the influence of electronic word-of-mouth through...

THE INFLUENCE OF ELECTRONIC WORD-OF-MOUTH THROUGH

SOCIAL MEDIA FACEBOOK AND ELECTRONIC SERVICE QUALITY

TOWARDS PURCHASE INTENTION

(Case Study of Xiaomi Smart Phone Buyer in MiForum)

By:

Imanina Almas

NIM: 1111081200009

DEPARTMENT OF MANAGEMENT

INTERNATIONAL CLASS PROGRAM

FACULTY OF ECONOMICS AND BUSINESS

SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY

JAKART

1438 H / 2016

v

CURRICULUM VITAE

PERSONAL DATA

Name : Imanina Almas

Place/Date of Birth : Jakarta, October 28th

1992

Address : Pulogebang Permai blok G8/5 Cakung Jakarta Timur

Religion : Moslem

Sex : Female

Marital Status : Single

E-mail : [email protected]

EDUCATIONAL BACKGROUND

2013-2015 : Universiti Utara Malaysia

Bachelor of International Business Management

(Hons.) (CGPA: 3.31)

(Double Degree Program)

2011-2013 : Universitas Islam Negeri Syarif Hidayatullah Jakarta

Bachelor of Economics (CGPA: 3.58)

(Double Degree Program)

2008-2011 : Madrasah Aliyah Al-Zaytun Islamic Boarding School

Indramayu, Jawa Barat

2005-2008 : Madrasah Tsanawiyah Al-Zaytun Islamic Boarding School

Indramayu, Jawa Barat

1999-2005 : Sekolah Dasar Islam AL-Azhar 19 Sentra Primer Jakarta Timur

mailto:[email protected]

vi

SKILL PROFICIENCY

Language Skill

English Competent in Speaking and Writing

Indonesian Competent in Speaking and Writing

Computer User Skill

Internet User Skill

Windows PC User Skill

Microsoft Windows Application (Microsoft Word, PowerPoint, Excel)

ACHIEVEMENTS

Dean Award receiver of 3rd

semester in Universiti Utara Malaysia (GPA:

3.72)

WORKING EXPERIENCE

PT. Century Batteries Indonesia Internship February - May 2015

Kompas Gramedia Freelancer January - July 2016

AFFILIATION

General Secretary in Public Relation Division (2009-2010)

Leader of English First Club (2010)

Member of International Student Society, UUM (2013-2015)

AIESEC Language Class Global Fiesta (March, 2014)

vii

ABSTRACT

This research aims to analyze the influence of electronic word-of-mouth

and electronic service quality towards purchase intention, case study of Xiaomi

smartphone user in MiForum. This research is a quantitative research which uses

convenience sampling. The data obtained in this research is primary data taken

from electronic questionnaires. This research uses 100 respondents and the overall

respondents obligate to own Facebook account and they are Xiaomi smartphone

users who has been bought Xiaomi‟ product through its online website. Data

analysis technique in this research is multiple linier regression by using SPSS

version 20.0.

The results of this research shows electronic word-of-mouth and electronic

service quality variable partially and simultaneously have significant influence

towards purchase intention.

Keywords: electronic word-of-mouth, electronic service quality,

purchaseintention, Xiaomi.

viii

ABSTRAK

Penelitian ini bertujuan untuk menganalisis pengaruh electronic word-of-

mouth dan electronic service quality terhadap minat beli smartphone Xiaomi.

Jenis penelitian ini adalah penelitian kuantitatif. Data yang digunakan dalam

penelitian adalah data primer yang diperoleh melalui penyebaran elektronik

kuesioner. Metode convenience sampling telah dipilih untuk memperoleh data

dalam penelitian ini. Penelitian ini menggunakan 100 responden dan keseluruhan

responden merupakan pengguna sosial media Facebook dan pengguna

smartphone Xiaomi yang telah berbelanja produk Xiaomi secara online atau

melalui website resmi Xiaomi. Pengukuran dalam penelitian ini menggunakan

analisis regresi linier berganda dengan menggunakan program komputer SPSS

versi 20.0.

Hasil penelitian menunjukan bahwa variabel electronic word-of-mouth dan

electronic service quality secara parsial dan simultan berpengaruh terhadap niat

beli konsumen.

Kata kunci: electronic word-of-mouth, electronic service quality, purchase

intention, Xiaomi.

ix

ACKNOWLEDGEMENTS

Assalammu'alaikum Warahmatuulahi Wabarakaatuh

Praise be to Allah SWT, the most merciful, the most beneficient. The

creator of this beautiful universe. The supreme power that has no comparison. The

only and only the mighty. Shalawat and Salaam always gives to the Prophet

Muhammad SAW, his family, and his sahabaah who has brought us from the

darkness to the lightness.

With the strength, intelligence, patience, and strong desire from Allah

SWT, finally I am able to accomplishing this research to obtain my second title,

bachelor degree in economics. I believe there are “invisible hands” which have

helped me going through this process. In the process of preparation of this thesis,

the author realized that this thesis is far from perfect. But with effort, prayer, and

also support given by the people closest to me, Alhamdulillah I can finish this

thesis.

My warmest thanks goes to my mom, Lina Prihatini, SE. who always

encourage me to believe that I am capable of doing anything I want and to stay

humble on what I am capable of. Thank you for taking care of me since I was a

kid until today, remind me to pray, being a reminder for me, always advising me,

teaching me how to be patient, and everything I could not mention one by one.

Because my gratitude for what you have done in my life would not enough to be

written on a piece of paper.

I also would like to say my gratitude to my father, Ir. Endang Subarman,

SE.,MM, who has always looked out for my future and for being someone who I

can talk to about all economics matters that I have learnt in college. Thanks dad

who has been taught me how to be a good muslimah, to be good at math, to be a

good daughter for him, and almost everything I need to know about life. Thank

x

you for working so hard to support your family, and to support your children‟

education. Thank you dad, for everything.

I believe I am nothing without each one of you who has helped me in

finishing this undergraduate thesis. Thus, in this very special moment, let me say

many thanks to all of them who have been helping me the process of this thesis,

including:

1. Dr. M. Arief Mufraini, Lc, M.Si as Dean of Faculty of Economics and Business

UIN Syarif Hidayatullah Jakarta

2. Dr. Muniaty Aisyah, Ir.,MM as my first supervisor. Thank you very much for the

continous support, for the patience, motivation, and immense knowledge. Her

guidance helped me in all the time of research and writing of this thesis

3. Mr. Ade Suherlan, MM.,MBA as my second supervisor. Thank you very much for

guiding me until finished this thesis. Thank you for your knowledge, advice, and

recommendations

4. All Lecturers of UIN Syarif Hidayatullah Jakarta who have taught me patiently,

may what they have given are recorded by Allah SWT

5. All academic staff FEB UIN Jakarta, who have worked well to serve all the

students

6. My best friends, Anugerah Eka Febriyanti, S.Si, Firda Ajeng Amalia, S.P, Fathi

Mulki Robbani, S.Kom.i, Fitri Midyani, S.Psi, Sarah Maria Ulfa, S.Pd, Dwi Puspa

Khairunnisa who soon to be S.Ag. Thanks for being my shoulder to lean on for

almost 6years. I probably nothing without you. You guys are such an awesome

best friends!

7. For my UIN friends and classmates, Pramayassya Amero, Fahdzian Ghassandy

Merzadi, Rendy Aditya Yusantri, Fahrur Rozi, Maulidan Spetiawan, Muhammad

Iqbal Almaududi, Prispayana Vidro Amero, Uji Abu Tholib, Ratu Balgis Mustafa,

Siti Fatimah Zuhra, Nadiah Intan Sahara, big thanks for all awesome moments

that we have shared together. And special thanks for special “you” who has been

give a special time and advice for me during the accomplishing of this mini thesis.

Thank you for show me the bitter and sweetness of life. Thanks for teach me how

xi

to be a tough girl. And thanks for teach me how to accept what has been destined

by God.

I realize this undergraduate thesis is still far from perfection, thus

suggestions and constructive criticism from all parties are welcome, in order to

improve my thesis. Finally, only Allah SWT will return your kindness and I hope

this thesis will be useful to all parties, especially for writers and readers in

general, may Allah bless us and recorded as the worship of Allah‟s hand. Aamiin.

Wassalammualaikum Warahmatulah Wabarakaatuh

Jakarta, September 24th

2016

Imanina Almas

xii

LIST OF CONTENT

Description Page

ACCEPTANCE LETTER ............................................................................... i

CERTIFICATION OF THESIS EXAM ......................................................... ii

CERTIFICATION OF COMPREHENSIVES EXAMS ................................. iii

SHEET STATEMENT AUTHENTICITY SCIENTIFIC WORKS ................ iv

CURRICULUM VITAE ................................................................................. v

ABSTRACT ..................................................................................................... vii

ABSTRAK ...................................................................................................... viii

ACKNOWLEDGEMENTS ............................................................................ ix

LIST OF CONTENT ...................................................................................... xii

LIST OF TABLE ............................................................................................ xvii

LIST OF FIGURE ........................................................................................... xx

CHAPTER I INTRODUCTION

A. Background of the Study ............................................... 1

B. Problem Formulation ..................................................... 15

C. Research Objectives ....................................................... 15

D. Research Benefits .......................................................... 16

CHAPTER II LITERATURE REVIEW

A. Theory Development ..................................................... 17

1. Internet Retailing .................................................... 17

2. Social Media Marketing ......................................... 18

3. Consumer Behaviour .............................................. 19

xiii

4. Word-of-Mouth Communication ........................... 21

5. Traditional vs Electronic Word-of-Mouth ............. 23

6. Traditional Word-of-Mouth ................................... 25

7. Electronic Word-of-Mouth (e-WOM) ................... 25

a) Quality of e-WOM ........................................... 28

b) Quantity of e-WOM ......................................... 29

c) Sender‟ Expertise ............................................. 30

8. Service Quality ....................................................... 31

9. Electronic Service Quality ..................................... 34

10. Electronic Service Quality Dimensions ................. 36

a) Reliability ......................................................... 37

b) Website Design ................................................ 38

c) Security ............................................................ 39

d) Empathy ........................................................... 40

e) Responsiveness ................................................ 40

11. Purchase Intention .................................................. 41

12. Theory Reasoned Action ........................................ 44

B. Previous Research .......................................................... 47

C. Logical Framework ........................................................ 50

D. Hypothesis ..................................................................... 51

CHAPTER III RESEARCH METHODOLOGY

A. Scope of Research .......................................................... 53

B. Sampling Method ........................................................... 53

xiv

1. Population ................................................................ 53

2. Sample ..................................................................... 54

C. Data Collection Method ................................................. 56

1. Primary Data ........................................................... 52

2. Secondary Data ........................................................ 58

D. Analysis Data Method ................................................... 58

1. Data Quality Test ..................................................... 59

a) Validity Test ...................................................... 59

b) Reliability Test .................................................. 60

2. Classic Assumption Test .......................................... 60

a) Normality Test ................................................... 60

b) Multicollinearity Test ........................................ 63

c) Heteroscedasticity Test ...................................... 64

3. Multiple Linear Regression ..................................... 65

4. The Coefficient of determination Test (R ) ............. 66

5. Theoritical Hypothesis Test ..................................... 67

a) T-test (Partial Test) ............................................ 67

b) F-Test (Simultaneous Test) ................................ 68

E. Research Operational Variable ...................................... 70

CHAPTER IV ANALYSIS

A. General Overview .......................................................... 73

B. Xiami Logo .................................................................... 74

C. Xiaomi Mission Statement ............................................. 74

xv

D. Xiaomi Product .............................................................. 75

E. Xiaomi Business Strategy .............................................. 76

F. Xiaomi Pricing Strategy ................................................. 77

G. Analysis and Discussion ................................................ 79

1. Validity Test Result ................................................. 79

2. Reliability Test Result ............................................. 82

H. Descriptive Analysis of Respondent Answer ................ 77

1. Total of Respondents based on Gender .................. 77

2. Total of Respondents based on Age ....................... 78

3. Electronic word-of-mouth Description .................... 78

4. Electronic Service Quality Description ................... 86

I. Classic Assumption Test ................................................ 108

1. Normality Test ......................................................... 108

2. Multicolinearity Test ................................................ 111

3. Heteroscedasticity Test ............................................ 113

J. Multiple Linier Regression Analysis ............................. 114

K. Coefficient of Determination (Adjusted R2) ................. 115

L. Hypothesis Test .............................................................. 117

1. T-Test ....................................................................... 117

2. F-Test ....................................................................... 118

CHAPTER V CONCLUSION AND RECOMMENDATION

A. Conclusion ..................................................................... 122

B. Recommendation ........................................................... 123

xvi

1. For Company .......................................................... 123

2. For Future Researcher .............................................. 128

REFERENCES ............................................................................................. 129

APPENDIX ............................................................................................. 135

xvii

LIST OF TABLE

No. Description Page

1.1 Top Five Smartphone Vendors 8

2.1 Previous Research 47

3.1 Likert Scale 52

3.2 Operational Variable 71

4.1 Validity Test Result 81

4.2 Reliability Test Result 82

4.3 Total of Respondents Based on Gender 83

4.4 Total of Respondents Based on Age 84

4.5 Question 1 85

4.6 Question 2 85

4.7 Question 3 86

4.8 Question 4 87

4.9 Question 5 87

4.10 Question 6 88

4.11 Question 7 88

4.12 Question 8 89

4.13 Question 9 89

4.14 Question 10 90

4.15 Question 11 91

4.16 Question 12 91

xviii

4.17 Question 13 92

4.18 Question 14 93

4.19 Question 15 93

4.20 Question 16 94

4.21 Question 17 94

4.22 Question 18 95

4.23 Question 19 96

4.24 Question 20 96

4.25 Question 21 97

4.26 Question 22 98

4.27 Question 23 98

4.28 Question 24 99

4.29 Question 25 99

4.30 Question 26 100










xix



4.42 One-Sampel Kolmogrov-Smirnov Test 111

4.43 Multicollinearity Test 112

4.44 Multiple Linier Regression 114

4.45 Coefficient of Determination (Adjusted R2) 116

4.46 The Result of T-Test 117

4.47 The Result of F-Test 119

xx

LIST OF FIGURE

No Description Page

1.1 Indonesian Internet User 1

1.2 Number of Active Account in Social Media 5

1.3 Xiaomi Market Share 11

2.1 Differences between offline WOM and online WOM 23

2.2 Stages between Evaluation of Alternatives and Purchase Decision 42

2.3 Logical Framework 50

4.1 Xiaomi Logo 74

4.2 P-Plot Normal Curve 109

4.3 Histogram -Dependent Variable: Purchase Intention 110

4.4 Graph of Heteroscedasticity 113

1

CHAPTER I

INTRODUCTION

A. Background of the Study

Since it was first discovered, the Internet currently still growing

rapidly with the current estimation of 3,174 billion of Internet users

worldwide in 2015 (Statista team, 2015). Whereas, in Indoesia itself in

2015 as much as 93.4 million of people reported were accessing the

internet. This figure is projected to grow to 133.5 million in 2018. With

these numbers, Indonesia is one of the biggest online markets worldwide

(Statista team, 2016). A worldwide survey showed that 77% of Indonesian

youth aged between 13 and 24 years old liked to be connected to the

internet wherever they are (Statista team, 2016).

Figure 1.1

Source: www.statista.com, 2016

83.7 93.4

102.8 112.6

123 133.5

0

20

40

60

80

100

120

140

160

2014 2015 2016 2017 2018 2019

Indonesian Internet Users

in million

http://www.statista.com/

2

As the world has become more interconnected, the internet has

become an essential tool in todays business environment. The continuous

rapid growth of online retailing (23% increases in 20015 to $1.700 billion

over $1,471 billion in 2014) implies that e-commerce has become a

common medium for businesses to generate revenue (Statista team 2015).

In the past, during the industry era- when the core of the

technology is only about machinery of industry, marketing is about how to

sell the company's products to the customer. The marketing managers of

the company tend to just consider on how their company can design the

productivity process to meet mass production and to fulfill the mass

demand. By doing so, the company then able to attract more and more

consumers because the price offered is really affordable. But this time,

marketing is no longer as simple as that. Todays consumers are very easy

to obtain information and compare several offers of similar products. The

value of a product is also determined by the consumer, and preferences of

each consumer are also different from one to another.

In the traditional business model, the movement of products and

most of the communication takes place in one direction, from producers to

consumers and through limited channels. However, at the present time, by

using the sophistication of internet, communication is taking place in two

directions, called interactive. Customers can learn more about the

company and the company can also gather more information about the

customer. As more information is obtained, in the hope it can strengthen

3

the relationship between the company, customers, and other parties. With

the development of Internet technology, companies then become

increasingly profitable. Companies can take advantage of the interactive

communication by start a dialogue with customers. Companies can also

build a network to create electronic word-of-mouth (e-WOM) that good

for their market.

Advancement in internet technology has also brought major

changes to the consumer, market, and marketing over the past few years.

Since the beginning of 2000, information technology has entered the main

market and developed into what is referred as the new wave of technology.

Kertajaya (2010) revealed that the new wave of technology is a technology

that enables connectivity and interactivity among individuals and groups.

New wave technology includes three main forces, namely: computers and

mobile phones which is affordable, cheap internet, and open source. This

technology allows someone to express themselves and collaborate with

others. Based on Scott McNealy (2015) the emergence of this new wave

technology is called a participation era, whereby everybody can freely

make the news, ideas, and entertainment, as well as to consume it. The

emergence of social media is also one of the new wave technology

development. Social media is evolving phenomenon, a shift in how people

discover, read, and share news, information, and content (Kertajaya,

2010).

4

In the early of 21st century is the century in which social media

began to grow rapidly and widely used. People began to have the variety

of the change and introduced to many applications and various tools that

are easy to use, friendlier, and free to use. No matter the type of

application used, most people will spend their time to use it. In addition,

people in the 21st century live together with technology and media-

suffused environment. It is indicated by a variety of characteristics, such as

access to get a lot of information as well as rapid changes in technology

tools and services. In order to be more effective in the 21st

century, there

are many choices of applications that can be used for various types of

activities or purpose by most internet users.

According to Forrester Research (2010), in the middle of 2008,

75% of internet users use social media to follow social networking,

reading the blog, or contribute by writing reviews on shopping sites. There

is significant growth in this regard, earlier in 2007, estimated that only

57% of Internet users use social media. The increasing of use of social

media is not just limited to teenagers, both members of generations X (i.e

adults between 35-44 years old) also participated in using social media,

observers, and became a critic of social media. In the prior explaination, it

has been mention that in Indoensia there are 77% of Indonesian youth

between 13 to 24 years old were internet users, and 69% of them agreed

with the statement that they would feel lost if they couldn‟t connect to

social media. Indonesians internet active users would spend an average of

5

more than five hours per day online, and almost half of this time is used on

social media. Therefore, it is fair to say that social media is a revolutionary

new trend that can attract companies to participate in this online space.

There are several kinds of social media, such as Twitter, Instagram,

Facebook, LinkedIn, Path, Youtube and so forth, but the most popular is

Facebook. Facebook is a social networking service that founded by Mark

Zuckerberg and launched in 4th

of February 2004. Market leader Facebook

was the first social network to surpass 1 billion registered accounts and

currently sits as 1.55 billion monthly active users, and 48 million of them

are Indonesian users (Statista team, 2016). The graph below shows

informations on the most popular networks worldwide as of January 2016,

ranked by number of active account.

