A STUDY OF ELECTRONIC WORD-OF-MOUTH INFLUENCES CONSUMERS’ PURCHASING DECISIONS: A CASE IN THIEN PHUC LOGISTICS COMPANY By Student: LE HA CAT THUY ID: 2124800 Submitted in partial fulfilment of the requirements for the degree of BSc (Hons) Business Management COHORT 16 BOLTON BUSINESS SCHOOL The University of Bolton Submission Date: 01 May 2023 1 TABLE OF CONTENTS TABLE OF CONTENTS 2 LIST OF ABBREVIATIONS 5 ABSTRACT 6 DECLARATION OF AUTHENTICITY 7 CHAPTER 1 INTRODUCTION 9 1. THE IDEA OF RESEARCH IMPLEMENTATION 10 1. The Statement of Vietnam’s Logistics Service Industry 10 1. About Thien Phuc Logistics Company 10 1.
RESEARCH OBJECTIVES AND RESEARCH QUESTIONS 11 1. THE SCOPE OF THE STUDY 11 1. CONCEPTUAL FRAMEWORK OF THE STUDY 11 CHAPTER 2 LITERATURE REVIEW 13 2. Features of e-WOM 14 2.
e-WOM and Social Networking Sites 14 2. Internet Forum Sites 15 2. Impact of e-WOM on Customers’ Purchasing Decisions through SNS 16 2. Quality of e-WOM on SNS 16 2.
Quantity of e-WOM on SNS 17 CHAPTER 3 RESEARCH METHODOLOGY 19 3. DATA COLLECTION TECHNIQUE 23 3. TRIANGULATION, RELIABILITY, AND VALIDITY 25 3. Validity 26 CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 27 4.
Servey data results 27 4. The Profile of the Study Respondents 27 4. Quality of e-WOM 36 4. Quantity of e-WOM 39 4.
Interview data & analysis 43 4. Interview with TPC’s manager 43 CHAPTER 5 CONCLUSION AND RECOMMENDATION 47 5. Quality of e-WOM affects on customer’s purchasing decision 47 5. Quantity of e-WOM affects on customer’s purchasing decision 48 5.
CONCLUSION 51 REFERENCING LIST 53 APPENDIX A - Questionnaires interview with TPC’s manager 62 APPENDIX B - Servey questionnaires 67 APPENDIX C – RESEARCH ETHICS CHECKLIST Error! Bookmark not defined. FIGURE 1 CONCEPTUAL FRAMEWORK OF THE STUDY. 12 FIGURE 2 PIE CHART SHOWING GENDER DISTRIBUTION. 28 3 FIGURE 3 PIE CHART SHOWING AGE DISTRIBUTION.
AVERAGE INCOME MONTHLY. 30 FIGURE 5 USAGE OF SNS OF PARTICIPANTS. 31 FIGURE 6 TIME SPENT ON SOCIAL NETWORKING SITE DAILY. 32 FIGURE 7 CUSTOMER SEARCHES SEEKING E-WOM INFORMATION ON SNS.
33 FIGURE 8 HOW LONG HAVE CUSTOMER BEEN USING SNS. 34 FIGURE 9 CONSUMERS CHECK ELECTRONIC REVIEWS AND RECOMMENDATIONS BEFORE BUYING SERVICES/PRODUCTS. 35 FIGURE 10 ONLINE FEEDBACKS PROVIDE BENEFICIAL AFFECT CUSTOMER’S PURCHASE DECISION. 36 FIGURE 11 CREDIABILITY REVIEWS ON SNS AFFECT CUSTOMER’S PURCHASE DECISION.
CLEARLY ONLINE FEEDBACKS AFFECT THE PURCHASE DECISION. THE SEVERAL NUMBERS OF ONLINE COMMENTS CONTRIBUTE TO BUYING DECISION. THE RECENCY OF PRODUCT/SERVICE REVIEWS POSTED ON THE WEBSITE AFFECT CUSTOMER’S PURCHASE DECISION. PRODUCT/SERVICE REVIEWS ACROSS MULTIPLE SNS INCREASE CREDIBILITY.
TABLE SHOWING GENDER OF RESPONDENTS. TABLE SHOWING AGE OF RESPONDENTS. 28 TABLE 3 TABLE SHOWING AVERAGE OF RESPONDENTS. 29 TABLE 4 TABLE SHOWING TIME SPENT ON SOCIAL NETWORKING SITE DAILY.
