Investigating the Effect of Customer Reviews and Online Customer Ratings on Purchase Intention: Mediating Role of Word of Mouth

Abstract

Technological advancement is accelerating, compelling business professionals to consistently engage in online marketing through e-commerce to stay competitive. By examining customer reviews and ratings online, this study seeks to determine how word of mouth affects purchase intentions. The research was conducted in Binjai city with a sample of 120 respondents. Purposive sampling was carried out with the condition that the respondent was female. Data analysis in this study used path analysis. The result shows that online customer reviews and ratings have a significant positive relationship with word of mouth. Also, online customer reviews, ratings, and word of mouth effect positively with purchase intention. In addition, this study found that word of mouth mediates the relationship between online customer reviews and online customer ratings on purchase intention. This study unequivocally demonstrates a noteworthy and positive relationship between online customer reviews and ratings and the phenomenon of word of mouth. Furthermore, the research establishes that these online reviews and ratings significantly shape purchasing intentions through word of mouth. It underscores the influential role that virtual customer feedback plays in fostering and amplifying consumer perceptions, highlighting its significance in shaping purchasing decisions in the digital landscape.