IMPACT OF WORD OF MOUTH ON SOCIAL MEDIA PURCHASE DECISIONS

Abstract

Purpose of the study: Purpose of the study is to conclude the impact of word of mouth on social media purchase decisions among youth of Karachi.Factors of word of mouth include source’s credibility, sender’s reputation and sender’s expertise and their impact on social media purchases are analyzed.

Research method/sampling: This research is explanatory research in nature as cause and effect relationship of word of mouth and social media purchases is analyzed. Data is collected from the youth of Karachi. Convenience sampling technique is used and the sample size for this research was 300 samples.

Findings of the research: All the hypotheses are accepted source credibility is found to have weak positive relationship where as sender’s reputation and sender’s expertise have moderate positive relationship with social media purchases. All the factors of WOM were found to have significant and positive impact on social media purchase decision.

Practical implications of the research: This research is very important and it will help businesses understand the impact of word of mouth on social media purchases. As people give high regards to a suggestion coming from close family member, friend or other users of the same product. It is very important for businesses to consider this factor and utilize this information to their advantage.