BUS8101: E-WOM & Scuba Diving: Consumer Decisions in Hong Kong

This research report investigates the influence of electronic word-of-mouth (eWOM) on purchasing decisions related to scuba diving services in Hong Kong. The study uses a qualitative approach, analyzing consumer reviews and comments to understand how they impact potential clients' choices. A survey was conducted with 150 participants, considering factors like demographics, online review characteristics, reviewer attributes, and service provider reputation. The findings indicate that online reviews significantly affect consumers' purchasing behavior, with many relying on them as a primary source of information. The report also explores how the reliability, consistency, and positivity of reviews, as well as reviewer characteristics and site popularity, influence purchasing decisions. The research provides valuable insights for businesses in the scuba diving industry to understand consumer trends and improve their services based on online feedback.

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THE IMPACT OF ELECTRONIC WORD-OF-MOUTH ON THE PURCHASING DECISION
MAKING OF PEOPLE IN HONG KONG IN RELATION TO SCUBA DIVING
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October 15, 2018

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I. Abstract
Considerable developments in the Online Social Sites (SNS) segment, which have
resultantly expanded the implication of the electronic Word of Mouth (eWOM) on potential
clients’ purchasing choice, are evident in research. A thorough evaluation of relevant sources of
literature revealed that there are gaps in research that are still unfilled. Further comprehension
concerning the implication of reviews, comments and opinions in relation to the purchasing
behavior of consumers is pending (Moran, Muzellec and Nolan, 2014). This report develops a
critical evaluation of the problem and results, which illustrate the effects of reviews on
consumers’ purchasing behavior. Findings show that online scuba diving shoppers are influenced
by opinions delivered through eWOM, while many potential consumers rely on views posted on
websites as a pivot source of information when purchasing scuba diving services. According to
Babić et al., (2016), depending on online customer reviews the relevance of eWOM to include
individual analysis and commentary over a product after spending funds and experiencing the
value of the product. The eWOM is a reliable source of information that develops consumer
insights over a particular products or service. Moreover, businesses can use reviews to correct
and set upgrading measures over respective products and services to achieve customer
satisfaction (Filieri, Alguezaui and McLeay, 2015). Using online reviews, various scuba diving
consumers share their experience hence affecting decisions made by new online clients in Hong
Kong. The eWOM provides relevant components of online purchasing decisions such as the
level of risks perceived by potential consumers.
Keywords: Electronic Word of Mouth (eWOM), Scuba Diving, Hong Kong

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II. Introduction
The tradition WOM majorly centered on people meeting to share comments or opinions
regarding services and products being transacted (Cheung and Thadani, 2012). As for eWOM,
sharing of reviews has been developed to exploit contemporary technology. In reference to
Cheung, Xiao and Liu (2014), the initiation and development of the digital era focusses on
establishment of the internet and computation that has enabled the assessment and access of
purchasing trends. Scuba diving consumers have embraced the significance of Web 2.0
(Facebook, Twitter, and Instagram among others) tools in posting reviews, exchanging
information, critiques and opinions. Online platforms consist of; review sites, digital newspapers
columns, discussion forums, news-groups and social networking sites (RIEFA, 2017). Actually,
eWOM has identified new means of asserting the value of scuba diving services through a digital
form of communication that is exciting to concrete consumer research.
There is a perceptible gap in research, related to scuba diving in Hong Kong, with limited
sources of literature concerning consumer-purchasing decisions in relation to reviews offered
online, have been published (Luo and Zhong, 2015). This report critically analyzes the influence
of eWOM on the buying choice of consumers in HK in relation to scuba diving. It analytically
studies the effect of online opinions and comments concerning potential clients’ decision to
purchase the service in relation to the reputation of both the reviewer and service provider (Erkan
and Evans, 2016). In consideration of an intellectual perspective, the analysis is focused on
delivering a critical insight on techniques of developing readers’ understanding on digital
reviews and how it affects consumers’ buying behavior in HK’s context. The fundamental
purpose of the report is to determine how scuba diving consumers react and view eWOM. In that
case, the paper’s objectives majors on determining if:

