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Investigating Consumer Word-Of-Mouth Behaviour in A Chinese Context
Investigating Consumer Word-Of-Mouth Behaviour in A Chinese Context
To cite this article: Xin Zhang, Liang Ma & Gao-Shan Wang (2017): Investigating consumer word-
of-mouth behaviour in a Chinese context, Total Quality Management & Business Excellence, DOI:
10.1080/14783363.2017.1317587
Article views: 19
Download by: [The UC San Diego Library] Date: 26 May 2017, At: 20:05
Total Quality Management, 2017
https://doi.org/10.1080/14783363.2017.1317587
LETTER
Word of mouth (WOM) is important for online store survival and success. By focusing
on Chinese online stores, this study investigates the effect of customer satisfaction and
trust (CST) on customer WOM behaviour. Online shopping experience and social value
are proposed as the main moderating factors in the context of Chinese e-commerce.
Data are collected from 236 online customers and they ultimately support the
proposed research model. The results reveal the following key findings: (1) CST is
positively related with customer WOM behaviour; (2) online shopping experience
positively moderates the relationship between CST and WOM and (3) social value
positively moderates the relationship between CST and WOM. The findings provide
insightful guidelines for online retailers to improve their commercial strategies.
Keywords: customer satisfaction; trust; word of mouth; online shopping experience;
social value
1. Introduction
In online commerce, word of mouth (WOM) is considered as one of the most important
factors for cost savings and profitability (Khalifa & Liu, 2007), and consumers’ behaviour
is playing an increasingly prominent role in the context of electronic commerce. Thus,
clarifying the key factors of WOM is significant for further understanding of consumers
in an online commerce platform. There has been considerable research to examine
WOM behaviour (Chen, Dwyer, & Firth, 2014; Chevalier & Mayzlin, 2006; Ranaweera
& Menon, 2013) and studies on the drivers of WOM such as trust and satisfaction
(Hennig-Thurau, Gwinner, Walsh, & Gremler, 2004; Martensen & Mouritsen, 2016;
Sadeh & Garkaz, 2014). One of main questions concerns the potential role of a customer’s
current experience in determining the customer’s WOM behaviour. For example, Samuel,
Balaji, and Wei (2015) found that online experience has a positive effect regarding the
intention of an online purchase. Pappas, Pateli, Giannakos, and Chrissikopoulos (2014)
pointed out that the online shopping experience has a moderating effect on the relationship
between satisfaction and the intention to repurchase. Consumers with high experience tend
to have more knowledge and experience (Khalifa & Liu, 2007). Thus, will they have
differences in behaviour than of consumers with lower shopping experience? If the
answer is yes, the operators should use different marketing strategies. Prior literature
has studied the relationship between customer satisfaction and trust (CST) and WOM
(Perrien, Bergeron, & Ricard, 2009; Su, Lin, & Chang, 2013). However, the relationship
between customer satisfaction, trust and WOM under the moderating role of online
∗
Corresponding author. Email: maliang1010@126.com
shopping experience has not been researched under the unique context of Chinese online
shopping. Foreign markets have different market development strategies and distinct cus-
tomer behaviours. As a developing country, the Chinese online shopping market has its
own characteristics. For example, China is a country with the largest number of Internet
users in the world. According to a report conducted by CNNIC, in 2016, China had
approximately 688 million Internet users and the penetration rate of the Internet is
50.3%. Moreover, China has its own unique network shopping culture, such as face
culture. Research has shown that face culture plays an important role in consumer behav-
iour (e.g. decision-making process), especially in China. To fill this research gap, this
study tests the moderate role of online shopping experience between CST and WOM
under the context of Chinese online shopping.
A second related objective of this study concerns the moderating role of social value.
In this paper, social value refers to shopping on a website which gives the shopper a good
impression or makes the customer feel acceptable. In electronic commerce, social value is
a popular research subject and it is considered to be one of the most important aspects of
perceived value (Deng, Lu, Wei, & Zhang, 2010). According to the theory of motivation,
social value is considered to be an important factor that influences WOM behaviour. Scho-
lars have investigated factors influencing customer’s WOM behaviour in the foreign
markets (Yen & Tang, 2015; Yoo, Kim, & Sanders, 2015). However, customers have
different value perceptions for online shopping. For Chinese consumers, face is an impor-
tant factor they must consider when shopping. For example, people may have the desire to
purchase a commodity due to face or when making a purchase decision; so they will con-
sider buying a commodity better than others, and thus giving them face. An important
question is: Does face culture affect consumer’s WOM behaviour? Currently, the
answer is uncertain. Thus, based on face culture, a model and the study of the relationship
between CST and WOM in a Chinese context is proposed. This model is examined under
the moderating role of the online shopping experience and social value.
