International Journal of Computer Applications (0975 – 8887)

Volume 82 – No.9, November 2013

The Impact of Electronic Word of Mouth on

Consumers’ Purchasing Decisions
Amal M. Almana Abdulrahman A. Mirza
PhD Student Professor
College of Computer and Information Sciences College of Computer and Information Sciences
King Saud University, Riyadh, Saudi Arabia King Saud University, Riyadh, Saudi Arabia

of online shopping decisions as the amount of perceived risk

involved is extremely high. Many potential online shoppers
ABSTRACT frequently wait for comments of other shoppers before taking
The substantial growth in online social networks has vastly up an offer. Such information is obtained from online customer
expanded the potential impact of electronic word of mouth review platforms [3]. Electronic WOM communications form a
(eWOM) on consumer purchasing decisions. A critical literature concrete and exciting area of research. Over the past few years,
review exposed that there is limited research on the impact of there has been substantial growth in eWOM communities,
online consumer reviews on online purchasing decisions of however, there is a noticeable lack of research on the
Saudi Arabian consumers. This research reports on results of a phenomenon in Saudi Arabia. There are limited publications as
study on the effects of online reviews on Saudi citizens' online regards to the subject and with reference to the effect that online
purchasing decisions. The results show that Saudi Internet reviews have on online consumers’ decisions in Saudi Arabia.
shoppers are very much influenced by eWOM, and that a larger
percentage of them are dependent on such online forums when This paper studies the effect of online reviews on purchasing
making decisions to purchase products through the Internet. decisions in Saudi Arabia. It looks at the impact that online
reviews have on consumer purchasing decisions taking into
General Terms consideration the reviewers' reputation and the website’s
E-commerce, online shopping reviews. reputation as a reliable source of information. From a scholarly
point of view, the research is geared at providing a deep insight
Keywords on ways of improving our understanding of the impact of online
reviews on online shoppers purchasing decisions in the context
Electronic word of mouth; eWOM; online WOM; online
of Saudi Arabia as one major developing country in the Middle
consumer reviews; Saudi Arabia.
East.
1. INTRODUCTION 2. LITERATURE REVIEW
The traditional Word of Mouth (WOM) is a mode of
EWOM refers to any attempt by a former, potential, or actual
communication that was described originally as a means of
customer to highlight the positive or negative attributes of a
sharing opinion and comments as regards to the products and
product or company in an online platform [4]. Although eWOM
services that people were transacting [1]. However, word of
presents a high similarity in terms of characteristics with
mouth has evolved into an entirely new form of communication
traditional WOM communication, it presents an entirely new
that exploits modern technology. This is termed as electronic
perspective to WOM. One notable and unique characteristic that
word of mouth (eWOM) communication. The advent and
eWOM has is the fact that it reaches or can reach more than one
growth of the digital age built on the foundation of computing
member of a group. EWOM introduces a capability of WOM
and the Internet has seen the development and adoption of new
reaching an unprecedented number of people all at once.
ways of accessing and assessing consumer trends. Consumers
Millions of people have access to a single online review, and
have embraced and will continually tap the importance of Web
this is where the power of eWOM lies [4]
2.0 tools in the exchange of opinions, posting of comments,
[2].
reviews, and critiques on the digital platform. The digital
platform is constituted of weblogs, newsgroups, discussion The advent of the Internet has amplified the effects that eWOM
forums, social network websites, review websites, and online has on consumers. Khammash (2008) quantitatively looked into
newspaper columns. Truly, word of mouth has found a new way one form of eWOM, online consumer reviews, and the reasons
to assert its value to product marketing in new forms of as to why consumers rely on product reviews prior to making
communication [2]. conclusions on whether or not to order or purchase a product
One type of eWOM is online consumer reviews, it consists of online. He elucidated that the drivers for seeking other’s
analyses and commentaries generated and posted by the end opinions in online consumer reviews bear differentiated levels
users of products who have spent their money on the product of effect on different aspects of consumer behavior. A
and indeed used it. It is a credible source of consumer insight conclusion was made that online consumer reviews have been
and it can be used by businesses to make corrective or used as a bases for consumers’ search for information and that
improvement measures on their products and services. Through they do have an effect on their purchasing behavior. Online
online reviews, different customers share their shopping consumer reviews serve as decision aids, consumer feedback
experiences. Online shoppers always undertake a review of mechanisms, and a recommendation system in an online
other shoppers’ comments and experiences before they buy shopping platform [5].
products online. Online reviews provide an essential component

