

A research report submitted to the Faculty of Commerce, Law and Management, University of Witwatersrand in partial fulfilment of the requirements for the degree of Master of Management in Strategic Marketing, Wits Business School, Johannesburg 2016The proliferation of social platforms in the digital and online space has given voice to millions of social media users and carved careers otherwise unheard of a few years ago, in the form of expert technology reviewers who enjoy mass online following and sponsorship from brands seeking to leverage millions of followers who log in daily. Social media has enabled access to information otherwise previously restricted to user guides and product manuals. Using the theory of planned behaviour, the study examines the effect that online consumer reviews have on product knowledge, social influence, trust, source credibility, brand image and purchase intent among urban South Africans falling in the Generation Y cohort. The methodology involved a self-administered online questionnaire adapted from past studies. A total of 255 questionnaires were collected from the identified sample. The study tested ten hypotheses using Structural Equation Modelling along with SPSS 22 software used for descriptive statistics and IBM Amos 22. Results indicate that all ten hypotheses have significant influence on purchase intent. All hypotheses displayed equally significant relationships per testing as findings revealed that online consumer reviews have a positive effect on product knowledge, trust, social influence, source credibility and brand image. Findings also revealed a significant relationship between product knowledge, trust, social influence, source credibility, brand image, and purchase intent. The study contributes to the literature and theoretical knowledge on online consumer reviews in the local South African context, and can be applied to similar developing markets. The theoretical implications in the study contributes to both limited, and existing research, literature, and knowledge on the effects that online consumer reviews have on the purchase intent of South African consumers. The study broadens knowledge in the ever growing influence of online consumer reviews and the significant theoretical contributions of the study will benefit academia and scholars. Managerial implications highlight that managers cannot afford to ignore the influence of online consumer reviews on intent to purchase, and that even though these reviews are not under the direct influence of organisations, marketers can indirectly influence these by ensuring quality products that meet both the brand and product promises. Recommendations, iii limitations of the study, and future research on the subject of online consumer reviews are also discussed. Keywords: Online consumer reviews, social influence, brand image, product knowledge, purchase intent, source credibilityGR201