Economics and Business
ISSN 2775-9237 (Online)
Published: 12 April 2021
The Relationship between Word-of-Mouth, Satisfaction, Trust and Loyalty in Herbal Medicine Industry
Peter Kwasi Oppong, Adelaide Gyawu, Clementina Araba Yawson
University of Energy & Natural Resources (Ghana), Cape Coast Technical University (Ghana), University of Cape Coast (Ghana)
Download Full-Text Pdf
Keywords: Word-of-Mouth, Satisfaction, Trust, Loyalty, Herbal Medicine
Favourable word-of-mouth, customer satisfaction and trust are essential elements for strengthening customer brand loyalty to gain a sustainable advantage in a competitive market. However, there is a relative scarcity of research on the impact of word-of-mouth and customer satisfaction on brand loyalty through the mediated role of brand trust in the herbal medicine market. Consequently, this research aimed to assess the impact of word-of-mouth and customer satisfaction on loyalty through the mediating role of trust in the herbal medicine market. A survey questionnaire was utilised to obtain empirical data from a sample of 265 customers through systematic sampling strategy. Covariance-based structural equation modelling was employed to examine the hypotheses formulated to achieve the aim of the study. The research established that positive word-of-mouth, satisfaction, and trust significantly impact loyalty in the herbal medicine market. More importantly, the research indicated that the customers` trust partially mediated the impact of word-of-mouth and customer satisfaction on loyalty in the herbal medicine market. Hence, this research contributes to advancing the extant brand management literature by establishing the intervening role of trust in the relationship between word-of-mouth, satisfaction and loyalty in the herbal medicine market. This research further provides a reference point to encourage the practitioners to develop and track the customers` word-of-mouth, satisfaction and brand trust to enhance loyalty in the industry.
Aaker, D. A. (1991). Managing Brand Equity: Capitalising on the Value of Brand Name. New York: The Free Press.
Akbar, M. M., & Parvez, N. (2009). Impact of Service Quality, Trust, and Customer Satisfaction on Customer Loyalty. ABAC Journal, 29(1), 24-38.
Bagozzi, R. P., & Yi, Y. (1988). On the Evaluating Structural Equation Models. Journal of Academy of Marketing Research, 16(1), 074-094.
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychology Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.
Byrne, B. M. (2016). Structural Equation Modelling with AMOS: Basic Concepts, Applications and Programming, (3rd ed.), New York: Taylor & Francis.
Chaudhuri, A., & Holbrook, M. B. (2001). The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing, 65(2), 81-93.
Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches, (4thed.). California: SAGE Publications
Delgado-Ballester, E., & Munuera-Alemán, J. L. (2005). Does Brand Trust Matter to Brand Equity? Journal of Product & Brand Management, 14(3), 187-196.
Dick, A. S., & Basu, K. (1994). Customer Loyalty: Toward an Integrated Conceptual Framework. Journal of Academy of Marketing Science, 22(2), 99-113.
Essegbey, G. O., Awuni, S., Essegbey, I. T., Akuffobea, M., & Mica, B. (2014). Country Study on Innovations, Intellectual Property and Informal Economy: Traditional Medicines in Ghana, (13thed.), Geneva: World International Property Organization.
Ferrell, O. C., & Hartline, M. C. (2011). Marketing Strategy, (5th ed.). USA: Cengage Learning.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.
Ha, H-Y. (2004). Factors Influencing Customer Perceptions of Brand Trust Online. Journal of Product and Brand Management, 5, 329-342.
Hair, J. H. Jr., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis, (7th ed.), England: Pearson Education.
Hair, J. H. Jr., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial Least Squares Structural Equation Modelling (PLS-SEM): An Emerging Tool in Business Research. European Business Review, 26 (2), 106-121.
Hanaysha, J. (2016). Examining the Link between Word-of-Mouth and Brand Equity: A Study on International Fast Food Restaurants in Malaysia. Journal of Asian Business Strategy, 6(3), 41- 49.
Harrison-Walker, L. T. (2001). The Measurement of Word-of-Mouth Communication and an Investigation of Service Quality and Customer Commitment as Potential Antecedents. Journal of Service Research, 4(1), 60-75.
He, H., Li, Y., & Harris, L. (2012). Social Identity Perspective on Brand Loyalty. Journal of Business Research, 65, 648-657.
Alhulail, A, Dick, M., & Abareshi, A. (2018). “The Influence of Word-of-Mouth on Customer Loyalty to Social Commerce Websites.” ( Retrieved January, 2020)
Hoffman, K. D., & Bateson, J. E. G. (2011). Services Marketing: Concepts, Strategies, & Cases, (4th ed.). USA: Cengage Learning.
Hoyer, W. D., & Maclnnis, D. J. (2010). Consumer Behaviour, (5th ed.). USA: Cengage Learning.
Hu, L., & Bentler, P. M. (1999). Cut-off Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria versus New Alternatives. Structural Equation Modelling: Multidisciplinary Journal, 6(1), 1-55.
Kardes, F. R., Cronley, M. L., & Chine, T.W. (2011). Consumer Behaviour. USA: Cengage Learning.
Kline, R. B. (2015). Principles and Practice of Structural Equation Modelling, (2nded.), New York: Guilford Press.