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The writing style of the online review, the reviewer’s expertise, consumers. The study showed that the majority of participants
and timeliness of the online review are the factors that find eWOM to be important, and that 83% of them do read
determine the helpfulness of an online review. Yang, et. al. eWOM. The authors further identifies that a positive shopping
(2008) came up with a nonlinear model to predict the usefulness experience will lead to participation in the writing of eWOM
of reviews, and gave a detailed rendition of crucial factors that more than a negative experience [14].
affect the usefulness of a review [6]. Hu & Wu (2009)
developed a score index algorithm backed with a sentence- 3. PPROPOSED RESEARCH
weight classification scheme to classify all the sentences in The aim of this research is to determine how the Saudi online
consumer reviews into either the pros list or cons list and then consumers view and react to the eWOM. We will be looking to
summarized both lists. This summarization list is useful for answer some of the following questions:
online consumers to make decision before purchasing [7].
• Do online reviews affect the general Saudi consumer’s
Cheng & Thadani (2010) determined stimulus, communicator, purchasing behavior?
response, and receiver as the key components of their
• Do characteristics of online reviews such as
conceptual framework designed to investigate the effects of
consistency, frequency, recency, and, correctness of
eWOM at an individual level. Factors related to those four
written text impact the consumer’s purchasing
elements are identified and classified [2]. It has also been found
decision?
by Bae & Lee (2011) that online reviews are adopted by
consumers in the light of reducing perceived risk of negative • Do product review ratings influence the decisions to
effects of online shopping. This can influence their attitude purchase?
towards a certain product and ultimately their purchasing • Do characteristics of the reviewers such as identity,
decision [8]. gender, age, residence, or, frequency of participation
Do-Hyung et al. researched the effect of different types of affect the consumer’s purchasing decision?
review and the quantity of such reviews on consumer intention • Do characteristics of the web site offering online
to purchase online. The research showed that experienced reviews such as reliability, popularity, and,
shoppers regard the type of review highly for making international reach affect the consumer’s purchase
purchasing decisions unlike novices. In addition, the number of decision?
reviews affects novices as compared to experienced shoppers
[9]. The research by Do-Hyung et al. supports that of Cheung et 4. METHODOLOGY
al. through a lab experiment that shows that online reviews have 4.1 Participants
an effect on online consumer behavior. They reinforce the For the present study, different members of the Saudi population
finding that negative online consumer reviews are detrimental including both male and female citizens were invited to answer
to consumers’ emotional trust and affect their decision to the questionnaire. Invitees included university faculty and
purchase a product or service students studying in Saudi Arabia or abroad. The general public
[3]. Kamtrain established that online consumers’ behavioral and professionals were also contacted through Twitter and
intention is shaped significantly by perceived value, trust, and WhatsApp and asked to participate. However, we requested that
eWOM [10].Chen showed in his research that there is a positive only those with an online purchasing experience participate in
relation between online comments and recommendations and taking the study. We were able to collect 150 valid responses to
shopping experience, shopping satisfaction, and shopping the study.
intention [11].
Fan and Miao developed an expanded Elaboration Likelihood 4.2 Instrument
model with a wider perspective that exhibited that gender has The research technique applied in this study is a questionnaire
an effect on the credibility of eWOM communication content, using a 5-point Likert scale, from 1 (indicating fully disagree)
its acceptance, and ultimately the consumer purchasing decision to 5 (indicating fully agree). A total of 27 questions were
intention. They also showed that perceived eWOM credibility contained in the questionnaire including demographic
had a significant effect on eWOM acceptance and intent to information (questions 1 to 7) and three other factors,
purchase [12]. Bae et al. in their research highlighted that characteristics of online reviews (questions 8 to 17),
different genders react differently to online reviews. According characteristics of reviewer (questions 18-23) , and the website
to them, online reviews have stronger effects on males than on that presented the online review (questions 24-27).
females. In addition, negative reviews had stronger effects on
females than positive reviews, which also affected their 4.3 Procedure
purchasing decisions. They also found that females perceive The questionnaire was posted on Google Docs. When
online shopping as riskier than men do. As such, they are more conducting the questionnaire people were asked to provide their
hesitant to adopt it than men are. However, online reviews have basic demographic information first; then answer questions in
the effect of mitigating the risk profile and encouraging them to each factor accordingly. Because the study was set up such that
buy [8]. all questions must be answered before being able to proceed to
the following section and to make the final submission at the
At the regional level, two online communities: Saudi Arabia and
end of the questionnaire, all the questionnaires collected by this
Kuwait were investigated for their use of eWOM for consumer
research were complete.
behavior analysis. Al-Haidari and Coughlan propped up a
continuance usage framework analyzing the use of eWOM.
This framework was developed based on three crucial models: 5. RESULTS AND DATA ANALYSIS
the information acquisition model, the information system The average reliability coefficient for this research was used to
continuance model, and the WOM process model [13]. Alballaa ensure that measures of factors are reliable. After analyzing the
and Mirza investigated the usage of eWOM by Saudi female data, the average reliability coefficient (Cronbach's Alpha) for

