Topic:

The impact of customer reviews towards an

online shopping purchase intention:
Evidence from Malaysian younger generation

TEAM FYP YYDS (Tutorial 4)

CHAI HAO XUAN 18036707
YAP YU DUI 18066217
HOE JUN BIN 19000603
TAN YEE XIN 18002717
Programme: BIB
 Introduction with research background
• Because of the emergence of the internet, e-commerce has grown widespread in today's era of modern-day
globalization. People are becoming increasingly acclimated to online shopping, and they prefer to purchase the
commodities and services that they desire online.
• According to a report, 74.8 per cent of netizens utilise online shopping as a form of daily consumption, with the
majority being younger and middle-aged consumers.
• Customer feedback, often known as buyer reviews, is a significant tool to influence customer purchasing
intentions because the majority of consumers will read the reviews of their desired product before making a
purchase.
• As a result, online comments can be a potential source of information for predicting online purchasing behaviour.
 Problem Statement I

• When the consumer cannot get to see and touch on the product they want to buy online, they will rely on the
online customer review provided by the third party customer who had purchased the product before.
• According to a survey, 93% of consumers read the product reviews before making an online purchase (Kaemingk,
2020).
• The information offered by online peers has a significantly greater effect on customer perceptions, preferences,
and decisions than the information offered by the seller.
• Personal viewpoints and experiences regarding products and services, expressed in the form of online customer
reviews, have become one of the most valuable references of information for consumers in making purchase
decisions.
 Problem Statement 2

• Previous research only focuses on the overall population that online customer review impact on customer purchase
intention, but no study show that the population of the young generation will impact by the online customer
review on their purchase intention.
• This research proposes to contribute literature to the current topic of research and to contribute a thoroughgoing
understanding of the impact of customer reviews towards young generation (Millennials and Generation Z’s)
online shopping purchase intention while evaluation the SOR theory to further explore the online review
characteristics which are online review quality, online review quantity and online review credibility with the
organism of customer trust and the response on the consumers purchase intention.
Research Questions

1• How do online customer review (OCR) characteristics influence younger generation consumer’s
purchase intention through e-commerce?

22. How does consumer trust mediate between online customer reviews and the younger
generation purchase intention?
Research Objectives

1 • To examine the relationship of online customer review (OCR) characteristics and young
generation customer purchase intention amongst Malaysian younger generation (Millennials
and Generation Z’s).

22. To examine consumer trust mediate between online customer review and the younger
generation purchase intention.
Scope of the study
• Focuses on customer trust and customer purchase intention in relation to characteristics of online
customer reviews on e-commerce.
• Characteristics of online customer reviews :
(i) Quality of customer reviews
(ii) Quantity of customer reviews
(iii) Credibility of customer reviews
• Data collection will be conducted to the Malaysian younger generation (Millennials and Generation Z’s)
within 18-29 years old who have online purchase experience.
Significance of the
study
• The younger generation (Generation Z and Millennials) had become the most important customer for
every online shopping platform and the owner of the online shop.
• This study would be beneficial to the industry in Malaysia because it can help the industry to
understand the impact of online customer review on the young generation purchase intention and
does the young generation trust the online customer review and lead to purchase intention.
• If the industry fails to know and understand the impact of online customer reviews on the young
generation it may lead to the failure of the business in the industry.
Literature Review
Stimulus-Organism-Response (SOR) Theory
• Purpose by Mehrabian and Russel in 1974
• Three main parts: Stimulus, Organism, and Response
• SOR Theory has been tested and validated by numerous researchers and shown to be suitable as a theoretical
foundation to identify the customers’ purchase intention towards e-commerce. （ Zhu & Wang et al. 2020;
Zimmerman 2021; Wang & et al 2021)
• Our SOR theory research framework is derived from the framework that was proposed by Zhu & Wang et al.
(2020) and we increase the stimulus to online customer review characteristics which are quality, quantity, and
credibility of the consumer review, organism as consumer trust and the response is young generation purchase
intention.
Literature Review
Effects of online customer review characteristics on consumer purchase intention
Quality of online customer review
• A high-quality review is one that is objective and relevant, and that provides information that is clear, adequate,
and appropriate regarding associated products (Park et al., 2007).
• Bataineh (2015) also stated that higher-quality customer review with understandable information will assist
consumers in evaluating the goods, thereby increasing their purchase intention.
• Hypothesis 1: Quality of customer review has a positive impact on consumer purchase intention.
Literature Review
Effects of online customer review characteristics on consumer purchase intention
Quantity of online customer review
• The quantity of customer reviews is a well-established and crucial component in e-commerce since it has
frequently been used as a peripheral cue in conjunction with online evaluations (​​Zhou et al., 2013).
• A greater quantity of online customer reviews will enhance the level of consumer purchase intention and aid the
customer in making the purchase decision process (Park et al, 2007).
• Hypothesis 2: Quantity of customer review has a positive impact on consumer purchase intention.
Literature Review
Effects of online customer review characteristics on consumer purchase intention
Credibility of online customer review
• The credibility of online customer reviews refers to the perception of customers toward the trustworthiness of
the review's source (Lopez & Sicillia, 2004).
• Previous research indicates that the higher the credibility of customer reviews, the greater the consumer purchase
intention (Chih et al., 2013).
• Hypothesis 3: Credibility of customer review has a positive impact on consumer purchase intention.
Literature Review
Effects of online customer review characteristics on consumer trust
Quality of online customer review
• A quality online customer review should be closely related to the product and authentic and provide a wealth of
useful information to the consumer (Felbermayr & Nanopoulos, 2016).
• The quality of online customer review will influence online consumers' behaviour as they evaluate, seek, and
determine which reviews are most important (Maduretno & Junaedi, 2021).
• Hypothesis 4: Quality of online customer reviews has a positive impact on consumer trust.
Literature Review
Effects of online customer review characteristics on consumer trust
Quantity of online customer review
• The number of comments published on a website is referred to as the online review quantity.
• Online review information quantity has a significant positive influence on consumer trust
• The higher the amount of trust and the smaller the perceived risk in a transaction, the greater the number of users
who recommend it.
• Hypothesis 5: Online customer review quantity has a positive impact on consumer trust.
 Literature Review
Effects of online customer review characteristics on consumer trust
Credibility of online customer review
• According to Jiménez & Mendoza (2013), consumers' perceptions of the trustworthiness and validity of online
customer reviews are considered credibility.
• Credible online customer reviews are able to provide consumers with informative advice before making a purchase
(Filieri et al., 2018).
• Hypothesis 6: Credibility of online customer reviews has a positive impact on consumer trust.
 Literature Review
Effects of customer trust on consumer purchase intention
• The factor of the organisms is trust, which is an emotional state to express individual emotions and cognition
• Trust can decrease consumers' uncertainty, which is an important factor in many E-Commerce sides
• Trust can help consumers feel more confident about their purchase decisions because if the consumer is not
confident about the product, they will not buy it.
• Hypothesis 7: Consumer trust has a positive impact on consumer purchase intention.
Theoretical Framework
Research Methods

