Relationship of positive valence WOM and customer loyalty in social media: trust, value co-creation, and brand image as mediators

Abstract

In the midst of increasingly tight business competition, with numerous imitations of business ideas and solutions, competitive advantage alone is not sufficient to maintain customer loyalty. Considering the importance of maintaining customer loyalty, this study aims to analyze the relationship between positive valence WOM (PVWOM) and customer loyalty, with mediating factors such as trust, value co-creation, and brand image. This research is expected to contribute to theoretical understanding of the variables under study and provide managerial implications to organizations in various industry sectors. It is also hoped to strengthen our understanding of PVWOM in social media, assist marketers in gaining insights into the factors influencing the relationship between PVWOM and customers on social media, and aid them in designing digital marketing strategies. This research involves 4 schools in Kabupaten Bekasi with a total of 210 respondents over three months. Data were analyzed using Structural Equation Model (SEM) AMOS. The results show a positive relationship between PVWOM and customer loyalty, with trust, value co-creation, and brand image partially mediating this relationship. Additionally, the research findings support a serial mediation model where PVWOM influences loyalty through trust and value co-creation sequentially. Managerial implications applicable to the education sector include the notion that a good level of positive valence WOM will enhance proactive attitudes in teaching and learning activities, as well as foster collaborative knowledge creation. Current conditions urge educational institutions to innovate information and communication technology in every teaching and learning activity. Positive valence WOM can be enhanced through social networks interacting to obtain innovative ideas and insights from their customers. If educational institution customers can actively participate in decision-making, then positive valence WOM can be leveraged to impact management within educational institutions.

 

Keywords
  • WOM
  • Customer Loyalty
  • Trust
  • Value Co-Creation
  • Brand Image
References
  1. Abela, A. V., & Murphy, P. E. (2008). Marketing with integrity: Ethics and the service-dominant logic for marketing. Journal of the Academy of Marketing Science, 36(1), 39–53. https://doi.org/10.1007/s11747-007-0062-0
  2. Angelis, M. D. E., Bonezzi, A., Peluso, A. M., Rucker, D., & Costabile, M. (2012). On Braggarts and Gossips : A Self- Enhancement Account of Word-of-Mouth Generation and Transmission. XLIX(August), 551–563.
  3. Ayeh, J. K., Au, N., & Law, R. (2013). Predicting the intention to use consumer-generated media for travel planning. Tourism Management, 35, 132–143. https://doi.org/10.1016/j.tourman.2012.06.010
  4. Berger, J., & Iyengar, R. (2013). Communication channels and word of mouth: How the medium shapes the message. Journal of Consumer Research, 40(3), 567–579. https://doi.org/10.1086/671345
  5. Boubker, O., & Douayri, K. (2020). Dataset on the relationship between consumer satisfaction, brand attitude, brand preference and purchase intentions of dairy product: The case of the Laayoune-Sakia El Hamra region in Morocco. Data in Brief, 32, 0–6. https://doi.org/10.1016/j.dib.2020.106172
  6. Cecchetto, F. H., & Pellanda, L. C. (2014). Construction and validation of a questionnaire on the knowledge of healthy habits and risk factors for cardiovascular disease in schoolchildren ଝ , ଝଝ. 90(4).
  7. Chen, A. H., & Wu, R. Y. (2022). Mediating Effect of Brand Image and Satisfaction on Loyalty through Experiential Marketing : A Case Study of a Sugar Heritage Destination.
  8. Dam, S. M., & Dam, T. C. (2021). Relationships between Service Quality, Brand Image, Customer Satisfaction, and Customer Loyalty. Journal of Asian Finance, Economics and Business, 8(3), 585–593. https://doi.org/10.13106/jafeb.2021.vol8.no3.0585
  9. East, R., Hammond, K., & Lomax, W. (2008). Measuring the impact of positive and negative word of mouth on brand purchase probability. International Journal of Research in Marketing, 25(3), 215–224. https://doi.org/10.1016/j.ijresmar.2008.04.001
  10. Erkan, I. (2015). Electronic Word of Mouth on Instagram: Customers’ Engagements with Brands in Different Sectors. International Journal of Management, Accounting and Economics, 2(12), 1435–1444.