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Volume 82 – No.9, November 201

all parts of the survey was found to be 0.832, which exceeded 40.7% had bachelor's degrees while 30% had a master’s degree.
the recommended level of 0.70. This indicates that the The remaining respondents, representing 29.3% of the total
reliability of factors was acceptable for internal consistency. A participants, were divided into 14% below undergraduate
three-week period was allocated for collecting participants' degrees, while 15.3% were with PhD degrees. The percentage
answers to help us in identifying the effects of online reviews of respondents with an average monthly income of less than or
on consumers’ purchasing decisions of Saudi Arabian citizens. equal to Saudi Riyals (SR) 10,000 was 45.4%. Those with
All study participants were classified as frequent online salaries above SR 10,000 and up to SR 20,000 accounted for
shoppers. 42% of the total respondents, while those with salaries above
SR 20,000 represented only 12.7% of the sample size.
5.1 Demographic Analysis About 32.7% of the study participants had an average
The majority of participants were females at 64% while male Internet usage of 21 hours or more per week, 46% used the
represented only 36% of the sample size. Out of the sample, Internet 10 hours or less per week, while 21.3% used it
81.3% were between the ages of 20 and 35. 16% were above 35 between 11 – 20 hours per week. As expected, and in
years of age, and 2.7% were under 20. A significant number of accordance with the findings of Alballaa and Mirza
respondents, 64%, were living in Saudi Arabia, compared with (2013), the majority of respondents represented by 80.7%
17.3% living in Canada, 16.7% living in the UK, and, 2% living of the total participants used to read the online reviews
in the United States. before making a purchasing decision. In summary, the
The respondents were categorized into four educational levels. descriptive statistics of the demographic information of
Among the respondents, those with undergraduate and master’s our study sample is shown in Table 1 and Figures 1-6.
degree were the majority of respondents representing
collectively 70.7% of the overall number of participants.
Table 1. Demographic analysis of the sample
Characteristics Characteristics
Frequency Percent Frequency Percent

Under 20 4 2.7 Below 5000 34 22.7

20-25 41 27.3 5001 – 10000 34 22.7

26-30 52 34.7 Average income 10001 – 15000 42 28.0

Age per month (Saudi
31-35 29 19.3 Riyals) 15001 – 20000 21 14.0

36-40 15 10.0 20001 – 25000 7 4.7

Above 40 9 6.0 25001 or more 12 8.0

Male 54 36.0 Yes 121 80.7

Do you read
Gender reviews before
Female 96 64.0 purchase? No 29 19.3

Lower than
USA 3 2.0 21 14.0
Bachelor degree

Currently you Canada 26 17.3 Bachelor degree 61 40.7

Education level
are living in
UK 25 16.7 Master degree 45 30.0

KSA 96 64.0 PhD 23 15.3

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1 – 5 Hours 27 18.0 11 – 20 Hours 32 21.3

Frequency of Frequency of
internet usage internet usage in a
in a week 6 – 10 Hours 42 28.0 week 21 Hours or more 49 32.7

Fig 1: Participants gender distribution Fig 2: Participants age distribution

Fig 3: Participants educational level distribution Fig 4: Participants monthly income distribution

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Volume 82 – No.9, November 2013

Fig 5: Participants internet usage Fig 6: Do you read online review before purchasing?

