How Do Trust and Credibility Mediate the Impact of User-generated Content? Exploring the Moderating Roles of Tie Strength and Prior Knowledge

Online platforms allow customers to share their experiences with the rest of the world. These platforms play an essential role in changing the purchase decisions of potential customers through electronic word of mouth, reviews and opinions, known as user-generated content (UGC). This study aims to grasp largely unexplored phenomena of UGC’s influence on other consumers’ purchase intentions. The model uses stimulus organism response theory to unveil the role of tie strength and prior knowledge in consort with the underlying brand trust and credibility mechanism. Data from 320 respondents living in Karachi, Pakistan, were collected using purposive sampling and analysed through structural equation modelling using AMOS 24. Perceived credibility and trust in information mediate the influence of UGC on customers’ purchase intention. Furthermore, tie strength and prior knowledge moderate UGC’s influence on purchase intention by strengthening and weakening them. These findings imply that the relationship between UGC and customers’ purchase intention is further strengthened if potential customers have a closer relationship with the brand. This study stresses that managers should consider consumers’ reviews before designing a product and promotion strategy.