The Effect of Electronic Word of Mouth Using Analysis of Review Valence on Brand Trust as a Purchasing Decision Lucienne Beauty

 

 

Hamidah Alya Yumna 1, Syarifah Hudayah 2, Herning Indriastuti 3

Mulawarman University, Samarinda, Indonesia

E-mail: [email protected], [email protected], [email protected]

 

Corresponding Author: Hamidah Alya Yumna, [email protected]

 

Keywords

Abstract

Electronic Word of Mouth, Review Valence, Brand Trust, Purchasing decision

 

The influence of electrinic word of mouth in today's digital age has a great impact on a person's consumptive nature. Therefore, the role of electronic word of mouth is very important in a person's decision to buy a product. The purpose of this study is to find out the influence of Electronic Word of Mouth based on valence reviews to create brand trust as an intervening variable that will have an impact on the purchase decision of the Lucienne Beauty brand. This research was conducted using data taken using 110 qualitative data from Lucienne Beauty customer respondents. The analysis tool used is SmartPLS 4.0. Data analysis is carried out by assessing the outer model or measurement model and the inner model or structural model. The results showed that the electronic word of mouth from the valence review partially had a significant positive effect on brand trust, and the electronic word of mouth had a significant positive effect on the purchase decision of Lucienne Beauty products through the brand trust variable as the intervening variable.

 

https://jurnal.syntax-idea.co.id/public/site/images/idea/88x31.png� 2024 by the authors. Submitted for possible open access publication under the terms and conditions of the Creative Commons Attribution (CC BY SA) license (https://creativecommons.org/licenses/by-sa/4.0/).

 

1�� Introduction

 

Brand competition in sales through social commerce in today's online sales market is very tight, the market requires business actors to continue to maintain consumer trust. In beauty brands, the competition is very tight, especially the number of Chinese products that enter Indonesia at relatively cheaper prices than local products. Most consumers who use beauty products will definitely have the best product to use, before buying a product they will see reviews in an online store or on social media. The reviews themselves are divided into good reviews and bad reviews. Surely in all online sales applications provide a means for buyers to provide reviews, these reviews will influence the next buyer to continue buying the product or discourage their intentions. Brand trust is something that will affect the extent to which a child decides to buy a product. Brand trust as a benchmark for a person to make a buying decision is very influential on the review valence, namely good reviews and bad reviews in a social commerce sales storefront.

This phenomenon must be faced by beauty brand business actors and other online sellers and make it a challenge to continue to innovate to create good and quality products to avoid bad reviews, which can have an impact on product sales and become a means to win the hearts of consumers so that they decide to buy our products. Product purchase decisions are influenced by one of them because of electronic word of mouth (E-WOM). Electronic word of mouth is widely one of the influential factors in influencing consumer behavior. The form of communication in an interaction is very important with the emergence of social media platforms and social commerce which make it one of the most influential sources of creating trust in a brand.

The Lucienne Beauty brand builds communication and interaction through social media with the hope that consumers will be able to get to know Lucienne products and attract a wide range of consumers. Sales of the Lucienne brand are almost entirely through social media such as shoppe, tiktok, and tokopedia. Promotions and endorsements are also carried out by the Lucienne brand through various social media platforms. Endorsements or influencer reviews also directly affect electronic word of mouth more broadly, but consumers will still consider the reviews given to consumers indirectly, this is what has the most impact on a person's decision to buy a product or not. In addition to endorsements, brand influencers lucienne also builds brand trust, which is one of the factors in consumer loyalty. Brand trust is a consumer perception that is formed after weighing and assessing the suitability of the establishment of a business unit or business brand. This brand trust can have an impact on the rise or fall of a product's sales.

Based on the description that has been described above, the researcher is interested in conducting this research by looking at the influence of electronic word of mouth, review valence, brand trust, and product purchase decisions.

 

2��� Materials and Methods

Electronic Word of Mouth

Electronic word of mouth or abbreviated as eWOM is a new communication phenomenon that develops in tandem with advances in information and digital technology. Electronic word of mouth has a significant influence on consumer behavior, especially in the context of online purchases. The interpersonal relationships formed through eWOM can shape consumer perception and trust in a particular brand, ultimately influencing consumer purchasing decisions. Therefore, it is very important to emphasize review management and feedback for products to strengthen consumer trust and loyalty (Chen et al, 2023).

 

Review Valence

A review valence is a review of the positive or negative of a service or product. Consumers will be more likely to buy products associated with positive emotions than products with neutral or negative associations.In digital marketing, content that has a positive valence is more effective in increasing audience engagement and conversions than neutral or negative content. These results confirm the importance of valuing and managing valence in digital marketing strategies. Review valence is a key component in user experience design. They found that user interfaces that mediate positive valence tend to increase user satisfaction and loyalty to digital products. With this, it can be concluded that valence plays an important role in various contexts, from organizational behavior, consumer decisions, to user experience design.