The rest of the article is structured as follows. Section 2 reviews recent literature on
customer satisfaction, trust and WOM behaviour. In Section 3, the model hypotheses
are presented and discussed. Subsequently, structural-equation models are employed to
examine the proposed model. Then the results are discussed in Section 5. Finally, the con-
clusions are presented about the theoretical and practical implications of the research.
propagandise WOM to release their psychological and physiological pressure (Kim, Lee,
Schoenstedt, Lee, & Kim, 2014; Yu, Zo, Choi, & Ciganek, 2013). Thus, this paper also
expects that the consumer will propagandise WOM when satisfied in the Chinese context.
Trust is defined as the buyer’s belief that an e-vendor is behaving ethically (Pavlou &
Fygenson, 2006). Literature shows that trust is crucial in many transactions regarding
buyer –seller relationships, especially for those containing an element of risk, including
the interaction with an e-vendor (Schefter & Reichheld, 2000). In an era of online shop-
ping, trust becomes more important due to the characteristics of virtual shopping networks.
In reviews of previous studies, trust is considered to be one of the important driving factors
behind WOM behaviour (Perrien et al., 2009). When customers have a sense of trust, they
tend to have a positive attitude (Che & Cao, 2014). According to the theory of reasoned
action, attitude will affect one’s behavioural intention and their behaviour itself. Thus,
when consumers trust online shopping, they will generate a positive attitude towards
online shopping. This will lead them to generate WOM behaviour (Hong & Rim, 2010;
Kim, Kim, & Kim, 2009). This paper also expects that consumer’s trust will have a posi-
tive effect on customer’s WOM behaviour.
WOM is defined as verbal, informal communication occurring in person, by telephone,
email, mailing list or any other communication method regarding a service or good
(Goyette, Ricard, Bergeron, & Marticotte, 2010). The early form of WOM occurred,
according to Whyte (1954), mostly among neighbours exchanging news on what was
being offered by neighbourhood stores. WOM is called the oldest means of exchanging
opinions on various goods and services offered by markets (Goyette et al., 2010). Accord-
ing to Katz and Lazarsfeld (1955), WOM was seven times more effective than newspaper
ads, four times more effective than direct sales and twice as effective as radio advertising.
Moreover, Day (1971) estimated that WOM was nine times more effective than advertis-
ing in changing consumer attitudes, whereas Morin (1983) showed that ‘other people’s
recommendations’ were three times more effective in terms of stimulating purchases for
over 60 different products than was advertising.
Prior research has regarded trust and satisfaction as the major determinants of WOM
under the context of foreign markets (Anderson, 1998; Hartline & Jones, 1996; Perrien
et al., 2009; Voyer & Ranaweera, 2015). Based on the above discussion, this paper
expects that trust and satisfaction are also major determinants for WOM in the context
of Chinese online shopping. In light of the aforementioned evidence, the following
hypotheses are proposed:
H1: Customer satisfaction has a positive effect on WOM.
H2: Trust has a positive effect on WOM.
attainment of life’s goals. Furthermore, previous research has shown that, compared with
the concern for gaining face, people attach greater importance to the loss of face (Hui &
Bond, 2009). Face is essentially a personal concern about the recognition of the social
image of others and the society. Whether in eastern culture or western culture, consumers
will take into account whether their behaviour is conducive to enhance their social image.
This paper also considers face as an important factor in affecting consumer’s WOM
behaviour.
and gaining social approval. In this paper, social value is defined as a person is acceptable
and makes a good impression on others gaining social approval due to online shopping.
