THE INFLUENCE OF REFERENCE GROUP AND ELECTRONIC WORD OF MOUTH (E-WOM) ON PURCHASE DECISION AT PECEL 99 MADIUN THROUGH TRUST AS A MEDIATING VARIABLE

Yuniar Widya Ningrum, Hari Purwanto, Dian Citaningtyas Ari Kadi

Abstract


This study examines the effects of Reference Group and Electronic Word of Mouth (e-WOM) on Purchase Decision through Trust among consumers of Pecel 99 Madiun. Using a quantitative survey approach, data were collected from 384 consumers who had purchased from Pecel 99 and had received information or recommendations through Reference Group or e-WOM. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results show that Reference Group positively and significantly affects Trust (β = 0.356; t = 7.015; p < 0.001), while e-WOM also positively and significantly affects Trust (β = 0.378; t = 7.331; p < 0.001). Trust positively and significantly affects Purchase Decision (β = 0.414; t = 6.661; p < 0.001). Reference Group and e-WOM also have significant direct effects on Purchase Decision, with coefficients of 0.188 (t = 3.577; p < 0.001) and 0.253 (t = 4.881; p < 0.001), respectively. Furthermore, Trust mediates the effects of Reference Group and e-WOM on Purchase Decision, with indirect effects of 0.147 and 0.156. The findings indicate that social influence and digital information contribute to purchase decisions both directly and through consumer Trust.


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