The Relationship Between Online Consumers Reviews, Purchase Intention and Actual Purchase: An Empirical Evidence From Saudi Arabia

Abstract

<p>Online consumer reviews (OCRs) have become an important element of online shopping in the current environment as a result of rapid technological advancements and the influence of external factors. Therefore, consumer preferences and buying patterns in an online environment showcase a shift from the development of purchase intention to engagement in actual purchase. The significance of OCRs for consumers stems from the ambiguous nature of the online shopping environment, which inherently presents a certain amount of risk and uncertainty for consumers. Therefore, the overarching aim of the present study was to explore and assess the relationship between OCR characteristics, consumer demographic profiles, product type and consumer trust, and how they affect purchase intention and actual purchase behaviour.</p> <p>As a starting point, extensive academic literature was reviewed and synthesised. A conceptual framework was developed based on popular theoretical frameworks such as the theory of reasoned action, the theory of planned behaviour, the elaborated likelihood model and social identity theory. The conceptual framework was built on four elements of OCRs - review valence, information relevance, information timeliness and information accuracy. Additionally, three contextual factors were included: demographic variables, consumer trust and product type. Further, the role of gender and the product type were explored to understand their role in moderating the relationship between consumers’ purchase intention and actual purchase.</p> <p>Multiple regression analysis of data from 604 respondents revealed no relationship between gender, age, income or education and purchase intention. However, gender, age and income were related to actual purchase behaviour, while education and actual purchase were not. There was a relationship detected between the OCR elements review valence and information relevance and purchase intention; however, information accuracy and information timeliness exerted no influence on purchasing intention. Contextual factors product type and consumer trust appeared to influence purchase intention. Further, product type influenced actual purchase behaviour, and gender moderated the relationship between purchase intention and actual purchase, whereas product type did not exert any influence.</p> <p>The findings obtained from the present study contribute both theoretical and practical implications that validate the research framework and are supported by empirical evidence. Given the increasing trend of online shopping in Saudi Arabia, further boosted by the COVID-19 pandemic, it is imperative for marketers to treat online shoppers differently from traditional shoppers because of the demographic diversity of online consumers and the nature of the online environment. Moreover, online retailers should consider the content and specifics of OCRs to improve consumers trust in online shopping. Further, the findings of the present study may benefit formulation of specific marketing strategies through understanding the importance of OCRs, associated elements and other contextual factors that trigger consumer purchase decisions.</p>