31 TABLE 5 TABLE SHOWING CUSTOMER SEARCHES SEEKING E-WOM INFORMATION ON SNS. 32 TABLE 6 TABLE SHOWING HOW LONG HAVE CUSTOMER BEEN USING SNS. 34 TABLE 7 TABLE SHOWING CONSUMERS CHECK ELECTRONIC REVIEWS AND RECOMMENDATIONS BEFORE BUYING SERVICES/PRODUCTS. 35 TABLE 8 TABLE SHOWING ONLINE FEEDBACKS PROVIDE BENEFICIAL AFFECT CUSTOMER’S PURCHASE DECISION.
36 TABLE 9 TABLE SHOWING CREDIABILITY REVIEWS ON SNS AFFECT CUSTOMER’S PURCHASE DECISION. 37 4 TABLE 10 TABLE SHOWING CLEARLY ONLINE FEEDBACKS AFFECT THE PURCHASE DECISION. 38 TABLE 11 TABLE SHOWING THE SEVERAL NUMBERS OF ONLINE COMMENTS CONTRIBUTE TO BUYING DECISION. TABLE SHOWING THE RECENCY OF PRODUCT/SERVICE REVIEWS POSTED ON THE WEBSITE AFFECT CUSTOMER’S PURCHASE DECISION.
40 TABLE 13 TABLE SHOWING PRODUCT/SERVICE REVIEWS ACROSS MULTIPLE SNS INCREASE CREDIBILITY. 42 LIST OF ABBREVIATIONS TPC: Thien Phuc Logistics Import and Investment Development Company Limited WOM: Word-of-Mouth e-WOM: Electronic Word-of-Mouth SNS: Social Networking Sites VND: Vietnam Dong 5 ABSTRACT Due to the growth of the Internet as a social media and channel of communication among consumers, electronic word of mouth (e-WOM) has gained strength and attention from marketing researchers. The Internet has allowed customers to be available through electronic word of mouth from different customers. This article is based on the analysis of the business activities of Thien Phuc Logistics in Vietnam whether electronic word-of-mouth (e-WOM) and customer purchasing decision via social networking sites.
The paper's writer undertakes studies regarding two identifying features of the impacts of digital WOM: the volume of e-WOM and the level of quality of e-WOM. The objectives of this study's research paper remains to perform a critical literature review regarding digital word-of-mouth; examine and assess how e-WOM influences customers' purchasing decisions by means of social media channels underneath TPC's marketing operations; and provide a suggestion on developing an e-WOM marketing approach in order to improve audience participation at Thien Phuc Company. In the course of conducting research for this particular piece of writing, an array of qualitative and quantitative methodologies was utilized. The survey form that was purposefully put collectively as a part of this research attempt has a total of three distinct parts that make up the material.
These sections were designed so that the researchers could gather the data supplies. This has been performed in order to guarantee that the responses gathered are as accurate as is practical. Furthermore, the author privately constructed a planned interview involving the executive manager of TPC for the purpose to gathering knowledge concerning the way e-WOM advertising operations operate and the connected problems that were performed. This was done in order gather data concerning how e-WOM marketing activities run and the pertinent problems that were addressed.
Following that, the author conducted the analysis by means of all of these possible primary sources of data, contrasted them with additional sources of information, and then offered a few points of view before drawing the final summary of this paper's study. 6 DECLARATION OF AUTHENTICITY By putting my signature there, I declare that the research paper titled " A STUDY OF ELECTRONIC WORD-OF-MOUTH INFLUENCES CONSUMERS’ PURCHASING DECISIONS: A CASE IN THIEN PHUC LOGISTICS COMPANY” represents my own original research and has not yet been presented to any other college or university to supply for the purpose of receiving credits towards the completion of a degree. I additionally certify material this paper doesn't include any content authored or printed by anyone else, with the possible exception of information that has been correctly credited and the author of which has been adequately recognized. Declared by: LE HA CAT THUY …………THUY LE…………… 30 April 2023 Student Signature Date Confirmed by: Ms.
Begum Asma ………………………………………… April 2023 Supervisor Signature Date 7 8 CHAPTER 1 INTRODUCTION 1. INTRODUCTION The power and spread of word of mouth have been significantly strengthened by the advent of electronic word of mouth across the last century, primarily to the development of the Internet. Individuals were previously known as placing just stock in traditional WOM recommendations provided by people they believed, yet later that circle of reliability has been broadened to consist of digital WOM (Goldenberg et al. A brief informative resource could potentially be retrieved by means of the execution of the idea of marketing digital word of mouth.