Research has shown that social value is positively associated with consumers’ attitude
toward social commerce (Kim et al., 2013). Yang and Lin (2014) reported that a customer
will be more ‘sticky’ when a customer’s social value is revealed. Moreover, Royo-Vela and
Casamassima (2011) assumed that customers develop more positive WOM behaviour when
they feel a sense of belonging. When customers perceive high social value, they will be more
likely to propagandise WOM behaviour due to feeling more accepted, gaining more social
approval (Yu et al., 2013). People will only offer recommendations to others in the case
when shopping on the website gives the shopper a good impression or makes the customer
feel accepted. This will allow them to develop or maintain face. However, in the case where
the online retailer does not lead to an improvement in the customer’s social value, the cus-
tomer will not recommend the online retailer to others as long as he or she might lose face by
doing so. Therefore, this paper suggests that a customer with higher social value will be
more likely to propagandise WOM behaviour under the same level of CST. In light of
the aforementioned evidence, the following hypotheses are made:
H5: Social value positively moderates the relationship between customer satisfaction and
WOM.
H6: Social value positively moderates the relationship between trust and WOM.
Based on the discussion above, a research model is developed to explain the role of cus-
tomer satisfaction, trust, shopping experience and social value, which affects WOM. The
model is based on customer satisfaction and WOM theory. In this model, CST has a direct
impact on WOM. Two constructs are also adopted, that is, online shopping experience and
social value. The two constructs will moderate the relationship between CST and WOM.
The research model is shown in Figure 1.
3. Methodology
3.1. Instrument development
Measuring items for the research constructs were derived from prior studies. The most
commonly used items of customer satisfaction, social value, trust, online shopping
experience was adapted from Khalifa and Liu (2007). Items measuring WOM were
adapted from Kim and Park (2013). The scale of trust was taken from Gefen, Karahanna,
and Straub (2003). Finally, the survey questionnaire was measured using a seven-point
Likert Scale with anchors ranging from strongly agree (7) to strongly disagree (1).
comprised the largest proportion of the sample. A little more than one-third of the respon-
dents (30.93%) have been using shopping websites for over five years.
4. Results
The internal consistency reliability of each construct was assessed by finding Cronbach’s
a, composite reliability (CR) and average variance extracted (AVE). These are presented
in Table 3. According to the suggestions of Hair, Black, Babin, and Anderson (2009),
Cronbach’s a is acceptable when it exceeds .7, CR is acceptable when it exceeds .7 and
AVE is acceptable when it exceeds .5. Cronbach’s a of this research ranges from .824
to .896, CR ranges from .826 to .880 and AVE ranges from .600 to .753. All parameter
values are greater than the suggested acceptable value. Thus, the measurement models
have high reliability.
The convergent validity of the measurement items by factor loading, CR and AVE are
also examined. Factor loading of all the items (see Table 2) in each construct exceed the
minimum recommended value of .7. Besides, CR and AVE (see Table 3) are higher than .7
and .5, respectively. This indicates adequate convergent validity. The convergent validity
of the measurement items was also examined. As shown in Table 3, the square root of each
factor’s AVE is larger than its corresponding correlation coefficients with other factors,
indicating adequate discriminant validity.
After assessing the reliability and validity, the overall fit of the proposed path model
was tested, which evaluates the correspondence of the actual or observed input matrix with
those predicted using the proposed model. The summary of the overall fit indices of the
proposed research model shows that x2/df ¼ 2.268, RMSEA ¼ 0.073, AGFI ¼ .868
and GFI ¼ .907, indicating that the fitness of the model and data are acceptable. Amos
20.0 is used to test the relationship between customer satisfaction, trust and WOM. Cus-
tomer satisfaction has a positive effect on WOM, and the regression coefficient is .17.
Thus, it can be concluded that this information supports hypothesis H1. This implies
that the more satisfaction one has, the more WOM behaviour one conducts. Trust has a
positive effect on WOM, and the regression coefficient is .87. Therefore, hypothesis H2
is also supported. This means that a customer is more likely to propagandise WOM behav-
iour with a higher trust associated with the purchase. All of the relationships have signifi-
cance values at levels of .05.
According to the approach proposed by Li et al. (1998), this paper tests the moderating
effect of online shopping experience and social value. The results (see Table 4) show that
H3 is supported (b ¼ .472, t ¼ 3.742, p , .05, one-tailed), which states that an online
shopping experience positively moderates the relationship between customer satisfaction
and WOM. This moderating effect is plotted in Figure 2. As predicted, with a high level of
online shopping experience, WOM increases considerably, and even more prominently as
customer satisfaction rises than with regard to low level of online shopping experience.