5.2 Online Consumer Reviews Analysis purchasing decision. 28.7% of respondents were neutral on this
After answering all the demographic questions, the second part issue. With regard to the importance of a website's product
of the survey investigates the different factors and reviews on the decision making of consumers, 68% of
characteristics of reviews that might have an impact on participants agree and strongly agree that such reviews are
consumers. This part is divided into three main subsections, the helpful when deciding to make a purchase. On the other hand,
first is related to the characteristics of the reviews themselves. 12.6% of the participants were in disagreement and full
It consists of ten statements that seek to determine the reaction disagreement with the value of product reviews on their
of the shoppers to the consumer reviews. The second subsection decision to make a purchase. 19.3% were indifferent about the
highlights the characteristics of the reviewer, it includes six value of such reviews.
statements that explore the nature of the writer of the review
On the issue of whether product reviews are biased or not,
and the influence of such character on purchasing decisions
40.7% of the total participants were neutral or undecided
(Table 3). The third subsection contains four questions that
on this topic. 30.7% agreed that customer reviews are not
consider the characteristics of the websites that bear the
biased, while 10% strongly believed the same. 14.7%
consumer reviews and the influence of those website
thought that reviews were biased, while an additional 4%
characteristics on the decision making process of making a
believed the same strongly. When it came to the issue of
purchase or otherwise (Table 4).
how recent a review was posted, 34% of respondents
Tables 2, 3, and 4 highlight the descriptive statistics obtained indicated that this is an important deciding factor when
from the participant’s responses of the survey. The first column making a purchase. An additional 20.7% feels the same
of each of the three tables represents the statements of the with a stronger conviction. 30.7% of participants are
questionnaire. The subsequent columns represent the 5point neutral on this matter, while a combined 14.7% don't feel
Likert scale predefined responses available to the respondents. such an importance with disagree and strong disagree
Also it contains the frequency (number of responses) and the selections. On the effect of negative or positive reviews
corresponding percentage of the study population that chose a when purchasing more expensive goods, 50.7% were in
certain alternative among the five predetermined responses. The agreement that negative reviews were important
subsequent columns express the mean, standard deviation and influencers when making purchasing decisions of
the rank. The mean and standard deviation are derived from the expensive goods, while 44.7% are in agreement with the
number of responses across all five predefined responses. The influence of positive comments on purchasing decisions.
rank is derived from the mean where the lower rank refers to 17.4% did not agree that negative comments would have
the statement with the highest level of agreement by the study an effect on the purchase of expensive goods, while 20%
participants. did not agree that positive comments would affect their
purchasing decisions of expensive goods. 32% and 35.2%
are respectively neutral about the effect of such reviews.
5.2.1 Analysis Related to Characteristics of the
Review The top ranked statement in this section of the
According to Table 2, 60% of the total participants agreed and questionnaire with a mean of 3.86 is the one related to the
fully agreed with the statement that the consistency of the impact of highly rated products through online reviews. A
reviews that were posted on the website had an impact on their total of 65.4% agreed and strongly agreed with the value
purchasing decisions. This is in contrast with the portion of of such a rating on their decision making process. 25.3%
respondents of only 11.3% who disagreed and fully disagreed had a neutral stance on this issue, while a combined 9.4%
that consistency is an important factor when making a disagreed and totally disagreed with such a statement.