 

Brand Trust

Brand trust is one of the important factors that affect consumer loyalty. This brand trust is formed based on consumers' perception of a brand's capacity and capabilities in meeting their expectations. Brand trust is built through a positive consumer experience with a product or service, as well as through consistent and transparent communication from the brand. The study emphasizes that the continuous interaction between consumers and brands can shape and reinforce trust which results in long-term loyalty Consistent products in terms of quality and performance can effectively increase trust in brands and, in turn, increase consumer loyalty. In the digital era, the presence of a strong online store and reputation management on social media is able to strengthen brand trust, this is influenced by strategic digital activities and responsiveness to consumer feedback (Oliveira and Sullivan, 2022).

As a business actor, it is certainly very important to increase brand trust in various ways. To increase brand trust, it can be done by increasing credibility through the quality of the manufacturer or distributor. Then increase information, communication, and promotion regarding products that are of better quality than other competitors. Other indicators such as kindness and integrity also need to be informed, communicated, or promoted, as they are both important (Dhanny et al, 2021).

 

 

Electronic Word of Mouth and Review valence Relationship

Electronic Word of Mouth (eWOM) is an informal communication carried out by consumers through digital platforms regarding the characteristics of the goods or services they consume. One of the important variables in this study is review valence, which is whether consumer reviews are positive, negative, or neutral. The valence of reviews can play an important role in determining a consumer's purchasing decision. Here are some studies that are relevant to these findings.

1.      Effect of eWOM on Purchase DecisionsReview valence influences consumer purchase intent by considering moderation variables such as trust in review sources and product engagement. The study found that positive reviews have a more significant impact on increasing purchase intent compared to negative reviews, especially when they come from sources trusted by consumers. In addition, product engagement also affects the effect of review valence, where higher engagement amplifies the impact of positive reviews2. Dynamics of Review Valence and Consumer ConsistencyReview consistency plays an important role in shaping consumer trust. Reviews with consistent valence (both positive and negative) tend to be more trusted by consumers and influence their purchasing decisions more than mixed reviews 3. Revision of Perceptions Through Negative ReviewsNegative reviews can cause consumers to reevaluate their perception of the brand, often damaging the brand's image even if they have had a positive outlook before. The study also emphasizes that the impact of negative reviews is stronger on consumers who are less loyal than consumers who are already loyal to the brand4. Social media and eWOMP ImpactDifferent social media latforms can affect the effectiveness of eWOM. The findings suggest that the characteristics of each platform (such as interactivity, visibility, and interaction structure) may mediate the impact of review valence. For example, reviews on highly interactive platforms like Instagram tend to be more influential compared to reviews on more passive platforms like traditional blogs, as users can see direct interactions and responses from brands and other users 5. Cultural Influence on eWOMBWorth collectivist power, eWOM reviews from known people (e.g., friends and family) are more influential than reviews from anonymous sources. In contrast, in an individualist culture, reviews from anonymous sources can be just as effective as reviews from known people, provided they are considered credible

 

Conceptual Framework

The conceptual framework in this study is as follows:

Screenshot 2024-09-04 at 20:35:00

Figure 1. Conceptual Framework

Based on the above model, so this research uses the Smart-PLS 4.0 analysis tool with the following research hypotheses:

H1 : Electronic word of mouth has a significant positive effect on review valence

H2: Review valence has a significant positive effect on brand trust

H3: Electronic word of mouth has a significant positive effect on brand trust

H4: Brand Trust has a significant positive effect on purchasing decision

 

Variables and Indicators

This study is using 4 variables with 12 indicators. The classification of research variables and indicators is shown in table 1 as follows

 

Table 1. Variables and indicators

No

Name

Variables

Variables classitication

Dimension/ Indicator

Code

Number item

1

Electronic word of mouth

Endogenous

1.  Content

2.  Intensity

3.  Valence of opinion

X1.1

X1.2

X1.3

3

2

Review Valence

Endogenous

1.      PPositif Review

2.      Netral Review

3.      Negative Reviews

Y1.1

Y1.2

Y1.3

3

3

Brand Trust

Intervening

1.      Benevolence

2.      Integity

3.      Credibility

Y2.1

Y2.2

Y2.3

3

4

Purchasing Decision

Endogenous

1.      Stability

2.      Habit

3.      Recomendation

4.      Repeat purchasing

Y3.1

Y3.2

Y3.3

Y3.4

4

Source: Data processed, 2024

3�� Results and Discussions

 

Table 2. Outer Loadings Results

No

Name

Variables

Code

Outer Loadings Results

1

Electronic word of mouth

X1.1

X1.2

X1.3

0,785

0,760

0,776

2

Review Valence

 

Y1.1

Y1.2

Y1.3

0,768

0,750

0,745

3

Brand Trust

Y2.1

Y2.2

Y2.3

0,746

0,739

0,786

4

Purchasing Decision

Y3.1

Y3.2

Y3.3

Y3.4

0,752

0,756

0,766

0,789

 

Screenshot 2024-09-08 at 11.27.53 pm

Figure 2. Structural Model

Average Variance Extracted Results

The average variance Extracted value is a value greater than or above 0.5. The AVE value for each is used to describe the magnitude of the variant or diversity. As illustrated in table 3:

 

Table 3. Average Variance Extracted Results

No

Name Variables

Average Variance Extracted Results

1

Electronic word of mouth

0,673

2

Review Valence

0.554

3

Brand Trust

0.657

4

Purchasing Decision

0,666

Source: Data processed, 2020 (SmartPLS 4)

 

In this study, the AVE value of all constructs is above 0.5 so that all constructs can be used in this study.