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 Online service reviews affect scuba diving consumers’ buying behavior (if consumers
rely on it as a pivot source of information)
 Characteristics on opinions like; reliability, consistency and truth of opinions affect
purchasing decisions
 Service (positive and negative) rating affect purchasing behavior
 Service and reviewers’ features like; frequency, residence, age, gender and identity and
how they affect purchasing behavior
 Characteristics of site offering online comments and opinions like; popularity, reliability
and global influence affect purchasing behavior (Baum, 2014)
III. Methodology
Context and Setting of the Study
The report is focused on examining scuba diving service provisions to conduct a thorough
evaluation of the influence eWOM on purchasers’ decision-making. Findings and result of the
analysis is helpful for businesses to enable the study of purchasing trends of scuba diving
consumers as well as recognizing new ventures on how to promote and upgrade services.
According to Hajli et.al, (2014), when information about a product or service is being searched,
promoters are able to influence the choices of consumers hence stimulating effective product
performance and enhancement. Using service reviews, potential clients will be thrilled to bargain
and be cautions with scuba diving service providers in Hong Kong before making final
purchasing decisions (See-To and Ho, 2014). The research was set to involve 150 participants
(36% male and 64% female) who were classified according to age, level of education,
employment status, internet usage and the duration spent surfing the web. Approximately 14% of
the participants had attained an education level than high school degree more participants

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(40.7%) had earned a high school degree and its equivalent. Approximately 30% of the
population had bachelor degrees while 15.3% were with graduate degrees and none had any
other undefined qualifications. The mean dependability co-efficient of the report was applied to
ensure that factors in line with measures are dependable. Following a thorough evaluation of
data, the mean dependability co-efficient and Cronbach’s Alpha of the entire survey resulted to
0.8. The value surpassed the acclaimed target of 0.7 hence signifying the dependability of
measure factors for scuba divers.
Study Design
The report applied a qualitative approach in developing a critical evaluation of scuba
diving decisions influenced via web 2.0 tools. The approach is exercise by scrutinizing
consumers’ reviews and comments in relation to purchasing trends that influence new
consumers’ decisions. Different reviewing factors influence the level of consumer stimulus of
eWOM on scuba diving decision. However, there are many questions left unanswered regarding
the scuba diving decisions in Hong Kong (Lerrthaitrakul and Panjakajornsak, 2014). Resultantly,
further research is required to comprehend on affective, behavioral and cognitive inferences of
eWOM on scuba diving consumers (Kietzmann and Canhoto, 2013).
Population
Different groups of HK’s population that included 54 males and 96 female inhabitants
were allowed to answer survey questions. Relevant invitees included individuals from various
educational backgrounds in Hong Kong. The study also critically considers individual usage of
the internet and time spend on different social sites such as Facebook, Instagram, Twitter and
others which results to 64%, 17.3%, 16.7%, and 2% usages respectively. The participants were
contacted through all the mentioned social media platforms to undertake a survey, which led to

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collection of 150 valid answers regarding the impact of eWOM in purchasing decisions
regarding scuba diving services in Hong Kong.
Sampling Strategy
A Stratified random sampling technique was applied in different survey situations to
obtain batch information regarding the subject. The strategy was used because the HK population
has been classified into different groups and strata incorporating analysts required to ensure
every section of participants has been represented (Sparks, Perkins and Buckley, 2013). In every
group, an independent sample was extracted and its size proportional according the reflective
niche of online consumers.
Variables
The variables are social networking services, eWOM, purchasing decision and perception
of services. All these concepts depend on each other and should be implemented and measured in
the entire research (Yoo, Kim, and Sanders, 2015). The research objective was attained with the
assistance of survey questions that began with queries on gender and age indicators and
progressed to other variables (determining eWOM using social networking services, service
perception and buying decision).
Instrument
The study styles applied in the research aims at answering 16 questions in reference to the five-
pointer Likert gauge. These questionnaires included sections (questions 1 to 6) that collected
demographic information and three other relevant sections that collected statements of online
reviews 7-10, reviewers’ characteristics (questions 11-12) and service provider of the online
comments (questions 13 to 16).
Procedure

