The Influence of Perceived Risk, Perceived Quality, Brand Attitude, and E-WoM on Purchase Intention – Expert Journal of Business and Management

This study develops a model from primary needs that develop into existence through luxury consumption in the era of globalization. Besides that, it is vital to find out the involvement in using luxury products encouraging consumer existence on social media, especially during the COVID-19 pandemic. The development of e-commerce and access to luxury products enables people’s purchase intentions. It creates a community in the use of luxury one. This study aims to determine the factors that influence purchase intention of luxury products. The data analyzed using PLS-SEM. Convenience sampling was used to gather response of 381 respondents. Results show that perceived quality, brand attitude and E-WoM had a significant positive relationship with purchase intention. However, perceived risk does not have a substantial effect on purchase intention.

1. Introduction

The advancement of technology has brought changes in the world in a new era. The advancement of technology has created an opportunity for retailers to expand their business online. It is even known that the development of online shops or online stores in Indonesia has grown rapidly via the internet. This has resulted in a shift in consumer purchasing habits. Many people nowadays use the internet to access marketplace sites such as Shopee, Tokopedia, Lazada, and others. This behaviour shifts shopping activities that previously required customers to visit the store to online. This demonstrates that internet users are becoming more active, particularly in light of the current pandemic conditions. These statistics are from e-commerce application users quoted in Tempo (2021).

Shopping online is a phenomenon that occurs today. The increase in activity in online transactions occurred during the COVID-19 pandemic because it was considered an alternative to avoid direct contact with the crowd. On March 11, 2020, Pandemic-19 was inaugurated because it began to spread throughout the country (Huang et al., 2020). This has an impact on retailers because there is a decline in sales as the number of visitors to retail stores has decreased. This condition occurs in the global industry and hampers the company’s strategy (Kanwal, 2021). The virus spread quickly and put pressure on all aspects of business. This situation causes luxury goods retailers to experience difficulties and load luxury products as if they have lost relevance to their target consumers (Highland, 2021). The emergence of COVID-19 has acted as a catalyst for change for luxury product companies to adopt a new value creation paradigm.

In the long run, the company’s approach and mindset will shift to include sustainability and digitization. This is done in order to comply with consumer demands and new regulations (Deloitte, 2021). A smartphone is the only way for people to get what they need. Companies running their businesses must think creatively to find strategies in the face of increasing stringent intensity of challenges. This online growth presents an opportunity for luxury products. Luxury companies believe that this change will help luxury brands grow (Yu et al., 2018). Several studies conclude that luxury products do not need to adapt or maintain their existence by entering e-commerce in order to retain their sense of luxury (Park et al., 2021).

In a customer-oriented business, quality is a determining factor in the company’s survival. If quality is not considered, the customer’s purchasing intention suffers. A person’s purchase decision can be influenced by his subjective perception of the action and the possibilities associated with his choice. As a result, it is reasonable to expect that consumers will change their brand attitudes in response to psychological cues. A luxury brand is one with a high intangible utility to price ratio. Furthermore, the ratio of functional utility to low price indicates premium quality, and the price indicates a higher price. Aside from quality, other factors include people’s perceived risk and the possibility of the risk being accepted. A person’s perception of risk is influenced by negative events such as disease, damage, infection, and disaster (Grima et al., 2019). Other consumers will make purchasing decisions based on social-Word of Mouth or Word of Mouth delivered through social media. This activity will also allow customers to share their shopping experiences. Aside from that, the company will create opinion leaders for the products it sells (Ardianti and Widiartanto, 2019).

The research focuses on luxury brand products that are well-known in Indonesia, both nationally and internationally. People from all backgrounds, not just the upper crust, buy luxury goods. This is due to the fact that luxury products have lines in each category. Furthermore, researchers want to know the buying factor as a result of changes in consumer behaviour following the emergence of COVID-19. There has been a change in all aspects, one of which is the change from offline to online and views on luxury products. Based on previous research gaps, this research investigates perceived risk, social WoM, perceived quality, and brand attitude toward purchase intention. As a result, the purpose of this research is to identify the factors that influence purchase intentions for luxury goods in Indonesia.

