Journal of Risk & Control

Electronic Word-of-Mouth and Consumer Spending: Evidence from Facebook-Based Online Clothing Retail

• [ Download ]
• Times downloaded: 19

• Abstract

   

  With the rapid growth of social media, online reviews have become a key source of information influencing consumers’ purchasing decisions. Platforms such as Facebook have evolved into social commerce environments where users actively share product experiences. This study examines how online customer reviews affect consumers’ clothing purchase behavior in the Facebook marketplace, focusing on four review types: price, brand, service, and negative reviews. Data were collected through an online survey of 190 consumers with online clothing shopping experience. Responses were measured using a five-point Likert scale. Exploratory factor analysis identified key review dimensions, and multiple regression analysis tested their effects on annual online clothing expenditure. The results show that three review factors significantly influence consumer spending. Unrealistic price reviews and negative reviews have significant negative effects, reducing consumers’ willingness to spend. In contrast, positive service reviews have a strong positive effect, encouraging higher purchasing levels. Brand reviews, however, do not show a significant impact. These findings suggest that online retailers should manage pricing perceptions, address negative feedback, and enhance service quality to improve customer satisfaction and sales. The study contributes to the literature on electronic word-of-mouth and social commerce by highlighting how different review types shape consumer spending behavior.

   

  JEL classification numbers: M31, D12, L81, D83.

  Keywords: Electronic word-of-mouth, Online reviews, Facebook marketplace, Consumer behavior.