IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 20, Issue 2. Ver. IX (February. 2018), PP 01-07 www.iosrjournals.org DOI: 10.9790/487X-2002090107 www.iosrjournals.org 1 | Page Customer Perceived Value as a Predictor of E-Wom on Online Shopping Putu Yudi Setiawan 1 , Komang Agus Satria Pramudana 2 1 (Department of Management, Udayana University, Indonesia) 2 (Department of Management, Udayana University, Indonesia) Corresponding Author: Putu Yudi Setiawan Abstract : This research seeks to integrate the relationship between customer perceived value, satisfaction, and E-WOM on customers who shop online in social media. The sample is determined by purposive sampling technique using certain consideration of 110 respondents. A questionnaire used to collect data using Likert scale 5 levels and then analyzed by using SEM analysis. The results showed a significant positive relationship between variables where the customer perceived value affects the satisfaction which further able to create a positive and significant E-WOM. The test results can be used as a reference in preparing an online marketing strategy (e-marketing) that is expected to change in the way of shopping among buyers, so it is expected to better ensure the trust between parties involved in the online transaction process. Keywords - Customer Perceived Value, Customer Satisfaction, E-WOM --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 12-02-2018 Date of acceptance: 26-02-2018 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction Today's technological developments result in companies being demanded to be more creative and innovative. Technological advances, especially information technology, encourage more intense competition in the business world. Leading companies are those who are deftly handling business change and can take advantage of existing opportunities, they are required to deliver the best to customers in the form of superior customer value. The perceived value of the customer becomes important because the greater customer perceived value can lead to greater customer satisfaction, stronger competitive position, and higher market share (Fornell et al., 1992). In addition, Stahl et al. (2015) state that customer perceived value is a key driver for developing and maintaining a loyal customer base because customer perceived value has an important role in customer acquisition and retention. Eggert and Ulaga (2002) argue that firms that provide a good customer perceived value can gain a competitive advantage. Companies that recognize the importance of customer perceived value provide the possibility of building relationships with customers because it is believed the value that customers will be able to produce satisfaction (Chen & Dubinsky, 2003).Well perceived customer value will succeed in giving satisfaction to its customers and the next will also impact on the spread of WOM (word of mouth) is positive. Currently, WOM deployment does not only happen in conventional ways. The phenomenon also occurs in online shopping activities. The Internet has evolved into a source of ongoing electronic word of mouth communication (E-WOM) among customers (Henig-Thurau et al., 2004). It is further stated that the spread of E- WOM is faster and wider, more accessible, more scalable, and can provide social benefits. In the context of online shopping, WOM transforms into E-WOM (electronic word of mouth). Satisfied customers are more likely to do a positive E-WOM. Nevertheless, the research that connects customer satisfaction with E-WOM is still limited today.Based on the previous description, this research attempts to integrate customer variable relationship perceived value, satisfaction variable and E-WOM variable which in previous research is done partially. This study applies the variables that existed in previous studies and then integrated them in a new concept by modifying some indicators according to the conditions required in this study. II. Literature Review And Conceptual Framework Customer perceived value is the customer's overall assessment of the usefulness of the product based on what perceptions are received and what is given, Zeithaml (1988: 14). Alshibly (2015), expresses trust and quality of service can affect the perceived value of the customer (customer perceived value). Online trust and quality of online services have a positive and significant impact on customer satisfaction. Cronin et al. (2000), observes that overall customer satisfaction is a perceived quality and perceived value of the customer globally, and shows that quality perceptions have a strong effect on satisfaction. From the previous description, the hypothesis is arranged as follows:H1. Costumer perceived value has a positive and significant effect on customer satisfaction on online shopping.Alshibly (2015) in his study, stated that customer perceived value is a