This research was conducted to answer questions which include whether there is an influence of perceived risk on purchase intention. Is there an influence of perceived risk on purchase intention mediated by E-WoM? Is there an effect of perceived quality on purchase intention? Is there any influence from brand attitude on purchase intention? This research has a structure that includes literature review and hypotheses, research methodology, results, discussion and conclusions.

2. Literature Review

2.1. ABC (Antecedent, Behaviour, and Consequences) Theory

ABC theory concludes that in order to carry out a person’s action requires a trigger, also called an antecedent. Then, in maintaining this behaviour, a person will be influenced by consequences (Carrington et al., 2010). Attitude is a determinant in predicting behaviour. This concept is not always behaviour related to the desired outcome, because it depends on other determinants such as one’s situation. In addition, other determinants are influenced by external factors (Xu et al., 2017).

2.2. Perceived Risk

Perceived risk is the fear that consumers feel when accepting the risk of shopping. Acceptance of risk can also be interpreted as the uncertainty received by customers that cannot be predicted. Perceived risk plays an important role for consumers when they make a purchase (Eman et al., 2018). There will always be unpleasant consequences when making a purchase. Consumer behaviour can be considered as a burden of risk that results in unexpected negatives. The risk experienced by consumers is low, they have high purchase intentions (Liao et al., 2021). Perceived risk is a consumer’s subjective assessment of uncertainty about the financial, social, and physical consequences of a consumption experience. Perceptions have an impact on consumer behaviour that affects purchases (Rosillo-Díaz et al., 2019). The risk perceived by consumers is a threat to retailers. This is because consumers will focus on the potential loss of resources (Jun, 2020).

2.3. Perceived Quality

Perceived Quality is defined as the consumer’s assessment of the product’s superiority. Consumers frequently lack information or have only asymmetric information on which to base their decisions. Consumer trust is thought to be directly related to the perceived quality of a product or brand, with such quality viewed as a leading indicator among consumers (Yan et al., 2019). Given that product quality is a collection of attributes related to consumer perceptions of a product’s or brand’s quality, perceived value can amplify positive word-of-mouth effects, reduce customer management costs, raise premium prices, and increase the number of purchases (Kurniawan and Indriani, 2018). Furthermore, in recent years, perceived quality has evolved into a comprehensive quality assessment of a provided product or service. Customers will compare products to various alternatives. Quality perception is a measure of a company’s success or failure. Perceived quality is a product cognitive factor that influences consumer purchasing intentions. Customers will be more willing to buy a product if it has high-quality features (Sulthana and Vasantha, 2021).

2.4. Brand Attitude

Singh and Banerjee (2018) define brand attitude as a consumer’s overall evaluation of a brand as a brand’s reaction to an object, brand association, and the result can be a feeling of liking or disliking a brand. Brand attitude or attitude towards the brand is the overall evaluation of consumers towards the brand. In the brand equity model, it is found that the increase in market share occurs when the attitude towards the brand is more positive. Attitudes towards a particular brand are influenced by the impression of the brand itself. Another study explains that attitudes towards brands are formed through a person’s basic beliefs about the extrinsic attributes of a brand (Lita et al., 2021). Furthermore, brand attitude is a symbolic benefit. Attitudes have cognitive, affective, and conative abilities that influence behaviour. The main determinant of intention in carrying out certain behaviours is a person’s attitude (Wang et al., 2019). Consumer attitudes toward advertising influence a person’s purchase intentions. Brand attitude can have a direct impact on the perceived value of a brand. Brand attitude is critical for achieving strong brand equity outcomes such as perceived quality and awareness (Salehzadeh and Pool, 2017).