Figure 1.2

Source : www.statista.com, 2016

1550

900 860 800 653 650

555 400

320 300

0

200

400

600

800

1000

1200

1400

1600

1800

Number of Active Account in

Social Media

in Billion


6

Facebook is the most powerful social media and social networking

site. It has become one of the top social media platforms these days and

there are numerous advantages associated with it. Facebook allows the

users to connect with their family, friends, work colleague, and to meet

new people. But people not only can use it personally for connecting with

friends and family, but it has also turned out to be a handy tool for

promoting and advertising a business. Every business owner exactly

known that marketing strategies of a business can have huge impact on its

growth and success. It is esssential for business owners to promote their

services if they wish to draw in customers. And here, Facebook can be

extremely useful. The firms, or business owners can create a business page

or usually called group on Facebook that is similar to owning a website, it

is one of significant benefit that only Facebook can provide. With

Facebook groups, the users may form multiple smaller networks of people

inside Facebook and all members of that group can talk each other

simultaneously.

In order to browse to the internet and log in to the social media,

currently most people no longer to use personal computer. But now

smartphones are the most popular device for getting online. In Indonesia

itself, on 2013 is estimated that 24% of mobile phone users owned a

smartphone and this figure is projected to more than double to 53 % by

2017. The number of mobile phone users in the country stood at around

173 million in 2013 and will rise to over 195 million people by 2017. This

7

means that a projected 103.5 million people in Indonesia will own a

smartphone in 2017, equivalent to 37.5 percent of the entire population

(Statista team, 2016). The role of smartphone has become a primary need.

Every change in the technology expected to always be in line with human

needs. In this case the smartphone, from the initial appearance of

smartphones has been captured enthusiast from people until now they have

become a necessity. There have been many changes and developments in

technology applied to the manufacture of smartphones from the beginning

both in terms of features, functionality, design, and even the network used.

International Data Corporation (IDC) Worldwide Mobile Phone

Tracker (2016), in the second quarter of 2014 the worldwide smart phone

market grew 25,2% over year. A driving force behind the record

smartphone volume was the combined effort of the vendors trailing market

leaders Samsung and Apple. The next three vendors are Xiaomi, Lenovo,

and LG Electronics. All posted market-beating growth and with markedly

different strategies. The figure below shows the comparison of worldwide

shipment between Apple, Samsung, Xiaomi, and another smartphone

vendors on 2013 and 2014. It shows that Xiaomi is on the top three

position after Samsung and Apple.

8

Table 1.1

Top Five Smartphone Vendors based on Worldwide Shipment

3Q14 3Q14 3Q13 3Q13 3Q14/3Q13

Shipments Market Shipments Market Growth

Share Share

Samsung 78.1 23.8% 85 32.5% -8.2%

Apple 39.3 12.0% 33.8 12.9% 16.1%

Xiaomi 17.3 5.3% 5.6 2.1% 211.3%

Lenovo 16.9 5.2% 12.3 4.7% 38.0%

LG 16.8 5.1% 12.0 4.6% 39.8%

Others 159.2 48.6% 113 43.2% 40.8%

Total 327.6 100% 261.7 100% 25.2%

Source: www.appleinsider.com, 2016.

Xiaomi is a private owned Chinese electronics company

headquartered in Beijing, China. Xiaomi designs, develops, and sells

smartphones, mobile apps, and related consumer electronics. Since the

release of its first smartphone in August 2011, Xiaomi has gained market

share in mainland China and expanded into developing a wider range of

consumer electronics, including a smart home device ecosystem. The

company has over 8,000 employees, mainly in mainland China, Malaysia,

and Singapore, and it is expanding to other countries such as India,

Indonesia, Philippines, and Brazil. According to IDC, in October 2014,

Xiaomi was the third largest smartphone maker in the world, following

Samsung and Apple Inc., and followed by Lenovo and LG. Xiaomi

became the largest smartphone vendor in China in 2014, having overtaken

Samsung (International Data Corporation, 2016).

http://www.appleinsider.com/

9

Xiaomi has emerge as new star in the smartphone world with

feature and price and one of the important things is the unique and

different marketing strategies that have stole the attention of the

smartphone users. Xiaomi has a pretty unique marketing and pricing

strategy with a plan to sell high-end smartphone at slightly beyond the cost

of materials and eventually monetize through software and services. Its

two main strategies are; earning profit from its software and zero

advertising. Xiaomi‟s revenue stream comes from its software- the highly-

customizable MIUI firmware that is based on Android which already has

more than 60 million users, earning approximately US$4.9 million

monthly revenue from apps, games, and theme customizations installed on

MIUI. Thus unlike Apple, for example, which makes money from margins

on selling its phones, Xiaomi is a more like Amazon where it wants to

earn via its ecosystem by selling various goodies and reap profits like an

ecommerce company.

The second strategy is called zero adverising, whereby it is able to

save a ton of cash by avoiding advertising cost and rather to deploy some

innovative marketing strategies. Lei Jun, a Xiaomi founder, didn‟t want to

spend money on marketing, so his crew began building brand awareness in

forums. His staff spent a lot of time on forums, making comments, sending

posts, and advertising. They used the same method to do marketing with

zero budget, they set up MIUI mobile phone forum, which became the

base camp of “Mi fans” in both of social media Facebook and on its

10

website with over 1 million registered users. In the short word, we can say

that Xiaomi shuns traditional models of advertising and depends solely on

social media marketing and word-of-mouth.

Despite Xiaomi did not use massive advertisement, but its slowly

but steadily growing in emerging market. Brazil being the first country out

of Xiaomi‟s safest market Asia, will help the company to accelerate its

growth. In the past, nearly 90 percent of Xiaomi‟s smartphone are sold in

China, followed by India where the company has successfully sold over 2

million devices within 12 months since the launch. In the last few years,

Xiaomi has received an unprecedented response from the market. The

sales of smartphone grew by more than 300% between 2013 and 2014.

Since January 2012, the company has sold 121.64 million smartphones

(Dazeinfo team, 2016). And also, based on Flurry Analytics, on 2013

Apple has the highest share with 35%, Samsung 15% in second position,

then followed by Xiaomi 6%, and other manufacturer occupy 44% share.

This statistics indicate that Xiaomi, which sold its first phone in 2011, is

going to come out as a major competitor for international brands in the

coming years. Xiaomi has even beaten major international brands like

HTC, LG, Sony and Motorola and local brands like Huawei, Lenovo, ZTE

and Oppo.

11

Figure 1.3

Xiaomi Market Share

Therefore, through this thesis, the researchers interested in conducting

research on Xiaomi which with its strategy of zero advertising, Xiaomi can

compete with two great leaders in the smartphone market, which is Apple

and Samsung and another competitors beat in just over 3 years. As already

mentioned, Xiaomi does not use traditional marketing methods and highly

depend on online marketing. We know that online marketing will become

stronger if accompanied with good electronic service quality. Electronic

service quality has been regarded as having the potential not only to

deliver strategic benefits, but also to enhance operational efficiency and

profitability. Electronic service qualty is also becoming even more critical

for companies to retain and attract customers. Besides of that, electronic

Apple

Others

Samsung Xiaomi

12

service quality has strong impacts on customer satisfaction. What brings

online customers back to company‟s websites is a sense of loyalty that

comes from good services offered by companies. Based on Lewin (2009),

another benefits of customer satisfaction are include increases in revenue,

decreases in customer-related transaction cost, and reduction in price

elasticity among repeat buyers. When customer is staisfied with the service

given by the company, the tendency to be loyal to that company is usually

high because of positive reinforcement and other potential customers are

encouraged to do business with the company. Thus, word-of-mouth

communication is a primary indicator of a company‟s future success.

As times goes by, Word-of-mouth (WOM) communication currently

is one of an important marketing phenomenon. Marketing research has

found that WOM communication is the important source that influence

consumers‟ attitudes and behaviors (Brown and Reingen 1987, as cited in

Yoon,2008:2), purchasing products or services (Katz and Lazarsfeld 1955,

as cited in Yoon, 2008:2) , or judging products or services (Reingen and

Kernan 1986). WOM is crucial because, the value of complex information

goods is hard to assess because it is only possible to value them after either

trying them or understanding its content. In other words, many information

and cultural goods are experience goods that a consumer needs to taste

before assessing its quality with respect to his or her ideal product (Brown

and Reingen 1987, as cited in Yoon,2008:2). When the consumers are

faced to evaluate products or brands that are unfamiliar to them, they may

13

seek the experience of other consumers as a means of managing the risks

and prefer to rely on WOM information about product attributes (Herr

et.al., 1991, as cited in Yoon, 2008:2). This is because, WOM information

as compared to marketer-provided attribute information or advertisements,

is more vivid (Herr et.al,. 1991, as cited in Yoon, 2008:2), easy to use, or

perceived as more trustworthy because it is based on the experiences of

others (Smith and Park, 1992, as cited in Yoon, 2008:2).

The traditional Word-of-mouth (WOM) is such a communication

mode which possible for people to share their opinion and comments

regarding the product or service that they were transacting. However,

WOM has evolved into an entirely new form of communication that

exploits modern technology. This term called Electronic of Word of

Mouth (e-WOM) communication. The advent and growth of the digital

age built on the foundation of computing and the internet has seen the

development and adoption of new ways of accessing and assessing

consumer trends. Consumers have embraced and will continually tap the

importance of internet in the exchange of opinions, posting of comments,

reviews, and critiques on the digital platform. The digital platform is

constituted of weblogs, newsgroups, discussion forums, social network

websites, review websites, and online newspaper columns. Truly, word of

mouth has found a new way to assert its value to product marketing in new

forms of communication. One type of e-WOM is online consumer

reviews, it consists of analyses and commentaries generated and posted by

14

the end users of products who have spent their money on the product and

used it. It is a credible source of consumer insight and it can be used by

businesses to make corrective or improvement measures on their products

and services. Through online reviews, different customers will share their

shopping experiences, while the potential shoppers will wait for the

comments of other shoppers before taking up an offer. Besides of that,

electronic word-of-mouth could be one of the most believable form and

affect consumer‟s choices of products from the WOM that spread by other

consumers (Herr, et.al 1991). Moreover, the Internet allows peoples‟

opinions can be more easily and quickly accessible to other consumers.

Advices and product using experiences from online users become

influential for their behavior and e-WOM is regarded as a critical source

for consumers making a purchase intention (Thompson, 2003).

Based on research background, the title of the study is “The

Influence of Electronic Word-of-Mouth through Social Media

Facebook and Electronic Service Quality towards Purchase Intention

(Case Study of Xiaomi Smartphone Users in Mi Forum.)”

15

B. Problem Formulation

Based on the issues that are examined, the formulations of the problem

from this research are:

1. Is there any influence of electronic word-of-mouth toward purchase

intention partially on Xiaomi smartphone user among community in

Mi Forum?

2. Is there any influence of electronic service quality toward purchase

intention partially on Xiaomi smartphone user among community in

Mi Forum?

3. Is there any influence of electronic word-of-mouth and electronic

service quality simultaneously toward purchase intention partially on

Xiaomi smartphone user among community in Mi Forum?

C. Research Objectives

Based on problems that have been formulated, then the purpose of the

research is to:

1. Analyze the influence of electronic word-of-mouth toward purchase

intention

2. Analyze the influence of electronic service quality toward purchase

intention

3. Analyze the influence of electronic word-of-mouth and electronic

service quality simultaneously toward purchase intention

16

D. Research Benefits

This research will provide following benefits:

1. For the Company

The result of this study is expected to be used as an information

materials for Xiaomi itself in order to measure how big the influence

of electronic service quality and electronic word-of-mouth toward

customers' purchase intention. Xiaomi can use this data as it

reference to improve the quality of the Xiaomi‟ product itself or its

online services

2. For the Researcher

Researcher can learn on how electronic service quality and

electronic word-of-mouth on Xiaomi smart phone influence

purchase intention

3. For the Reader

This study is expected to provide a reference for all students and

academics who want to study the problem related to marketing,

especially purchasing intentions. And as a work that can be used as

a discourse and library for students or academics who have an

interest examined in the same field.

17

CHAPTER II

LITERATURE REVIEW

A. Theory Development

This chapter will be focusing on understanding the definition and

theory which are related with the research. And continue with the

elaboration of the influence of electronic word of mouth and electronic

service quality towards purchase intention.

1. Internet Retailing

It is now widely recognised that the Internet‟s power, scope and

interactivity provide retailers with the potential to transform their

customers‟ shopping experience (Evanschitzky et.al., 2004:240) and

strengthen their own competitive positions (Doherty and Ellis, 2009:1248).

The Internet‟s capacity to provide information, facilitate two-way

communication with customers, collect market research data, promote

goods and services and ultimately to support the online ordering of

merchandise, provides retailers with an extremely rich and flexible new

channel (Basu and Muylle, 2003). In doing so, the Internet gives retailers a

mechanism for broadening target markets, improving customer

communications, extending product lines, improving cost efficiency,

enhancing customer relationships, and delivering customised offers

(Srinivasan et.al, 2002:41). By and large, consumers have responded

enthusiastically to these innovations and online retail sales have grown

18

significantly over the past fifteen years, and are predicted to continue

rising into the future (Doherty and Ellis, 2009:1248)

2. Social media marketing

The rise and wide spread of Internet and the fast growing

consumers‟ digital media use led companies occupied in different business

sectors to think about a new way of communication with customers

(Cheong and Morrison, 2008:39). Among the fastest growing online tools

for reaching the consumers is called “social media” (Trusov, et.al.,

2009:92). Social media is becoming an important part in peoples‟ lives as

can be seen from the recent marketing approaches done in that sphere. The

results from these approaches are astonishing. The world spends 110

billion minutes on social media networks and blog sites (Nielsen

Company, 2016). They also stated that the number of people who are

visiting social media sites has increased by 24% over the last year. All

these facts don‟t even leave a doubt how fast is social media emerging in

business sector and peoples‟ lives. For marketers this phenomenon is of

high interest as social media is becoming an important source of customer

information sharing, awareness, support, and empowerment (Kaplan

and Haenlein, 2010:60). Consequently social media allows businesses

to effectively and inexpensively engage in direct client contact,

reaching levels of efficiency undoubtedly higher than any other traditional

marketing communication tools (Berthon et.al., 2008:30). There are

many evidences and examples how companies use social media for

19

more efficient communication and better results. In 2010, Facebook

has reported 400 million users from which 1.5 million are business

(Statista, 2015). Therefore, marketers should more aware of the

importance of this platforms and the information spread throughout them.

Social media marketing has several advantages. First advantage is,

it provides a window for marketers to not only present products or service

to customers but also to listen to customer‟s suggestions. Second, it makes

marketer easier to identify various peer groups which can help in

organizing growth of a brand, and third, all this is done at nearly zero cost

as most of social networking sites are free.

3. Consumer Behaviour

Consumer is defined as someone who acquires goods or services

for direct use or ownership rather than for resale or use in production and

manufacturing (Ajibola and Njogo, 2012:136). While behavior is a tool to

achieve objectives and target consumer derives from his needs and desires

(Wilke, 2000:). There are some powers that consumers have. One of the

present fundamental presumptions for the consumer behavior is the fact,

that people often buy products not because of their main function but for

their main subjectively perceived value. It does not mean that product‟s

basic function is not important, but that‟s todays role of products exceeds

its service limits (Salomon, 2004).

20

Based on Kotler and Keller (2000), consumer behavior is mental

activity, emotional, and physical that people use during selection,

purchase, use, and dispose of products and servies that satisfy their needs

and desires. While, according to Rani (2014:54), consumer behavior refers

to the selection, purchase, and consumption goods and services for the

satisfaction of their wants. There are different process involved in the

customer behavior. Initially consumer tries to looking for what kind of

commodities that he would like to consume, then he selects only those

commodities that promise greater utility. After selecting the commodities,

consumer makes an estimate of the available money that he can spend.

Lastly, consumer analyzes the prevailing prices of commodities and takes

decision regarding the commodities he should consume. Based on Rani

(2014:54), consumer‟s buyer behavior is influenced by four major factors,

they are cultural, social, personal, and psychological. The influence of

culture on buying behavior varies from country to country, therefore,

marketers have to be very careful in analyzing the culture of different

groups, regions or even countries. Throughout his existence, an individual

will be influenced by his family, his friends, hiscultural environment or

society that will teach him values, preferences as well as common

behaviors to their own culture. The second factor, which is social factor is

include groups (i.e reference group, aspirational group, and member

group), family, roles, and status. This explains the outside influences of

others on purchase decisions directly or indirectly. Next factor is about

21

personal factor. It includes such variables as age and lifecycle stage,

occupation, economic circumstances, lifestyle (activities, interests,

opinions and demographics), personality, and self concept. These may

explain why our preferences often change as our „situation‟ changes.

Decisions and buying behavior are obviously also influenced by the

characteristics of each consumer. The last factor is about psychological

factor. It affecting consuer‟ purchase decision includes motivation,

perception, learning, beliefs, and attitudes.

4. Word-of-Mouth Communication

Word-of-mouth (WOM) communications have long been an

important marketing phenomenon. WOM can be defined as the exchange

of oral or spoken messages between a sender and a receiver concerning the

purchase of a goods or service in real time and space (Ong, 1982, as cited

in Yoon, 2008:2). Based on Arndt (1967 as cited in Yoon, 2008:2), word

of mouth communication is a form of personal communication in which an

individual receives information directly from another individual. The other

expertise, Westbrook (1987:260) defined word of mouth communication

as all informal communication directed at other consumers about the

ownership, usage, or characteristics of particular goods or their sellers.

Therefore, it is such an instrumental in shaping consumers‟ attitudes and

behaviours. Word of mouth communication is regarded as exceptionally

powerful by having a strong influence on consumers‟ choice and thus also

consumers‟ purchase decision-making (Prendergast et.al.,2010).

22

Regardless of the word of mouth communication medium, it is generally

not motivated by profit, it is independent of commercial influences, and its

communication about the products, brands, or services happens with or

without related companies‟ permission (Kietzmann et.al., 2011:243)

In order to examine how WOM influences consumers‟ decision-

making, the researchers have to identify certain motives behind

consumers‟ engagement in traditional and electronic WOM. There are four

factors that make people engage in word of mouth communication

according to Schiffman and Kanuk (2000), which are:

a. The product involvement that arises because people want to express

their satisfaction of using the product by talking to others.

b. The self-enhancement that cause communication word of mouth

because people want to satisfy the needs of a particular emotional (self

confirmation) for example to get the attention of others to be

considered as a smart buyer

c. Message involvement that arises due to the unique and interesting

advertisements or information about a particular product and make

consumers want to talk about it with others

d. Other involvement emerged because he wanted to help others

5. Traditional versus Electronic Word-of-Mouth

As explained before, there are several things exhibited by both

forms of word-of-mouth. However, there are also certain differing

23

characteristics that might have a stronger or lesser influence on

consumers‟ purchase decision making. This figure below shows the most

important diverse characteristics of WOM communication.

Figure 2.1

Differences between offline WOM and online WOM

Source : Gfrerer, A. & Pkory, J (2012). Journal of International Marketing.

Based on the figure,the channel of providing and receiving

information is either offline, via social network such as friends, family,

peers, and colleagues, or through online, via social media such as social

networking sites, blogs, or forums. Regardless of the form of WOM, it is

argued that the purpose is based on the same nature of sharing information

24

concerning individuals‟ experience with products, brands or services,

without any commercial intentions. The traditional WOM is a synchronous

conversation and occurs face-to-face, while electronic WOM is an

asynchronous process, whereby both of time and geographical distance are

of little or no essence.

Moreover, e-WOM can reach a higher number of individuals and

has implied characteristics of a rapid diffuse. It is differ with the traditional

form, which is generally shared with a relatively low number of people

and it is incapable of diffusing rapidly. Further, electronic WOM is rather

of an anonymous nature, as individuals usually do not know the

information provider. In contrast, traditional WOM is rather private and

characterized by an interpersonal environment. Thus for the latter also

social ties are considered to be stronger in traditional WOM than for

electronic WOM, which is specified in the following subsections. Due to

the fact that social networking sites are public, consumers and marketers

are able to observe the given information much easier. Incidentally,

companies have very limited or no influence on how people act online;

they can seldom foresee the written information about their products,

brands or services. Overall, the phenomenon of WOM communication is

strongly enabled by the rising use of social media platforms. Thus, it might

be easier to find expert information online; and expertise is exceptionally

valued in the context of high-involvement products.