Figure 2. Moderating effect of shopping experience between customer satisfaction and WOM.
10 X. Zhang et al.
Figure 3. Moderating effect of online shopping experience between trust and WOM.
Figure 4. Moderating effect of social value between customer satisfaction and WOM.
is not significant with the change of the customer’s social value. This may be due to other
factors, such as satisfaction having more significance on a customer’s WOM behaviour.
5. Discussion
The purpose of this study is to examine the complex relationships between CST and WOM
under the context of Chinese online shopping. The results indicate that customer satisfac-
tion has a significant effect on WOM and trust has a significant effect on WOM, which was
also proved by Lee (2016) and Kim, Woogon, and Hongbumm (2009). This implies that
when a customer is satisfied and trusts the product, he/she will seek some methods to
release his psychological and physiological pressure reaching a balanced state of mind.
WOM is a manifestation of this kind of sentiment. For online retailers, increasing the cus-
tomer’s satisfaction and trust is a good way to encourage customers to propagandising
WOM behaviour.
As this paper hypothesised, online shopping experience exerts a positive moderating
effect on the relationship between CST and WOM. This means that under the same
Total Quality Management 11
level of satisfaction, a customer with more shopping experience is more likely to propa-
gandise WOM behaviour. This may be due to customers with affluent shopping experience
being familiar with online shopping and trust online shopping (Khalifa & Liu, 2007). In
other words, a customer’s shopping experience will enhance a consumer’s affirmations.
For customers who lack online shopping experience, although they are satisfied, they
are not sure they will be satisfied with the next online shopping experience. Moreover,
the customer offering the recommendation does not want to lose face in the eye of the
WOM receiver. Customers need more shopping experience to reduce the perception of
risk in which risk causes the customer to be less likely to propagandise WOM behaviour
(Doolin, Dillon, Thompson, & Corner, 2002).
Meanwhile, research shows that social value exerts a positive moderating effect on the
relationship between customer satisfaction and WOM. This means that customers with
higher social value are more likely to propagandise WOM behaviour than those with
lower social value when equally satisfied. One of the possible explanations is that shop-
ping on websites makes customers feel acceptable and makes a good impression on
others. They have an impulse to show off what they have purchased, whereby customers
will gain face, leading to the formation of WOM. However, research shows that social
value does not exert a moderating effect on the relationship between trust and WOM.
One of the possible explanations is that although a customer trusts online shopping, a cus-
tomer’s WOM behaviour is more likely to be influenced by other factors, such as satisfac-
tion (Anderson, 1998). Although customers trust online shopping and perceive more social
value with online shopping, customers will not propagandise WOM behaviour when they
are not satisfied with a product. Besides, the customer will not recommend the online retai-
ler to others as long as he/she might lose face by doing so. Thus, a customer’s satisfaction
plays a much more important role on the effect of a customer’s WOM behaviour.
6. Implications
6.1. Theoretical implications
This research contributes multiple theoretical contributions. Firstly, the findings of this
study contribute to the theory of WOM. Especially, this study examines the moderating
effects of online shopping experience and social value between CST and WOM behaviour
under the context of Chinese online shopping which is lacking in academic research. Sec-
ondly, according to the presented results, research on e-commerce should distinguish
between customers with low and high social value and between customers with low and
high experience. This is due to customers will behave differently with different levels
of social value and online shopping experience. Thirdly, social value is considered to
be one aspect of perceived value. Such a factor is becoming more and more important
in the social commerce environment. In-depth research of social value is still needed
(Yang & Lin, 2014). Finally, face culture is an important factor which must be considered
regarding the effect of a customer’s behaviour. Academic circles need to strengthen the
study of face culture.
Acknowledgements
The authors would also like to express appreciation to the anonymous reviewers for their helpful
comments on improving the paper.
Total Quality Management 13
Disclosure statement
No potential conflict of interest was reported by the authors.
Funding
This work is supported by National Social Science Foundation of China [project number
16AJY003]; National Natural Science Foundation of China [grant number 71472111].
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