The Influence of Electronic Word of Mouth (e-WOM) and Brand Authenticity on Consumer Loyalty toward Local Brands in the Digital Economy Era

Sumaryanto Sumaryanto; Sri Wahyuning

doi:10.51903/3y0nzh34

Authors

Sumaryanto Sumaryanto Universitas Sains dan Teknologi Komputer, Kota Semarang, Jawa Tengah, Indonesia https://orcid.org/0009-0001-1992-9413
Sri Wahyuning Universitas Sains dan Teknologi Komputer, Kota Semarang, Jawa Tengah, Indonesia https://orcid.org/0009-0008-8953-5111

DOI:

https://doi.org/10.51903/3y0nzh34

Keywords:

Electronic Word of Mouth (e-WOM), Brand Authenticity, Consumer Loyalty, Local Brands, Digital Economy

Abstract

The rapid development of the digital economy has transformed how consumers interact with brands, particularly through electronic word of mouth (e-WOM) and increasing awareness of brand authenticity. In this context, local brands are required to adapt to digital dynamics to build and maintain consumer loyalty. This study aims to analyze the influence of e-WOM and brand authenticity on consumer loyalty toward local brands in the digital economy era. The research employs a quantitative approach with an explanatory design, using primary data collected through online questionnaires distributed to 150 respondents who have experience purchasing local brand products and engaging with digital platforms. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the relationships between variables. The findings indicate that both e-WOM and brand authenticity have a positive and significant effect on consumer loyalty, both individually and simultaneously. These results highlight that digital interaction and perceived brand authenticity play a crucial role in shaping long-term consumer relationships. This study contributes to the development of consumer behavior literature by integrating external digital influence and internal perception factors, while also providing practical implications for local brands to enhance competitive advantage through effective digital communication and consistent brand identity.

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