2.5. Electronic Word of Mouth (E-WoM)

Huete-Alcocer (2017) defines E-WoM or word of mouth, as a marketing tool for conveying information, specifically products, to other parties. This component consists of the exchange of marketing information between consumers in order to shape their behaviour and change their attitudes toward products and services. E-WOM is an electronic person-to-person communication tool for brands and products. Because of the effectiveness of word-of-mouth communication, consumers can easily and quickly obtain information via internet media. E-WOM is a marketing tool that encourages customers to share their personal product-use experiences with others. Consumer information shared via social media is widely known to shape consumer attitudes and behaviour (Yang et al., 2018). For more complete and extensive information, the public will benefit from word of mouth or E-WoM. According to Yen and Tang (2019), E-WOM is an electronic form that has an impact on businesses because it allows businesses to reach a large audience via the internet in the form of positive or negative customer statements about a product. As a result, content such as reviews or WoM has an impact on one’s purchasing intentions (Casaló et al., 2020; Park et al., 2021).

3. Hypotheses

3.1. The effect of Perceived Risk on Purchase Intention

Perceived risk is an important factor in understanding consumers when they make a purchase. The lower the risk perceived by the consumer, the higher the consumer’s purchase intention (Jayadi and Ariyanti, 2019; Kurniawan and Indriani, 2018). In line with other studies, it is explained that perceived risk, which includes financial risk, product risk, security risk, time risk, social risk, and psychological risk, has a negative relationship with purchase intention. Social risk has no significant effect on purchase intention (Ariffin et al., 2019). Perceived risk is the main reason that can prevent customers from making online purchases. In addition, perceived risk has a negative influence on consumers’ intentions to buy a product (Soleimani et al., 2017). Purchase intentions are partly influenced by people’s perceptions of brands or online sellers, and partly influenced by behaviour and the environment that cause perceived risk (Ventre and Kolbe, 2020; Singh and Srivastava, 2018). According to the results of previous research, the proposed hypothesis is as follows:

H1: Perceived Risk influences Purchase Intention.

3.2. The Effect of Perceived Risk on Purchase Intention the Influence of Perceived Risk on Purchase Intention, As Mediated by Social-WoM

The internet’s rapid development provides convenience. One of these developments is felt by consumers when making e-commerce purchases. These online sales are also detrimental to trust, the selling factor, and word of mouth. Finally, WoM via electronics has an impact on purchase intent (Tan and Lee, 2018; San-Martiin et al., 2020). Social WoM is one of the perceived benefits of e-WoM, and perceived risk has a significant influence on consumer purchase intentions (Ventre and Kolbe, 2020). Other studies claim that perceived risk has a positive relationship with purchase intent, but the findings are inconclusive. Furthermore, e-wom as a mediator has a significant impact on perceived risk and purchase intention. However, the level of online participation will have an impact on E-WoM as a mediator. Because of e-WoM, online consumers who pay attention to perceived risk do not completely reject online purchase intentions (Liao et al., 2021; Peng et al., 2019). The proposed hypothesis is as follows, based on previous research findings:

H2: Perceived Risk affects Purchase Intention mediated by Social-WoM

3.3. The Effect of Perceived Quality on Purchase Intention

Purchase intention refers to consumer attitudes towards a product, one of which is the perceived quality of consumers. Product quality is a deciding factor for consumers to consider (Wang, 2017). Consumers’ perceptions of products affect their assessment of product quality. Consumers have a tendency not to think about product quality and prefer to buy brands because of quality assurance (Juan and Chenhong, 2020; Sun et al., 2022). Perceived quality has a positive relationship and has a significant influence. Perceived quality is not the actual product quality. Perceived quality is defined as the general point of view of consumers towards a product or brand. Positive consumer perceived quality perceptions will encourage customer choice in making decisions (Lee et al., 2019; Ali et al., 2020). In addition, it is possible for the company to set a premium price. Quality is not just a brand association but another dimension in measuring brand equity. Perceived quality is positively correlated with customer purchase intentions (Calvo-Porral and Levy-Mangin, 2017, Novita and Husna, 2020). According to the results of previous research, the proposed hypothesis is as follows:

H3: Perceived Quality has an effect on Purchase Intention

3.4. The Effect of Brand Attitude on Purchase Intention

Consumer attitudes towards brands have a positive impact on purchase intentions (Foroudi et al., 2018). Brand attitude also has an influence on price increases. The brand attitude that is formed on products that take advantage of features on smartphones provides positive value and encourages consumer buying intentions. The results show that brand attitude has a significant influence on purchase intention (Lee et al., 2017). An attitude is an antecedent of a person’s intention in making an assessment. Brand-related attitudes are global evaluations based on reactions to stimuli or beliefs associated with them. Attitudes towards the brand are a major component of relational exchanges. Brand attitude has a positive influence on purchase intention. The results show that the influence of both is significant (Medina-Molina et al., 2021; Kudeshia and Kumar, 2017). Purchase intention is associated with planned actions for the future (Rana and Paul, 2017). Purchase intentions tend to be able to change the beliefs and attitudes of consumers towards a product. This attitude is an important aspect in influencing a person’s purchase intention towards the product (Woo and Kim, 2019). According to the results of previous research, the proposed hypothesis is as follows:

H4: Brand Attitude Has an Effect on Purchase Intention

4. Research Framework

This research focuses on consumer attitudes and buying intentions by examining the relationship and influence of social media, consumer perceptions, and the involvement of luxury brands. This model was adopted in previous research and is expected to be able to contribute to and understand the current issue of luxury products. The model in this study identifies four variables in determining the variables that drive the process of buying behaviour. There are independent variables, namely perceived quality, perceived risk, and brand attitude. Mediation variables include social women, and the dependent variable is purchase intention.

Figure 1. Conceptual Framework

5. Method

In this research, the object chosen by the researcher is social media users in Indonesia. This is due to the lack of a strong conceptual and empirical basis for this topic, especially in Indonesia. This research is quantitative research through a survey with Limesurvey (Sekaran and Bougie, 2017). Researchers use causal studies to explain one or more of several factors that cause a problem. The application used is Smart-PLS. The population in this research is someone who is in Indonesia who intends to buy luxury goods, because this study focuses on individual intentions to buy luxury products. The research sample size refers to Hair et al. (2010), which explains that the ideal sample size is determined by multiplying the number of indicators in 5-10 studies. The questionnaire in this research consisted of 18 statements, which were measured on a Likert scale of 1 (Strongly Disagree) – 5 (Strongly Agree). Purchase intention variable has a total of 4 items developed by Hung et al. (2011); brand attitude intention has a total of 3 items developed by Nayeem et al. (2019); perceived risk has a total of 4 items developed by Sweeney et al. (1999); perceived quality has a total of 4 items developed by Konuk (2018). Table 1 shows some examples. It is a description of the criteria for the tests that will be conducted in this research. Bootstrapping is used in this research to process SEM the influence of variables. The hypothesis is said to be significant if the output has a p-value of 0.05, indicating that there is an influence between variables.

Table 1. Test Criteria

Type
Index
Criteria
Source

Validity and Reliability Test

Loading Factor

> 0. 70

Hartono (2011)

Composite Reliability

> 0.70

Convergent Validity

AVE > 0.5

Discriminant Validity

AVE > correlation between construct

Ghozali and Laten (2015)

Hypothesis Measurement

Statistical Significance

P-Value < 0.50 (Boostraping)

Hartono (2011)

Structural Model

Collinearity (VIF)

< 0.5

Yamin (2021)

R-Square

0.67 (High)
0.33 (Moderate) 0.19 (Weak)

6. Analysis and Results

6.1. Participants

381 respondents participated in research with the subject of social media users who enjoy luxury. The purpose of this research is to investigate the impact of public attitudes on the intention to purchase luxury goods. According to the characteristics of the respondents, those who were willing to fill out the questionnaire had the intention of purchasing luxury items all over Indonesia. These characteristics include home province, gender, most recent education, occupation, and monthly income.