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6. Traditional Word-of-Mouth

According to Arndt (1967, as cited in Buttle, 1998:242) WOM is

an oral, person-to-person communication between a receiver and a

communicator whom the receiver perceives as non-commercial, regarding

a brand, product, or service. Thus, it is the spoken word in a face-to-face

situation involving sharing product or brand information. Further, a

fleeting nature of WOM is argued, due to its spontaneous occurrence,

which is terminated as soon as the exchange has been expressed

(Breazeale, 2008 as cited in Gferer and Pokrywka, 2012:15). Its

interactions are immediate and involve intimate conversations (Steffes and

Burgee, 2009).

7. Electronic Word-of-Mouth (e-WOM)

Recently, customers have been turning towards the internet and

make it as a source of word-of-mouth communication, more commonly

known as electronic word of mouth (e-WOM) (Gruen et.al., 2005:451).

E-WOM refers to any attempt by a potential, actual, or former customer to

highlight the positive or negative attributes of a product or company in an

online platform (Hennig et.al., 2004:40), and also considered as an

important influencer of consumers purchasing decisions (Shapiro, 2008).

Thus, e-WOM is transmitted via written words and a large number of

consumers are able to receive and potentially spread the initial message

online. So this is indicates that e-WOM is actually faster than offline

26

WOM (Prendergast et.al., 2010:690). Accordingly, e-WOM has virtually

an unlimited reach and due to its bidirectional communication properties it

is considered as a one-to-world platform rather than as one-to-one

platform (Dellarocas, 2002 as cited in Gferer and Pokrywka, 2012:20).

Because of the separation of both time and distance between sender

and receiver, e-WOM is also considered as an asynchronous process and

in contrast to the traditional form it is viewed as more persistent and

usually more easily accessible. (Steffes and Burgee, 2009:45). This is

mainly due to the fact that most of the text-based information is archived

on the social media platform and is commonly available for an indefinite

period of time (Cheung and Thadani, 2010). Furthermore, e-WOM offers a

better measurability due to its presentation format, quantity and

persistence, which is easier to observe than in traditional WOM. Thus, e-

WOM is more voluminous in quality, compared to information received

from traditional contacts within an offline state (Chatterjee, 2001:131).

The concept of e-WOM may occur in different ways. Customers can post

their comments, opinions, and reviews of products and services on

different channels; like discussion forums, weblogs, review websites, and

social networking sites (e.g., facebook, Youtube, Twitter etc.).

According to Hennig-Thurau et.al., (2004:41) marketing

professionals needs to pay more attention for e-WOM communications. A

lot of customers preferred reading suggestions given by experienced

customers before buying certain types of products or services, especially

27

those related to product information in general, opinions given by

experienced customers were found to significantly have an effect on new

customers‟ purchasing decision-making (Senecal and Nantel, 2004:162).

While many customers search for comments about products and services

online during pre purchasing stage, a lot of customers also shared opinions

both positive and negative comments about their experience of using the

products and services online at the post purchasing stages (Frambach

et.al., 2007:30). Throughout direct and continous interacting with

customers; marketers can drive customers to carry out more effective e-

WOM behaviors from different platforms. The variety of online platforms

includes: corporate official websites, online communities, newsgroups,

chat rooms, emails, blogs, microblogs, customer review websites, virtual

customer communities, forums and other SNSs; enabled customers to

interact with each others swiftly and easily without boundaries (Strutton

et.al., 2011).

Compared to the traditional form, e-WOM is rather of anonymous

nature, which might have influence on consumers‟ determination of

quality and credibility of the messages (Lee and Youn, 2009). While

searching or providing advice, consumers do not have to expose their real

identities, which might enhance consumers to share opinions or

experiences with others, thus leading to an increasing volume of e-WOM

(Chatterjee, 2001). As a result of online platforms‟ functioning, consumers

receive a large and diverse set of expertise opinions about specific

28

products, services, or brands from individuals whom they have no or only

little prior relationship (Duhan et.al., 1997). So that, it might be easier to

find specific information online rather than offline.

In this research, e-WOM is viewed from three dimensions, they

are; e-WOM quality, e-WOM quantity, and sender‟s expertise. These three

dimensions will be clearly explain as below :

a. Quality of e-WOM

Based on Horrison-Walker, (2001), the quality of e-WOM refers to

the persuasive strength of comments embedded in an informational

message. Consumer buying decision can be based on some criteria that

meet their needs and to determined their willingness to buy will be

based on their perceived of quality of information they received.

Therefore, it is important to determine consumer‟s perception of

information quality as element for assessing their potential buying

decision. Once the e-WOM on the site gains consumer attention,

consumers begin to judge whether the review is worth reading.

Information quality was proven as a significant predictor of the success

of an information system. Consumers care about the correctness and

usefulness of e-WOM, and good content quality increases their

willingness to trust e-WOM. Based on Horrison-Walker (2001), the

online review should be understandable. Use proper grammar and

concise, so that readers can easily understand the information given.

Besides of that, it is very crucial that online review should be helpful.

29

Helpful here means that online reviews give clear and accurate

information about a particular product, so it can assist customer who

are likely to search a review about the product. The online review

should also has the credibility, means that the review consist of quality

of being believable or worthy trust informations. In general, the

reviewer should gave a high quality of review.

b. Quantity of e-WOM

When a consumer searches for online reviews, the quantity of e-

WOM makes the reviews become more observable (Cheung and

Thadani, 2010). Quantity of e-WOM refers to the total number of

posted comments (Godes and Mayzlin, 2004). The popularity of the

product is determined by quantity of online comments because

considered could represent the market performance of product (Godes

and Mayzlin, 2004). In other words, consumers may perceive that

more reviews represent higher product popularity (Godes and Mayzlin,

2004). Reading numerous reviews by others could reduce consumer

anxiety when making a purchase decision because consumers reason

that many others have also purchased the product. Consumer also need

reference to strengthened their confidence to reduce the feeling making

mistake or risk while shopping. With the highly recommendation

given by reviewers for a certain product, it is inferring that the product

has good reputation (Godes and Mayzlin, 2004). So it is strongly

agreed that quantity of e-WOM will influenced customer in make

30

decision for buying a product (Godes and Mayzlin, 2004). Some

empirical studies (Sher and Lee 2009:137) provided evidence that e-

WOM quantity positively influences the consumer-perceived

credibility of e-WOM.

c. Sender‟ Expertise

Bloch and Richin (1986, as cited in Chang et.al.,) discovered that

consumers with higher proficiency can make brisk valuation and

correct judgment due to their abundant product knowledge and

experience; this makes them become information sources sought by

consumers who is not familiar with the products or services. This

viewpoint that highly proficient consumers are often consulted targets

of the masses supported by Gilly, Graham, Wolfinbarger, and Yale

(1998, as cited in Chang et.al). Gilly, et.al.,(1998 as cited in Chang

et.al.) also found that sender‟s expertise positively affects on the

receiver‟s purchase intention.

Moreover, the sender‟s expertise is also an important criterion for

judging the trustworthiness of the information source and is considered

a critical influential factor of information (Hu, et.al., 2008). Hu,

et.al.,(2008) also thought that since expertise comes partly from one‟s

own experience and partly from one‟s own knowledge; when the

sender exhibits high expertise, the receiver will think the provided

information will be more correct, and hence the purchase decision will

more likely be influenced by the information senders convey. In the

31

short word, the author stated that a reviewer should be able to giving

judgement on something objectively and specifically. Hu, et.a., (2008)

also discovered that the sender‟s expertise as “authoritativeness,”

“competence,” and “expertness” affected positively the receiver‟s

purchase intention. These three factors then lead customer to be more

confident in making purchases.

8. Service Quality

In todays competitive business environment, marketing managers

is now are more concern to looking for some innovative ways in order to

fulfill customer expectation and meeting the demand for customer

satisfaction is also very crucial for them. There is growing managerial

interest in customer satisfaction as a means of evaluating quality. High

customer satisfaction ratings are widely believed to be the best indicator of

company‟s future profit. Customer satisfaction is defined as a customer‟s

overall evaluation of the performance of an offering to data. This overall

satisfaction has strong positive effect on customer loyalty intentions across

a wide range of product and service categories (Gustafson, 2005). Mittal

and Kamakura (2001:133) defined that customer satisfaction is a key

factor in formation of customer‟s desires for future purchase. This is

because, the satisfied customers will probably talk to others about their

good experiences, so it will makes the repeated purchases.

One of the crucial factor that need to be considered by marketing

manager in order to create satisfied customer is by focusing on company's

32

service quality. Service quality is needed for creating customer satisfaction

and service quality is connected to customer perceptions and customer

expectations. Oliver and Ronald (1997) argues that service quality can be

described as the result from customer comparisons between their

expectations about the service they will use and their perceptions about the

service company. It means, if the perceptions would be higher than the

expectations the service will be considered excellent, if the expectations

equal the perceptions the service is considered good and if the expectations

are not met the service will be considered as bad.

To contextualized electronic service quality, an examination of

service quality scale is required since most of the current e-service quality

scales are developed based on the service quality instrument. The service

quality (SERVQUAL) scale was developed by Parasuraman et.al,(1988 as

cited in Hongxiu and Reima, 2009:2) that aim to providing a generic

instrument to measuring service quality across broad range of service

categories, the widely used service quality instrument is composed of five

dimensions, which are based on the original ten dimensions developed.

Those five dimensions of service quality are:

a. Tangibles : The appearance of physical facilities,

equipment, personnel, and communication

materials

b. Reliability : The ability to perform the promised service

dependability and accurately

33

c. Responsiveness :The willingness to help customers and

provide prompt services

d. Assurance : The knowledge and courtesy of employees

and their ability to convey trust and

confidence

e. Empathy : Care and individualized attention provided

to customers

Service quality scales has been widely used to measure service

quality in various service industries, and some studies applied this

service qualiy model to measure service quality in the context of e-

service by rewording its items. However, the employing of the

SERVQUAL scale by rewording its items seems to be inefficient in the

context of e-service, and the generic dimensions of the SERVQUAL

model need to be reformulated in order to be used meaningfully in the

context of e-service since e-service is quite different from traditional

service with three aspects standing out (Hongxiu and Reima, 2009:2)

a. The absence of sales staff. In e-service, there is no service

encounters between the customers and the sales staff as in the

traditional service.

b. The absence of traditional tangible element. In e-service,

service process is almost completed in the virtual environment

with some intangible elements.

34

c. Self-service of customers. In e-service, customers conduct self-

service in purchasing and realize control in business process.

By considering the differences between traditional service

and e-service, obviously the SERVQUAL scale is not suitable for

measuring e-service quality. New scales which suitable for measuring

e-service quality will be ealborated on the electronic service quality

passage.

9. Electronic Service Quality

As we know with rapid development of information,

communication technology, and the globalization of the market, Internet

and World Wide Web (WWW) have become important tools in business.

Distanc eand time barriers are vanishing and the world is becoming an

integrated community of buyers and sellers that interact via the Internet.

Internet has significantly revolutionized business market in the last decade.

Services are radically shifted to digital form and delivered through the

Internet. Additionally, the internet offers an interactive function with its

customers (Santos, 2003) and enables electronic service (e-service) move

to the forefront of technology priorities (Voss, 2003). Companies accepted

and adopted the new information and communication technology in the

performance of their activities, not only to support traditional activities,

but also to support those arising from new opportunities, mainly from the

Internet (Hongxiu and Reima, 2009).

35

Electronic service quality (e-SQ) is a new developing area of

research, which has strategic importance for businesses striving to address

customers in the electronic marketplace. Parasuraman and Zinkhan

(2002:290) maintain that electronic services contribute two key

advantages, which are information and transaction efficiency. Electronic

service quality is a basic requirement for the good performance of

electronic channels (José and Ainhize, 2009). Zeithaml, et.al.,(2002:362)

believe that e-service experience greatly affects the establishment of trust

and relation with customers, and enterprises must pay attention in this

regard. Oliveira et.al., (2002) believe that e-service quality can increase

the competition of the company‟s requirement fulfillment. A higher level

of e-SQ contributes to achieving the main business goals (Zeithaml et.al.,

2002). Oliveria et.al., (2002) state also that electronic service (e-service)

might be the key to long-term advantages in the digital times, and e-

service quality is becoming even more critical for companies to retain and

attract customers in the digital age and can increase the competition of the

company‟s requirement fulfillment (Oliveria et.al., 2002). Based on

Zeithaml et.al., (2002) electronic service quality (e-SQ) is the extent

to which a Website facilitates an efficient and effective shopping,

purchasing, and delivery of products and services. Based on Santos (2003)

e-SQ can be defined as overal customer evaluations and judgments

regarding the execellence and quality of e-service delivery in the virtual

marketplace.

36

The differences between traditional and electronic service quality

is the replacement of interpersonal interaction with human-machine

interaction. This distinction raises many questions concerning the types of

dimensions that must be considered to assess service quality in the e-

commerce context. With no human interaction present when online

transactions take place, certain applicable dimensions must be present in

order to accurately assess the service quality on a web site (Madu and

Madu, 2002:247). Websites need to be effective in the sense that they

should have accurate product related information available for internet

shoppers as this could lead to a purchase. Likewise, if information is

insufficient, purchases could be lost.

10. Electronic Service Quality Dimensions

With the incresing application of e-commerce in the organization,

the importance of measuring and monitoring e-service quality in the

virtual world has been recognized. Previous studies have argued that the

following factors are usually involved as service quality dimensions:

Reliability, responsiveness, empathy, security, web design, assurance,

efficiency, ease of use, accessibility, courtesy, and credibility (Zeithaml

et.al, 2000; Wolfinbarger and Gilly, 2003; Ho and Lee, 2007; Madu and

Madu, 2002; Yang and Jun, 2002; Jun and Cai, 2001). This research

purposes 5 electronic service quality dimensions such as reliability,

website design, security, empathy, and responsiveness.

37

a. Reliability

Reliability means the ability to perform the promised

service dependability and accurately (Zeithaml et.al., 2000). So

the related company should ensuring that it delivers its

promise. (i.e promises regarding the delivery, service provision,

problem resolutions, and pricing). Another authors stated that

reliability is a technical function of the website such as the

extent to which it is available and functioning properly

(Cristian and Julian (2007),). Jessica (2003) stated that

reliability refers to the ability to perform the promised service

accuracy and consistently, involving frequency of updating the

website, prompt reply to customer enquiries and accuracy of

online purchasing and billing.

According to Cox and Dale (2010) reliability is determined

as consistency of performance and dependability, which is

relevant to the web site design. Reliability consists of two

aspects, namely; the degree to which a customer is able to

use the order process on the site easily and effectively as

well as the degree to which the company is able to fulfil its

promise and obligations to customers every time a purchase is

made. Reliability implies that if an online business

promises to do something at a certain time they should do it at

that promised time. So that is why reliability is the most

38

important dimension in e-service quality (Zeithaml et.al.,

2000). In the virtual environment, it is crucial to make

customers to trust that the company is going to perform what it

promises to do. Based on Zeithaml et.al., (2000 as cited in

Hongxiu and Reima, 2009:6) the following attributes in

reliability indicators can make customers recognize the

consistency and credibility of the company providing its e-

service. Namely; information accuracy, keeping service

promise, website always available, functioning properly, and

ease to use, and company being truthful about its offering.

b. Website Design

The tangible elements on the service quality refer to the

physical facilities, equipments and the appearance of the staff.

In the virtual environment of e-service, the tangible elements

should be focused on the website design since it constitutes the

main access to organizations and to gain a successful purchase

process (Wolfinbarger and Gilly, 2003). An empirical study

finds that the factors of the website design are strong predictors

of customer quality judgments, satisfactions, and loyalties for

the Internet retailers (Wolfinbarger and Gilly, 2003). The

deficiency of website design can result in a negative impression

of the website quality to the customers, and customer may exit

the purchase process. Website is the starting point for

39

customers to gain confidence. Thus, based on Wolfinbarger and

Gilly (2003), website should meet the following attributes in

order to attract customers to conduct purchasing online easily

with good navigation and clear information on the website;

appealling and well-organized website, consistent and

standardized navigation, and clear information provided.

c. Security

Security refers to the freedom form danger, risks or doubts

during the service process (Ho and Lee, 2007). Security is one

of the main barrier to customer making purchases and a web

site should indicate the extent to which it is secure. This

dimension holds an important position in e-service. Customers

perceive significant risks in the virtual environment of e-

service stemming from the possibility of improper use of their

financial data and personal data, which is an important barrier

to online customers to purchase online. A good website should

able to protect both of personal and related financial data,

shows obvious terms of payment and delivery, and also have a

good reputation in customer‟s mind. Becuase through this

security protection will in turn give customers peace of mind

knowing that all transactions will be dealt with in a safe and

secure manner.

40

d. Empathy

Even though there is no direct human interaction in the

virtual e-service process, some human contacts are involved in

e-service, for example e-mail communication. Providing

customer individual attention shows empathy to customers.

Response to customers should always be realize of the

customer‟s needs and show understanding of customer‟s needs.

In the virtual environment of e-service, empathy is important in

customer‟s perception of the e-service quality without face-to-

face encounters. Based on Madu and Madu (2002), an

electronic servicce should be consistently courteous in serving

customers, give adequate contact information so that customers

can easily contact if found any further query or faced related

issues, a website also should able to address complaints

friendly, and have a good personal attetion to the customers.

e. Responsiveness

Compared to responsiveness in service quality,

responsiveness in e-service quality is a much narrow concept.

In e-service quality, the company provides prompt service to

customers through digital media so when customers have

questions or problems, which make customers more

comfortable during purchasing and continue purchasing

without interruption. Online customers expect the response to

41

be quick and efficient when a problem occurs while they are

online or even after receiving the ordered product. A business

should be able to provide adequate contact and accurate

information to the customers when needed. It should also be

able to provide mechanisms for handling returns and have

guarantees by delivering their products in agreed period.

Another attributes of responsiveness indicators according to

Zeithaml, et.al.,(2000); give prompt response to the customers,

quickly solve problem such as problem that arise during

transaction process, and give adequate response time.

11. Purchase Intention

According to Kotler and Keller (2000), the consumer will go

through five stages in making purchasing decisions. But before getting to

the stage of purchase decision, there is purchase intention. Kotler and

Keller (2000) revealed that purchase inetention is in between the

alternative evaluation and purchasing decisions. It is illustrated in the

following diagram:

42

Figure 2.2

Stages between Evaluation of Alternatives and Purchase Decision

Source : Kotler, Philip (2000)

In the first stage, which is evaluation of alternatives, consumers

will pay more attention for the product attributes that provide the benefits

sought. After that, there will be an intention to buy. Purchase inetntion

influenced by the attitude for others and unanticipated situational factors to

decide the purchase (Kotler, 2000). The attitude of others will reduces by

someone's preferred alternative, it will depend on two things: the intensity

of people's negative attitude towards alternative preferred by consumers

and consumer motivation to obey the wishes of others. The more intense

the negative attitudes of others and the closer the person by the consumer,

the greater the interest of consumers will change their intention to

purchase and vice versa.

Whereas, unanticipated situational factors that appear can change

consumer buying interest, namely situations that indirectly affect someone

Evaluation of

Alternative

Purchase

Intention

Unanticipated

Situational

Factors

Attitudes of

others

Purchase

Decision

43

in a consumer buying interest, such as positive and negative information

that sudden received simultaneously (Kotler, 2000)

According to Sari and Kusuma (2014), purchase intention is the

most vital aspect of consumer behavior, which is defined as the situation

in which a customer is willing to make a transaction with the retailer. A

buyers attitude and evaluation and external components construct buyer‟s

purchase intention, and it is a important cause to predict buyer attitude

(Fishbein and Ajzen, 1975 as cited in Ali Raza, et.al., 2014). Purchase

intention can measure the possibility of a consumer to buy a product, and

the higher the purchase intention is, the higher a consumer‟s willingness is

to buy a product (Schiffman & Kanuk, 2000 as cited in Ali Raza, et.al.,

2014).

