The role of e-Word of Mouth (eWOM) in the relationship between risk perceptions and online purchase intentions in apparel consumption in South Africa

Abstract

Online shopping, particularly during the COVID-19 pandemic, has surged in popularity among consumers. However, the inherent risks and uncertainties associated with e-commerce pose challenges for online purchase intention. This study investigates the impact of financial risk perception, product risk perception, delivery risk perception, and electronic word-of-mouth (eWOM) on online purchase intention within the South African apparel industry. A web-based cross- sectional survey was conducted, employing non-probability sampling to gather data from a valid sample of 228 participants who are South African residents engaged in online apparel shopping. Data analysis encompassed descriptive statistics, exploratory factor analysis, reliability and validity analysis, and structural equation modelling using SPSS 28 and SPSS Amos 26. The results indicate that financial and delivery risk perceptions do not exert a statistically significant direct influence on online purchase intention. However, product risk perceptions exhibit a statistically significant negative direct influence, while eWOM demonstrates a statistically significant positive direct influence. Mediation analysis reveals that eWOM does not significantly mediate the direct effects of financial and delivery risk perceptions on online purchase intention. However, it partially mediates the influence of product risk perception on online purchase intention. Notably, eWOM serves as a significant moderator of the direct influence of financial risk perception on online purchase intention, but not for product and delivery risk perceptions. These findings underscore the crucial role of eWOM in consumers' purchasing journeys. Accordingly, South African apparel merchants should prioritize addressing product risks by providing comprehensive information, ensuring accurate product delivery, and encouraging eWOM participation through user-generated video reviews and online feedback. Furthermore, merchants should address financial risk concerns by delivering high-quality customer service, offering product guarantees, and implementing transparent return policies and reimbursement processes. Overall, this study underscores the significance of eWOM in shaping consumer behaviour within the South African online apparel industry. The findings provide valuable insights for apparel merchants to effectively manage risks, enhance customer satisfaction, and stimulate online apparel purchases.