Electronic WOM Effectiveness from Online Social Network Perspectives in Indonesia

Abstract:

This study analyses the effectiveness of electronic word of mouth (eWOM) information on a restaurant or foodtech review to influence consumer purchase decisions in Indonesia. We test three online social network constructs, namely tie strength, homophily, and source credibility. The constructs are measured using questionnaire statements and a multiple regression analysis on a sample size of 516 respondents. We found that tie strength and homophily influence source credibility, which in turn influences consumer perceptions of eWOM information, thereby adding to eWOM's effectiveness. Tie strength, homophily, and source credibility also influence consumer perceptions on a website, influencing the consumers’ adoption of eWOM in their purchase decisions.

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