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59.3% of study participants agree that the number of decision while a combined 16% disagreed and totally disagreed
product reviews affected their purchase decision. 14.7% of with such a statement. 40.7% had a neutral stance on this issue.
the respondents disagreed with this statement, while 24% Therefore, it’s suggested that other reviewers’ evaluations of
took a neutral position. 54% of participants agree that they reviews should be presented to customers.
feel concerned had they not read the reviews on a
purchased product. 21.3% do not regret not reading Forty Eight percent (48%) of the total participants disagree and
reviews, while 24.7% are neutral on the matter. Spelling fully disagreed with the fact that the nick name or the real name
or grammar mistakes in product reviews have the least of the reviewers affected their purchase decision. 25.3% believe
impact on purchasing decisions and is therefore ranked as that naming is critical, while 26.7% are neutral on the matter.
the least factor effecting decisions to make a purchase with On the issue of whether the frequency of reviews submitted by
a mean of 2.65. Only 23.3% agree that such mistakes have a specific reviewer affects the purchasing decisions or not, 38%
an impact on their purchasing decisions while 48% are not of the total participants were neutral or undecided on this issue.
impacted by such problems. 32.7% of the total participants agreed and fully agreed that the
frequency of reviews written by certain reviewer affected their
purchasing decision, while 29.4 % of the participants were in
disagreement and complete disagreement with the statement.
36.7% were in disagreement and full disagreement of the
I believe that the product reviews on the F 6 22 61 46 15
internet are neutral (not bias) Table 2. Statements of respondents about consumer reviews
3.28
Mean .970 9Rank
Statement % 4Fully Disagree
14.7 Neutral 30.7
40.7 Agree Fully
10 SD
Disagree Agree
(2) (3) (4)
Recency of product reviews posted on F 7 15 46 51 31
(1) (5)
the website affect my purchase
decision 3.56 1.071 5
% 4.7 10 30.7 34 20.7
Consistency of reviews posted on the F 9 8 43 43 47
website affect my purchase
When I buy a product online, the F 13 13 48 33 43 3.74 1.138 3
% 6 5.3 28.7 28.7 31.3
impact of negative online reviews on
my purchasing decision is greater for % 8.7 8.7 32 22 28.7 3.53 1.235 6
When Igoods
expensive buy a product online, the F 8 11 29 57 45
reviews presented on the website are
helpful for my decision making 3.80 1.111 2
% 5.3 7.3 19.3 38 30
When I buy a product online, the F 9 21 53 43 24
impact of positive online reviews on
my purchasing decision is greater for % 6 14 35.3 28.7 16 3.35 1.093 8
expensive goods

Received high ratings for product affect F 4 10 38 49 49

my purchase decision
3.86 1.036 1
% 2.7 6.7 25.3 32.7 32.7

The number of product reviews affects F 7 15 39 54 35

my purchase decision
3.63 1.089 4
% 4.7 10 26 36 23.3

If I don’t read the reviews presented on F 14 18 37 44 37

the website when I buy a product
online. I worry about my decision 3.48 1.246 7
% 9.3 12 24.7 29.3 24.7

Spelling or grammar mistakes in F 33 39 43 17 18

product review affect my purchase
decision 2.65 1.274 10
% 22 26 28 11.3 12

opinion that the reviewer age affects the purchase decision.

5.2.2 Analysis Related to Characteristics of the However, 34.7% believe otherwise, while 28.7% were neutral.
Reviewer When we asked about the reviewer residence and its affect on
Table 3 details the respondents' attitudes towards the actual the purchase decision, the responses were more or less similar
product reviewers. According to the results presented the and followed a similar pattern. 38.7% of the respondents
“Other reviewers’ rating of usefulness of the review affects my disagreed and fully disagreed with the effect of a reviewer's
purchase decision” is regarded as more important than other residency. 26.6% fully agreed with the statement regarding the
statements in this section with a mean of 3.38 and a standard reviewer residency while 34.7% were neutral.
deviation of 1.047. 43.3% of the total number of participants
The reviewer gender have the least impact on purchasing
agreed and fully agreed on the effect of rating of usefulness of
decisions and it therefore came-in sixth and last place among
the review by other reviewers on the consumer purchasing
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Volume 82 – No.9, November 201

