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Analysis of Tie Strength And Purchase Decision Involvement Towards Word-of-mouth Influence In Service Business
Ummu Qonitah, Shimaditya Nuraeni

School of Business and Management, Institut Teknologi Bandung. Jl. Ganesha No,10, Bandung 40116, Indonesia


The increase in services must be handled, the high cost of services has the potential to shake off economic growth, according to an economic theory called Baumols disease. Therefore, services have to become more efficient and productive. Handling service business that mostly intangible are dissimilar from product-based business. In service word of mouth (WOM) is important. This research would investigate the interaction and direct effects of tie strength which is an interpersonal force between sender and receiver of WOM and the receiver-s service purchase decision involvement which is an intrapersonal force on WOM influence. A secondary aim is to investigate how a distinctive conceptualization of perceived risk affects service purchase decision involvement. A conceptual model incorporating these constructs and associated hypotheses is developed and tested. This research is quantitative research conducted to explore the objective of the study. Researcher conduct a questionnaire to collect data. The purposeful sampling conducted on this research. PLS-SEM Analysis is used in this research for the data analysis. The expected result from this research is to demonstrate a strong interaction effect between service purchase decision involvement and tie strength. Also, results highlight the complexity of the perceived risk construct, suggesting that it is appropriately modeled.

Keywords: Service; WOM; Purchase Decision; Influence; Perceived Risk; Involvement; Tie Strength

Topic: Management


Conference: International Conference on Economics, Business and Economic Education Science (ICEBEES 2019)

Plain Format | Corresponding Author (Ummu Qonitah)

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