 

Realiable test

This test was carried out by looking at composite reliability with a threshold of 0.7. The results of the reliability test in this study can be seen in Table 4 below:

 

Table 4. Realiable test

No

Name Variables

Composite Reliability

(> 0,70)

Cronbach Alpha

(> 0,60)

Information

1

Electronic word of mouth

0,872

0,809

Reliable

2

Review Valence

0.854

0,834

Reliable

3

Brand Trust

0.858

0,844

Reliable

4

Purchasing Decision

0,886

0,876

Reliable

Source: Data processed, 2020 (SmartPLS 4)

 

From table 4 above, it can be concluded that the four constructs used in this study are reliable so that this model can be continued for further analysis, namely the inner model.

 

Inner Model Testing

This test is carried out to see and measure how much influence the latent dependent construct has. The relationship described by the latent independent is constructed. The following are the R2 values of both independent constructions in this study:

 

Table 5. Inner Model Testing

Name Variables

R2

Analysis

Brand Trust

0,670

Moderate

Purchasing Decision

0,680

Moderate

In table 5, the highest R2 value is the purchase decision value which is 0.680 which means that

The influence of electronic word of mouth affects product purchase decisions.

 

Hypotesis test

Based on the results of the existing hypothesis relationships, the following hypothesis tests are carried out:

 

Table 6. Hypotesis test

No

Variables

Realationship

Estimate

 

t-test

 

p-value

 

Information

 

 

 

 

1

Electronic word of mouth > Review Valence

0.234

2.790

0,001

Received

 

 

 

2

Review Valence > Brnad Trust

0.278

3.389

0,000

Received

 

3

Electronic word of mouth > Brand Trust

0.453

6.436

0,002

Received

 

4

Brand Trust > Purchasing Decision

0.567

4.789

0,000

Received

 

 

Based on the above data, it can be seen that the results of hypothesis testing in this study are that the influence of electronic word of mouth on product purchase decisions is significant with the t-test.

 

4�� Conclusion

 

The purpose of this study is to find out if the valence of reviews can influence a person's decision to buy a product. Four hypotheses found in this study are direct impacts that use brand trust as an intervening. Based on the results and discussions, all four hypotheses are supported. Suppose an online store has a lot of reviews and the average is high, the store will tend to be more trusted and in demand. Therefore, a brand must maintain its quality and service in order to increase the number of good reviews. Therefore, through this research, it is hoped that it can be useful to improve purchasing decisions so that it can increase sales.

 

5. References

 

Chen, L., Wang, J. & Peng, X. 2023. The impact of electronic word-of-mouth (eWOM) on purchase �������������� decisions: A PLS-SEM approach. Journal of Retailing and Consumer Services, 63, 102731.

Garcia, D., & Lee, J. (2022). Valence in Digital Marketing: Effects on Engagement and Conversions. ����������������������������� Journal of ����������� Digital Marketing, 27(4), 254-269.

Kim, J., Park, S. & Kim, E. (2022). The effects of electronic word-of-mouth (eWOM) on brand �� trust and purchase intention: Empirical evidence from the online setting. Journal of �� Marketing Development and Competitiveness, 16(2), 32-44.

Liu, Y., & Wang, H. (2023). The Role of Valence in User Experience Design. International Journal of �� Human-Computer Interaction, 39(1), 112-129.

Omar Dhanny, Syarifah Hudayah, Ardi Paminto, Sugeng Hariyadi, Doddy Adhimursandi. (2021). Investigation of Perceived Quality and Brand Trust Antecedents and their Consequences on Brand Loyalty of Toyota Avanza Vehicle in East Kalimantan Province, Indonesia, International Journal of Management (IJM), 12(1), 2021, pp. 641-654 �� http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=12&IType=1

Oliveira, M., & Sullivan, M. (2022). "Product reliability and its impact on brand trust: An empirical study." Journal of Product Research.

Patel, K., & Chung, L. (2023). Emotional Valence and Learning Outcomes in Educational Settings. Educational Psychology Review, 15(1), 85-103.

Rodriguez, T., Garcia, S., & Nguyen, A. (2022). Valence and Consumer Behavior: A Meta-Analytical Review. Journal of Consumer Research, 38(3), 451-468.

Smith, J., & Johnson, M. (2023). A Comprehensive Analysis of Valence in Organizational Behavior. Journal of Organizational Psychology, 45(2), 123-136.

Setyawan, S. A., Hudayah, S., & Zainurossalamia, S. (2023). The Influence of Direct Marketing, Digital Marketing and Instagram Celebrity Support on Purchase Decisions in Samarinda City, Indonesia. Journal of Madani Society, 2(1), 26�33. https://doi.org/10.56225/jmsc.v2i1.175