THE ROLE OF PURCHASE INTENTION ON MEDIATING THE RELATIONSHIP OF E-WOM AND E-WOM CREDIBILITY TO PURCHASE DECISION

The aim of this study is explaining the impact of E-WOM (e-WOM) and e-WOM credibility towards purchase decision, with purchase intention as a mediator variable. There is a total response of 115 people collected by using purposive sampling technique. Furthermore, the selected respondents have the following criteria: (a) actively using social media, such as Facebook and Instagram; (b) read the testimonials, photos, and location of a restaurant on social media; (c) have experienced the previously described restaurant; and (d) have graduated from high school. The hypothesis in this study was prepared with Generalized Structured Component Analysis (GeSCA) technique.From the research that has been carried out, it is possible to conclude that: (a) e-WOM has positive and significant influence towards e-WOM credibility; (b) e-WOM encourages the purchase intention; (c) e-WOM has no direct positive and significant effect towards restaurant customers’ purchase decision in Bali, but it affects indirectly through their purchase intention; (d) e-WOM credibility has positive and significant influence towards purchase intention; (e) e-WOM credibility has positive and significant influence towards purchase decision, directly and indirectly; and (f) purchase intention has a positive relationship with purchase decision.