The hidden drivers of electronic word-of-mouth: The case of upscale cafe

DongHee Kim, Purdue University

Abstract

Recently, the café business has been growing continuously in the foodservice industry despite the global recession. Many foodservice global brands are rapidly expanding their coffee brand outlets rapidly to cater to affluent Asian consumers who regard Western brands as a statement of good taste (i.e., Starbucks). As the café business faces intense competition, marketers are challenged with identifying influential individuals and connecting with them in ways that encourage electronic Word-of-Mouth activity. To approach targeted marketing strategies for the survival of the competitive café industry, the present research suggests insights why certain online contents are more viral than others and what kinds of individuals are more likely to spread eWOM. The research has been designed to extend understanding to eWOM behavior beyond the concept that eWOM simply reflects perceived quality evaluation. More specifically, the objectives of the study include (1) to investigate self-relevant values consumers are likely to give eWOM: reflected appraisal of self, conspicuous presentation, and image congruency motives about the likelihood consumers would engage in WOM; (2) to observe the impact of relevant values of the café experience that trigger sharing café reviews including perceived café quality and price fairness; and (3) to identify the strength and direction of the relationship between motivations and eWOM intention by the level of opinion leadership. To test the relationships among constructs, Structural Equation Modeling (SEM) was conducted. Also the study performed multiple group analysis to identify the moderating role of opinion leadership. The result of SEM showed that the reflected appraisal of self, image congruity, and perceived café quality were significant drivers leading to eWOM intention. In addition, the results of multiple group analysis suggested that the triggers of self-relevant value and café-relevant value and consumer eWOM intention were different across the non-opinion leader group and the opinion leader group, considering the opinion leadership level as a moderator. Findings of the study contribute to the café marketing literature by filling a gap that has not been studied previously. Such findings provide some managerial implications for café practitioners to understand consumers' eWOM intention and development of marketing strategies.

Degree

M.S.

Advisors

Jang, Purdue University.

Subject Area

Marketing

COinS