Kotler, P., & Keller, K. L. (2012). Marketing Management, (14th ed.). New Jersey: Pearson Education, Inc.
Krejcie, R. V., & Morgan, D. V. (1970). Determining Sample Size for Research Activities. Education and Psychological Measurement, 30, 607-610.
Liao, S. H., Chung, Y. C., Hung, Y. R., & Widowati, R. (2010). The Impact of Brand Trust, Customer Satisfaction and Brand Loyalty on Word-of-Mouth. 2010 IEEE International Conference on Industrial Engineering and Engineering Management, pp.1319-1323.
Lovelock, C., & Wright, L. (2002). Principles of Services Marketing and Management, (2nded.). New York: Pearson Education.
Malhotra, N. K., Nunan, D., & Birks, D. F. (2017). Marketing Research: An Applied Approach, (5th ed.). United Kingdom: Pearson Education.
Markovic, S., Iglesias, O., Singh, J. J., & Sierra, V. (2015). How does the Perceived Ethicality of Corporate Services Brands Influence Loyalty and Positive Word-of-Mouth? Analysis the Role of Empathy, Affective Commitment, Perceived Quality. Journal of Business Ethics, 148(4), 721-740.
Mikalef, P., Pappas, I. O., & Giannakos, M. N. (2017). Value Co-creation and Purchase Intention in Social Commerce: The Enabling Role of Word-of-Mouth and Trust. Paper Presented in Twenty-third Americas Conference on Information Systems, Boston, MA.
Miles, M. B., Huberman, A. M., & Saldaña, J. (2014). Qualitative Data Analysis: A Methods Sourcebook, (3rd ed.). USA: SAGE Publication.
Moreira, A., da Silva, P. M., & Moutinho, V. M. (2017). The Effect of Brand Experiences on Quality, Satisfaction, and Loyalty: An Empirical Study in Telecommunications Multiple-play Service Market. Revista Innovar Journal, 27(64), 23-38.
Morgan, R. M., & Hunt, S. D. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58, 20-38.
Mothersbaugh, D. L., & Hawkins, D. I. (2016). Consumer Behaviour: Building Marketing Strategy, (13th ed.). New York: McGraw-Hill Education.
Naresh, B., & Reddy, D. B. S. (2016). Impact of Perception on Customer Purchase Behaviour of Herbal Product in India. Indian Journal of Research, 5 (6), 233-235.
Nikhashemi, S. R., Paim, L. H., & Khatibi, A. (2015). The Role of Brand Loyalty in Generating Positive Word-of- Mouth among Malaysian Hypermarket Customers. International Journal of Economics and Management Engineering, 9(4), 1647-1652.
Niyomsart, S., & Khamwom, A. (2016). Brand Love, Brand Loyalty, and Word-of-Mouth: A Case of Air Asia. Conference of the International Journal of Arts and Sciences, 9 (1), 263-268.
Oliver, R. L. (1999). Whence Consumer Loyalty? Journal of Marketing, 63, 33-44.
Pallant, J. (2013). SPSS Survival Manual: A Step by Step Guide to Data Analysis using IBM SPSS (5thed.), New York: McGraw-Hill Education.
Putri, Y. A., Wahab, Z., & Shihab, M. S. (2018). The Effect of Service Quality and Brand Trust on Loyalty and the Intervening Role of Customer Satisfaction in Transportation Services. International Journal of Scientific and Research Publications, 8(7), 369-376.
Solomon, M., Bamossy, G., Askegarrd, S., & Hogg, M. K. (2013). Consumer Behaviour: An European Perspective, (5th ed.). England: Pearson Education.
Sweeney, J. C., Soutar, G. N., & Mazzarol, T. (2008). Factors Influencing Word of Mouth Effectiveness: Receiver Perspective. European Journal of Marketing, 42(3/4), 344-364.
Tavakol, M., & Dennick, R. (2011). Making Sense of Cronbach’s Alpha. International Journal of Medical Education, 2, 53-55.
UNDP (2007). The Ghana Human Development Report: Towards a More Inclusive Society, Ghana ( Retrieved July 7, 2020).
Vazifehdoost, H., Rahnama, A., & Mousavian, S. J. (2014). Evaluation of the Impact of Brand Purchase Involvement, Satisfaction, Experience and Brand Trust on Loyalty to Brand. Mediterranean Journal of Social Sciences, 5 (20), 3054-3063.
WHO (2002). WHO Traditional Medicine Strategy, 2002-2005. Geneva ( Retrieved September 20, 2020)
WHO (2008). Traditional Medicine. Fact Sheet No.134 ( Retrieved June 4, 2020)
WHO (2011). Traditional Medicines, Global Situation, Issues, and Challenges. The World Medicines Situation, (3rd ed.), Geneva ( Retrieved June 14, 2020).
Wijaya, H. R., & Astuti, S. R. T. (2018). “The Effect of Trust and Brand Image to Repurchase Intention in Online Shopping.” KnE Social Sciences, 915-928.
Zboja, J. J., & Voorhees, C. M. (2006). The Impact of Brand Trust and Satisfaction on Retailer Repurchase Intentions. Journal of Services Marketing, 20(5), 381-390.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The Behavioural Consequences of Service Quality. Journal of Marketing, 60, 31-46.