Fishbein and Ajzen (1975) said that the best single predictor of an

individual‟s behavior will be a measure of his intention to perform that

behavior. Purchase intention determine the consumer response to purchase

the offering product. The higher intention leads to elevated purchase of

that offering. Consumers purchase intention can be determined through

their responses, feedback, and their involvement. Highly involved

consumers shows high rate of purchase ( Schiffman and Kanuk, 2000).

Additionally, Schiffman and Kanuk‟ (2000) theory also explained

that the indicators of purchase intention consists of :

a. Interest to seeking information regarding the product

b. Interest to try the product

44

c. Considering to buy the product

d. Interest to own the product

12. Theory Reasoned Action

The theory reasoned action was formulated by Ajzen and Fishbein

in 1980. This theory is designed to predict volitional behaviors and help us

to understand customer‟s psychologial determinants. Theory reasoned

action is based on the assumption that human beings usually behave in

sensible manner; that they consider of available information and implicitly

or explicitly consider the implications of their actions (Kuhl, 1985).

Consistent with its focus on volitional behaviors, the theory postulates that

a person‟s intention to perform (or not to perform) a behavior is the

immediate determinant of that action. Barring unforseen events, people are

expected to act in accordance with their intention. However, intentions can

change over time; the longer time interval, the greater likelihood that

unforseen events will produce changes in intentions. It follow accuracy of

prediction will usually be an inverse function of the time interval between

measurement of intention and observation of behavior.

Since we are interested in understanding human behavior, not

merely in predicting it, we must next identify the determinants of

intentions. According to theory of reasoned action, a person‟s intention is

a function of two basic determinants; one personal in nature and other‟s

reflecting social influence. The personal factor is the individual‟s positive

45

or negative evaluation of performing the behavior, this factor is termed

attitude toward behavior. Note that theory of reasoned action is concerned

with attitudes toward behaviors and not with the more traditional attitude

toward objects, people, or institution. The second determinant of intention

is the person‟s perception of the social pressures put on him to perform or

not to perform the behavior in question. Since it deals with perceived

prescriptions, this factor is termed subjective norm. Generally, people

intend to perform a behavior when they evaluate it positively and when

they believe that important others think they should perform it.

Fishbein recognised that people‟s attitudes toward an object may

not be strongly or systematically related to their specific behaviors. Rather,

immediate determinant of whether cosnumers will engage in a particular

behavior is their intention to engage in that behavior. Fishbein modified

and extended his multiattribute attitude model to relate consumer‟s beliefs

and attitudes to their behavioral intentions. The model is called theory of

reasoned action because it assumes that consumers consciously consider

the consequences of the alternatives behaviors under consideration and

choose the one that leads to the most desirable consequences. The outcome

of this reasoned choice process is an intention to engage in the selected

behavior. This behavioral intention is the single best predictor of actual

behavior. In sum, the theory of reasoned action proposes that any

reasonably complex, voluntary behavior is determined by the person‟s

46

intention to perform that behavior. The theory of reasoned action is not

relevant fro extremely simple or involuntary behaviors.

B. Previous Research

The following description of previous research that became the

foundation of this research :

Table 2.1

Previous Research

Researcher Research Title Research Result

Shabnam Khosravani

Zangeneh et al. (2014)

Investigating the

effect of Electronic

Word of Mouth on

customer‟s purchase

intention of digital

product

This research aimed to examine the

effect of electronic word of mouth

on purchasing intention. The study

also considers the effects of quality

of e-WOM, quantity of e-WOM, as

well as reviewer‟s expertise on

purchasing intention. The study has

accomplished among 384 people

who have same experience on

buying digital devices from Iranian

well-known providers of electronic

devices in Teheran. The result shows

that quality of e-WOM and

reviewer‟s expertise affect

significantly cutsomer‟s purchasing

47

intention. While quantity of e-WOM

considered as less relevant factor.

Chinho Lin et.al, (2013) Electronic word of

mouth: The

moderating roles of

product involvement

and brand image

This research aimed to investigate

the influence e-WOM on purchasing

intention. Moreover, this study

examines the moderating effect of

product involvement and brand

image in the relationship between

the effects of electronic word of

mouth and purchase intention. The

results indicate that e-WOM quality,

e-WOM quantitym and sender‟s

expertise have positive effect on

purchase intention.

Ahmad J. Afshari et.al,

(2013)

The impactof service

quality on customer

satisfaction in internet

banking

This paper presents a study to

investigate service quality indexes in

internet banking. Six service quality

dimensions have been used, namely

reliability, efficiency,

responsiveness, fulfillment, security,

and website design. The study shows

that six service quality dimensions

has meaningful relationship with

48

customer satisfaction in internet

banking, whereby reliability has

most relation and website design has

least relation.

Hossein Vazifeh Doost

(2014)

Relationship of online

service quality with

customer‟s purchase

intention

This study used descriptive-

correlation method, that examine the

relationship of online service quality

with customer‟s purchase intention.

The purchase intention measured in

relation to the following dimensions:

efficiency,

reliability,responsiveness,fulfillment,

privacy, and empathy. The findings

confirmed there is significant

relationship of the dimension

responsiveness, privacy, and

empathy, while no significant

association was found between

dimensions efficiency, reliability,

and fulfillment.

49

C. Logical Framework

Figure 2.3

Purchase Intention (Y)

Data Quality Test

1. Validity Test

2. Reablity Test

Electronic Service

Quality (X2)

Electronic Word-of-

Mouth (X1)

Classic Assumption Test

1. Normality Test

2. Multicolinearity

3. Heterokesdasticty

Hyphotesis Test

1. T-Test

2. F-Test

Multiple Linier Regression

Coefficient of Determination

(Adjusted R²)

Conclusion

50

D. Hypothesis

Hypothesis is a temporary answer to the research problem

formulation, whereby the research problem formulation have been stated

in the form of a question sentence (Sugiyono, 2012:99). Hypothesis as a

temporary answer to the problems posed in this study are as follows:

1. Electronic Word-of-Mouth

a. Ho : β1 = 0;

There is no influence between electronic word-of-mouth

partially toward purchase intention

b. Ho : β1 ≠ 0;

There is influence between electronic word-of-mouth partially

toward purchase intention

2. Electronic Service Quality

a. Ho : β2 = 0;

There is no influence between electronic service quality partially


b. Ha : β2 ≠ 0;

There is influence between electronic service quality partially


51

3. Electronic Word-of-Mouth and Electronic Service Quality

towards Purchase Intention

a. Ho : β1, β2 = 0;

There is no influence between electronic word-of-mouth and

electronic service quality simultaneously towards purchase

intention

b. Ha : β1, β2 ≠ 0;

There is influence between electronic word-of-mouth and

electronic service quality simultaneously towards purchase

intention

52

CHAPTER III

RESEARCH METHODOLOGY

A. Scope of Research

This research is empirical study that investigate on how the electronic

word-of-mouth and electronic service quality influence purchase intention on

Xiaomi smartphone users in MiForum. The respondent of this research will

focus on the Xiaomi smartphone user who have been bought Xiaomi‟ product

through its online website and joined Xiaomi group called ” MiForum”. The

respondent is also obligate to own Facebook account. This research is

conducted since June 2016 until the completion of this research writing.

This research used a quantitative method research that aim to clarify the

effect of independent variable which are electronic word-of-mouth (X1) and

electronic service quality (X2) to the dependent variable which is purchase

intention (Y)

B. Sampling Method

1. Population

Malhotra (2004:314) defines population as the aggregate of all

elements, sharing some common set of characteristics that comprises

the universe for the purpose of the marketing research problem.

Population is the generalization, which consists of object or subject

that has certain quantity and characteristics applied by researchers to

be learnt and then drawn the conclusion. So the population is not only

53

about people but also objects and another natural object. The

population is also not only a number that exist on the subject or object

being studied, but it covers all the characteristics or properties owned

by an object or subject (Sugiyono, 2013:115).

The population in this research is the users of Xiaomi smartphone

in MiForum in social media Facebook. The reason why the researcher

chooses this population because the researcher wants to know the

influence of e-WOM and e-SQ towards purchase intention of Xiaomi

smartphone users.

2. Sample

Sample is a member of the selected population using a specific

procedure that is expected to represent it‟s population. If there are a

huge population and researcher may not be capable to analyze the

whole existing population, for example, due to limited funds,

manpower, and or even time, so researcher can use samples drawn

from the population (Sugiyono, 2013: 116).

The sampling technique used in this research is purposive sampling

or sample intended subjectively. Purposive sampling is a sampling

technique with certain considerations (Sugiyono, 2013:122). Sampling

technique was based on the consideration that the respondents are

Xiaomi smartphone user who have been bought Xiaomi‟ product

54

through its online website and joined Xiaomi group called ”MiForum”.

The respondent is also obligate to own Facebook account.

Due to the number of population is not known exactly, so to

determine the size of the sample is used convenience sampling

technique. The researchers select by screening the existing

questionnaires, if these people are known. For instance, used sample

to do the estimation , we got (1- )% convinced that the error is not

exceed to the value, if the size of sample as big as n, whereby

2

(Riduwan and Akdon (2013:255). Whereby:

n = The number of sampel

Z = The size of confidence level with = 0,05 (size of

confidence

level is 95% which means Z ½. 95% = Z. 0,475 in the table

founded 1,96)

= Standard deviation

= Standard error or the error that can be tolerated (5% = 0,05)

By calculation:

2

( )( )

2 96,04

From the calculation, the number of sample that we got is 96.04, to

make it easier then we can make it be rounded to 100 respondents. So

this research use 100 respondents as research samples.

55

C. Data Collection Method

In the research, the researcher will collecting the data. Types of data

being used in this research are both of primary and secondary data

(Sugiyono, 2009:193).

1. Primary Data

To accomplished this research, the researcher will obtain the

primary data through distributing the electronic questionnaire to the

Xiaomi smart phone users in MiForum to got their identity and

opinioins. Based on Malhorta (2009), questionnaire is a formalized set

of questions to obtain information of the for respondents. Based on

(Sugiyono, 2013: 199), questionnaire is a technique of data collection

done by giving a set of questions or written statement to the respondent

to be answered. In the questionnaire, there are designed questions that

are directly related to the research problem, where the answers

obtained will be processed in order to answer the hypotheses that have

been made, and to assist in solving problems examined.

In the primary data collection with questionnaires, researcher used

a closed-ended question which is the form of a question with a range of

alternative options or answers to the respondent to know the

characteristics of the respondents. To gauge the level of interest in the

elements of electronic word-of-mouth and electronic service quality on

this research used Likert scale.

56

Likert scale used to measure attitudes, opinions and the perception

of a person or group of people about social phenomena (Riduwan and

Kuncoro, 2008:20). In Likert Scale, the scale provides opportunities to

the respondents to express their feelings in the form of agreement to a

statement. The statement provided a tiered, starting from the lowest to

the highest levels, with the following formula:

Table 3.1

Likert Scale

No Range Score

1 Strongly Disagree 1

2 Disagree 2

3 Neutral 3

4 Agree 4

5 Strongly Agree 5

Source: Sugiyono (2013:133)

2. Secondary Data

A secondary data collection technique is the study of

literature,which is studying how factors that affect consumer

preferences for products in various literature, including search data

from Internet sites (electronic library) and books relating to completed

research data. According to Malhotra (2009), data is collected for some

purpose other than the problem at hand. In the development of this

study research, techniques of taking secondary data will be used are:

a. Library Study, done for collecting the data with information

57

through reference books, journals, and other information which

suitable according to this study.

b. Website of Xiaomi Indonesia to take the information about the

company.

D. Analysis Data Method

Basically this research is a research conducted to answer a problem, in

this case is about is there significant influence between electronic word-of-

mouth and electronic service quality towards purchase intention study case

of Xiaomi smartphone users in MiForum. In this study, researcher used a

descriptive method. The descriptive approach used through the approach

of surveys or distributing the questionnaires.

In order to know the influence of electronic electronic word-of-mouth

and electronic service quality towards purchase intention, researcher will

conducting multiple linier regression that analyzed based on the assitance

of SPSS 20 software.

1. Data Quality Test

This stage is a stage that is very important and decisive. In this

stage the data is processed so it can be successfully concluded the

truth that can be used to address the issues raised in the study.

Methods of data analysis used in this study is by using multiple

linear regression analysis.

58

a. Validity Test

Validity test used to measure whether questionnaire is valid

or not. A questionnaire considered as valid if the question or

statement is able to reveal something that will be measured by

the questionnaire (Ghozali, 2013:52). According to Sugiyono

(2009), valid means the instrument can be used to measure

what should be measured. Valid indicates the degree of

precision of the data is actually happening on the object with

the data that can be collected by the researcher.

Significancy test conducted by comparinf the r-count value

(in Correlated Item-Total Correlation coloumn) and the t-table

(df= n-k), means is to comparing the r-count value and r-table

value for degree of freedom (df) = n-2 (in this case means total

of samples). A question or indicator considered as valid if r-count

> r-table and has positive value. But, if r-count < r-table, so the

question is considered as invalid and has negative value.

b. Reliability Test

Reliability is a tool to measure a questionnaire which is an

indicator of variables or constructs. A questionnaire considered

to be reliable if respondent‟ answers towards a questions are

consistent or stable over time. A vaariable considered as

reliable if the Cronbach Alpha > 0.70 (Ghozali, 2013:48).

Reliability test in this research used the formulation of

59

Cronbach Alpha, to know the reliability level of an instrument

from the three research variables if the result of reliability test

has alpha value > 0.70.

2. Classic Assumption Test

The purpose of classic assumption test is to see certain

assumptions about the behavior patterns of variables which known

as regression basic assumptions, namely:

a. Normality Test

Normality test aims to test whether the regression model of

dependent and independent variable have the normal

contribution or not. To conducting the normality test, we can

see the Normal Probability Plot. A good regression have a

normal distribution or close to normal. Normality can be

detected by looking at the spread of the data (points) on the

diagonal axis of the graph. There are two ways to detect

whether residual has a normal distribution or not is by

analyzing the graphs and statistical tests (Kolmogorov-

smirnov). Details explanation as follows (Ghozali, 2013:160):

1) Normality test by Graph

One the simple way to see the residual normality is

by looking at the histogram graph that comparing between

observation and distribution data that detected the normal

distribution. However, just by looking at the histogram this

60

can be misleading, especially to the small sample size.

More reliable method is to look at normal probability plots

comparing the cumulative distribution of the normal

distribution. The normal distribution will form a straight

diagonal line and residual plotting the data will be

compared with diagonal lines (Ghozali, 2013:160).

There are several ways to detect normality by see

the spread of the data (points) on the diagonal axis of the

graph. Basis for a decision in the normality test is:

(a) If the data is spread around the diagonal line and follow

the direction of the diagonal line, the regression meet the

assumption of normality (Ghozali, 2013:163).

(b) If the data spread far from the diagonal line and did not

follow directions or diagonal line, the regression model

did not meet the assumption of normality (Ghozali,

2013:163).

2) Normality by Statistical Test

Normality test by graphic can be misleading if not

carefully look at it. Therefore, it is recommended to

complete normality test graph with statistical normality test

(Ghozali, 2013:163). Beside seeing the normal curve P-

plot, the normality test can also be performed by using

61

Kolmogorov-Smirnov test. In Kolmogorov Smirnov test the

hypothesis that apply are:

H0 = Samples derived from data or population that normal

distributed

Ha = Samples drived from data or populations that are not

normally distributed.

In this test, if sig. Value < 0.05, means the data is

not normally distributed. But, if sig.value > 0.05, so the

data is normally distributed (Santoso, 2012:193-196)

b. Multicollinearity Test

According to Ghozali (2013:105) multicolinearity used to

prove there is linear correlation among independent variable in

regression model. A good regression model should not be a

correlation between the independent variables. If independent

variable creates the perfect correlation, means these variables

are not orthogonal. Orthogonal variable means independent

variable that have corellation value equals to zero. To detect the

presence or absence multicollinearity in the regression model

are as follows:

1) The value of R2 generated by an empirical regression

model estimate is very high, but individually

independent variables were not significantly affect the

dependent variable

62

2) Analyze the correlation matrix of the independent

variables. If correlation between the independent

variables are quite high (generally above 0.90), then this

is an indication of multicollinearity. The absence of a

high correlation between the independent variable does

not mean free from multicollinearity. Multicolinearity

may be due to the combined effect of two or more

independent variables

3) Multicolinearity can also be seen from:

(a) The value of tolerance and the opponent

(b) Variance inflation factor (VIF). Both these

measurements indicate each independent variable

explained by which independent variables. In simple

terms each independent variable to be dependent

variable and regressed against the others

independent variables. Tolerance measures the

variability of independent variables chosen that are

not explained by other independent variable. So a

low tolerance value equal to the value of a high VIF

(because VIF = 1 / Tolerance). Value cutoff

commonly used to indicate the presence of

multicollinearity is the tolerance value ≤ 0.10 or

equal to VIF value ≥10 (Ghazali, 2013:105-106).

63

c. Heteroscedasticity Test

According to Ghozali (2013:139), heteroscedasticity test

aims to test whether the regression model occurred inequality

residual variance from one observation to another observation

are remains, it is called homoscedasticity and if different, then

called heteroscedasticity. A good regression model is

homoscedasticity or did not happen heteroscedasticity. Most of

the data crossection containing heteroscedasticity because this

data collect representing a variety of sizes (small, medium and

large). There are several ways to detect the presence or absence

of heteroscedasticity. In this research is see Graph Plot between

the predicted value of the dependent variable which is ZPRED

with its residual SRESID. Detection of the presence or absence

of heteroscedasticity can be done by looking at whether there is

a specific pattern on a scatterplot graph between SRESID and

ZPRED. With the analysis if there is a certain regular pattern

(wavy, widened and then narrowed), then identifying

heteroscedasticity has occurred and if there is no clear pattern,

such as as the points spread above and below the number 0 on

the Y axis, then there is no heteroscedasticity (Ghozali,

2013:139).

64

3. Multiple Linear Regression

This research use Multiple Linier Regression. Multiple

linear regression analysis was used as a tool to determine how

much change in the value of the dependent variable, if value of the

independent variables are manipulated or permuted (Sugiyono,

2005: 211). A mathematical formula of linear regression is

commonly used in the study are as follows:

Y = a + β1X1 +β2X2 +e

Whereby :

Y = Purchase intention (dependent variable)

a = constanta

β1 = regression coefficient of X1

β2 = regression coefficient of X2

X1 = electronic word-of-mouth (independent variable)

X2 = electronic service quality (independent variable)

e = Error

4. The Coefficient of determination Test (R )

According to Ghozali (2013:97) the coefficient of

determination (R²) essentially measure how far the ability of

models to explain variation in the dependent variable. The value

determination of coefficient is between zero and one. The R² is

small means that the ability of independent variables in explaining

variations in the dependent variable is very limited.

65

Basic weaknesses use the coefficient of determination is

based on the number of independent variables entered into the

model. Each additional one independent variable, then R2

would

increase, no matter whether these variables affect the dependent

variable is not.

5. Theoritical Hypothesis Test

a. T-test (Partial Test)

Partial test or T-test aims to determine how big the

influence of each independent variable (X) individually toward

dependent variable (Y) (Ghozali, 2013:98). The probability is

smaller than 0.05, then the result means that there is significant

independent variables individually influence on the dependent

variable.

