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All Journal Review of International Economy and finance (RITEF)
Ni Nyoman Kerti Yasa
Universitas Udayana, Bali, Indonesia

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THE ROLE OF BRAND IMAGE IN MEDIATING THE EFFECT OF E-WOM ON PURCHASE INTENTION (A STUDY OF PROSPECTIVE CONSUMERS OF BakedByAurea) Giuseppe Arve Rama Garin; Ni Nyoman Kerti Yasa
Review of International Economy and Finance Vol. 2 No. 4 (2026): Review of International Economy and Finance (RITEF)
Publisher : CV. ADIBA AISHA AMIRA

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5281/zenodo.21991296

Abstract

Digital consumer reviews have become increasingly strategic in shaping brand perceptions and purchase intention; however, the underlying mechanism within the context of artisanal micro, small, and medium enterprises (MSMEs) remains underexplored. This study aims to examine the effect of Electronic Word of Mouth (E-WOM) on purchase intention, with brand image serving as a mediating variable among prospective consumers of BakedByAurea in Denpasar City. The study employed a quantitative associative approach involving 100 respondents selected through purposive sampling. Data were collected using a structured Likert-scale questionnaire and analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The findings indicate that E-WOM has a positive and significant effect on purchase intention (β = 0.339; p = 0.000), a positive and significant effect on brand image (β = 0.667; p = 0.000), and that brand image has a positive and significant effect on purchase intention (β = 0.497; p = 0.000). Brand image was confirmed as a partial mediator in the relationship between E-WOM and purchase intention (β = 0.332; p = 0.000). These findings reinforce the applicability of the Theory of Reasoned Action within the context of digital marketing for MSMEs and imply that managing organic E-WOM constitutes an effective marketing strategy for culinary MSMEs operating without substantial advertising budgets.
Co-Authors Giuseppe Arve Rama Garin