Influences of Online Negative Word of Mouth on Purchase Intention

Abstract

This study presents two experiments that examine the influence of electronic negative word of mouth (e-NWOM). Experiment 1 investigated perceived credibility based on 2 (product awareness: high / low) × 2 (strength of WOM: high / low) × 2 (product type: search good / experience good). Experiment 2 investigated purchase intention based on 2 (product utility: high / low). The experiments involved 530 people from Taiwan. The results indicated that high product awareness and weak e-WOM have less influence on consumer perceived credibility of the e-WOM. E-NWOM for a search good has less influence on consumer perceived credibility than for an experience good. The results also indicated that high utility of products increase sales.