  11. Erkan, I. (2016). The Impacts of Electronic Word of Mouth in Social Media on Consumer’s Purchase Intentions. International Conference on Digital Marketing, 11. http://v-scheiner.brunel.ac.uk/bitstream/2438/9706/1/Fulltext.pdf
  12. Frooghi, R. (2019). Does Value Co-Creation Impacts Customer Loyalty and Repurchase Intention ? IBT Journal of Business Studies, 15(1), 1–18. https://doi.org/10.46745/ilma.jbs.2019.15.01.01
  13. Goel, P., Garg, A., Sharma, A., & Rana, N. P. (2022). I won’t touch money because it is dirty: examining customer’s loyalty toward M-payment. International Journal of Bank Marketing, 40(5), 992–1016. https://doi.org/10.1108/IJBM-06-2021-0272
  14. Goldenhar, L. M., & Connell, C. M. (2005). Understanding and Predicting Recycling Behavior: An Application of the Theory of Reasoned Action. Journal of Environmental Systems, 22(1), 91–103. https://doi.org/10.2190/92ku-nxlt-xc32-rhd6
  15. Goyette, I., Ricard, L., & Bergeron, J. (2010). e-WOM Scale : Word-of-Mouth Measurement Scale for e-Services Context *. 23, 5–23.
  16. Hadi, D. P., & Indradewa, R. (2019). The Service Quality Effect on Corporate Reputation, Customers Satisfaction, and Loyalty. Journal of Multidisciplinary Academic 51 JoMA, 03(03), 51–56. file:///C:/Users/HP/Downloads/12JOMADwiPublished.pdf
  17. Hair, J., Anderson, R., Babin, B., & Black, W. (2010). Multivariate Data Analysis.pdf. In Australia : Cengage: Vol. 7 edition (p. 758).
  18. Haryono, R. (2022). Intensity, positive valence, negative valence, and content of electronic word of mouth influence online shopping intention. Jurnal Ekonomi Perusahaan, 29(2), 39–50. https://doi.org/10.46806/jep.v29i2.888
  19. Hennig-Thurau, T., Gwinner, K. P., Walsh, G., & Gremler, D. D. (2004). Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the Internet? Journal of Interactive Marketing, 18(1), 38–52. https://doi.org/10.1002/dir.10073
  20. Hibbert, S., Winklhofer, H., & Temerak, M. S. (2012). Customers as Resource Integrators: Toward a Model of Customer Learning. Journal of Service Research, 15(3), 247–261. https://doi.org/10.1177/1094670512442805
  21. Hsieh, A. T., & Li, C. K. (2008). The moderating effect of brand image on public relations perception and customer loyalty. Marketing Intelligence and Planning, 26(1), 26–42. https://doi.org/10.1108/02634500810847138
  22. Insan Waluya, A., Ali Iqbal, M., & Indradewa, R. (2019). How product quality, brand image, and customer satisfaction affect the purchase decisions of Indonesian automotive customers. In J. Services, Economics and Management (Vol. 10, Issue 2). http://www.marklines.com
  23. Islam, T., Islam, R., Pitafi, A. H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, M. S. (2021). The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust. In Sustainable Production and Consumption (Vol. 25, Issue August). https://doi.org/10.1016/j.spc.2020.07.019
  24. Ismail, A., Sufardi, Y., & Yunan, M. (2016). LogForum Service Quality As A Predictor. Scientific Journal of Logistics, 12(4), 269–283. https://doi.org/10.17270/J.LOG.2016.4.7
  25. Jalilvand, M. R., & Samiei, N. (2012). The effect of electronic word of mouth on brand image and purchase intention: An empirical study in the automobile industry in Iran. Marketing Intelligence and Planning, 30(4), 460–476. https://doi.org/10.1108/02634501211231946
  26. Kartika, T., Ibn, U., Bogor, K., Firdaus, A., & Najib, M. (2019). Contrasting the drivers of customer loyalty ; fi nancing and depositor customer , single and dual customer , in Indonesian Islamic bank. October. https://doi.org/10.1108/JIMA-04-2017-0040
  27. Kelley, H. H., & Michela, J. L. (1980). Attribution Theory and Research. Annual Review of Psychology, 31(1), 457–501. https://doi.org/10.1146/annurev.ps.31.020180.002325
  28. Kenny, D. A. (2018). Introduction to Mediation, Moderation, and Conditional Process Analysis Methodology in the Social Sciences. www.guilford.com/MSS
  29. Kiseleva, E. M., Nekrasova, M. L., Mayorova, M. A., Rudenko, M. N., & Kankhva, V. S. (2016). International Review of Management and Marketing Special Issue on “Management of Systems of Socio-Economic and Legal Relations in Modern Conditions of Development of Education and Society” The Theory and Practice of Customer Loyalty Management and Custome. International Review of Management and Marketing |, 6(S6), 95–103. http:www.econjournals.com
  30. Maduka, O. B. (2016). Effects of Customer Value Co-Creation on Customer Loyalty in the Nigerian Service Industry. International Journal of Business and Management, 11(12), 77. https://doi.org/10.5539/ijbm.v11n12p77
  31. Massie, J., Saerang, R., Indriani Wola, M., Massie, J. D., & Saerang, R. T. (2021). The Effect Of Experiential Marketing And E-Wom On Customer Loyalty (Case Study: D-Linow Restaurant). Jurnal EMBA, 9(1), 1264–1271.