Table 2. Respondent Classification
Age Group
Frequency

Less than 25 years old

175

25-35 years old

118

35-45 years old

45

More than 45 years old

43

Total

381

Gender
Frequency

Female

234

Male

147

Total
381
Domicile
Frequency

Aceh

5

Bangka Belitung

9

Central Java

48

East Kalimantan

14

Central Sulawesi

23

DKI

36

Riau

20

South Sumatra

13

West Java

29

NTB

16

West Sumatra

3

DIY

165

Total
381
Income Per-Month
Frequency

Less than IDR2,500,000 or USD168

99

IDR2,500,000- IDR5,000,000 or USD168-USD336

115

IDR5,000,000- IDR7,500,000 or USD336-USD504

92

IDR7,500,000- IDR10,000,000 or USD504-USD672

46

More than IDR10,000,000 or USD672

29

Total
381

Based on the results of the survey conducted, it can be seen that the people who love luxury products are dominated by people aged less than 25 years and 25-35 years. This is because at that age, someone is looking for their identity and builds their identity through status symbols. Women are more likely to shop than men, especially when it comes to buying luxury products. Women dominate shopping intentions to seek happiness and self-satisfaction.

Table 3. Types of Products

Criteria
Type
Brand Name
Freq.

Automotive

Car

Toyota, Pajero, Mercedes, Honda

86

Motorcycle

Kawasaki, Honda

6

Bicycle

Brompton

3

Fashion

Dress

Zara, Uniqlo, HnM, Hush Puppies, Stradivarius

36

Slipper/Shoes

Charles and Keith, Nike, Sketcher

20

Bag

Guess, Tory Burch

6

Wristwatch

Alexander Cristie, Fossil

7

Veil

Buttonscraves

8

Electronic

Handphone

Samsung, Apple, Oppo

196

Camera

Sony, Fuji

5

Laptop

Dell, Asus

8

Total
381

6.2. Measurement Model

In this research, the evaluation of the reflective measurement model consisted of testing the validity and reliability of the indicators for each construct. The types of construct validity include convergent and discriminant validity. Reliability tests include composite reliability tests and Cornbach’s alpha. Table 4 shows the results of the convergent validity calculation data for each construct.

Table 4. Convergent Validity

Items
Brand Attitude
E-WoM
Perceived Quality
Perceived Risk
Purchase Intention

BA01

0.901

 
 
 
 

BA02

0.914

BA03

0.896

PI01

 

0.798

PI02

0.797

PI03

0.812

PQ01

0.912

 

PQ02

0.800

PQ03

0.902

PR01

 

0.761

PR02

0.793

PR03

0.742

PR04

0.770

SW01

0.704

 

SW02

0.929

SW03

0.910

The loading factor is used to assess convergent validity. The criterion employed is 0.70. These findings suggest that the overall value of the loading factor in each construct is greater than 0.7. As a result, the indicators used in this research for measurement are said to be valid and capable of representing each latent variable. In Table 5, the square root of the AVE calculated by going through each latent variable has a greater value than the correlation value between the latent variable and other latent variables. This demonstrates that discriminant validity is satisfied. As a result, the variable can be used to explain something distinct from one another.

Table 5. Discriminant Validity (Fornell-Larcker Criterion)

Factors
Brand Attitude
E-WoM
Perceived Quality
Perceived Risk
Purchase Intention

Brand Attitude

0.904

E-WoM

0.340

0.854

Perceived Quality

0.641

0.356

0.873

Perceived Risk

0.165

0.190

0.113

0.767

Purchase Intention

0.562

0.460

0.328

0.177

0.802

Data Table 6 demonstrates that the overall value of Cronbach’s Alpha, Composite Reliability, and AVE exceeds the recommended threshold and that the AVE at validity is met. The reliability test results via Cronbach’s Alpha, Composite Reliability, have met the criteria, indicating that all variables are reliable and can be further evaluated.

