Effect of Facebook eWOM on Brand Image and Purchasing

This research proposal focuses on the effect of Facebook eWOM on brand image and purchasing intention of low-cost airline in Thailand. It explores the significance of eWOM methods through Facebook and its impact on brand awareness and customer choices. The study aims to provide a framework for analyzing and evaluating eWOM methods and their role in the airline industry. The research objectives include understanding the effect of eWOM on brand image, the importance of Facebook eWOM in decision making, and its specific impact on the low-cost airline industry in Thailand.

Running head: EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING INTENTION
OF LOW-COST AIRLINE IN THAILAND
Name of the Student
Name of the University
Author Note

1EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
Table of Contents
1. Introduction..................................................................................................................................3
Background information..............................................................................................................4
Research Question.......................................................................................................................6
Research Objectives.....................................................................................................................6
Existing Knowledge Contributions..............................................................................................6
2. Literature Review........................................................................................................................7
Electroning Word-of-Mouth (eWOM)........................................................................................7
EWOM channel through Facebook.............................................................................................8
Online Opinion and Purchasing intention....................................................................................9
Brand Image...............................................................................................................................11
3. Research Methodology..............................................................................................................12
Research design.........................................................................................................................12
Population..................................................................................................................................12
Sample Size...............................................................................................................................13
Sampling technique...................................................................................................................13
Data Collection..........................................................................................................................13
Data Collection Instrument........................................................................................................13
Research Timeline.....................................................................................................................14
4. Data Analysis and Interpretation...............................................................................................16

2EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
5. Conclusion and Recommendations............................................................................................16
References......................................................................................................................................17

3EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
1. Introduction
The research proposal would focus on providing an essential framework that can
facilitate the effective analysis, evaluation and understanding of electronic word-of-mouth
methods for generating brand image and customer’s purchasing intentions. The social
networking site Facebook has been selected as the focus online platform for understanding the
significance of eWOM methods. The study will be poised to understand the effect of eWOM via
facebook concerning the brand image and intention for purchasing for Thailand based low-cost
Airlines. The existing literatures concerning eWOM and it role in the creation of brand
awareness as well as brand choice would be consulted for the proposed study. A strong research
design that can help in the better analysis and evaluation of the subject matter would be
proposed.
There has been significant advancement in technology recently. This has led to the wide
spread use of the internet and growth in the popularity of new marketing tools. One such
marketing tool is the electronic word of mouth tool (eWOM). The marketing tactics have been
changed by internet through which a sales to funnel programs or trade shows have lost much of
their effectiveness of customer interaction (Skudiene, Auruskeviciene and Sukeviciute 2015).
However, it also has to be said that Word of Mouth is not new and in actuality is one of the
oldest types of marketing strategy. It is an effective technique through which efficiently word
can be spread in regards to a brand. This can further help to raise brand awareness and improve
brand reputation among customers, general public or other businesses.
Social media is utilized by the customers quite abundantly to share their opinions about
various goods and services that they use or want to use in the future. More people are dependent

4EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
on social media reviews to get an outside idea of a product or service. People also rely on social
media to get honest opinions about the products that they use (Lever, Mulvey and Elliot 2017).
The transport and tourism industry has a significant online presence and greatly depends on this
form of marketing. An individual gives the audit physically by being present before the potential
buyer. The opinion of the person is trusted to be more genuine than the other feedbacks. The
eWOM method does not enable the potential buyers to settle for anything that might be snappy
or rash choices concerning purchasing. In a way the eWOM method becomes imperative for
smooth working and development of Airline industry. There has been an increase of 7.6%
annually in the pathways for air travelling that have been newly projected in the region of South
East Asia (Sirichareechai, 2018). There are much supplies of surveys and dada that have been
considered before the choices have been made. The needs and necessities of the buyers are
considered for the creation of newer markets concerning the airline business. In short, the newer
mediums of marketing are proving to be effective for the Airline business. When individuals
tend to have more choices available they tend to choose the airline that can provide them with
minimal effort voyage choices. Generally the choices are based on the factors of movement,
administration, in-flight service, lower or higher rates or whether the administration would be re-
utilized.
Background information
Presently, it can be said that air transportation is a significant resource building and
economy generating business. There has been significant financial development of the sector in
the current times. This has been the case of various nations across the world. It can be said that
Airlines have provided a very effective and convenient way for people to travel across the world
(Law 2017). The connectivity that has been generated has caused the sector to boom and provide

5EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
significant customer satisfaction. The advancement of the airline businesses have provided
greater opportunities for people and groups to interact, businesses to grow and families to unite.
Organizations have been able to work together from different parts of the world due to the
transportation facilities that have been offered by the Airline services. A huge amount of revenue
is generated by the Airline businesses across the world. In a way airline businesses have been
responsible for the rapid globalization that is being witnessed nowadays. It is important to note
that the social media is also playing a huge part in the continuing growth of the Airlines industry.
Thailand is one of the rapidly developing economies of Asia with places such as Bangkok and
Phuket being significant economic hubs as well as travel destinations (Kontogeorgopoulos
2017). Hence the choices of the residents as well as people interested in visiting the country
become very important. For a very long time people have been depending on the social media for
gaining reviews about services they are interested in availing. Consumers more often share their
views on social media in regards to products and services. These are then reviewed by other
consumers to ensure their validity which ultimately affect their decisions in regards to the
services. Social media sites like Twitter, Facebook and other similar sites are increasingly being
used to review products and services (Levy and Gvili 2015). With the rapid growth in internet
users the eWOM can be a significant approach towards both understanding the user needs and
promoting the services among them. Also especially if Facebook is considered then eWOM
helps in reaching a large populations of the younger audiences and explore the marketing
opportunities that are present in regards to the same. Hence, eWOM through social media can be
considered to be one of the most effective tools that can improve service quality and business.

6EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
Research Question
The significant research questions that are to be considered for the study are:
 What is the effect of Facebook eWOM on the creation of brand image and customer
buying intention?
 What is the perception of the consumer in regards to the role of social media tolls like
Facebook in the airline industry?
 How has Facebook affected consumer choices in regards to the Airlines that are chosen to
travel in the context of Thailand?
Research Objectives
The essential research objectives of the study are:-
 To focus on the effect of eWOM on brand image of products and service
 To find the importance of Facebook oriented eWOM on the decision making of the
customers in regards to the brands concerning goods and service quality
 To find how decision making is affected through Facebook eWOM
 To find Facebooks eWOM’s effect concerning specifically the low-cost airline industry
of Thailand
Existing Knowledge Contributions

7EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
The research will focus on helping the marketers to set effective marketing plans and the
development of efficient online relationship through the consultation of the presented data.
Hence, the study results will be focused towards improving low-cost airline industry through the
help of Facebook eWOM.
2. Literature Review
The significant growth and development of the social media platforms have made the
prospects of eWOM more effective. The consumer’s ability to find certain relevant information
about quality of various goods and services. Additionally, there is also the ability of sharing
experiences with the other Facebook users using the eWOM. Hence, this increases the decision
making abilities of the consumers by making it easier.
Electroning Word-of-Mouth (eWOM)
According to Krishnamuruthy and Ramesh Kumar (2018) the electronic work of mouth
as a phrase came into being as a result of the expectations of the customer with the organization.
In the opinion of Henning-Thurau, Gwinner, Walsh and Gremler (2004) this is further evaluated
on the basis of customers being sent messages that are both negative and positive. These
messages are sent by people that have relatively better knowledge about the products or services
that are being used. It is demonstrated by the authors, that how eWOM uses the experiences of
the customers and helps to channelize the same towards creating a data base that can help the
other customers to understand more about the quality of the service through online channels.
According to Jalilvand and Samie (2012) have done significant research in regards to the various
eWOM methods.

8EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
- One-to-one method occurs when the experiences of a single customer are shared with another
person. Facebook can easily be used to do this along with any of the other available online
messaging tools and even offline.
- One-to-many word of mouth method is when a single person posts their opinion on social
media platforms as either stories, blog posts or other similar methods.
- Many-to-many technique happens when experiences are shared by many people to another set
of people in a group. An example of this can said to be community groups sharing experiences.
Apart from these sharing is done by customers that tend to be more experienced in the
matters of using the services than the other customers. These customers tend to use goods and
services more and have greater knowledge about the values that are added by the products. It is
imperative that this kind of sharing is given more importance when understanding the intentions
of the consumers.
EWOM channel through Facebook
Online customer opinions that are provided on platforms of social media depend greatly
on the interactions that are created among the many consumers (Cheung and Lee 2012). The
findings suggest that customer interactions to a great extent determine the effectiveness of
eWOM in social media. The findings become much important as they link customer influence
channels to communication platforms of the customers. The social media is utilized by the
customers along with other tools to share abundant feedback and reviews about various services
and products that they use. The aviation industry has been greatly affected by the widespread use
of social media sites like Facebook. The great number of people that are connected over the
internet make it easy for gathering essential reviews and opinions about the products that would

9EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
be used. In this case the Aviation industry of Thailand is experiencing similar phenomenon.
Social media is powerful enough to both positively and negatively affect the growth proposition
of any business. Facebook being one of the largest social network platforms in the world is a
significant channel for customer interaction and news perception. According to Kudeshia (2017)
when people are on the internet they tend to come across a wide range of information containing
views related to product and services. Moreover, there are the factors related to the ads and other
influences of the marketing. In the opinion of Al- Shibly (2017) Facebook as a platform of socail
media for both consumers and service providers have created an imperative for the basic
understanding of consumer’s intention to purchase. Other users can freely interact with the
reviewers to get more effective information about the services provided. Hence, organizations
shous essentially consider sites ike facebook to get information about their target audiences.
Online Opinion and Purchasing intention
Online opinions are important in generating interest about any particular products or
services. According to Qazi et al. (2017) opinions are feedbacks of the customers and influence
customer behaviours subsequently. In the opinion of Cao, Thompson and Yu (2013) customer
feedback is also explained to be the main factors that affect the perceptions of the quality of
product or services. Customer decisions, although are affected by various factors, depend greatly
on the feedbacks that are provided by similar customers or previous users of any given service.
The same opinion can be found in the works of Chiou, Hsiao and Su (2014). According to
Lerrthaitrakul and Panjakajornsak (2014) the channel provides essential support to buyers where
they can easily share their opinions. Moreover, the consumers can freely engage in providing
their valuable recommendations. These can be easily contained in the various weblogs, websites
for product review, social media pages or related websites. In case of the Airline industry of

10EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
Thailand a significant amount of recommendations and feedbacks are available on websites such
as the www.tripadvisor.com, www.virtualtourist.com or www.eopinions.com. These help the
average Thailand passenger to find which airline is the best suited for him (Tanomsin and Chen
2018). The important factor is that these websites can be linked with Facebook and the same
information shared through a wide number of pages or profiles in Facebook. The audience
perception is created through these factors. Park et al. (2007) explains that customer reviews that
are given online on various websites present negative or positive reviews about various products
and services are one of the significant eWOM channels. It is opined by Lerrthaitrakul and
Panjakajornsak (2014) that research on customer decisions in Thailand support the fact that
consumers are indeed influenced by eWOM sources on social media before making decisions in
regards to choosing products. One of the significant online campaigns of Thai Airlines is
maintained in Facebook to enhance the prospects of Facebook eWOM, one of the biggest
influencers for customer decision making in the present times (Law 2017). Consumers usually
find a way to collect information about the services or products that they are interested in.
Figure 1: The eWOM influenc process of consumers
The customer decision process goes through various Phases including: 1. The before
purchase understanding 2. The buying phase and 3. The after purchase phase.

11EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
There are customers that perceive information about a given product before purchasing
the same. In case of the average Airline service availing population of Thailand the situation is
the same. The surrounding environment of the buyers have strong influences on them.
Additionally, the consumers go for believing the feedbacks provided by the more experienced
users than the relatively new users. In the study conducted by Sotiriadis (2013) it was found
purchasers that were uninterested previously in a certain product or brand had started to be more
inclined to the product after they came into contact with eWOM. It can be said that in the many
online platforms that are present it is considered to be a more honest channel. As opined by Levy
and Gvili (2015) right, reliable and effective information is provided through the eWOM
channels available on online sources that can satisfy the target audiences that are intended.
Brand Image
Brand image becomes crucial for any company. In the context of the Airline industry it
becomes much more important due to the rising competition in the Aviation industry of South-
East Asia. Thailand is very much a part of this and organizations are utilizing more eWOM
methods to understand and approach the consumers. The works of Jalilvand and Samie (2012),
Webster and Keller (2004), Sasmita and Sukiand (2015), Lau and Phau (2007) and Sukiand
(2015) all focus on Brand image and its relation to the benefits and attributes that are associated
with the product. In a way the Brand Image confers a meaning that is symbolic in terms of
consumption and establishment of self-expression that goes on to make the brand more unique in
value. According to Jalilvand and Samie (2012) all interactions that take place between the
company and the customer provides more input in regards to the image of a brand. The authors
further state that the companies can enhance commitment and credibility with regards to the
experiences of the consumers. Much importantly Jeng (2016) found that airline research brand

12EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
credibility on the purchase intentions of the consumers are positively enhanced if effective
eWOM is present about the given Airline Company. Larger volumes of eWOM determines
whether or not the customer will be accepting the information that is provided by an Airline
company about the type of services that they essentially provide. The revenue functions of
airlines are greatly related to this.
3. Research Methodology
The chapter is concerned with the aspects connected with the collection and presentation
of data that would be done for the project. Quantitative research methods would be utilized for
the effective collection of data. Relevant and timely data would be provided in the research
Research design
The research would be based on eWOM concerning Facebook and the effects of the same
on the consumer’s decisions in regards to selecting low-cost airlines in Thailand. The research
would be based on quantitative data. The data would be gathered through questionnaires that
would be distributed among the respondents. The services that are provided by the airlines of
Thailand would be kept constant to gather effective information. Various graphical methods
would be used for analysis and study.
Population
The population would consist of the customers that are minimally exposed to travelling
though utilization of inexpensive Airlines in Thailand. They are selected on the basis of their
exposure to the internet and their interactions and activities especially on Facebook. They will be
selected on the basis of their usage of eWOM.

13EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
Sample Size
The sample size that is selected is of 50 respondents for gathering primary data. The
respondents would be new or existing customers of low-cost Airlines in Thailand. The
consumers would also be active in the various Facebook forums that review Airline services.
Sampling technique
The sampling technique that would be used is non-Probability sampling to ensure that the
target audience is covered through the sampling technique utilized. The most important and
relevant information would be focused on gathering.
Data Collection
Online questionnaires would be created and sent to all the selected respondents through
online channels. Questions would be based on the most important required information. The
various literatures would be consulted for gaining secondary information. The information would
be gathered thus from the various Journals, Articles and books in regards to the subject of
eWOM, social media sites and customer decision making.
Data Collection Instrument

14EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
As mentioned previously the data collection instrument would be online survey forms or
questionnaires. Each set of subjects would contain a series of questions. The respondents would
need to choose from options in regards to questions on Brand building, effects of positive and
negative eWOM and customer decisions. The range of the answers would be from 1 to 4. In this
1 would mean strongly disagree and 4 would mean strongly agree.
The researchers would keep intact the ethical values that are associated with the work.
Only work done by the self would be provided and produced. The personal opinions of the
researchers would not be affecting the methods utilized or the outcomes of the research. No
means of data manipulation would take place in the study.
Research Timeline
Task Name Duration Start Finish
Research Proposal
Timeline New 104 days Thu 5/2/19 Tue
9/24/19
Selection of the
Research Topic 1 day Thu 5/2/19 Thu 5/2/19
Approval of the
Research Topic 2 days Fri 5/3/19 Mon 5/6/19
Researching and the
Development of the
Aims and Objectives
6 days Tue 5/7/19 Tue 5/14/19
Selection of the Title 12 days Wed 5/15/19 Thu 5/30/19
Selection of the
Objectives 2 days Fri 5/31/19 Mon 6/3/19
Initial Research 12 days Tue 6/4/19 Wed
6/19/19
Assembling all the
Preliminary Data 8 days Thu 6/20/19 Mon 7/1/19
Researching the Data 6 days Tue 7/2/19 Tue 7/9/19
Compiling the Data 14 days Wed 7/10/19 Mon
7/29/19
Submission of the Draft 1 day Tue 7/30/19 Tue 7/30/19

15EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
Continuation of the
Research 20 days Wed 7/31/19 Tue 8/27/19
Assembling New
Informations 10 days Wed 7/31/19 Tue 8/13/19
Identification of the
Sample 1 day Wed 8/14/19 Wed
8/14/19
Selecting The Number
of Sample Size 4 days Thu 8/15/19 Tue 8/20/19
Interviewing The
Sample Population 5 days Wed 8/21/19 Tue 8/27/19
Researching on the
Avialable Data 20 days Wed 8/28/19 Tue 9/24/19
Compiling the Total
Data 10 days Wed 8/28/19 Tue 9/10/19
Assembling and
Preparing the final
Report
9 days Wed 9/11/19 Mon
9/23/19
Final Submission 1 day Tue 9/24/19 Tue 9/24/19
Table 1: Timeline

16EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
Table 2: Gnatt Chart
4. Data Analysis and Interpretation
The research would take the help of statistical analysis to effectively analyse the findings
of the research. The structural aspects of statistical analysis would help to find the established
relationships between factors and behaviours. The dependence of the variables with the
influencing factors would be found. Graphical representations are to be utilized to provide a
visually descriptive understanding of the relationships between the various factors and variables
(Randall E.Schumacker2008). In depth understanding of the subject matter would be made
possible through the usage of the mediums for analysis.

17EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
5. Conclusion and Recommendations
The basis of the research will be the impact that social networking sites like Facebook
has on eWOM that subsequently affect the decision making functions of the consumers. The
selected context would be that of the low-cost airlines that are present in Thailand. The proposed
design for the study will highlight the various factors and the effect that have on the brand image
and subsequent consumer behaviour. Some of the samples would be accepted and others
discarded in accordance with the knowledge and understanding of the researcher. Structural
equations are recommended for the effective analysis of the study. The blending of qualitative
and quantitative data will be poised to make the study more fruitful.

18EFFECT OF FACEBOOK EWOM ON BRAND IMAGE AND PURCHASING
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