A Factor Analytic Investigation of Electronic Word-of-Mouth towards Fast Food Industry in Sri Lanka

Abstract

In modern marketing, the Fast Food Industry has experienced lots of changes. These changes have influenced both industries and the nature of the rivalry. Consequently, it is not shocking that these bread winners have been enforced in a puzzling situation to concentrate on their customers instead of positive word of mouth communication. One of the best ways that restaurants can be differentiated from others and accomplish competitive advantage is using positive word of mouth. Consequently, this research is contributed to the vital element that is influencing on Electronic Word-of-Mouth (EWOM) in selective Fast Food Restaurants. The data were collected from a convenience sample of 200 customers in Colombo Divisional Secretariat Division, Sri Lanka. The respondents provided the data utilizing a close-ended questionnaire. Exploratory Factor Analysis has been used to analyze the data and to draw the findings. From the factor analysis, it has been identified that four factors, namely Encouragement, In-depth explanation, Differentiation and Contacts, are the primary influencers. These four factors have combined variance of 55.411% of the decision regarding the adoption of Electronic Word-of-Mouth by Fast Food Restaurants to ensure strategic development.