Table 6. Cronbach’s Alpha, Composite Reliability, AVE

Factors
Cronbach’s Alpha
Composite Reliability
Average Variance Extracted (AVE)

Brand Attitude

0.888

0.930

0.816

E-WoM

0.815

0.888

0.729

Perceived Quality

0.845

0.905

0.762

Perceived Risk

0.771

0.851

0.588

Purchase Intention

0.724

0.844

0.644

According to Table 7, the indicators do not exhibit multicollinearity in general. This is evidenced by the fact that the VIF value for each variable is less than 5. According to the test results, the indicators in this research are kept because there are no indications that do not match the criteria used.

Table 7. Collinearity Statistics (VIF)

 Items
VIF

BA01

2.464

BA02

2.771

BA03

2.497

BP03

2.393

PI01

1.437

PI02

1.443

PI03

1.393

PQ01

2.400

PQ02

1.697

PR01

1.558

PR02

1.689

PR03

1.687

PR04

1.525

SW01

1.435

SW02

2.750

SW03

2.474

6.3. Structural Model and Hypothesis Testing

The measurement model’s results are shown in Figure 2. After the estimated model meets the criteria of convergent and discriminant validity, the next step is to test the structural model. Structural model evaluation can be done by looking at the coefficient of determination, or R-Square. The R square value for purchase intention is 0.409 which explains the joint effect of E-WoM, Perceived Value, Perceived Risk and Brand Attitude on Purchase Intention is 40.9%. The remaining 59.1% is influenced by other variables. This value can be categorized as moderate or moderate. Furthermore, E-WoM is an endogenous variable with a value of 0.036 or 3.6% which is influenced low by perceived risk. The remaining 96.4% is influenced by other variables.

Hypothesis testing tests the significance of the path coefficients, showing the influence of independent variables on related variables. The path coefficient was obtained by testing using partial least square structural equation modelling (PLS-SEM) with bootstrapping. We used a 95% level and a 5% standard error, or P-Value 0.05, in this significance test. If the output has a p-value <0.05, then the hypothesis is said to be significant or Ha is accepted. However, if the p-value is greater than 0.05, then the hypothesis is said to be insignificant or Ha is rejected.

 Table 8 describes the results of the path coefficient calculation according to the model as in Figure 2. In the table, all factors have a positive path coefficient to Purchase Intention except Perceived Quality.

Table 8. Hypothesis Testing

 Interactions
Path Coefficients
Sample Mean (M)
Standard Deviation (STDEV)
T Statistics (|O/STDEV|)
T-Table
P Values
Level of Confidence

Brand Attitude –> Purchase Intention

0.530

0.523

0.060

8.786

1.96

0.000

0.05

E-WoM –> Purchase Intention

0.318

0.320

0.054

5.875

1.96

0.000

0.05

Perceived Quality –> Purchase Intention

0.130

0.122

0.053

2.458

1.96

0.014

0.05

Perceived Risk –> E-WoM

0.190

0.197

0.064

2.996

1.96

0.003

0.05

Perceived Risk –> Purchase Intention

0.044

0.045

0.056

0.776

1.96

0.438

0.05

Perceived Risk –> E-WoM –> Purchase Intention

0.061

0.063

0.023

2.672

1.96

0.008

0.05

Table 8 explains why H1, H3, and H4 are significant while H2 is not. There are two method to decide it comparing T-statistic and T-table (1.96) or P-value and Level of Confidence (0.05). The p-value for perceived risk on purchase intention is 0.438 > 0.05, indicating that there is no significant relationship between the two variables (H1 is rejected). The second factor is the perceived risk of purchase intention, which is mediated by E-WoM. These research results suggest that E-WoM plays an important mediating role between perceived risk and purchase intention. On E-WoM-mediated purchase intention, the p-value of perceived risk is 0.008. (H2 is accepted). Furthermore, E-WoM mediates the relationship between these variables. Next is hypothesis 3, which shows that perceived quality has a positive relationship with purchase intention. The p-value of perceived quality on purchase intention is 0.014 <0.05 which explains that there is a significant effect (H3 is accepted). Furthermore, the last is the influence of brand attitude on purchase intention, which has a p-value of 0.000. These results show that there is a significant influence of brand attitude on purchase intention (H4 is accepted). Brand attitude has a positive relationship with purchase intention.

