The The Role of Customer Satisfaction on the Relationship between Service Quality, Price and Word of Mouth (WOM): The Experience of EDTL.EP in Dili, Timor-Leste
Keywords:
Service quality, Price, Satisfaction, Word of mouth (WOM).
Abstract
Service quality, price, customer satisfaction and word of mouth (WOM) appear to be the most important variables in today’s business market, and many researchers have focused their attentions on their relationships. This research aims to test the influence of service quality and price to customer satisfaction and WOM, as well as the mediation effect of customer satisfaction in the relationship between service quality and price with WOM. Using accidental sample method, this study collects data from 315 respondents from Timor-Leste Electricity, State-owned Entreprise namely Eletricidade de Timor Leste, Empresa Publica (EDTL.EP) customers who are based in Dili Municipality, and tests hypothesis using SMART-PLS 3.0. Result shows that relationship between both service quality, price, customer satisfaction and WOM have positive and significant effect. This study contributes to the extensive discussions related to service quality, price, customer satisfaction and WOM in different industries. It is also expected to contribute to the improvement EDTL.EP management to provide better service quality and meet customers’ expectation to encourage more positive recommendations to other customers via WOM.
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References
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Chandra, T., Hafni, L., Chandra, S., Purwati, A. A., & Chandra, J. (2019). The influence of service quality, university image on student satisfaction and student loyalty. Benchmarking, 26(5), 1533–1549. https://doi.org/10.1108/BIJ-07-2018-0212
Chaniotakis, I. E., & Lymperopoulos, C. (2009). Service quality effect on satisfaction and word of mouth in the health care industry. Managing Service Quality, 19(2), 229–242. https://doi.org/10.1108/09604520910943206
Chien, L. H., & Chi, S. Y. (2019). Corporate image as a mediator between service quality and customer satisfaction: difference across categorized exhibitors. Heliyon, 5(3), e01307. https://doi.org/10.1016/j.heliyon.2019.e01307
Choudhury, K. (2011). Service Quality and WOM (Word-of-Mouth). International Journal of Customer Relationship Marketing and Management, 2(2), 63–87. https://doi.org/10.4018/jcrmm.2011040105
Churchill Jr, G. A., & Surprenant, C. (1982). An investigation into the determinants of customer satisfaction. Journal of Marketing Research, 19(4), 491–504.
Cronin, J. J., & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. Journal of Marketing, 56(3), 55–68.
Dellarocas, C. (2003). The digitization of word of mouth: Promise and challenges of online feedback mechanisms. Management Science, 49(10), 1407–1424. https://doi.org/10.1287/mnsc.49.10.1407.17308
Ehsani, Z., & Ehsani, M. H. (2015). Effect of quality and price on customer satisfaction and commitment in Iran auto industry. International Journal of Flexible Manufacturing Systems, 3(3–4), 251–274.
Ennew, C. T., Banerjee, A. K., & li, D. (2000). Managing word of mouth communication: Empirical evidence from India. International Journal of Bank Marketing, 18(2), 75–83. https://doi.org/10.1108/02652320010322985
Flores, A. F., Saldanha, E. de S., & Vong, M. F. . (2020). The Mediation Effect of Customer Satisfaction on the Relationship Between Service Quality and Customer Loyalty. Journal of Management and Strategy, 2(1), 9. Retrieved from https://tljbm.org/jurnal/index.php/tljbm/article/view/22
Fornell, C., Rust, R. T., & Dekimpe, M. G. (2010). The Effect of Customer Satisfaction on Consumer Spending Growth. XLVII(February), 28–35.
Garvin, D. (1987). Competing on the eight dimensions of quality. Harv. Bus. Rev., 101–109.
Hair, J., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128
Hair, J., Sarstedt, M., Ringle, C., & Gudergan, S. (2017). Advanced Issues in Partial Least Squares Structural Equation Modeling. Sage.
Hepp, A. (2020). Katz, Elihu/Lazarsfeld, Paul F. (1955): Personal Influence. The Part Played by People in the Flow of Mass Communication. In Key Works of Network Analysis, (Eds, Holzer, B. & Stegbauer, C.) Springer VS, Wiesbaden (pp. 293–296). https://doi.org/10.1007/978-3-658-21742-6
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Iuliana-Raluca, G. (2012). Word-of-mouth communication: a theoretical review. Marketing and Management of Innovations, (1), 132–139.
Jiewanto, A., Laurens, C., & Nelloh, L. (2012). Influence of Service Quality, University Image, and Student Satisfaction toward WOM Intention: A Case Study on Universitas Pelita Harapan Surabaya. Procedia - Social and Behavioral Sciences, 40, 16–23. https://doi.org/10.1016/j.sbspro.2012.03.155
Karlíček, M., Tomek, I., & Křížek, M. (2014). Word-of-Mouth Marketing : An Integrated Model . (March).
Kennedy, P. W. (1994). Word‐of‐Mouth Communication and Price as a Signal of Quality. Economic Record, 70(211), 373–380. https://doi.org/10.1111/j.1475-4932.1994.tb01856.x
Kotler, & Armstrong, G. (2012). Principles of Marketing 14th Edition New Jersey: Pearson Prentice Inc.
Kotler, P., Kartajaya, H., & Setiawan, I. (2019). Marketing 3.0: From products to customers to the human spirit. In Marketing Wisdom (pp. 139–156). Springer.
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Published
2021-12-20
How to Cite
Tani, A., Saldanha, E. and Barreto, D. (2021) “The The Role of Customer Satisfaction on the Relationship between Service Quality, Price and Word of Mouth (WOM): The Experience of EDTL.EP in Dili, Timor-Leste”, Timor Leste Journal of Business and Management, 3(2), pp. 1-16. doi: 10.51703/bm.v3i2.53.
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