The Impact of Electronic Word of Mouth on Brand Image and Purchase Intention – A Study on Hospitality Industry in Sri Lanka

Abstract

Interpersonal influences and word of mouth are considered as the most influencial factors in customer purchase decision making. With the development of technology, the electronic word of mouth has become a very popular and trusted communication mode among consumers. Due to the intangible nature of hospitality services and high risk involved with the purchase, most consumers in the hospitality industry look for other customers’ recommendations prior to making their purchase decision. Hence this study focuses on evaluating the value of electronic word of mouth in generating a purchase intention in customers’ mind in the hospitality sector in Sri Lanka. Data was collected using the survey method from 100 tourists who were visiting Sri Lanka based on the convenient sampling method. Data analysis was done using correlation and regression analysis. The results indicate a strong positive impact of electronic word of mouth and brand image on their purchase intention. However, the results also indicate that electronic word of mouth does not have an impact on building a brand image. This study fills a void in Sri Lankan research in the field of tourism.