Effect of Electronic Word of Mouth (eWOM) on Consumer Buying Behaviour in Nigeria

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Rapid developments in digital technology have led to changes in the ways that consumers get their information and make purchasing decisions throughout the world. In Nigeria, internet penetration, usage of smartphones, and use of various social media channels including Facebook, Instagram, TikTok, X (formerly known as Twitter), WhatsApp, and YouTube have brought significant changes to marketing communication. Consumers have stopped being just recipients of business promotions and started taking an active role in creating and exchanging their opinions about various goods and services through electronic means. This phenomenon has been named “Electronic Word-of-Mouth” (eWOM).

Definition of Electronic Word-of-Mouth (eWOM)

This is the sharing by consumers of positive or negative opinions about the products or services of an organization through electronic means. The information is widely available to the public through the internet. Unlike the word-of-mouth form of communication, eWOM spreads quickly through various digital media platforms.. It is worth mentioning that according to recent researches, online reviews, ratings, testimonials of customers, and even social media conversations have become essential sources of information affecting consumers’ decision-making process (Bharej & Singh, 2025).

There have been tremendous changes in digital business in Nigeria within the past years. It is becoming increasingly common for people to read through online comments before buying goods or services. Firms in different sectors such as fashion, electronics, banks, telecommunications, hotels, and shopping have adopted the use of digital marketing strategies that will urge their customers to give comments on the Internet. Good comments build up reputation while bad comments can ruin the reputation of a company (Adeyemo & Elegbe, 2025).

Moreover, social media influencers, bloggers, online forums, and consumer review sites have enhanced the effectiveness of eWOM in Nigeria's online business environment. Consumers view the opinions expressed by other consumers as more credible compared to traditional advertising, since those opinions are considered unbiased and based on experience. The research conducted in 2025 shows that the credibility, usefulness, and quality of eWOM greatly impact the perceptions consumers have about the quality and trustworthiness of the product (Nguyen, 2025; Bharej & Singh, 2025).

Although the rising relevance of eWOM has led to several problems for Nigerian businesses, most of them still face issues concerning online reviews. Due to fake reviews, misinformation, and misleading claims about products, there are some questions about the validity of the online information. Thus, the rising need for investigating how eWOM affects consumer buying behaviour in the context of the Nigerian business environment arises. This paper attempts to investigate the effect of eWOM on consumer buying behaviour in Nigeria.

1.2 Statement of the Problem

Consumer purchasing behavior has changed greatly owing to digitalization and the increased usage of social media platforms. Many consumers in Nigeria now rely on reviews, rating, comments, and recommendations prior to making purchasing decisions. Thus, companies are investing a lot in generating positive customer reviews and building up their reputation.

Yet, the increased amount of online data is causing such problems as fake reviews, manipulated ratings, misinformation, and misleading promotional materials. Such practices might lower consumer confidence and cause uncertainties while making purchasing decisions. Despite the fact that electronic word-of-mouth marketing has become popular, many firms in Nigeria find it difficult to establish how much online consumer opinions affect purchasing behavior..

Earlier researches have primarily emphasized digital marketing, social media marketing, and influencer marketing with no adequate empirical consideration given to the impact of eWOM directly on the buying behavior of consumers in Nigeria through recent digital platforms. In addition, there is a need for updated empirical evidence considering the fast-changing nature of online purchases and social commerce. Hence, this study aims to explore the impact of eWOM on buying behavior of consumers in Nigeria.

1.3 Objectives of the Study

The general aim of the study is to investigate the impact of Electronic Word-of-Mouth (eWOM) on the purchasing behavior of consumers in Nigeria.

The aims of the study include:

1. To investigate the impact of online customer reviews on consumers' purchasing behavior in Nigeria

2. To find out the influence of eWOM credibility on consumers' purchasing decisions

3. To evaluate the impact of positive eWOM on consumers' purchasing intention

4. To find out the impact of negative eWOM on consumers' purchasing decisions

1.4 Research Questions

Research Questions to be Answered by the Study

1. What role do customer reviews on the internet play in consumer purchasing decisions in Nigeria?

2. To what degree does the credibility of eWOM affect purchase decision making?

3. What is the correlation between positive eWOM and consumer purchase intentions?

4. How does negative eWOM impact consumers' purchase decisions?

1.6 Significance of the Study

Conclusions drawn from this research shall prove useful for businesses, marketing professionals, researchers, policy makers and consumers alike. Businesses shall get an understanding of the impact of electronic word-of-mouth on customer behavior, which would help them create effective digital marketing strategies. Marketing professionals will learn the importance of online reputation management and customer engagement for brand performance.

Conclusion drawn from this research will help policy makers create guidelines promoting good digital marketing practices and dissuade people from engaging in misleading online reviews..

In addition, the research will make a contribution to the current knowledge base on electronic word-of-mouth and consumer behavior in Nigeria. The research will be a good reference for students and other researchers who have an interest in digital marketing, consumer behavior, and e-commerce.

1.7 Scope of the Study

This research is about the impact of Electronic Word-of-Mouth (eWOM) on Nigerian consumers purchasing behaviour. Mainly, it looks at how online client evaluations, electronic suggestions, scoring systems, and social media remarks affect consumer buying decisions. The spread of the investigation is on those consumers who utilize digital media actively as a source of product information when they want to make a purchase.

1.8 Operational Definition of Terms

Electronic Word-of-Mouth (eWOM): Words statements feedback, endorsements, and other forms of communication shared by customers with one another via electronic channels (e.g. social media, forums) about products, services, or brands.

Consumer Buying Behaviour: The series of mental processes and activities that a consumer goes through when considering and purchasing products or services.

Online Reviews: Customers' remarks, ratings, and opinions about products or services posted on different online platforms, including websites, e-commerce sites, and social media.

Purchase Intention: A consumer's decision or plan to buy a certain product or service based on their assessment of the information available to them.

Digital Marketing: The use of the internet and other digital communication technologies for advertising products and services.