A factor that is critically important encounters immediate consequences that affect the buying decisions made by customers (Mauri & Minazzi, 2013; Jeong & Koo, 2015; Basi et al., 2016; Baber et al., 2016 and Lin et al., 2018) Deciding to make purchases for services and goods is essential for developing the global e-commerce industry in today's era of innovative technology. During decisions regarding purchases are reached as a direct outcome of conducting research for specific details attending digital channels within the guise of goods ratings and suggestions coming from individuals who previously experimented with the good or service (Ruiz-Mafe et al. Consumers now retrieve enormous amounts of data with hardly any funds or time spent due to the Internet's continual increase and breadth of contents (Park et al. Furthermore, the emergence and advancement of the Internet have given customers more extraordinary venues for exchanging and receiving consumption-related advice via e-WOM, such as purchaser opinions and feedback published online (Hennig-Thurau et al.
Because of the advanced digital platforms, companies and news organizations are no longer locking down data dissemination. Using e-WOM, anyone may impact the decisions of many people (Duan et al. Following up on this finding of market trends, this study focuses on the actual case of Thien Phuc Logistics to explore the elements of e-WOM that impact its consumer buying decisions and to conduct a value suggestion for these issues. Leaders with enthusiasm in the field of logistics founded the company.
Since its establishment, Thien Phuc has continuously developed to improve service quality, thereby becoming a reliable service provider for many customers across the country. Thien Phuc is a young firm, but they have 9 made great strides in the past by focusing on developing its most important employees to their fullest potential and by systematically structuring the corporate strategy. THE IDEA OF RESEARCH IMPLEMENTATION 1. The Statement of Vietnam’s Logistics Service Industry Since the worldwide marketplace has become increasingly interrelated, logistics is a category that has risen swiftly to cope with the ever-growing demands for global commerce.
Although there exists a great deal of discussion over Vietnam's prospects and potential attractiveness for an opportunity promoting the growth of the logistics services businesses, the fact remains that there remain numerous challenges plaguing that sector throughout Vietnam. Due to the widespread availability of technological devices and the Internet, corporate approaches have switched from centered around localized services and sales toward fostering interoperable web-based services. Small and medium-sized businesses and logistics companies are vested in grasping consumer buying decisions and characteristics on these new digital platforms. About Thien Phuc Logistics Company The Thien Phuc Logistics Company was started by those who possess an intense fascination for the logistics industry.
The company has been exhibiting steady advancement since its inception, emphasizing strengthening the level of service provided. This has led to the development of a reputation as a reliable logistics provider of services for numerous customers across the nation. Thien Phuc has accomplished noticeable advances throughout its last journey by effectively leveraging the strengths of its core collaborators and implementing systematic business approaches, despite being a relatively new business. The organization displayed a relentless strategy while establishing its original brand reputation and identity.
RESEARCH OBJECTIVES AND RESEARCH QUESTIONS 1.1 Research Objectives The following objectives are proposed to help accomplish the study's core aim: 1. To conduct a critical literature review of electronic word-of-mouth; 2. To investigate and appraise how e-WOM influence customers’ purchasing decisions via social networking sites within TPC’marketing activities; 3. To propose a recommendation on growing an e-WOM marketing strategy to boost audience engagement at Thien Phuc Company.2 Research Questions Is e-WOM the most crucial factor in customers using TPC’s services? Between TPC's offline advertising campaigns and e-WOM marketing, which factors help the company to enhance the number of customers significantly? Has the e-WOM's positive feedback from old/existing customers been beneficial influence customers’ purchasing decisions ? What are the current challenges that TPC has faced with bad reviews/feedback through e-commercial platforms such as Facebook ? 1.
THE SCOPE OF THE STUDY The currently ongoing study was established alongside the intention of researching the impact that digital word-of-mouth plays on the purchase decision made by consumers who make use of social networking platforms. Both an interview with the current leadership of TPC as well as an appropriate number of 75 participants who conducted a web-based questionnaire were used in order to gather all of the required sources of data. CONCEPTUAL FRAMEWORK OF THE STUDY The theoretical foundation of the current study was established by reflecting on the previously mentioned amount of knowledge concerning the multitude of ways that various 11 facets of e-WOM drive the purchasing choices of clientele. The theoretical basis underlying this study is outlined in Figure 1.
Figure 1 CONCEPTUAL FRAMEWORK OF THE STUDY 12 CHAPTER 2 LITERATURE REVIEW 2. E-WOM The work of Mangold et al.