1) If -t table < t test < +t table, then Ho is rejected and

Ha is accepted, it means there is significant

influence between independent variable toward

dependent variable

2) If t test > t table or -t test < -t table, then Ho is

accepted and Ha is rejected, it means there is no

significant influence between independent variable

toward dependent variable

Ho: there is no significant influence between

electronic word-of-mouth through social media

66

Facebook and electronic service quality toward

purchase intention

Ha: there is significant influence between electronic

word-of-mouth through social media Facebook and

electronic service quality toward purchase intention

The criteria to making decision (significance)

with α = 0,05;

(a) If probability > α 0.05, so Ho accept. It

means

there is no significant influence between electronic

word-of-mouth through social media Facebook and

electronic service quality toward purchase intention

(b) If probability < α 0.05, so Ho reject. It

means there is significant influence between

electronic word-of-mouth through social media

Facebook and electronic service quality toward

purchase intention

b. F-Test (Simultaneous Test)

F Test basically indicates whether all the independent

variables included in the model have simultaneously influence

the dependent variable (Ghozali, 2013:98). These steps are

applied to examine the hypothesis with F Test is as follows:

67

1) Determine Ho and Ha

Ho: β1, β2 = 0, this means there is no significant

influence between independent variable and dependent

variable.

Ho: β1, β2 ≠ 0, this means there is significant influence

between independent variable and dependent variable.

(a) Determining level of significance

Level of significant level used is 5% or α = 0.05

(b) Determining the criteria acceptance and reject of

Ho

If probability < 0, 05 reject Ho

If probability > 0, 05 accept Ho

If F test > F table, so Ho is rejected and Ha is

accepted; this means independent variable together

have significant influence to dependent variable.

If F test < F table, so Ho is accepted and Ha is

rejected; this means independent variable together

do not have significant influence to dependent

variable (Ghozali 2013:98)

68

E. Research Operational Variable

Variable is anything that is an object, event, act, characteristic,

trait, or attribute of observation in research and concepts that can be

measured and to which assigned categorical values (Cooper, 2006). The

variable in this research consist of independent variable and dependent

variable, which are:

1. Independent Variable

According to Cooper (2006:63), independent variable is the

variable manipulated by the researcher that gives influence or the

causal of the changes happen or the effect from dependent variable. In

this research asthe independent variables are electronic word-of-mouth

(X1) andelectronic service quality (X2).

2. Dependent Variable

According to Cooper (2006:63), dependent variable is the variable

measured, predicted, or otherwise monitored by researcher; expected

to be affected by manipulation of independent variable. The dependent

variable of this research is purchase intention (Y).

69

Table 3.2

Operational Variable

Variable Dimension Indicator Scale

Electronic

Word-of-Mouth

e-WOM Quality

(Horrison-Walker2001)

1. The online review should be

understandable

2. The online review is helpful

3. The online review is credible

4. In general, the quality of

each online review is high

Likert

e-WOM Quantity

(Godes & Mayzlin,

2004)

5. More reviews represent

higher product popularity

6. Reading numerous review

will reduce customer anxiety

when making purchase

7. Highly recommendation

represent that the product

has good reputation

8. The numbers of reviewers

influenced customer in

deciding to buy the product

Likert

Sender‟s Expertise

(Hu, Liu, & Zhang,

2008)

9. The reviewers have a well

product knowledge

10. Thereviewersareexperienced

11. The reviewers able to giving

judgement on something

objectively

12. Sender‟s expertise make

Likert

70

customers more confident in

making purchase

Electronic Service

Quality

Reliability

(Zeithaml,Parasuraman

& Malhotra, 2000)

13. The website able to perform

its promised service

dependability

14. Website always available

15. Website functioning

properly

16. Website are ease to use

17. Information accuracy

18. Company being truthful

about its offering

Likert

Website Design

(Wolfinbarger and

Gilly, 2003)

19. Appealling and well-

organized website

20. Consistent and standardized

navigation

21. Clear information provided

Likert

Security

(Ho and Lee, 2007)

22. Protect the personal data of

customers

23. Protect the financial data of

customers

24. Shows obvious terms on

payment and delivery

25. Have good reputation in

customer‟s mind

Likert

Empathy

(Madu and Madu,

2002)

26. Provide customer individual

attention

27. Show understanding of

customer‟s needs

Likert

71

28. Consistently courteous

29. Give adequate contacts

information

30. Address complaints friendly

Responsiveness

(Zeithaml,Parasuraman

& Malhotra, 2000)

31. Prompt response to customer

32. Quickly solve problem

33. Give adequate response time

Likert

Purchase Intention

(Schiffman and

Kanuk, 2000)

34. The customer have the

interest in seeking

information regarding the

product

35. Customer‟s willingness to

try the product

36. Customer consider to buy

the product due to its value

and benefits offered

37. Customer have the

willingness to own the

product

Likert

72

CHAPTER IV

ANALYSIS

A. General Overview

Xiaomi was founded in April 6th

2010 by a serial entrepreneur Lei

Jun, who is one of China‟s top 20 richest person with net worth

US$9.1 billion according to Forbes (Olson, 2014). It crafted smartphone

hardware, software, and internet services as well as accessories with the

help of smart and talented people hired from Google, Kingsoft, Microsoft,

Motorola, Yahoo, and other successful technology companies around the

globe.

Xiaomi has sold more than 60 million smartphones worldwide in

2014, with more than 18 million handsets in China alone, resulting in

US$12 billion revenue. Their presence is mainly in the Asian region

such as China, Malaysia, Singapore, and Philippines. Xiaomi‟s focus is

to produce reliable, user friendly, mobile applications and affordable

phones to customers. Xiaomi is currently the third largest smartphone

producer in the world with over 8,000 employees worldwide. In

December 2014, Xiaomi has achieved the status of the most valuable

technology start-up in the world after it successfully secured US$1.1

billion investment with a company valuation of US$45 billion (Shih,

2015).

73

B. Xiaomi Logo

The “MI" in Xiaomi logo stands for “Mobile Internet”. It also has

other meanings, including "Mission Impossible" (Xiaomi Team, 2016).

Figure 4.1

Xiaomi Logo

Source: www.mi.com/id/

C. Xiaomi Mission Statement

Xiaomi has had an exciting, and lucrative, start since its founding in

2010. In over four years, the company has become the third largest

smartphone distributor in the world and has grown to be the world‟s most

valuable technology start-up; it is currently valued at around $46 Billion.

Xiaomi is primarily known as a hardware company, but its leaders claim

that the company is more of an internet and software company

(Porciuncula and Martinez, 2015). The company‟s mission statement is as

follows:

1. A premium product

Xiaomi ensures that its products not only meet market

industry standards but also exceeds them. The products they make

http://www.mi.com/id/

74

can compete with any of the higher end brands that competitors

offer

2. Lowest prices

The focus on producing great products is matched only by

the emphasis on providing products at incredibly low prices that

normally wouldn‟t be offered for such premium items

3. More than just hardware

Xiaomi envisions itself as an internet and software

company above all else. The company wants to bring the internet,

and all its uses, to markets where smartphones are only just starting

to flourish (Porciuncula and Martinez, 2015).

D. Xiaomi Product

Xiaomi makes many products. Not only mobile phone, but it also

produce smart TV line, network router, notebook, tablet, set-top box,

cloud storage service, messaging service, external battery or usually called

as power bank, fittness monitor & sleep tracker, until smartbrands and

smartwatches. Besides of that, Xiaomi also have smart home products,

such as blood pressure monitor, air purifier, Yi smart webcam, Yi action

camera, smart scale, water purifier, smart home kit, smart rice cooker,

robotic vacuum, and the drones.

75

E. Xiaomi Business Strategy

1. Online Sales Method/Flash Sales

When major smartphone companies like Apple, Samsung, and

OPPO sell their products through third-party retailers and physical

stores, whereas Xiaomi sells all its products online. Xiaomi has created

a business model around selling the majority of its products online

through a method called “Flash Sales.” These flash sales are basically

limited batches of products that go on sale at specific time and run till

they are sold out. This direct to consumer method also allows Xiaomi

to increase profits by avoiding the fees that come with having retailers

sell its products in-store. This method is perfect for Xiaomi, as it

prevents the company from overproducing phones that it might not

sell. By limiting its manufacturing, Xiaomi has a smaller inventory that

provides less risk and easier mobility. Since Xiaomi builds its phones

in batches, the company saves money on the decreasing costs of

materials as time goes on instead paying for large, expensive quantities

up front. The online business model is made all the more successful by

the methods in which the company upgrades and updates its hardware

and software (Porciuncula and Martinez, 2015).

2. Weekly Update System / High User Input:

The most innovative part of the Xiaomi business model, and what

sets it completely apart from any other major competitor, is its weekly

system of phone updates that uses user feedback forums to determine

76

what needs to be fixed and improved. Essentially, once Xiaomi has

released a product into the market, the company allows and encourages

its users to give recommendations on how to improve the product‟s

hardware or software. The company then releases new software

patches every week that reflect user requests. Incredibly, the company

does take hardware recommendations seriously and, if enough people

request a certain update, the company will incorporate the minor

hardware updates to its future phone batches. This rapidly-executed

updating system is completely against the yearly OS updates that other

major smartphones provide and is a huge factor in Xiaomi‟s success.

The company prides itself on providing what its users want, and not

what they think they want. This unique model is a big draw because it

gives users a lot of power they normally would not have, and it also

allows Xiaomi an opportunity to know exactly what its users want

(Porciuncula and Martinez, 2015).

F. Xiaomi Pricing Strategy

Xiaomi sells its products online, through e-commerce. This ensures

that it doesn‟t have to worry about the costs of warehousing and

distribution. Hugo Barra, the vice president of Xiaomi said, “We are

an e-commerce company. We live on the internet. We are selling

exclusively through e-commerce. And the price can be much lower,

because the price on e-commerce is essentially fulfillment and

77

shipping cost” (Miuios team, 2016). Xiaomi also shuns traditional

models of advertising and depends solely on Social Media marketing

and word-of-mouth. Beside of that, unlike other bigger players who

discontinue their models after 6-8 months in the market, Xiaomi sells it

products for up to 18-20 months after launch. This means, in

accordance with Moore Law, the price of the individual components

go down while the price of the phone remains constant throughout. But

the most important thing to note is that Xiaomi is a „mobile internet

company‟. It is looking to make money, not on its hardware, but by

selling apps, games and special Android themes and Internet services

on top of its custom MIUI. This Xiaomi‟ pricing strategy very

welladopted by the e-commerce behemoth Amazon (Miuios team,

2016).

G. Validity and Reliability Test

1. Validity Test Result

According to Arikunto (2010: 211) validity is a measurement that

indicates validity levels of an instrument. An instrument can be

considered as a valid instrument if the validity level of particular

instrument is high, while an instrument can be acknowledge as an

invalid instrument if the validity level of the instrument is low. To get

the primary data, the researcher distribute electronic questionnaire to

the respondents. The respondents in this research refers to Xiaomi

78

users in MiForum who own Facebook account and have been bought

Xiaomi‟ product through its online website . A question considered as

valid if the value of each question or r-count is positive and greater than

r-table. In this research the researcher use 30 respondents as a sample

to assess the validity of all the questions. Regarding the

formulation, researcher use formulation of df = n-2, so 30-2 = 28 and

got the value of 0.361 as r-table.

Meanwhile, reliability test used to test the consistency of data in a

certain period of time and the extent to which a scale produces

consistent result if repeated measurements are made on the

characteristic. The value of variable reliability demonstrated by the

Cronbach Alpha coefficient. A variable is said to be the Alpha

Cronbach coefficient of Reliability when > 0.70, means that this

instrument can be used as a reliable data collector with relative

measurement result if repeated measurements are made. In the other

word, we can say that this reliability test purposes to see the data

consistency (Ghozali, 2013:48).

Before the electronic questionnaire ditributes to 100 respondents,

researcher conducted pra-survey towards 30 respondents by giving the

37 questions to test the validity and reliability from the overall

questions given. The table below shows the output of validity and

reliability test of each variable of electronic word of mouth (X1),

electronic service quality (X2), and purchase intention (Y).

79

Table 4.1

Validity Test Result

Questions r-count r-table Result

e-Word-of-Mouth

e-WOM Quality 1 0.882 0.361 Valid




e-WOM Quantity 1 0.796 0.361 Valid




e-WOM Sender' Expertise 1 0.820 0.361 Valid




e-Service Quality

e-SQ Reliability 1 0.720 0.361 Valid






e-SQ Website Design 1 0.858 0.361 Valid



e-SQ Security 1 0.832 0.361 Valid




e-SQ Empathy 1 0.495 0.361 Valid





e-SQ Responsiveness 1 0.713 0.361 Valid

80



Purchase Intention

Purchase Intention 1 0.889 0.361 Valid




Source: Processed Primary Data by SPSS 20, 2016

Based on table 4.1, we can concluded that 37 questions that given

to the 30 respondents are valid, because the r-count > r-table. Whereas,

for the reliability test result can be seen as below:

2. Reliability Test Result

Table 4.2

Reliability Test Result


A

c

cording to the table 4.2, noted that the value of Cronbach‟s Alpha of

all variables are greater than 0.70. So it can be summed up that all

variables used in this study are reliable.

H. Descriptive Analysis of Respondent Answer

Descriptive analysis of the answer of respondents is aim to identified

the frequency of each answer towards the variable instruments, which are

electronic word-of-mouth and service quality. There are 100 respondents

Variable Cronbach’s Alpha N of item Result

Electronic word-

of-mouth

0.951 12 Reliable

Electronic service

quality

0.962 21 Reliable

Purchase intention 0.938 4 Reliable

81

with several characteristics such as the respondents obligate to own

facebook account, they are Xiaomi users who have been bought Xiaomi

through its online website. The demographic classification characteristics

of the respondents can be described as follows:

a. Total of respondents based on gender

Table 4.3

Respondents Based on Gender

From the table above, there are 100 respondents who are Xiaomi

users, consist of 43 people or 43% are males and 65 people or 65% are

females respondents. So it is indicates that most of Xiaomi isers are

females.

Gender

Frequency Percent Valid Percent Cumulative

Percent

Valid

Male 43 43,0 43,0 43,0

Female 57 57,0 57,0 100,0

Total 100 100,0 100,0

82

b. Total of respondents based on age

Table 4.4

Total of Respondents Based on Age

Age


Percent

Valid

<20 10 10,0 10,0 10,0

20-<35 89 89,0 89,0 99,0

35-<50 1 1,0 1,0 100,0

Total 100 100,0 100,0

Source: Primary data output from SPSS 20

Table 4.4 above shows that 100 respondents consist of 10 people

aged < 20, 89 people aged between 20 - < 35, and 1 person aged between

35 - < 50. So it is indicates that most of Xiaomi users aged between 20

until under 35 years old.

c. Descriptive Analysis Discussion

In order to know the feedback given by 100 respondents in each

variable of electronic word-of-mouth, electronic service quality, and

purchase intention, so the percentage description of respondent‟

feedback then being analyzed. The respondents are ask to answer 37

the following statement:

1.) Electronic Word-of-Mouth Description

a.) Online review in social media Facebook is understandable

83

Table 4.5


Table 4.5 shows that 5% strongly diagrees, 5% disagrees, 27%

neutrals, 56% agrees, and 7% strongly agrees. Then it can be concluded that the

majority of respondents agree that the online review in Facebook is

understandable.

b.) Online review is helpful

Table 4.6




majority of respondents agree that the online review is helpful.

Question 1


Percent

Valid

Strongly Disagree 5 5,0 5,0 5,0

Disagree 5 5,0 5,0 10,0

Neutral 27 27,0 27,0 37,0

Agree 56 56,0 56,0 93,0

Strongly Agree 7 7,0 7,0 100,0

Total 100 100,0 100,0

Question 2


Percent

Valid


Disagree 5 5,0 5,0 6,0

Neutral 24 24,0 24,0 30,0

Agree 57 57,0 57,0 87,0

Strongly Agree 13 13,0 13,0 100,0

Total 100 100,0 100,0

84

c.) The online review has the credibility

Table 4.7 Question 3


Percent

Valid


Disagree 7 7,0 7,0 8,0

Neutral 34 34,0 34,0 42,0

Agree 51 51,0 51,0 93,0


Total 100 100,0 100,0




majority of respondents agree that the online review has the credibility.

d.) In general, the reviewer gave a high quality of review

Table 4.8


Table 4.8 shows that 4% strongly diagrees, 12% disagrees, 38% neutrals,

39% agrees, and 7% strongly agrees. Then it can be concluded that the majority of

respondents feels neutral that the reviewer gave a high quality of review

Question 4


Percent

Valid


Disagree 12 12,0 12,0 16,0

Neutral 38 38,0 38,0 54,0

Agree 39 39,0 39,0 93,0


Total 100 100,0 100,0

85

e.) More reviews represent higher product popularity



Percent

Valid

Disagree 6 6,0 6,0 6,0

Neutral 23 23,0 23,0 29,0

Agree 61 61,0 61,0 90,0

Strongly Agree 10 10,0 10,0 100,0

Total 100 100,0 100,0


Table 4.9 shows that 6% disagrees, 23% neutrals, 61% agrees, and 10%

strongly agrees. Then it can be concluded that the majority of respondents agree

that more reviews represent higher product popularity

f.) Reading numerous reviews by others reduce customer‟

anxiety

Table 4.10


Table 4.10 shows that 6% disagrees, 33% neutrals, 49% agrees, and 12%

strongly agrees. Then it can be concluded that the majority of respondents agree

that reading numerous reviews by others reduce customer‟ anxiety

Question 6


Percent

Valid

Disagree 6 6,0 6,0 6,0

Neutral 33 33,0 33,0 39,0

Agree 49 49,0 49,0 88,0


Total 100 100,0 100,0

86

g.) More reviews inferring that the product has good reputation



Percent

Valid


Disagree 2 2,0 2,0 3,0

Neutral 22 22,0 22,0 25,0

Agree 54 54,0 54,0 79,0

Strongly Agree 21 21,0 21,0 100,0

Total 100 100,0 100,0


Table 4.11 shows 1% strongly diagrees, 2% disagrees, 22% neutrals, 54%

agrees, and 21% strongly agrees. So it can be concluded the majority of

respondents agrees that more reviews shows that the product has good reputation

h.) Number of reviews influence customer in deciding to buy

Table 4.12

Question 8


Percent

Valid


Disagree 7 7,0 7,0 8,0

Neutral 22 22,0 22,0 30,0

Agree 56 56,0 56,0 86,0

Strongly Agree 14 14,0 14,0 100,0

Total 100 100,0 100,0


Table 4.12 shows 1% strongly diagrees, 7% disagrees, 22% neutrals, 56%


respondents agrees that number of reviews influence customer deciding to buy

87

i.) Reviewers have a well product knowledge

Table 4.13

Question 9


Percent

Valid

Disagree 6 6,0 6,0 6,0

Neutral 26 26,0 26,0 32,0

Agree 59 59,0 59,0 91,0


Total 100 100,0 100,0


Table 4.13 shows 6% disagrees, 26% neutrals, 59% agrees, and 9%

strongly agrees. So it can be concluded the majority of respondents agrees that the

reviewers have a well product knowledge

j.) The reviewers are experienced

Table 4.14

Question 10


Percent

Valid

Disagree 8 8,0 8,0 8,0

Neutral 30 30,0 30,0 38,0

Agree 55 55,0 55,0 93,0


Total 100 100,0 100,0




reviewers are experienced

88

k.) The reviewers able to giving judgement on something

objectively

Table 4.15

Question 11


Percent

Valid

Strongly disagee 1 1,0 1,0 1,0

disagree 9 9,0 9,0 10,0

neutral 30 30,0 30,0 40,0

agree 50 50,0 50,0 90,0

strongly agree 10 10,0 10,0 100,0

Total 100 100,0 100,0


Table 4.15 shows 1% strongly disagrees, 9% disagrees, 30% neutrals, 50%


respondents agrees that the reviewers able to giving judgement on something

objectively

l.) Sender‟s expertise make customers more confident in making

purchases

Table 4.16

Question 12


Percent

Valid

Stongly Disagree 1 1,0 1,0 1,0

Disagree 3 3,0 3,0 4,0

Neutral 26 26,0 26,0 30,0

Agree 55 55,0 55,0 85,0

Strongly Agree 15 15,0 15,0 100,0

Total 100 100,0 100,0


89

Table 4.16 shows 1% strongly disagrees, 3% disagrees, 26% neutrals, 55%


respondents agrees that sender‟s expertise make customers more confident in

making purchases

2.) Electronic Service Quality Description

a.) The company able to perform its promised service

dependability

Table 4. 17




company able to perform its promised service dependability

Question 13


Percent

Valid

Disagree 2 2,0 2,0 2,0

Neutral 37 37,0 37,0 39,0

Agree 53 53,0 53,0 92,0


Total 100 100,0 100,0

90

b.) Website always available

Table 4.18




Xiaomi‟ website is always available

c.) Website functioning properly

Table 4.19

Question 15


Percent

Valid

disagree 6 6,0 6,0 6,0

neutral 25 25,0 25,0 31,0

agree 59 59,0 59,0 90,0

strongly agree 10 10,0 10,0 100,0

Total 100 100,0 100,0




Website functioning properly

Question 14


Percent

Valid

Disagree 6 6,0 6,0 6,0

Neutral 31 31,0 31,0 37,0

Agree 51 51,0 51,0 88,0

Strongly Agree 12 12,0 12,0 100,0

Total 100 100,0 100,0

91

d.) Website are ease to use

Table 4.20




website are ease to use

e.) Information accuracy

Table 4.21

Question 17


Percent

Valid

disagree 3 3,0 3,0 3,0

neutral 48 48,0 48,0 51,0

agree 42 42,0 42,0 93,0

stronglgy agree 7 7,0 7,0 100,0

Total 100 100,0 100,0



strongly agrees. In this case, the majority of respondents (51%) feels that the

Xiaomi website did not give an information accuracy. Therefore, Xiaomi should

Question 16


Percent

Valid

disagree 3 3,0 3,0 3,0

neutral 33 33,0 33,0 36,0

agree 54 54,0 54,0 90,0

strongly agree 10 10,0 10,0 100,0

Total 100 100,0 100,0

92

immediately take action to deal with this problem by examine the level of

professionalism of the entire website. Provide clear, accurate, and consice

informations so that customers can easily understand. And avoid misspelling and

grammatical errors of the website is also one of necessity.

