The role of perceived risk on argument quality, perceived usefulness and e-wom source credibility on information adoption in social media

Abstract

Social media has exposed consumers to considerable amount of information and misinformation. Different factors such as perceived risk, trust inclination, argument quality and information usefulness tend to impact the information adoption process. Therefore, it remains pertinent to examine how information is adopted by the consumers before opting for an actual purchase. The study focuses on how electronic word of mouth (eWOM) source credibility effects perceived risk and information adoption. Furthermore, perceived risk effects on argument quality and information usefulness are also examined. Trust inclination has been introduced as a factor which would have a positive effect in the information adoption process. Additionally, sequential mediation effects of perceived risk, argument quality, information usefulness and trust inclination have been estimated among eWOM and information adoption. Positivist research doctrine has been deployed in the study using deductive approach. Survey research design was used, and the data was collected from 377 Pakistani respondents who had undertaken online purchase. Model estimation was conducted using Structural Equation Modelling (SEM). The findings of this research demonstrated there is a strong causal relationship between eWOM and perceived risk. The findings also revealed that perceived risk positively influenced argument quality and information usefulness. Moreover, sequential path between eWOM source credibility and information adoption with the mediation role of perceived risk, argument quality, information usefulness and trust inclination have been accepted too. The study contributes to the theory by integrating eWOM with information adoption, while practical implication of the study is helping organization in designing their digital marketing strategies accordingly. Future studies are recommended to extend the framework in different manufacturing or service sectors.