The Role of E-WOM and Quality in Forming Loyalty Through Bolen Purchase Decisions Among the Millennial Generation

Abstract

This study focuses on demonstrating the role of Electronic Word of Mouth (E-WOM) and Product Quality in shaping Customer Loyalty through Purchasing Decisions among the millennial generation of Ning Bolen products in Jember Regency. The approach used in this study is a quantitative approach with the Partial Least Squares Structural Equation Modeling (PLS-SEM) method through SmartPLS 4.0 software. The research sample was 120 millennial generation respondents (aged 29–44 years) who had purchased Ning Bolen products at least twice, selected using a purposive sampling technique. In this study, there is an output produced, namely E-WOM and Product Quality have a positive and significant effect on Purchasing Decisions. In addition, E-WOM, Product Quality, and Purchasing Decisions also have a positive and significant effect on Customer Loyalty. Purchasing Decisions are proven to act as a partial mediator in the relationship between Product Quality and Customer Loyalty, but do not mediate the relationship between E-WOM and Loyalty (direct effect only). This research model shows good R² and Q² values and meets the validity and reliability requirements. This research provides implications for culinary MSMEs to consistently improve product quality and utilize E-WOM through digital platforms to strengthen the loyalty of millennial generation consumers.