From Authenticity to Action: How Perceived Authenticity and Digital Word-of-Mouth Drive Purchase Intention for Local Products
Abstract
This study investigates the influence of perceived authenticity and electronic word-of-mouth (e-WOM) on consumers’ purchase intention toward local products in Balikpapan, Indonesia. Grounded in signaling theory, this research examines how internal product cues and external digital information shape consumer decision-making. A quantitative approach was employed using a survey of 150 respondents, and the data were analyzed using multiple linear regression with SPSS. The results reveal that perceived authenticity has a positive and significant effect on purchase intention, indicating that consumers highly value product originality, cultural representation, and credibility. In contrast, e-WOM does not show a significant direct effect on purchase intention, suggesting that consumers rely less on online reviews when evaluating local products. However, both variables jointly have a significant effect, demonstrating that consumer behavior is influenced by a combination of internal perceptions and external information. This study contributes to the literature by highlighting the dominant role of authenticity and identifying the contextual limitation of e-WOM in local product markets. The findings offer practical implications for local businesses to prioritize authenticity as a strategic driver of consumer engagement.
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