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Survey questions were included in the Google docs and issues to participants. The
sample participants filled data related to demography before proceeding on to other questions
that considered on different presented factors accordingly. All the questionnaires were filled
because the initial setting of the research implied that all the queries must be answered to be able
to proceed to another factor.
Outline Analysis
The research categorically aimed at collecting demographic information first before
collecting data based on different factors and description of statements and reviews that might
affects purchasing decisions. The research was outlined in a division of three fundamental
sections:
o Characteristics of reviews that included five statements that target at obtaining
information about scuba diving customers to review (table 2).
o The next section aimed at highlighting characteristics of reviewers. This part included
two statements to enable marketers to explore reviewers’ perspectives and influence of
opinions on scuba diving consumers’ buying decision (table 3).
o The last section has three questions, which target at evaluating characteristics of service
providers and sites that bear comments and opinions. Additionally, the section considers
characteristics of sites and the influence site have over buying decision of consumers
(table 4).
IV. RESULTS
Data Collection and Recruitment
Various data collecting methods are applicable when searching for empirical information
about a particular subject (Martin and Lueg, 2013). This research centered on administration of

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questionnaires to 150 Hong Kong consumers who liked scuba diving service. The data collection
technique should be based on individuals’ statement, which facilitated a search about their
reactions and purchase decision based on eWOM (Yap, Soetarto and Sweeney, 2013).
Participants of the survey were recruited from invitations sent to them through Facebook and
Twitter. According to Liang et.al, (2015), this was an effective recruiting channel since it
targeted individuals who used or were familiar to internet communication.
Participants
The current research majored on 150 individuals from the HK’s context that included
both male and female. All the invitees had different educational backgrounds, which included
high school, university and other educational qualifications.
Key Findings
Approximately 32.7% of the sample population was reported to have regular usage of
social media for more than 20 hours in a week. About 28% of them were active on respective
social sites for 5 to 10 hours weekly. Only 18% of the participants were online for around 1 to 5
hours per week. As targeted by the research, approximately 80% of the individuals engaged on
the analysis and expressed their interest in reading online comments and opinions before
purchasing the service. In summary, a descriptive approach of the analysis is illustrated in the
charts below and table 1 (Appendix section).

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Charts 1: Demographic Analysis of Participants

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The consecutive tables 2, 3 and 4 have defined a descriptive approach of data obtained
from responses delivered by participants in a survey issues to them. The tables have been divided
into columns whereby the first column presents the statements delivered participants on relation
to survey questions. All the subsequent columns represented respective responses based on a
Likert scales while the last two columns defined the mean and position of feedback. The tables

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also include the exact number of responses (denoted by F) with the relative percentage (denoted
by %) of the participants that selected a particular factor over five predetermined responses. The
mean was obtained in reference to the number of feedbacks delivered over the prescribed
responses. The last column that denoted the position was determined using the mean with the
highest agreed statement has a lower rank than the other statements.
Research in relation to review characteristics
According to the second table, approximately 31.3% of the participants fully agreed with
the response that review posted on websites had a significant impact on their purchasing
behavior. Close to that count, 28.7% agree to that statement. This contrasts the remaining 11.3%
who completely disagreed while 28.7% of the individuals had neutral perspective regarding the
same matter. In relation to the relevance of service reviews to enhance consumers’ decision
making process, it was realized that about 68% of the population agreed and fully agreed that
previous customer reviews were helpful when new customer wanted to make a service purchase.
However, 12.6% of the participants disagreed and fully disagreed with the reliability of reviews
to facilitate prospective buying behavior of scuba diving service. The remaining responses from
19.3 of the individuals compose of neutral comments reflecting the significance of reviews.
Concerning the statement on whether consumer reviews were biased or unbiased, about 40.7% of
the overall participants were still undecided and neutral regarding the subject. However,
approximately 30.7% of the population agreed that reviews were unbiased while 10% of the
individuals attest to the same assumption.
Consumers also consider the fact of how recent a review was published on a site. More
people will be forced to make an immediate purchase when a positive review was posted on
product review websites. Scuba diving consumers feel a strong conviction that determine the

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relevance of a purchase action is based on considering both positive and negative reviews given
by previous customers. As a result, 50.7% of the participants conformed to the ideology that
negative comments were useful to determine how poor scuba diving services were. These
comments are great influencers of new customers who are still undecided before making a
purchase. Moreover, negative reviews are helpful influencers of change among marketers who
use this opportunity to develop and upgrade their services. Approximately 51% of the population
agreed that positive reviews have a significant influence for new consumers to make a purchase.
About 21% disagreed about the chances of positive reviews influencing purchasing behavior of
new consumers. Approximately 46% of the population was still undecided and neural regarding
the whole issue about the relevance of positive comments about scuba diving services.
Charts 2: Respondents’ Statement on Consumer Reviews