f.) Company being truthful about its offering

Table 4.22




company being truthful about its offering

g.) Appealing and well-organized website

Tabel 4.23

Question 19


Percent

Valid

strongly disagree 1 1,0 1,0 1,0

disagree 5 5,0 5,0 6,0

neutral 31 31,0 31,0 37,0

agree 53 53,0 53,0 90,0

strongly agree 10 10,0 10,0 100,0

Total 100 100,0 100,0

Question 18


Percent

Valid

disagree 2 2,0 2,0 2,0

neutral 30 30,0 30,0 32,0

agree 61 61,0 61,0 93,0

strongy agree 7 7,0 7,0 100,0

Total 100 100,0 100,0

93


Table 4.23 shows 1% strongly disagree, 5% disagrees, 31% neutrals, 53%


respondents agrees that the website is well-organized

h.) Consistent and standardized navigation

Table 4.24

Question 20


Percent

Valid

Strongly disagree 1 1,0 1,0 1,0

disagree 6 6,0 6,0 7,0

neutral 25 25,0 25,0 32,0

agree 60 60,0 60,0 92,0

strongly agree 8 8,0 8,0 100,0

Total 100 100,0 100,0

Source: Primary output from SPSS 20



respondents agrees that the website has a consistent and standardized navigation

94

i.) Clear information provided

Table 4.25

Question 21


Percent

Valid

strongly

disagree 1 1,0 1,0 1,0

disagree 8 8,0 8,0 9,0

neutral 29 29,0 29,0 38,0

agree 50 50,0 50,0 88,0

strongly agree 12 12,0 12,0 100,0

Total 100 100,0 100,0




respondents agrees that the website provide clear information

j.) Protect the personal data of customers

Table 4.26

Question 22


Percent

Valid


disagree 5 5,0 5,0 7,0

neutral 29 29,0 29,0 36,0

agree 52 52,0 52,0 88,0

strongly agree 12 12,0 12,0 100,0

Total 100 100,0 100,0


95



respondents agrees that the website protect customer personal data

k.) Protect the financial data of customers

Table 4. 27

Question 23


Percent

Valid


disagree 2 2,0 2,0 3,0

neutral 36 36,0 36,0 39,0

agree 53 53,0 53,0 92,0


Total 100 100,0 100,0




respondents agrees that the website protect customer financial data

l.) Show obvious terms on payment and delivery

Table 4.28


Question 24


Percent

Valid


disagree 2 2,0 2,0 3,0

neutral 24 24,0 24,0 27,0

agree 62 62,0 62,0 89,0

strongly agree 11 11,0 11,0 100,0

Total 100 100,0 100,0

96



respondents agrees that the website show obvious terms on payment and delivery

m.) Have a good reputation in customer‟s mind

Table 4.29

Question 25


Percent

Valid


disagree 2 2,0 2,0 3,0

neural 23 23,0 23,0 26,0

agree 65 65,0 65,0 91,0


Total 100 100,0 100,0




respondents agrees that the website have a good reputation in customer‟s mind

n.) Provide customer individual attention

Table 4.30


Question 26


Percent

Valid


disagree 3 3,0 3,0 4,0

neutral 35 35,0 35,0 39,0

agree 54 54,0 54,0 93,0


Total 100 100,0 100,0

97



respondents agrees that the website provide customer individual attention

o.) Show understanding of customer‟s need

Table 4. 31




respondents agrees that the admin show understanding of customer‟s need

p.) Consistently courteous

Table 4.32

Question 27


Percent

Valid


disagree 3 3,0 3,0 4,0

neutral 32 32,0 32,0 36,0

agree 57 57,0 57,0 93,0


Total 100 100,0 100,0

Question 28


Percent

Valid


disagree 3 3,0 3,0 4,0

neutral 34 34,0 34,0 38,0

agree 53 53,0 53,0 91,0


Total 100 100,0 100,0

98




respondents agrees that the admin is consistently courteous

q.) Give adequate contacts information

Table 4.33

Question 29


Percent

Valid


disagree 2 2,0 2,0 3,0

neutral 30 30,0 30,0 33,0

agree 58 58,0 58,0 91,0


Total 100 100,0 100,0




respondents agrees that the admin give adequate contacts information

r.) Address complaints friendly

Table 4.34

Question 30


Percent

Valid

disagree 3 3,0 3,0 3,0

neural 35 35,0 35,0 38,0

agree 50 50,0 50,0 88,0

strongly agree 12 12,0 12,0 100,0

Total 100 100,0 100,0


99



admin address complaints friendly

s.) Prompt response to customer

Table 4.35



strongly agrees. So it can be concluded that large number of respondents (52%)

did not feels that the admin give prompt response to customer. Therefore, Xiaomi

should immediately take action to deal with this problem by ensuring that Xiaomi‟

employees serve customers with excellences. Always prioritized to give great

service for the customers because for every business, customer is always number

one. The admin should be responsive and give prompt reply to help avoid the

customers losing interest.

Question 31


Percent

Valid

disagree 10 10,0 10,0 10,0

neutral 42 42,0 42,0 52,0

agree 36 36,0 36,0 88,0

strongly agree 12 12,0 12,0 100,0

Total 100 100,0 100,0

100

t.) Quickly solve problem

Table 4.36

Question 32


Percent

Valid


disagree 6 6,0 6,0 7,0

neutral 36 36,0 36,0 43,0

agree 46 46,0 46,0 89,0

strongly agree 11 11,0 11,0 100,0

Total 100 100,0 100,0

Source: Primary data process, 2016



respondents agrees that the admin quickly solve problem

u.) Give adequate response time

Table 4.37




admin give adequate response time. In this case, the majority of respondents

Question 33


Percent

V

a

l

i

d

disagree 8 8,0 8,0 8,0

neutral 42 42,0 42,0 50,0

agree 41 41,0 41,0 91,0


Total 100 100,0 100,0

101

(50%) feels that the admin did not give adequate response time. To overcome this

problems, Xiaomi should ensuring that its admins spend adequate time in serving

customers. Make sure that customers are well served and answered all the

questions asked.

v.) Customer have the interest in seeking information regarding the

product

Table 4.38

Question 34


Percent

Valid


disagree 4 4,0 4,0 5,0

neutral 25 25,0 25,0 30,0

agree 56 56,0 56,0 86,0

strongly agree 14 14,0 14,0 100,0

Total 100 100,0 100,0




respondents agrees they have the interest in seeking information about the product

102

w.) Customer‟s willingness to try the product

Table 4.39




respondents agrees they have willingness to try the product

x.) Customer tend to buy the product due to its value and benefits

offered

Table 4.40


Question 35

Freque

ncy

Percent Valid Percent Cumulative

Percent

Valid


disagree 2 2,0 2,0 3,0

netral 17 17,0 17,0 20,0

agree 63 63,0 63,0 83,0

strongly agree 17 17,0 17,0 100,0

Total 100 100,0 100,0

Question 36


Percent

Valid


disagree 4 4,0 4,0 6,0

neutral 16 16,0 16,0 22,0

agree 58 58,0 58,0 80,0

strongly agree 20 20,0 20,0 100,0

Total 100 100,0 100,0

103



respondents agrees they tend to buy the product due to its value and benefits

y.) Customer have the willingness to own the product

Table 4.41

Question 37


Percent

Valid


disagree 1 1,0 1,0 3,0

neutral 16 16,0 16,0 19,0

agree 60 60,0 60,0 79,0

strongly agree 21 21,0 21,0 100,0

Total 100 100,0 100,0




respondents agrees that they have the willingness to own the product.

104

I. Classic Assumption Test

1. Normality Test

Normality test aims to test whether the regression model, the

dependent variable (Purchase Intention) and independent variables

(Electronic Word-of-Mouth (X1)) and Electronic Service Quality (X2))

both have a normal distribution or not. The regression model which is

good and eligible to be used is a normal data distribution or close to be

normal (Ghozali, 2013:160).

According Ghozali (2013: 163), the principle of normality can be

detected by looking at the spread of the data (dots) on the diagonal

axis of the graph probability plots or by looking at the histogram of

the residual.

Basis for decision making as follows:

a. Detection of the histogram, if the normal curve in the graph

follows bell shape, then the data is normally distributed.

b. While the detection of the normal probability plot on the graph, if

the data (dots) spread around the diagonal line, and follow the

direction of the diagonal line, then the regression model to meet

the assumption of normality. If the spread of the data (points) do

not follow the direction of the diagonal, then the regression model

did not meet the assumption of normality.

c. This statistical test that can be used to test the normality of the

residuals is a statistical test of non - parametric Kolmogorov-

105

Smirnov (KS) (Ghozali, 2013:163). Basis for decision making,

when the value of the Kolmogorov Smirnov significance greater

than 0.05, it can be said to be normally distributed data. If the

value of the significance of the KS test is smaller than 0.05, it can

be said the data was not normally distributed (Santoso:2012:19-

196)

Figure 4.2

P-Plot Normal Curve


Based on the figure above, this research has conducted normality

data distribution test. From the P-Plot, it can be seen that the plots are

distributed along the diagonal axis, thus it can be concluded that the

data used in this research has a normal distribution.

106

Figure 4.3


B


Based on the figure 4.43 above, the histogram graphics shows normal

distribution. Besides conducting P-Plot normality curve and histogram, the

researcher also accomplished the normality test with statistical test. One of

the statistical test that can be used to test normality of residual is non-

parametical statistics test Kolmogrov-Smirnov (K-S) (Ghozali, 2013:163).

And the result can be seen as below:

107

Table 4.42

One-Sample Kolmogorov-Smirnov Test

Unstandardize

d Residual

N 100

Normal

Parametersa,b

Mean 0E-7

Std.

Deviation 1,94591539

Most Extreme

Differences

Absolute ,122

Positive ,098

Negative -,122

Kolmogorov-Smirnov Z 1,224

Asymp. Sig. (2-tailed) ,100

a. Test distribution is Normal.

b. Calculated from data. Source: Processed Primary Data by SPSS 20, 2016

According to table 4.3, the value of Kolmogrov-Smirnov is 1,224.

Whereas the unstandardized residual has the value of Asymp.Sig which is

greater than 0.05. So it is indicted that the data is distributed normally.

2. Multicolinearity Test

Multicollinearity test aims to test whether the regression model

found a correlation among the independent variables (electronic word-

of-mouth (X1) and electronic service quality (X2)). A good regression

model should not happen correlation between the independent variable

and not orthogonal or the correlation value among independent

variable equals to zero.

To detect the presence or absence of multicollinearity among the

independent variables in regression model, it can be seen from

108

Tolerance and VIF (Variance Inflation Factor) value. If tolerance value

is greater than 0.1and VIF value is smaller than 10, it indicates that

there is no multicolinearity among independent variables (Ghozali,

2013:105). The multicolinearity test result can be seen on the table

below:

Table 4.43

Multicollinearity Test Among Independent Variable Electronic Word-

of-Mouth and Electronic Service Quality


From the table 4.43, we can see that each independent variable has

tolerance value > 0.1 and VIF value < 10. Both independent variables has

tolerance value as much as 0.470 and VIF value as much as 2.129. So it

can be said there is no multicollinearity among independent variables in

regression model.

Coefficientsa

Model Unstandardize

d Coefficients

Standar

dized

Coeffici

ents

t Sig. Collinearity

Statistics

B Std.

Error

Beta Tolera

nce

VIF

1

(Cons

tant) 1,846 1,393

1,325 ,188

e-

WOM ,194 ,042 ,482 4,649 ,000 ,470 2,129

e-SQ ,067 ,025 ,283 2,733 ,007 ,470 2,129

a. Dependent Variable: Purchase Intention

109

3. Heteroscedasticity Test

Heteroscedasticity test aims to test whether the regression model of

the residual variance occurs inequality of an observation to another

observations. We can see from the scatterplot graph between the predicted

value of dependent variable and its residual. If it forming certain patterns,

such as dots form a certain pattern regularly (wavy, widened then

narrowed), then Heteroscedasticity indicates has occurred. If there is no

clear pattern and the points spread above and below the 0 on the Y axis,

then there is no heteroscedasticity. A good regression a model is that

happened Homoscedasticity or did not happen Heteroscedasticity

(Ghozali, 2013:139).

Figure 4.4

Graph of Heteroscedasticity


110

Based on the graph above, there is no clear pattern and the points

spread above and below the 0 on the Y axis, then it can be said there is no

Heteroscedasticity in this regression model (Ghozali, 2013:139).

J. Multiple Linier Regression Analysis

The analysis technique used in this research is multiple linier

regression. Multiple linier regression used as statistical analysis method

because this research designed to investigte variables that influence from

independent variables towards dependent variable whereby the related

variable is more than one. In order to determine the regression equation, it

can be seen in the following table:

Table 4.44

Multiple Linier Regression

Coefficientsa

Model Unstandardized

Coefficients

Standardize

d

Coefficients

t Sig.

B Std. Error Beta

1

(Constant

) 1,846 1,393

1,325 ,188

e-WOM ,194 ,042 ,482 4,649 ,000

e-SQ ,067 ,025 ,283 2,733 ,007

a. Dependent Variable: Purchase Intention Source: Processed Primary Data by SPSS 20, 2016

111

According to the coefficients table above, we got the equation:

Whereby:

Whereby:

Whereby:

Y = Purchase Intention

a = Constanta

b1 = Regression coefficient of electronic word-of-mouth

X1 = Electronic Word-of-Mouth

b2 = Regression coefficient of electronic service quality

X2 = Electronic Service Quality

e = Standard Error

K. Coefficient of Determination (Adjusted R2)

Coefficient of determination (R2) purposed to analyze how much the

ability of independent variables to explain its dependent variable which

seen through the R2. The variables determination can be seen from the

following table:

Y = a + b1X1 + b2X2 + e

Y = 1.846 + 0.194 X1 + 0.67 X2 + e

112

Table 4.45

Coefficient of Determination (R2) Table


The table above shows that the coefficient value of R is 0.715. It

means, the relationship between electronic word-of-mouth and electronic

service quality towards purchase intention is 0.715 or they have a strong

relations. Whereas, the R2 value is 0.511. It indicates that 51.1% purchase

intention variable can be explained by the variation of independent

variables (electronic word-of-mouth and electronic service quality).

So, we can conclude that, 51.1% purchase intention can be explained

by the variables of electronic word-of-mouth and electronic service

quality. And the remaining result, which is 48.9% (100% - 51.1%)

explained by another variables that do not be analyzed in this research.

Model Summaryb

Mode

l

R R

Square

Adjusted R

Square

Std. Error of

the

Estimate

1 ,715a ,511 ,501 1,966

a. Predictors: (Constant), esq, ewom

b. Dependent Variable: pi

113

L. Hypothesis Test

1. Partial Test (T-Test)

T-test shows how big the influence of the independent variables

individually in explaining the variation of dependent variable that is used

to determine the effect of each independent variable individually towards

dependent variable that tested at the significancy level 0.05 (Ghozali,

2013:98).

Table 4.47

The Result of T-Test


T-test result in the coefficient table above indicates there is influence

between independent variable partially towards dependent variable, with

the elaboration as follow:

1) The influence of electronic word-of-mouth (X1) towards purchase

intention (Y)

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 1,846 1,393

1,325 ,188

ewom ,194 ,042 ,482 4,649 ,000

esq ,067 ,025 ,283 2,733 ,007

a. Dependent Variable: pi

114

a) Ho : β 1 = 0 ; there is no significant influence between electronic

word-of-mouth (X1) towards purchase intention (Y)

b) Ha : β 1 ≠ 0 ; there is significant influence between electronic

word-of-mouth (X1) towards purchase intention (Y)

According to the table 4.46 it can be seen that the value of T-test

4.649 > T-table 1.9845 with the significance value of 0.000 < sig. 0.05.

Thus, we conclude Ho is rejected and Ha is accepted, means

electronic word-of-mouth (X1) has significant influence partially

towards purchase intention (Y).

The result of this research is concordant with the previous research

conducted by Chinho Lin (2013) on the title “Electronic word-of-

mouth: The moderating roles of product involvement and brand

image”. Result of this research indicates a positive relationship

between electronic word-of-mouth and purchase intention.

Results also emphasize that the respondents are more willing to

have the intention to buy Xiaomi‟ product when they found reviews

from social media Facebook that assured its quality of reviews, many

people give reviews regarding the product which indicates the

popularity of the product itself, and the reviewers also have the

credibility in giving a review and they experienced with the product.

115

2) The influence of electronic service quality towards purchase intention

a) Ho : β 1 = 0 ; there is no significant influence between electronic

service quality (X2) towards purchase intention (Y)

b) Ha : β 1 ≠ 0 ; there is significant influence between electronic

service quality (X2) towards purchase intention (Y)

According to the table 4.47 it can be seen that the value of T-test

2.733 > T-table 1.9845 with the significance value of 0.007 < sig. 0.05.

Thus, we conclude Ho is rejected and Ha is accepted, means

electronic service quality (X2) has significant influence partially

toward purchase intention (Y).

The result of this research is concordant with the previous research

conducted by Gwo-Gang Lee (2006) on the title “Customer

perceptions of e-service quality in online shopping”. This study

resulted that the dimensions of reliability, web site design,

responsiveness, and security affect overall service quality and

customer satisfacton. Moreover, the latter in turn are significantly

related to custome purchase intentiions. Besides of that, Mohd Fazli

(2006) on the title “Website quality and consumer online purchase

intention” also founded that empathy which one of e-service quality

dimensions being analyzed in this study have significant influence

towards purchase intention.