other statements in this section with a mean of 2.48 and a With regard to the popularity of a website that present the
standard deviation of 1.186. Only 21.3% agree and strongly review on the decision making of consumers, this factor
agree that the reviewer's gender makes a big difference on their came in first place among other statements where the
purchasing decision while 49.3% do not believe the same. average of 3.87 and a standard deviation of 1.053. This
29.3% of respondents were neutral on this issue. The factor of indicates that the participants agree to the importance of
reviewer gender, nick or real names, and residence are assessed the popularity of the web site. 67.4% of the total number
with the least influence on purchasing decisions. In general it of participants agreed and fully agreed on the effect of the
can be said that Saudi online shoppers do not consider web site popularity on the consumer purchasing decision
demographic profiles of reviewers as significant factors when whereas 10 % of the total participants disagreed and fully
making purchasing decisions. disagreed with the statement.
Table 3. Statements of respondents about the reviewer
Statement Fully Disagree Neutral Agree Fully Mean SD Rank
Disagree Agree
(2) (3) (4)
(1) (5)

Other reviewers’ rating of usefulness of the F 8 16 61 41 24

review affects my purchase decision
3.38 1.047 1
% 5.3 10.7 40.7 27.3 16

The nick name or the real name of the F 42 30 40 26 12

reviewers affects my buying decision
2.57 1.281 5
% 28 20 26.7 17.3 8

The frequency of reviews submitted by a F 19 25 57 39 10

specific reviewer affects my purchasing
decisions 2.97 1.099 2
% 12.7 16.7 38 26 6.7

The reviewer's age affect my purchase F 25 30 43 42 10

decision
2.88 1.187 3
% 16.7 20 28.7 28 6.7

The reviewer's residence affects my F 25 33 52 32 8

purchase decision
2.77 1.126 4
% 16.7 22 34.7 21.3 5.3

The reviewer's gender affects my purchase F 42 32 44 26 6

decision
2.48 1.186 6
% 28 21.3 29.3 17.3 4

22.7% were indifferent about the value of popular website.

The statement, “If the web site that present the reviews belong
5.2.3 Analysis Related to Characteristics of the to the company whose product I want to buy, my purchasing
Websites that Present the Reviews decision is effected,” scored the lowest mean 3.52 across all
Statements and nature of respondents' replies with regard four statements under the website section and it therefore
to websites that present product or service reviews are ranked as the least effective factor, with a standard deviation of
provided in Table 4. As the table shows, 64% of 1.001. 51.4% of the total number of participants agreed and
participants agree and strongly agree that the reliability of fully agreed on this phrase whereas 11.4% of them were of a
a website is important when deciding to make a purchase. contrary opinion. 37.3% of respondents were neutral on this
On the other hand, only 20.3% of the participants were in issue. Very much like the review itself, the website that present
disagreement and full disagreement with the statement. the review is a critical factor in the decision making process of
22% were neutral on the matter. Concerning the issue of the consumer. It is apparent that the ownership of the website
the internationality of the web site that presents the by the company whose product I want to buy, the more desirable
reviews and its effect on the purchase decision, 33.3% of and trustful the review will be. Consequently, more than half of
respondents indicated that this is an important deciding the sample 51.4% establishes a greater trust when those reviews
factor when making a purchase. An additional 22.7% feels belong to the company’s website. Therefore, it can be
the same with a stronger assurance. 32.7% of participants recommended that popularity, reliability, internationality, and
are neutral on this topic, while a combined 11.3% don't ownership of the website are critical for Saudi consumer
feel such an importance with disagree and strong disagree respectively.
choices.

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Table 4. Statements of respondents about websites that present product or services reviews
Statement Fully Disagree Neutral Agree Fully Mean SD Rank
Disagree Agree
(2) (3) (4)
(1) (5)

Reliability of the site that present the reviews F 1 20 33 48 48

affect my purchase decision
3.81 1.052 2
% 0.7 13.3 22 32 32

Internationality of the web site that present the F 8 9 49 50 34

reviews affect my purchase decision
3.62 1.066 3
% 5.3 6 32.7 33.3 22.7

Popularity of web site that present the reviews F 5 10 34 52 49

affect my purchase decision
3.87 1.053 1
% 3.3 6.7 22.7 34.7 32.7

If the web site that present the reviews belong F 7 10 56 52 25

to the company whose product I want to buy,
my purchasing decision is effected 3.52 1.001 4
% 4.7 6.7 37.3 34.7 16.7

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