Role of Electronic Word of Mouth in Generating a Prestigious Perception of the Brands

Abstract

Purpose: Brand prestige can be quantified from a consumer’s perspective, but it has not yet been examined. Keeping in view that EWOM can alter behaviors and perceptions, the overall aim of this study is to assess its role in creating a prestigious brand perception and the extent to which it influences purchase decions. Design/Methodology/Approach: 300 survey responses were analyzed through mediation model template 6 of Hayes’s PROCESS macro to deduce EWOM’s contribution towards elevating the status and performance of masstige products. Findings: The mediating effect of brand prestige is higher than that of consumer engagement on purchase intention, which signifies that if the brands are able to generate enough word of mouth, consumers would equate the popularity with prestige and are likely to be praised by their social cohort. Higher effect of prestigious brand perception on consumer engagement implies that the brands have to create engaging content for their consumers rather than relying solely on their prestigious perception to boost sales. Implications/Originality/Value: This study is vital for an emerging economy such as Pakistan, where people may have money constraints but abundance of products due to the acceptance of e-commerce. Managers may want to consider incentivizing the consumers’ feedback, and focus on creating high quality interactive social media content to increase visibility and also improve engagement.

Keywords

• E-Commerce
• Social Media
• Electronic Word of Mouth
• Prestige
• Brand Perception