Determinants of electronic word of mouth in the restaurant industry: An evidence from Vietnam

Abstract

The food and beverage industry in Vietnam has developed dramatically, resulting in a highly competitive market. To win the competition, the restaurant managers not only strive to increase customer satisfaction but also create customers’ positive electronic Word-Of-Mouth (eWOM). This study aims to investigate the relationship between customer satisfaction, customer trust, customer loyalty, and eWOM. The quantitative method was implemented to examine the hypotheses in the research model. Data were collected from Ho Chi Minh City respondents using a convenient sampling method. Self-administrated questionnaires were delivered via the Internet for data collection. After data screening, 299 responses were qualified for analysis. Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis was employed by SmartPLS software version 3.0. The measurement model test showed that one item of customer trust has a factor loading of less than 0.7 as a result, this item was removed from the research model. The structural model evaluation revealed the highly predictive accuracy of the model as all dependent variables have R2 values above 0.5. A bootstrapping test with 5,000 subsamples also showed that customer loyalty significantly influences eWOM, but customer trust does not. Customer satisfaction directly and significantly impacts customer trust and loyalty but has little influence on eWOM. However, the relationship between customer satisfaction and eWOM is significant without the presence of customer loyalty and trust. The indirect effect test also determines the full mediation role of customer loyalty in the relationship between customer satisfaction and eWOM.