The Effect of E-WOM and Perceived Value on the Purchase Decision of Foods by Using the Go-Food Application as Mediated by Trust

Handi Handi, Tonny Hendratono, Edi Purwanto, John J.O.I. Ihalauw

Abstract


Purpose: This study examined the effect of electronic word of mouth and perceived value on purchase decisions of foods when using the Go-Food Application, which is a purchase decision mediated by trust. The increasing the number of Go-Food Application users makes this study a timely survey.

Methodology/Approach: This research explored how the Go-Food Application is able to obtain more consumers compared to similar mobile apps. This research is quantitative in nature by testing the hypotheses. The sample size used was 175 respondents from a non-probability sampling with a convenience sampling technique. The analysis uses a SEM model analyzed using the AMOS program 24.

Findings: The results based on Confirmatory Factor Analysis (CFA) shows that each variable is valid and reliable, and the result of Goodness of Fit shows all variables fit the data. The result of hypotheses testing show: (1) electronic word of mouth affects significantly and positively on trust; (2) perceived value affects significantly and positively on trust; (3) electronic word of mouth affects significantly and positively on purchase decision; (4) perceived value affects significantly and positively on purchase decision; (5) trust affects significantly and positively on purchase decision.

Research Limitation/implication: The respondents were only those who live in Jakarta and those who use Go-Food application owned by Go-Jek Indonesia Ltd., exclude its other application such as Go-Car, Go-Mart, Go-Send, Go-Box, Go-Pulsa, Go-Massage, Go-Clean.

Originality/Value of paper: Trust proved as mediation variable between of electronic word of mouth and perceived value and purchase decision by using Go-Food application. So this research has distribution to Go-Jek Indonesia Ltd. to maintain the costumer trust to get sustainable competitive advantage.


Keywords


electronic word of mouth; perceived value; trust and purchase decision

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References


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DOI: http://dx.doi.org/10.12776/qip.v22i2.1062

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Copyright (c) 2018 Handi Handi, Tonny Hendratono, Edi Purwanto, John J.O.I. Ihalauw

ISSN 1335-1745 (print)
ISSN 1338-984X (online)
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