Out-of-Group or In-Group E-WOM affects Consumer Purchasing Decision?

Abstract

The aim of this study is to explore the influence of the two types of e-WOM, out-of-group (influencer marketing and customer review) and in-group (reference group). This study uses a quantitative approach. Data were obtained from 176 respondents who are familiar and active in online shopping in Indonesia. The results of this study found that both out-of-group and in-group source of e-WOM have a positive and significant influence on purchasing decisions. The customer review variable has the highest R2 value, namely 0.741, which means that customer reviews can influence the purchase decision variable by 74.1%. So, it can be concluded that online consumer decisions are more influenced by out-of-group information sources (reviews from other customers) than information from family and friends. Although there have been several past studies, they have been inconsistent and lacking in clarity. Hence, this study aims to provide empirical evidence regarding which form of electronic word of mouth has the biggest influence on purchasing decisions.