Investigating E-servicescape, Trust, E-WOM, and Customer Loyalty

Old Spice cleverly used a handsome actor to play the Old Spice Man character for a Super Bowl commercial in 2010. After the game, this Old Spice commercial was viewed more than 13 million times on YouTube, a social media video-sharing site. This viral marketing campaign, also known as electronic word-of-mouth (E-WOM), propelled the Old Spice brand into the forefront of consumers’ minds, increased brand awareness, and inspired people to share the video links with their family, friends, and co-workers. The rapid growth of E-WOM is an indication of consumers’ increased willingness to convey marketing messages to others. However, despite this development, marketing academics and practitioners do not fully understand this powerful form of marketing. This dissertation enriches our understanding of E-WOM and how e-servicescape may lead to E-WOM. To that end, stimulus-organism-response theory and the network co-production model of E-WOM are applied to investigate the relationships between e-servicescape, trust, E-WOM intentions, customer loyalty, and purchase intentions. Two forms of E-WOM were examined, namely emails and social network postings. E-servicescape is defined as the online environmental factors of a marketer’s website. E-servicescape is composed of three main dimensions, including aesthetic appeal, financial security, and layout and functionality. This study used cross-sectional customer data from a single e-tailer. Structural equation modeling was used to analyze the responses. Customer reviews was added as an additional sub-dimension of e-servicescape. The findings suggest e-servicescape positively impacts trust, which in turn positively influences E-WOM and customer loyalty. Moreover, two groups of customers were compared using multi-group analysis, where one group of users received emails and the other group received social network postings from the same e-tailer. Overall, the results indicated emails had a stronger impact on e-servicescape, E-WOM, and customer loyalty. Social networking site postings had slightly greater influence on trust, and two sub-dimensions of e-servicescape, i.e., interactivity and ease of payment. These findings contribute to the marketing research on E-WOM theory and electronic commerce shopping behavior. In particular, the sub-dimension of customer reviews is added to e-servicescape. This study yields practical implications for marketers in understanding consumers’ perceptions of websites and how to better design sites. In addition, these findings add to knowledge on how to engender consumers’ trust and customer loyalty online. Finally, this research provides suggestions for firms wanting to create marketing campaigns that will lead to E-WOM.