Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)

The rise of electronic commerce has affected the retail industry in Malaysia. Particularly, offline store retailers are having a hard time maintaining their stores due to lack of profit and decreased foot traffic in their offline stores. Some offline retailers struggle to keep their stores running,...

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Main Author:	Mohamad Ridza, Nurul Airin
Format:	Thesis
Published:	2022
Subjects:	HF5801-6182 Advertising
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id	my-mmu-ep.11856
record_format	uketd_dc
spelling	my-mmu-ep.118562023-11-27T06:48:46Z Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM) 2022-07 Mohamad Ridza, Nurul Airin HF5801-6182 Advertising The rise of electronic commerce has affected the retail industry in Malaysia. Particularly, offline store retailers are having a hard time maintaining their stores due to lack of profit and decreased foot traffic in their offline stores. Some offline retailers struggle to keep their stores running, and as a result, they are forced to close them permanently. These unfortunate circumstances have caused mall closures over the past years due to the influx of retail supply and the ongoing digital disruption in the retail industry. Accordingly, this study aims to investigate the new trend of online-to-offline (O2O) commerce in addressing the occupancy rate problem that the Malaysian retail industry is experiencing. O2O commerce is a new trend that focuses on establishing awareness of products and services online while allowing customers to explore and research on different online and offline offerings and eventually visit offline stores to make their final purchase. This approach combines two broad strategies in retail-specific application, namely, multichannel and omnichannel marketing. The O2Ocommercemode combines the Internet and offline mode, in which the Internet is used as the front counter of offline trade. This quantitative research explores the factors influencing consumer acceptance and use of technology throughout the O2O commerce journey, with 301 millennials as its sample. The development of the study framework is based on the extended unified theory of acceptance and use of technology and the elaboration likelihood mode. Furthermore, electronic word of mouth (eWOM) is used as a mediator to explain the significant relationship amongst variables, with offline purchase intention (OPI) as the dependent variable, thereby shedding light on how eWOM plays a role in the O2O commerce. The study utilises purposive sampling, Statistical Package for Social Sciences (SPSS) and Smart PLS software for data analysis. Accordingly, the findings of this research confirm the significance of performance expectancy (PE), effort expectancy (EE), social influence (SI) and hedonic motivation (HM) as the antecedents that influence consumers’ OPI. Furthermore, the effect of eWOM on consumers’ OPI in the context of the O2O commerce is significant. Finally, this study verifies the importance of eWOM as a mediating variable in influencing the relationship between PE, EE, SI and HM towards OPI in the context of the O2O commerce. Moreover, information gathered by consumers through technology has a positive influence on consumers’ OPI. This research provides insights for Malaysian retailers, emphasising the crucial role of online and offline stores in the highly competitive retailing industry today. In sum, findings show that utilising online and offline stores to complement each other is deemed necessary for excellent business sustainability as a whole. 2022-07 Thesis http://shdl.mmu.edu.my/11856/ http://erep.mmu.edu.my/ masters Multimedia University Faculty of Management (FOM) EREP ID: 11566
institution	Multimedia University
collection	MMU Institutional Repository
topic	HF5801-6182 Advertising
spellingShingle	HF5801-6182 Advertising Mohamad Ridza, Nurul Airin Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)
description	The rise of electronic commerce has affected the retail industry in Malaysia. Particularly, offline store retailers are having a hard time maintaining their stores due to lack of profit and decreased foot traffic in their offline stores. Some offline retailers struggle to keep their stores running, and as a result, they are forced to close them permanently. These unfortunate circumstances have caused mall closures over the past years due to the influx of retail supply and the ongoing digital disruption in the retail industry. Accordingly, this study aims to investigate the new trend of online-to-offline (O2O) commerce in addressing the occupancy rate problem that the Malaysian retail industry is experiencing. O2O commerce is a new trend that focuses on establishing awareness of products and services online while allowing customers to explore and research on different online and offline offerings and eventually visit offline stores to make their final purchase. This approach combines two broad strategies in retail-specific application, namely, multichannel and omnichannel marketing. The O2Ocommercemode combines the Internet and offline mode, in which the Internet is used as the front counter of offline trade. This quantitative research explores the factors influencing consumer acceptance and use of technology throughout the O2O commerce journey, with 301 millennials as its sample. The development of the study framework is based on the extended unified theory of acceptance and use of technology and the elaboration likelihood mode. Furthermore, electronic word of mouth (eWOM) is used as a mediator to explain the significant relationship amongst variables, with offline purchase intention (OPI) as the dependent variable, thereby shedding light on how eWOM plays a role in the O2O commerce. The study utilises purposive sampling, Statistical Package for Social Sciences (SPSS) and Smart PLS software for data analysis. Accordingly, the findings of this research confirm the significance of performance expectancy (PE), effort expectancy (EE), social influence (SI) and hedonic motivation (HM) as the antecedents that influence consumers’ OPI. Furthermore, the effect of eWOM on consumers’ OPI in the context of the O2O commerce is significant. Finally, this study verifies the importance of eWOM as a mediating variable in influencing the relationship between PE, EE, SI and HM towards OPI in the context of the O2O commerce. Moreover, information gathered by consumers through technology has a positive influence on consumers’ OPI. This research provides insights for Malaysian retailers, emphasising the crucial role of online and offline stores in the highly competitive retailing industry today. In sum, findings show that utilising online and offline stores to complement each other is deemed necessary for excellent business sustainability as a whole.
format	Thesis
qualification_level	Master's degree
author	Mohamad Ridza, Nurul Airin
author_facet	Mohamad Ridza, Nurul Airin
author_sort	Mohamad Ridza, Nurul Airin
title	Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)
title_short	Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)
title_full	Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)
title_fullStr	Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)
title_full_unstemmed	Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)
title_sort	online-to-offline (o2o) commerce: factors that influence consumers' offline purchase intention through electronic word-of-mouth (wom)
granting_institution	Multimedia University
granting_department	Faculty of Management (FOM)
publishDate	2022
_version_	1783726132596572160

Online-To-Offline (O2O) Commerce: Factors that influence consumers' offline purchase intention through electronic Word-Of-Mouth (WOM)

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