Therefore, in the other hand we can conclude that having an overall

good electronic service quality is important to create customer

116

purchase intention. Online retailers with excellent service quality will

incresing customer intention for buying (Khristianto et.al.,2012)

2. F-Test (Simultaneous Test)

Table 4.46

The Result of F-Test


F-test shows whether all independent variables have significance

influence simultaneously towards dependent variable (Ghozali, 2013:98).

Hypothesis used in this research is:

1) Ho : β1,2 = 0 ; there is no relationship between between electronic

word-of-mouth through social media Facebook and electronic service

quality simultaneously towards purchase intention.

2) Ha : β1,2 ≠ 0 ; there is relationship between electronic word-of-mouth

through social media Facebook and electronic service quality

simultaneously towards purchase intention.

ANOVAa

Model Sum of Squares

df Mean Square F Sig.

1

Regression 391,488 2 195,744 50,650 ,000b

Residual 374,872 97 3,865

Total 766,360 99 a. Dependent Variable: pi

b. Predictors: (Constant), esq, ewom

117

From the ANOVA or F-test is obtained F value test is 50.650 with

significance 0.000. The degree of freedom (df1) = 2 and df2 = 97. Thus,

we got F-table for the F-test 3.090 with the significance level = 0.05;

because the probability is smaller than the significance level (0.000 <

0.05), and the F-test value is higher than F-table value ( the value of F-test

is 50.650 > F-table 3.090). Therefore this means Ho is rejected and Ha is

accepted, and can be concluded that the independent variables such as

electronic word-of-mouth through social media Facebook (X1) and

electronic service quality (X2) have significant influence towards purchase

intention (Y) simultaneously.

118

CHAPTER V

CONCLUSION AND RECOMMENDATION

A. Conclusion

The purpose of this research is to analyze the influence of

electronic word-of-mouth through social media Facebook and electronic

service quality towards purchase intention. Based on the statistical test using

the SPSS software have been examined the result of 37 questions related

with electronic word-of-mouth and electronic service quality towards

Purchase Intention gathered from 100 Xiaomi users registered in MiForum

as respondents, then obtained conclusions as follows:

1. The influence of electronic word-of-mouth through social media

Facebook toward purchase intention

According to multiple linier regression analysis, the value of T-

test 4.649 > 1.9845 with the value of significant 0.000 < α 0.05.

Thus, we can concluded Ho is rejected and Ha is accepted, so

partially electronic word-of-mouth (X1) has significant influence

towards purchase intention (Y) of Xiaomi smartphone users.

2. The influence of electronic service quality toward purchase

intention

According to multiple linier regression analysis, , the value of T-

test 2.733 > 1.9845 with the value of significant 0.007 < α 0.05.

Thus, we can concluded Ho is rejected and Ha is accepted, so

119

partially electronic service quality (X2) has significant influence

towards purchase intention (Y) of Xiaomi smartphone users.

3. The influence of electronic word-of-mouth through social media

Facebook and electronic service quality toward purchase

intention

From the ANOVA test or the F-test value is obtained, which is

50.625 with the probabilities of 0.000. Due to the facts that

probabilities are smaller than 0.05 and the F-test value is higher

than F-table value (3.090). The value of F-test is 50.625 > F-

table 3.090, and the significance value is 0.000 < 0.005, so it can

be concluded that independent variables, those referring

electronic word-of-mouth (X1) and Electronic service quality

(X2) have significant influence simultaneously towards purchase

intention (Y).

B. Recommendation

After reviewing the results of the study, recommendations that the

author propose are as follows:

1. For Company

The result of this research shows, that electronic word-of-mouth

and electronic service quality have significant influence towards

purchase intention and also electronic word-of-mouth and electronic

service quality simultaneously have significant influence towards

120

purchase intention. Based on the result, the researcher recommends to

the company as follows:

a. Electronic word-of-mouth

In this study, researcher assessed the influence of

electronic word-of-mouth on social media Facebook towards

consumer‟ purchase intention with strong category which going to

be very strong category. Therefore, Xiaomi should be retaining e-

WOM by continuing to increase the involvement and

empowerment of consumers in order to create brand advocates

which will certainly beneficial for Xiaomi itself. In addition,

customer engagement on social media also needs to be maintained

and enhanced in order to create long-term relationships of the old

consumer and attracting new consumers. This relationships are

important because they can turn a one-time customer into a loyal

supporter who trusts the company. When customers feel like a

valued part of the company they will be more willing to pass on

information about the company. Xiaomi parties can provide the

customers or in this case called MiForum members with valuable

or helpful information through a variety of communication

channels. Xiaomi parties can also communicate with them via

social media including liking their posts and responding to their

comments. Since every customer is different, Xiaomi will need to

tailor the approach to keep customers continually engaged with.

121

However, all brand advocates are different and want to be

appreciated in different ways. So to keep Xiaomi‟ brand advocates

happy, it needs to make them feel special. This may involve

providing them discounts, bonus, or recognising them as

“customer of the month” on social media channels. Besides of

that, it also recommend for Xiaomi to inviting MiForum members

on a special gathering, in the hope this kind of activity can

strengthening the relationship between MiForum members and

Xiaomi parties itself.

The limitations of this study was only researching e-WOM

on the Facebook, microblogging site. Because of e-WOM is quite

extensive coverage, not just limited to Facebook, further research

is expected to perfection scientists can examine the overall of e-

WOM. Either via twitter, blogs, consumer opinion platform,

kaskus, and various other online forums.

b. Electronic service quality

Electronic service can play a critical role in improving

services quality delivered to its customers as it can

achieve survival, increase satisfaction and trust, and then

generate the competitive success for company (Field et.al.,

2004). Customer perceived e-service quality is one of the critical

determinants of the success of online business (Yang et.al.,

122

2004). Throgh this study, the researcher suggest that to enhance

customer purchase intention, online stores should develop

marketing strategies to better address the reliability, trustworthhy,

and responsiveness of web-based services. Online stores can

devote valuable corporate resources to the important e-service

quality attributes that have been identified in this study. For

example, improvement of the level of credibility, security, and

prompt services is necessity for both attracting and retaining

online customers, since these factors significantly affect customer

satisfaction and purchase intentions.

Second, in order to strengthen competitiveness, service

provider should give more attention on website quality in the form

of improving the website usability, design, and information quality.

This is because, these factors might influence customer online

purchase inetention. Website should also be well facilitated. Make

sure that the site loads quickly, whether on a computer or a mobile

device. Customers should also be able to easily navigate the

Xiaomi‟ website. Because for online business like Xiaomi, website

is the platform for business and to help avoid the users losing

interest. Another important thing is about the online customer

secutiry. On the other hand, studies have indicated that many

online customers are very concerned about threats to their

personal privacy (Graeff and Harmon, 2002). Online store thus

123

must try to ensure that customers receive relevant information

while simultaneously protecting their privacy, because

someone‟ personalization should not be intrusive. Another crucial

factors, the online store needs to focus on its customer relationship

because ths will increase sense of empathy for the customers.

Service provider needs to search for ways to enhance their

customer relationship management (CRM) that earn customer trust

and perceived empathy. Providing product and services that is

competent, excellent and reliable may increase customer trust.

Therefore, Xiaomi needs to restructure its e-CRM strategy to

create and maintain a two-way relationship to improve customer

online purchase intention. Since empathy plays a major role in

influencing the customer online purchase intention.

The last but not least, the online store is also can not be

spared from its human resources. In this case of Xiaomi, it should

ensure if Xiaomi‟ employees serve customers with excellences.

Always prioritized to give greate service for the customers because

for every business, customer is always number one. The customer

service of Xiaomi who give service should show that they are

listening to their customers. Try to prove them the clear and

concise communication and show that the admins are eager to keep

the lines of communication open.

124

2. For Future Research

a. Data collection in this study is by distributing the electonic

questionnaire, in which by the distribution of questionnaire is

possible that the respondents are not serious in giving an answer,

therefore, the researcher suggest further research to conduct an

open interview with the respondent in order to obtain more

accurate informations

b. For future research, the researcher suggest to conduct deeper and

more integrated research by not only use social media Facebook

but the next researcher can investigate e-WOM through another

integrated social media that usually being used by a company or a

brand, for instance twitter, blog, youtube, and so forth. Researcher

also suggest for the next researcher to expand the scope limitation

of samples taken in the study of Xiaomi users, in order to obtain

more extensive information about the products to be studied

125

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131

Appendix 1: Research Questionnaire

Research Questionnaire

“The Influence of Electronic Word-of-Mouth through Social Media

Facebook and Electronic Service Quality towards Purchase Intention

(Case Study of Xiaomi Smartphone Users in Mi Forum)

Regarding to finish the program of Bachelor Degree Faculty Economics and

Business Syarif Hidayatullah State Islamic University Jakarta, who is writing this

thesis as a requirement to get Bachelor Degree of Economic:

Name : Imanina Almas

NIM : 1111081200009

Major : Management

Faculty : Economics and Business

I will do research about “The Influence of Electronic Word-of-Mouth through

Social Media Facebook and Electronic Service Quality towards Purchase

Intention (Case Study of Xiaomi Smartphone Users in Mi Forum)”.

Therefore, I wish Mr/Mrs/Brother/Sister are willing to fill out this questionnaire.

132

Screening

Sebelum menyelesaikan kuesioner, diharapkan kepada saudara/i untuk

melengkapi detail dibawah dengan membubuhkan tanda centang pada kotak yang

sudah disediakan:

1. Apakah anda pernah berbelanja di www.mi.com/id/ ?

Ya Tidak

Jika Ya, tolong lanjutkan ke pertanyaan selanjutnya.

Jika Tidak, tolong berhenti menjawab dan berhenti disini. Terima kasih

atas partisipasi anda.

2. Apakah anda memiliki akun Facebook?

Ya Tidak

Jika Ya, tolong lanjutkan ke pertanyaan selanjutnya.

Jika Tidak, tolong berhenti menjawab dan berhenti disini. Terima kasih

atas partisipasi anda.

Identitas Responden

Nama : ................................................

Jenis Kelamin : Pria Wanita

Umur : < 20 tahun 50 – 65 tahun

20 - < 35 tahun > 65 tahun

35 - < 50 tahun

http://www.mi.com/id/

133

Instruksi Pengisian

Tolong isi setiap pertanyaan di bawah sesuai dengan pendapat

Saudara/i tentang “The Influence of Electronic Word-of-Mouth

through Social Media Facebook and Electronic Service Quality

towards Purchase Intention (Case Study of Xiaomi Smartphone Users

in Mi Forum)”.

Pilih satu jawaban dari lima alternative jawaban dengan

memberikan tanda centang pada salah satu kolom yang disediakan.

1 2 3 4 5

STS TS N S SS

Details :

1. Sangat tidak setuju 4. Setuju

2. Tidak setuju 5. Sangat setuju

3. Netral

Electronic Word-of-Mouth (X1)

Electronic Word-of-Mouth Quality

No Questions STS TS N S SS

1 Online review

pada MiForum

dalam social

media Facebook

mudah dipahami

2 Online review

sangat membantu

customer dalam

memilih produk

Xiaomi

3 Online review

merupakan review

yang terpercaya

4

Secara umum,

kualitas online

review pada

MiForum dalam

social media

Facebook sangat

tinggi

134

Electronic Word-of-Mouth Quantity


5 Banyaknya jumlah review tentang

Xiaomi pada sosial media Facebook,

menunjukkan bahwa produk Xiaomi

populer di masyarakat

6 Review tentang Xiaomi mengurangi

kegelisahan saya dalam melakukan

pembelian

7 Dengan banyaknya orang yang

merekomendasikan produk Xiaomi,

menunjukkan bahwa Xiaomi memiliki

reputasi yang baik

8.

Jumlah reviewer yang banyak

mempengaruhi saya dalam

memutuskan untuk membeli produk

Xiaomi

Sender’s Expertise


9 Saya merasa, reviewer produk Xiaomi

adalah orang yang memiliki

pengetahuan tentang produk Xiaomi itu

sendiri

10 Saya merasa, reviewer produk Xiaomi

adalah orang yang telah berpengalaman

11 Reviewer adalah orang yang memiliki

kemampuan dalam menilai sesuatu

secara objektif

12 Kemampuan reviewer membuat saya

lebih yakin dalam melakukan pembelian

135

Electronic Service Quality (X2)

Reliability


13 Website Xiaomi mampu memberikan

pelayanan sesuai dengan yang

dijanjikan

14 Website Xiaomi selalu tersedia

15 Website Xiaomi berfungsi dengan baik

16

Website Xiaomi mudah untuk di

gunakan

17 Website Xiaomi menyediakan

informasi yang akurat

18 Perusahaan Xiaomi merupakan

perusahaan yang jujur dalam menjual

produknya

Web Design


19 Menurut saya, website Xiaomi

memiliki tampilan web yang

teroganisir dengan baik

20 Pilihan menu dalam website

Xiaomi konsisten dan

terstandarisasi dengan baik

21 Informasi dalam website

Xiaomi sangat jelas sehingga

memudahkan customer dalam

bertransaksi

Security


22 Website Xiaomi mampu

menjaga keamanan informasi

pribadi customer

23 Website Xiaomi mampu

memberikan jaminan keamanan

transaksi kepada customer

24 Aturan dalam pembayaran dan

pengiriman barang dijelaskan

secara transparan dan terperinci

136

25 Menurut saya, website Xiaomi

memilliki reputasi yang baik

Empathy


26 Staff admin website Xiaomi

memberikan perhatian personal

kepada customer

27 Staff admin mengerti kebutuhan

customer

28 Staff admin website Xiaomi

melayani customer dengan

sopan

29 Website Xiaomi memberikan

informasi kontak sehingga

memudahkan customer dalam

melakukan transaksi

30 Staff admin menanggapi

komplain customer dengan baik

Responsiveness


31 Staff admin melaksanan

pelayanan dengan cepat

32 Staff admin selalu bersedia

membantu para customer ketika

terdapat masalah saat

bertransaksi

33 Staff admin meluangkan waktu

yang memadai untuk melayani

customer

Purchase Intention (Y)


