A Influence of Digital Literacy on Customer Purchase Intention:The Mediating Role of Social Media Usage and Moderating Impact of User Engagement and e-Word of Mouth

Abstract

This research investigated the influence of digital literacy on customer purchase intention through the mediating role of social media usage and the moderating impact of user engagement as well as e-word of mouth (e-WOM). A quantitative research design was employed, and data were collected from 184 consumers in Pakistan using a convenience sampling technique. The findings demonstrate that digital literacy and social media usage positively influence consumer purchase intention. Furthermore, digital literacy has a positive impact on social media usage, confirming that all three direct relationship hypotheses of the study are supported. Social media usage was also examined as a mediating link between digital literacy and purchase intention. The partial mediation effect suggests that digital literacy leads to purchase intention through social media usage, providing direction for consumer decision-making via active social media participation. The study also highlights the moderating role of user engagement, hypothesizing that more engaged consumers will amplify the impact of digital literacy on purchase intentions. This hypothesized relationship was supported by the results. The second moderating variable, e-word of mouth (e-WOM), was also confirmed, indicating that consumers rely on e-WOM, potentially due to their digital literacy. The contribution of this study lies in demonstrating that digital literacy is a crucial factor for consumer purchase intention, as digitally literate consumers use social media more effectively, and their engagement can further increase purchase intention. Future researchers can gain valuable insights from this study, as it addresses a novel phenomenon by linking digital literacy to consumer behavior in the context of evolving technological advancements and the rise of online shopping.