The Influence of User Generated Content on Online Purchase Intention with Special Reference to Sri Lankan Handicraft Industry

Abstract

This study was conducted to identify User Generated Contents’ influence on online purchase intention with special reference to the Sri Lankan Handicrafts industry. This study was based on the seven hypotheses which were constructed to reveal whether perceived credibility, perceived usefulness, perceived risk, and attitude towards UGC affect online purchase intention. These factors were identified based on previous literature; therefore, the study was based on a deductive approach. The researcher used a structured questionnaire for primary data collection. A convenient sampling technique was employed to gather data from Colombo, Kandy, Kegalle area. In terms of measuring the relationship between variables, the researcher employed SPSS tool. The hypotheses were tested by using regression analysis. The analysis results revealed that perceived credibility, perceived usefulness, and perceived risk positively impact attitude towards UGC, and Attitude towards UCG has a positive impact on online purchase intention. Further, there was a negative relationship between perceived risk and perceived usefulness. Finally, the researcher recommends that UGC increase the perceived credibility, perceived usefulness and minimize the perceived risk by providing reasonable compensation. It creates a positive attitude towards UGC and positively impacts increasing the online purchases of Sri Lankan Handicrafts products. Therefore, motivating customers to generate UGC is positively impact on increasing online purchases.