34 Saya tertarik untuk mengumpulkan

informasi tentang produk Xiaomi

35 Saya memiliki keinginan untuk

mencoba produk Xiaomi

36 Saya cenderung membeli produk

Xiaomi karena kualitasnya telah

menyita perhatian saya

37 Saya memiliki keinginan untuk

memiliki produk Xiaomi

137

Appendix 2: Multiple Linier Regression Analysis Questionnaire

Respondent

Quality of e-WOM

Q1 Q2 Q3 Q4

1 4 4 4 3

2 4 4 4 4

3 4 4 4 4

4 4 5 3 3

5 4 4 5 3

6 3 3 4 4

7 2 2 2 2

8 4 5 4 4

9 5 5 5 4

10 4 4 4 5

11 5 5 5 4

12 4 4 4 4

13 3 4 3 4

14 4 4 4 4

15 4 4 4 4

16 4 4 4 4

17 2 2 2 2

18 4 5 4 3

19 3 3 3 3

20 2 2 2 2

21 4 5 4 3

22 1 3 3 1

23 4 4 3 3

24 4 3 4 4

25 4 4 4 5

26 3 4 4 3

27 3 3 3 3

28 1 1 1 1

29 4 4 4 3

30 2 2 2 2

31 3 3 3 3

32 3 4 4 4

33 4 3 4 4

34 4 4 2 4

35 4 4 4 4

138

36 4 4 4 5

37 4 4 3 4

38 4 4 4 4

39 3 4 3 2

40 4 3 4 4

41 4 4 4 3

42 4 4 3 3

43 5 5 5 5

44 3 4 3 4

45 5 5 4 4

46 4 4 4 3

47 4 3 4 4

48 4 4 3 3

49 4 4 4 5

50 5 3 4 3

51 3 4 3 4

52 4 4 4 4

53 4 3 4 4

54 4 4 3 3

55 4 4 3 3

56 4 4 4 4

57 3 4 4 4

58 5 5 5 5

59 4 4 4 3

60 4 4 3 3

61 3 4 4 3

62 1 4 4 4

63 3 4 5 3

64 4 4 4 4

65 3 4 3 4

66 3 4 3 2

67 4 3 3 3

68 3 3 3 3

69 3 3 3 3

70 4 3 4 3

71 4 4 4 4

72 3 4 4 3

73 4 4 4 2

74 4 4 4 4

75 4 5 4 3

76 3 3 3 3

139

77 4 4 3 3

78 3 3 4 4

79 3 4 3 2

80 3 4 3 2

81 4 4 3 4

82 1 3 3 1

83 4 3 3 3

84 4 4 4 4

85 4 4 4 4

86 3 3 3 3

87 4 5 4 3

88 5 5 5 5

89 4 4 4 4

90 3 3 3 3

91 4 4 2 2

92 3 4 3 2

93 2 2 2 2

94 4 4 4 4

95 1 3 3 1

96 4 4 4 4

97 3 3 3 3

98 4 4 4 3

99 3 3 3 3

100 4 5 4 3

Respondent

Quantity of e-WOM

Q5 Q6 Q7 Q8

1 4 3 4 4

2 4 4 4 3

3 4 4 4 4

4 4 4 4 5

5 3 5 4 4

6 4 4 4 4

7 3 3 3 3

8 5 3 5 5

9 4 4 5 5

10 5 5 4 5

11 4 4 4 4

12 4 4 4 4

140

13 4 2 5 5

14 4 5 5 3

15 3 4 3 4

16 5 5 5 5

17 3 3 3 3

18 5 4 5 4

19 4 4 4 4

20 3 3 3 3

21 3 3 3 3

22 2 3 3 3

23 3 4 3 3

24 4 4 5 4

25 5 4 4 4

26 4 4 5 4

27 4 4 4 4

28 3 3 3 3

29 4 4 5 5

30 2 2 1 1

31 3 3 2 2

32 4 3 3 3

33 4 4 5 4

34 4 4 4 4

35 4 3 4 4

36 4 5 5 4

37 3 4 5 4

38 4 4 4 4

39 4 3 4 2

40 4 4 4 4

41 4 3 4 4

42 4 4 4 4

43 4 5 5 5

44 4 4 4 4

45 4 4 5 4

46 4 3 4 4

47 3 2 4 3

48 4 3 5 5

49 4 5 5 4

50 4 4 4 4

51 3 2 3 3

52 4 4 4 4

53 4 3 4 3

141

54 4 4 4 4

55 3 4 3 4

56 4 5 4 4

57 4 3 3 3

58 5 5 5 5

59 3 3 4 4

60 4 4 4 4

61 5 4 4 4

62 5 5 4 4

63 5 4 4 3

64 4 4 4 4

65 4 4 4 2

66 4 3 4 2

67 4 3 4 4

68 3 3 3 2

69 4 4 4 4

70 2 4 4 4

71 4 2 4 5

72 4 4 4 4

73 4 4 4 4

74 4 4 4 4

75 4 4 4 4

76 3 3 3 4

77 4 3 5 5

78 4 3 5 5

79 4 3 4 2

80 3 4 3 3

81 3 3 4 4

82 2 3 3 3

83 4 3 4 4

84 4 5 5 4

85 4 4 4 4

86 3 3 3 3

87 4 4 4 4

88 5 5 5 5

89 4 4 4 4

90 3 3 3 3

91 3 4 3 4

92 3 4 3 3

93 2 2 2 2

94 4 4 4 4

142

95 2 3 3 3

96 4 4 4 4

97 3 3 3 3

98 4 3 4 4

99 4 4 4 4

100 4 4 4 4

Respondent

Sender' Expertise

Q9 Q10 Q11 Q12

1 4 4 4 3

2 4 4 5 4

3 3 4 3 4

4 4 4 3 5

5 4 4 4 4

6 4 4 4 4

7 3 3 3 3

8 4 3 4 4

9 5 4 3 4

10 5 5 5 5

11 4 3 4 4

12 4 4 4 5

13 4 4 4 4

14 4 4 4 4

15 4 4 3 4

16 4 4 4 4

17 2 2 3 3

18 3 3 4 4

19 3 3 3 3

20 3 3 3 3

21 4 4 3 3

22 3 3 2 3

23 4 4 4 4

24 4 4 4 3

25 3 5 5 5

26 4 4 3 4

27 3 4 4 4

28 2 2 2 1

29 4 3 4 4

30 2 2 1 2

31 3 3 3 2

32 3 4 4 3

143

33 4 4 4 4

34 4 4 5 4

35 4 4 4 4

36 3 3 4 4

37 4 4 3 4

38 4 4 4 4

39 4 5 5 5

40 3 3 4 3

41 4 4 4 4

42 4 2 3 4

43 5 4 5 5

44 4 4 4 4

45 3 3 3 4

46 4 4 4 4

47 4 4 2 4

48 4 3 3 5

49 3 3 4 4

50 4 4 4 4

51 4 4 4 3

52 4 4 4 5

53 4 4 3 3

54 4 3 3 4

55 3 3 3 4

56 2 2 4 4

57 3 4 4 3

58 5 3 5 5

59 3 4 4 4

60 4 4 4 4

61 4 3 3 3

62 5 5 4 4

63 4 4 3 4

64 4 4 4 4

65 4 3 4 4

66 4 5 5 5

67 4 3 3 3

68 2 3 2 3

69 3 3 3 3

70 3 2 2 4

71 3 4 4 4

72 3 4 4 4

73 4 2 4 5

144

74 4 4 4 4

75 5 4 4 4

76 4 4 4 4

77 4 3 3 5

78 4 4 3 3

79 4 5 5 5

80 4 4 4 4

81 4 4 4 4

82 3 3 2 3

83 4 3 3 3

84 4 4 3 5

85 4 4 4 4

86 3 3 3 3

87 5 4 4 4

88 5 5 5 5

89 4 4 4 4

90 3 3 3 3

91 4 4 3 3

92 4 4 4 4

93 2 2 2 2

94 4 4 4 4

95 3 3 2 3

96 4 4 4 4

97 3 3 3 3

98 4 4 4 4

99 4 3 2 3

100 5 4 4 4

Respondent

Reliability

Q1 Q2 Q3 Q4 Q5 Q6

1 3 3 4 4 4 4

2 3 4 3 4 4 4

3 4 4 4 4 4 4

4 5 5 4 5 5 4

5 4 4 4 4 4 4

6 4 4 4 4 4 4

7 3 3 3 3 3 3

8 4 3 4 4 4 3

9 4 5 5 5 5 5

10 4 4 4 4 4 4

11 5 5 4 4 4 3

12 3 4 4 4 3 4

145

13 4 4 4 4 4 4

14 4 4 4 4 4 4

15 4 3 4 4 4 3

16 4 4 4 4 4 4

17 3 3 3 3 3 3

18 4 4 4 4 3 4

19 4 4 4 4 4 4

20 3 3 3 3 3 3

21 3 3 3 4 4 3

22 4 4 4 4 4 3

23 4 4 3 3 3 3

24 4 4 5 5 4 4

25 4 4 4 4 4 4

26 3 3 4 4 3 3

27 3 3 3 3 3 3

28 3 3 3 3 3 3

29 4 2 4 4 4 3

30 2 2 2 2 2 2

31 3 3 3 3 3 3

32 4 4 4 4 3 3

33 3 4 3 4 4 4

34 5 5 5 3 4 5

35 4 4 4 4 4 4

36 3 3 3 4 4 3

37 4 4 4 4 4 4

38 4 4 4 4 4 4

39 3 3 3 2 3 3

40 3 4 4 3 3 3

41 4 2 3 4 4 3

42 3 4 2 4 4 4

43 5 5 5 5 5 5

44 4 5 4 4 4 4

45 3 3 3 3 4 3

46 4 2 3 4 4 3

47 3 3 4 3 3 2

48 4 4 4 4 4 4

49 3 3 3 4 4 3

50 3 4 3 4 4 4

51 4 5 5 3 4 3

52 4 4 4 4 4 4

53 3 4 4 4 4 4

146

54 4 4 4 4 4 3

55 4 3 4 4 3 3

56 4 4 4 4 4 4

57 4 4 4 4 3 3

58 5 3 3 5 5 5

59 4 4 3 3 3 3

60 3 3 3 3 3 3

61 3 3 4 3 3 3

62 4 4 4 4 4 4

63 3 3 3 3 4 3

64 4 4 4 4 4 4

65 3 3 3 3 3 3

66 3 3 3 2 3 3

67 4 4 3 3 3 3

68 3 4 3 3 3 3

69 4 4 4 4 3 3

70 4 4 4 4 4 4

71 3 4 4 4 4 3

72 3 3 3 4 4 3

73 4 3 4 3 4 4

74 3 3 3 3 3 3

75 4 5 5 5 4 4

76 3 4 3 3 4 3

77 4 4 4 4 4 4

78 4 4 4 4 4 4

79 3 3 3 2 3 3

80 4 3 4 3 4 4

81 3 3 3 2 3 3

82 4 4 4 4 4 3

83 4 4 4 4 4 4

84 4 4 4 4 4 4

85 4 4 4 4 4 4

86 3 3 3 3 3 3

87 4 5 5 5 4 4

88 5 5 5 5 5 5

89 4 4 4 4 4 4

90 3 3 3 3 3 3

91 4 4 4 4 4 4

92 3 4 4 4 3 3

93 2 2 2 2 2 2

94 4 4 4 4 4 4

147

95 4 4 4 4 4 3

96 5 5 5 5 5 5

97 3 4 4 4 4 3

98 4 2 3 4 4 3

99 4 4 4 4 4 4

100 5 5 5 5 5 5

Respondent

Web Design

Q7 Q8 Q9

1 4 4 4

2 3 4 3

3 3 3 4

4 4 4 5

5 3 3 4

6 4 4 4

7 2 2 2

8 3 4 4

9 5 5 5

10 4 4 4

11 3 3 5

12 4 4 4

13 4 4 4

14 4 4 4

15 3 3 3

16 4 5 5

17 2 2 2

18 4 4 4

19 3 3 3

20 2 2 2

21 3 3 3

22 3 4 3

23 3 3 4

24 4 4 4

25 4 4 4

26 4 4 4

27 4 4 4

28 2 2 1

29 4 4 4

30 1 1 2

31 3 3 3

32 4 4 3

148

33 3 4 3

34 5 5 5

35 4 4 4

36 4 3 4

37 4 4 4

38 4 4 3

39 4 4 2

40 4 4 3

41 4 4 4

42 4 4 4

43 5 4 5

44 4 4 4

45 4 2 4

46 4 4 4

47 3 4 3

48 4 4 4

49 4 3 4

50 3 4 3

51 3 4 4

52 4 4 4

53 3 3 3

54 4 4 4

55 4 3 4

56 4 4 5

57 4 4 3

58 5 5 5

59 3 4 3

60 3 3 3

61 3 3 3

62 4 4 4

63 4 3 3

64 4 4 4

65 3 3 3

66 4 4 2

67 3 3 3

68 4 3 3

69 4 4 3

70 3 4 4

71 4 4 4

72 3 3 3

73 4 4 4

149

74 3 3 3

75 5 4 4

76 3 3 4

77 4 4 4

78 4 4 4

79 4 4 2

80 4 4 4

81 3 3 3

82 3 4 3

83 4 4 4

84 5 5 5

85 4 4 4

86 3 3 3

87 5 4 4

88 5 5 5

89 4 4 4

90 3 3 3

91 4 4 4

92 4 3 4

93 2 2 2

94 4 4 4

95 3 4 3

96 5 5 5

97 3 4 4

98 4 4 4

99 4 4 4

100 5 5 5

Respondent

Security

Q10 Q11 Q12 Q13

1 3 3 4 4

2 3 4 4 4

3 4 4 4 4

4 4 4 5 4

5 4 4 4 4

6 4 4 4 4

7 3 3 3 4

8 5 3 4 4

9 5 5 5 5

10 4 4 4 4

11 5 4 3 3

150

12 4 3 4 4

13 4 4 3 4

14 4 4 4 4

15 3 3 4 4

16 5 4 4 5

17 2 2 2 3

18 4 4 4 5

19 4 4 4 4

20 3 3 3 4

21 4 3 3 3

22 2 4 4 4

23 4 4 4 4

24 4 4 4 4

25 5 3 4 4

26 4 4 4 4

27 4 4 4 4

28 1 3 3 2

29 3 4 4 4

30 1 1 1 1

31 3 3 3 3

32 4 3 3 4

33 4 4 4 3

34 5 5 5 5

35 4 4 4 4

36 4 4 4 4

37 4 4 4 4

38 4 4 4 4

39 3 4 3 3

40 4 3 4 4

41 3 3 4 4

42 4 4 3 4

43 5 5 5 5

44 4 4 4 4

45 4 3 4 4

46 3 3 4 4

47 4 3 4 3

48 4 4 4 4

49 4 4 4 4

50 4 4 4 3

51 3 3 4 4

52 4 3 3 3

151

53 4 4 4 4

54 3 3 4 4

55 4 4 3 3

56 4 4 4 4

57 4 3 3 4

58 5 5 5 5

59 3 3 4 4

60 3 3 3 3

61 3 3 3 3

62 4 4 4 4

63 3 4 4 4

64 4 4 4 4

65 4 3 3 4

66 3 4 3 3

67 3 3 3 3

68 4 3 4 3

69 4 4 4 4

70 3 3 4 4

71 4 3 3 4

72 4 3 4 3

73 4 4 4 4

74 4 4 4 4

75 3 4 5 3

76 4 3 3 3

77 4 4 4 4

78 3 5 4 4

79 3 4 3 3

80 4 4 4 4

81 3 3 3 3

82 2 4 4 4

83 4 4 4 4

84 5 4 5 4

85 4 4 4 4

86 3 3 3 3

87 3 4 5 3

88 5 5 5 5

89 4 4 4 4

90 3 3 3 3

91 4 4 4 4

92 3 3 4 4

93 2 2 2 2

152

94 4 4 4 4

95 2 4 4 4

96 5 5 5 5

97 3 3 4 4

98 3 3 4 4

99 4 4 4 4

100 5 5 5 5

Respondent

Empathy

Q14 Q15 Q16 Q17 Q18

1 3 4 4 4 4

2 3 3 3 3 4

3 3 3 4 4 4

4 4 4 4 4 4

5 4 5 4 4 5

6 4 4 4 4 4

7 4 4 4 4 4

8 4 4 3 3 4

9 2 3 3 3 5

10 4 4 5 3 3

11 3 4 4 4 5

12 4 4 4 4 4

13 4 4 4 4 4

14 4 4 4 4 4

15 3 4 4 4 2

16 4 4 4 5 5

17 3 3 2 2 2

18 3 3 4 4 3

19 3 4 4 4 5

20 4 4 4 4 4

21 4 3 3 4 4

22 4 4 3 3 3

23 3 3 3 3 3

24 4 4 4 4 4

25 4 4 4 4 4

26 4 4 4 4 4

27 3 4 3 4 3

28 3 3 2 3 3

29 3 3 3 3 3

153

30 1 1 1 1 3

31 3 4 3 3 3

32 4 4 4 4 4

33 4 3 3 3 3

34 5 5 5 5 5

35 4 4 4 4 4

36 3 3 4 4 3

37 4 4 4 4 4

38 4 4 4 5 4

39 4 4 3 3 4

40 4 4 5 4 5

41 3 4 4 4 4

42 3 3 4 3 3

43 5 5 5 5 5

44 4 4 4 4 4

45 3 2 3 3 3

46 3 4 4 4 4

47 3 2 4 4 4

48 3 3 3 3 3

49 3 3 4 4 3

50 4 3 3 3 3

51 4 3 3 4 3

52 3 3 3 4 3

53 4 4 4 4 4

54 4 4 4 3 3

55 4 3 3 4 3

56 2 4 4 4 4

57 4 4 4 4 4

58 5 5 5 5 5

59 3 3 4 3 3

60 3 3 3 3 3

61 3 3 3 4 4

62 4 4 4 4 4

63 4 4 4 5 3

64 4 4 4 4 4

65 3 3 4 4 3

66 4 4 3 3 4

67 3 4 3 4 4

68 4 3 4 4 3

69 4 3 4 4 4

70 4 4 4 4 4

154

71 4 4 4 4 4

72 3 3 3 3 3

73 4 4 3 4 4

74 4 4 4 4 3

75 4 4 4 3 4

76 3 3 3 3 3

77 3 3 3 3 3

78 4 3 3 4 3

79 4 4 3 3 4

80 4 4 3 4 4

81 4 4 3 4 3

82 4 4 3 3 3

83 4 4 4 4 4

84 5 3 5 3 4

85 4 4 4 4 4

86 3 3 3 3 3

87 4 4 4 3 4

88 5 5 5 5 5

89 4 4 4 4 4

90 3 3 3 3 3

91 4 4 4 4 4

92 3 3 4 4 4

93 2 2 2 2 2

94 4 4 4 4 4

95 4 4 3 3 3

96 5 5 5 5 5

97 3 4 3 4 4

98 3 4 4 4 4

99 4 4 4 4 4

100 5 5 5 5 5

Respondent Responsiveness

Q19 Q20 Q21

1 4 4 4

2 3 3 3

3 2 2 3

4 4 4 4

5 5 4 4

6 4 4 4

7 2 2 2

155

8 4 5 4

9 5 5 4

10 5 5 5

11 4 3 4

12 4 4 3

13 4 3 3

14 3 4 4

15 3 3 3

16 4 4 5

17 2 2 3

18 3 4 3

19 5 5 5

20 2 2 2

21 3 3 3

22 2 3 3

23 3 3 3

24 4 4 4

25 3 4 4

26 3 4 4

27 4 3 4

28 3 3 3

29 4 3 3

30 2 1 2

31 3 3 3

32 3 4 4

33 3 3 3

34 5 5 5

35 4 4 4

36 3 3 3

37 4 4 3

38 4 4 4

39 3 4 2

40 4 5 4

41 3 4 4

42 3 3 4

43 5 5 5

44 4 4 4

45 2 2 2

46 3 4 4

47 4 4 4

48 3 3 3

156

49 3 3 3

50 3 3 3

51 3 3 3

52 3 3 3

53 4 4 4

54 3 3 3

55 4 4 4

56 4 4 4

57 3 4 4

58 5 5 5

59 3 4 4

60 3 3 3

61 4 4 4

62 4 4 4

63 3 3 3

64 4 4 4

65 3 3 3

66 3 4 2

67 3 3 3

68 3 3 3

69 4 4 4

70 3 4 3

71 4 3 3

72 3 3 3

73 5 4 3

74 4 4 4

75 4 4 4

76 3 3 3

77 3 3 3

78 4 4 3

79 3 4 2

80 5 4 3

81 3 3 3

82 2 3 3

83 4 4 4

84 3 3 4

85 4 4 4

86 3 3 3

87 4 4 4

88 5 5 5

89 4 4 4

157

90 3 3 3

91 4 4 4

92 3 3 3

93 2 2 2

94 4 4 4

95 2 3 3

96 5 5 5

97 4 4 3

98 3 4 4

99 4 4 4

100 5 5 5

Respondent

Purchase Intention

1 2 3 4

1 4 4 4 4

2 4 4 4 4

3 4 4 4 4

4 4 4 4 4

5 4 4 4 4

6 3 4 2 3

7 3 3 3 3

8 4 3 5 5

9 3 5 5 5

10 4 3 3 4

11 4 4 4 4

12 3 4 4 4

13 4 5 4 4

14 4 5 4 4

15 4 4 4 4

16 5 5 5 5

17 4 4 4 4

18 5 5 5 5

19 4 4 4 4

20 3 3 3 3

21 4 4 4 4

22 3 3 3 3

23 4 4 4 4

24 5 5 5 4

25 5 5 5 5

26 4 4 3 4

27 4 4 4 4

158

28 2 2 2 3

29 4 4 4 4

30 2 1 1 1

31 1 2 1 1

32 4 4 5 4

33 3 3 3 3

34 5 5 5 5

35 4 4 4 4

36 4 4 4 4

37 4 4 4 4

38 4 4 4 4

39 4 4 5 5

40 4 4 4 3

41 4 4 4 4

42 4 4 4 4

43 5 5 5 5

44 4 4 4 3

45 3 4 4 5

46 4 4 4 4

47 4 4 3 4

48 4 4 4 4

49 4 4 4 4

50 4 4 4 4

51 4 4 4 3

52 4 4 5 4

53 4 3 4 3

54 4 4 4 4

55 4 5 5 5

56 4 4 4 4

57 3 4 4 4

58 5 5 5 5

59 3 3 4 4

60 4 4 4 4

61 4 4 4 5

62 4 4 4 4

63 4 4 4 4

64 4 4 4 4

65 3 4 5 5

66 3 3 3 3

67 3 4 4 4

68 2 3 2 2

159

69 3 3 3 3

70 3 3 2 3

71 4 4 4 4

72 2 4 3 5

73 3 4 4 4

74 3 4 4 4

75 5 4 4 4

76 3 3 4 4

77 3 5 3 5

78 3 4 3 4

79 4 4 5 5

80 3 3 3 4

81 3 4 4 4

82 3 3 3 3

83 4 4 4 4

84 5 5 5 5

85 4 4 4 4

86 4 4 4 4

87 5 4 4 4

88 5 5 5 5

89 5 5 5 5

90 3 3 3 3

91 4 4 4 4

92 4 4 4 4

93 3 3 3 3

94 4 4 4 4

95 4 4 4 4

96 5 5 5 5

97 4 4 4 4

98 4 4 4 4

99 4 4 4 4

100 5 5 5 5

160

Appendix 3 : Characteristics of Respondents from SPSS

Appendix 4: Validity and Reliability Test

Questions r-count r-table Result

e-Word-of-Mouth













e-Service Quality





Age


Percent

Valid

<20 10 10,0 10,0 10,0

20-<35 89 89,0 89,0 99,0

35-<50 1 1,0 1,0 100,0

Total 100 100,0 100,0

Gender


Percent

Valid

Male 43 43,0 43,0 43,0

Female 57 57,0 57,0 100,0

Total 100 100,0 100,0

161


















Purchase Intention





Reliability Statistics

Cronbach's Alpha N of Items

,951 12



,962 21



,938 4

162

Appendix 5 : Output SPPS

163

One-Sample Kolmogorov-Smirnov Test

Unstandardize

d Residual

N 100

Normal

Parametersa,b

Mean 0E-7

Std.

Deviation 1,94591539

Most Extreme

Differences

Absolute ,122

Positive ,098

Negative -,122

Kolmogorov-Smirnov Z 1,224

Asymp. Sig. (2-tailed) ,100

a. Test distribution is Normal.

b. Calculated from data.

Coefficientsa


Coefficients

Standar

dized

Coefficie

nts

t Sig. Collinearity

Statistics

B Std.

Error

Beta Toleran

ce

VIF

1

(Const

ant) 1,846 1,393

1,325 ,188

e-

WOM ,194 ,042 ,482 4,649 ,000 ,470 2,129

e-SQ ,067 ,025 ,283 2,733 ,007 ,470 2,129


164

Coefficientsa


Coefficients

Standardize

d

Coefficients

t Sig.

B Std. Error Beta

1

(Constant

) 1,846 1,393

1,325 ,188

e-WOM ,194 ,042 ,482 4,649 ,000

e-SQ ,067 ,025 ,283 2,733 ,007


Model Summaryb

Model R R Square Adjusted R

Square

Std. Error of

the Estimate

1 ,715a ,511 ,501 1,966

165

a. Predictors: (Constant), esq, ewom

b. Dependent Variable: pi

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1

Regression 391,488 2 195,744 50,650 ,000b

Residual 374,872 97 3,865

Total 766,360 99


b. Predictors: (Constant), esq, ewom

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 1,846 1,393

1,325 ,188

ewom ,194 ,042 ,482 4,649 ,000

esq ,067 ,025 ,283 2,733 ,007


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