Figure 2. Inner Model Measurement

7. Discussion and Conclusion

7.1. Theoretical Contribution

This research investigates the variables of perceived risk, perceived quality, brand attitude, and E-WoM on purchase intentions for luxury products. This research has found a significant direct or indirect effect between perceived risk and E-WoM in the relationship between luxury product purchase intentions. In addition, the results show that directly perceived risk has no effect on purchase intention. Perceived has an indirect relationship with purchase intention through E-WoM mediation. This research shows that the risk perceived by consumers of luxury products has no effect on purchase intentions. These results are in line with previous research that found there is no effect of perceived risk on purchase intention (Ariffin et al., 2019). According to the findings of this study, when purchasing luxury products, there is still a chance that the product will not perform as expected. Financially, it is also possible that spending more on maintaining these luxury items will be accepted. Expensive luxury prices will allow consumers to spend more on caring for them (Jordan et al., 2018; Bhatti et al., 2018).

Previous research indicates that E-WoM influences purchase intent by mediating perceived risk. Positive E-WoM will have a greater influence on purchase intent (Ventre and Kolbe, 2020). In a developing market, the risk of uncertainty in purchasing, particularly online, is high. Customers will understand the benefits and drawbacks of shopping. Online retailers are taking precautions to reduce consumer perceptions of risk. In-store consumer feedback in the form of testimonials and E-WoM can help to reduce consumer perceptions of a product so that the information provided through reviews is considered useful for consumers. E-WoM is the delivery of positive and negative information. Negative word of mouth is actually a type of complaining behavior characterized by consumers providing details about unsatisfactory products or service quality. Negative information lowers purchase intention.

Perceived quality is an important component of a brand’s market demand. In this research, the perceived quality variable has a positive and significant effect on purchase intention. This demonstrates that the better luxury products present their products, the higher the consumer’s perception of quality, which can lead to purchase intentions. The research findings support previous research (Wang, 2017; Calvo-Porral and Lévy-Mangin, 2017; Novita and Husna, 2020) that consumer perceptions of a product’s overall quality can determine its value and influence consumer decisions about a product. Perceived quality can be the main reason for making decisions on purchase intentions. So, if luxury products give the impression of good quality and product-related products in the eyes of consumers, it will encourage consumers to be interested in buying. In addition, the results show that the quality of the luxury brand is fairly good, durable, and of sufficient quality to be relied on. This happens because of the customer’s perception of the statements given.

Another result is that brand attitude influences purchasing intentions. According to the research results, when a luxury brand has high credibility, consumers have a positive attitude toward the brand. This will encourage consumers to be motivated to make a purchase. The brand in a product has the ability to deliver on its promises (Chin et al., 2020; Woo and Kim, 2019). Previous research has found a positive relationship between brand attitude and purchase intention. A brand’s credibility can influence consumers’ purchasing intentions in a positive way. This attitude encourages consumers to make purchases. Positive feelings toward a brand manifest into actual behavior. This finding demonstrates that consumer attitudes tend to conform to social values, which leads to purchase intentions. A positive brand attitude increases the consumer’s purchase intention, whereas a negative brand attitude decreases the consumer’s purchase intention.