Due to the conclusive

Primary data
nature of our research
collection
question, we choose to
by using
use Deductive reasoning
questionnaire
& apply a Quantitative
surveys.
approach in this
research
Sampling Techniques
Sampling Technique Sampling Frame & Location

Non-probability - Convenience sampling The target sample size will be

400 people and the questionnaire
Target Population: will be distributed through the
internet.
Younger generations within 18-29
years old who have online purchase
experience.

Estimated Time frame:

1 month
Data Collection Procedure

Send the link to the targeted

Create Questionnaire
Get 40 respondents for the population via Email,
on Google Forms
pilot test (Show the WhatsApp or post the link
questionnaire is useable) on Facebook and Instagram
Data Analysis
References
Bataineh, A. Q. (2015). The impact of perceived e-WOM on purchase intention: The mediating role of corporate image. International Journal
of Marketing Studies, 7(1), 126-137.
Chih, W., Wang, K., Hsu, L., & Huang, S. (2013). Investigating Electronic Word-of-Mouth Effects on Online Discussion Forums: The Role of
Perceived Positive Electronic Word-of-Mouth Review Credibility. Cyberpsychology, Behavior, And Social Networking, 16(9), 658-668.
https://doi.org/10.1089/cyber.2012.0364
Felbermayr, A., & Nanopoulos, A. (2016). The Role of Emotions for the Perceived Usefulness in Online Customer Reviews. Journal of
Interactive Marketing, 36, 60–76. https://doi.org/10.1016/j.intmar.2016.05.004
Filieri, R., Hofacker, C. F., & Alguezaui, S. (2018). What makes information in online consumer reviews diagnostic over time? The role of
review relevancy, factuality, currency, source credibility and ranking score. Computers in Human Behavior, 80, 122–131.
https://doi.org/10.1016/j.chb.2017.10.039
Jiménez, F. R., & Mendoza, N. A. (2013). Too Popular to Ignore: The Influence of Online Reviews on Purchase Intentions of Search and
Experience Products. Journal of Interactive Marketing, 27(3), 226–235. https://doi.org/10.1016/j.intmar.2013.04.004
Lee, S. (2009). How do online reviews affect purchasing intention? African Journal of Business Management, 3(10), 576-581.
doi: 10.5897/AJBM09.204
References
Moon, M. A., Javaid, B., Kiran, M., Awan, H. M., & Farooq, A. (2018). Consumer perceptions of counterfeit clothing and apparel products attributes.
Marketing Intelligence & Planning, 36(7), 794–808. https://doi.org/10.1108/mip-11-2017-0272
Maduretno, R. B. E. H. P., & Junaedi, S. (2021). The Importance of eWOM Elements on Online Repurchase Intention: Roles of Trust and
Perceived Usefulness. Jurnal Ekonomi Indonesia, 10(1), 55–69. https://doi.org/10.52813/jei.v10i1.59
Park, D.-H., Lee, J., & Han, I. (2007). The effect of on-line consumer reviews on consumer purchasing intention: The moderating role of
involvement. International Journal of Electronic Commerce, 11(4), 125-148.
Zhou, M., Liu, M., & Tang, D. (2013). Do the characteristics of online consumer reviews bias buyers' purchase intention and product
perception? A perspective of review quantity, review quality and negative review sequence. International Journal Of Services
Technology And Management, 19(4/5/6), 166. https://doi.org/10.1504/ijstm.2013.055632
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