  32. Mosahab, R., Mahamad, O., & Ramayah, T. (2010). Service Quality, Customer Satisfaction and Loyalty: a Test of Mediation. International Business Research, 3(4), 72–80. https://doi.org/10.5539/ibr.v3n4p72
  33. Ningsih, D. R., AP, I. W. J., & Sopiah. (2019). The Effect of Service Quality and Electronic Word of Mouth (E-WOM) Towards the Loyalty Through Brand Image (The Study on the Customers of Sriwijaya Air in Indonesia). European Journal of Business and Management, 11(15), 79–88. https://doi.org/10.7176/EJBM
  34. Prahalad, C. K., & Ramaswamy, V. (2004). Co-creating unique value with customers. Strategy & Leadership, 32(3), 4–9. https://doi.org/10.1108/10878570410699249
  35. Prastiwi, E. H., Surachman, Sunaryo, & Hussein, A. S. (2019). The Role of Value Co-Creation in Improving Customer Loyalty with Customer Satisfaction as Mediating Variable. 100(Icoi), 596–601. https://doi.org/10.2991/icoi-19.2019.104
  36. Puspitasari, D. A., & Kustiawan, U. (2023). Peran Customer Experience Terhadap Loyalty, Word Of Mouth Dan Retention Melalui Relationship Quality. In Jurnal Manajemen Dewantara (Vol. 7, Issue 3). http://jurnal.ustjogja.ac.id
  37. Rai, N., & Thapa, B. (n.d.). A Study On Purposive Sampling Method In. 1–12.
  38. Rao, K. S., Rao, B., & Acharyulu, G. V. R. K. (2021). Examining ePWOM-purchase intention link in Facebook brand fan pages: Trust beliefs, value co-creation and brand image as mediators. IIMB Management Review, 33(4), 309–321. https://doi.org/10.1016/j.iimb.2021.11.002
  39. See-To, E. W. K., & Ho, K. K. W. (2014). Value co-creation and purchase intention in social network sites: The role of electronic Word-of-Mouth and trust - A theoretical analysis. Computers in Human Behavior, 31(1), 182–189. https://doi.org/10.1016/j.chb.2013.10.013
  40. Serra-Cantallops, A., Ramon-Cardona, J., & Salvi, F. (2018). The impact of positive emotional experiences on eWOM generation and loyalty. Spanish Journal of Marketing - ESIC, 22(2), 142–162. https://doi.org/10.1108/SJME-03-2018-0009
  41. Syah, T. Y. R. (2013). Perbedaan Pengaruh Citra Merek Dan Reputasi Perusahaan Terhadap Kualitas Produk, Nilai Pelanggan Dan Loyalitas Pelanggan Di Pasar Bisnis. Jurnal Ekonomi, 4 (2)(November), 209–226.
  42. Tantri. (2020). Service Quality, Customer Satisfaction, Customer Trust, and Customer Loyalty in Service of Paediatric Polyclinic Over Private H Hospital of East Jakarta, Indonesia. Journal of Multidisciplinary Academic, 4(2), 105–111.
  43. Tran, G. A., & Strutton, D. (2020). Comparing email and SNS users: Investigating e-servicescape, customer reviews, trust, loyalty and E-WOM. Journal of Retailing and Consumer Services, 53(September 2018). https://doi.org/10.1016/j.jretconser.2019.03.009
  44. Wilson, N. (2018). The Impact of Service Quality and Brand Image toward Customer Loyalty in the Indonesian Airlines Industry. Jurnal Manajemen Indonesia, 18(3), 222–234.
  45. Yi, Y., & Gong, T. (2013). Customer value co-creation behavior : Scale development and validation. 66, 1279–1284. https://doi.org/10.1016/j.jbusres.2012.02.026
  46. Zhang, C. B., & Li, Y. (2019). How social media usage influences B2B customer loyalty: roles of trust and purchase risk. Journal of Business and Industrial Marketing, 34(7), 1420–1433. https://doi.org/10.1108/JBIM-07-2018-0211
  47. Zheng, X., Cheung, C. M. K., Lee, M. K. O., & Liang, L. (2015). Building brand loyalty through user engagement in online brand communities in social networking sites. Information Technology and People, 28(1), 90–106. https://doi.org/10.1108/ITP-08-2013-0144