This research provides insight into consumer behavior when selecting luxury products. Furthermore, it broadens managers’ and retailers’ understanding of marketing communications and brand management. This research investigates the impact of E-WoM, Brand Attitude, Perceived Quality, and Perceived Risk on Purchase Intention. The research findings indicate that these variables are important in increasing purchase intent and the need for consumers to consider risk uncertainty. Companies need to ensure that the products they promise on the platform are appropriate, including in terms of quality. A product, particularly a luxury product, should be designed to provide a competitive advantage, which will serve as the foundation for future design methodologies. The first impression a customer has of a product is its appearance and feel, regardless of its functionality. Visible high quality is an important distinguishing factor because potential customers use it to decide which products and brands to consider purchasing. Consumer attitudes toward the brand will be determined by brand credibility, which will increase consumer desire to buy. Aside from that, the company should maintain a positive online reputation. This explains why management must always take every customer complaint seriously and avoid spreading negative customer comments on social media. This is due to the fact that E-WoM has an effect on purchase intent.

7.2. Limitations and Implications

Companies should prioritize the development of marketing strategies that encourage customers to create content that positively modifies purchase intentions via web pages. Online retailers should pay attention to online product and service reviews and encourage their customers to. To promote trust, online retailers should pay attention to online reviews of their products and services and encourage their customers to publish qualified information. To encourage customers to write high-quality online reviews, online retailers should improve the online review interface. This research has several limitations and makes recommendations for further research. Further researchers are advised not to provide specific research locations to further researchers in order for the characteristics of respondents to be specific and different from previous studies in Indonesia. Following that, the two researchers can provide specific categories related to the product brand to be purchased. Third, in addition to the study variables, future research can include other marketing component factors such as advertising, pricing, and other variables that can influence purchase intention.

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Author Contributions: Ifta F. Nuzula: Conceptualization, Software, Validation, Formal analysis, Investigation, Data Curation, Writing – Original Draft, Visualization, and Supervision.
Lilil Wahyudi: Conceptualization, Methodology, Formal analysis, Resources, Writing – Review & Editing, and Supervision.

Acknowledgements: The Authors would like to acknowledge Faculty of Economics and Business of Universitas Negeri Sebelas Maret that facilitated using LIME Survey software for this research.

Funding: This research received no external funding.

Conflicts of Interest:The authors state that they have no conflicts of interest.

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Appendices

This following table describes factors and codes of the instrument mentioned in the article.

FACTORS
CODE

PERCEIVED RISK

PR

1. There is a chance that there will be something wrong with thus product or that it will not work properly

PR01

2. There is chance that I will stand to lose money either because it won’t work at all, or costs more than it should to maintain it

PR02

3. This product is extremely risky/not risky ini terms of how it would perform

PR03

4. This product is extremely risky/not risky ini terms of its long-term costs

PR04

BRAND ATTITUDE

BA

1. This (#brand) is good.

BA01

2. This (#brand) is pleasant.

BA02

3. This (#brand) is favorable

BA03

E-WOM

SW

1. I’m likely to post status/photos/comments about the luxury items I possess in my social network.

SW01

2. I would recommend the luxury items to my friends and relatives.

SW02

3. If my friends were looking for a new item, I would tell them to try the luxury items I have used.

SW03

PURCHASE INTENTION

PI

1. If I were going to purchase a luxury product, I would consider buying this brand.

PI01

2. If I were shopping for a luxury brand, the likelihood I would purchase this luxury brand is high.

PI02

3. My willingness to buy this luxury brand would be high if I were shopping for a luxury brand.

PI03

4. The probability I would consider buying this luxury brand is high.

PI04

PERCEIVED QUALITY

PQ

1. This product is of high quality

PQ01

2. This product is a superior product.

PQ02

3. This product is of very good quality.

PQ03

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© 2022 The Authors. Published by Sprint Investify. ISSN 2359-7712. This article is licensed under a

Ifta Firdausa Nuzula, Universitas Negeri Sebelas Maret, Indonesia, ORCID:0000-0002-0651-397X

© 2022 The Authors. Published by Sprint Investify. ISSN 2359-7712. This article is licensed under a Creative Commons Attribution 4.0 International License Ifta Firdausa Nuzula, Universitas Negeri Sebelas Maret, Indonesia, ORCID:0000-0002-0651-397X