Word of mouth communication: A mediator of relationship marketing and customer loyalty

Abstract

A cross-sectional and quantitative study design, with the aim of explaining the relationship between relationship marketing and customer loyalty, and the mediating role of word of mouth in this relationship was undertaken. A sample of 384 was determined from a population of the mobile telecommunication users based on Krejcie & Morgan sampling framework. The study utilized 384 questionnaires. The authors conducted confirmatory factor, correlation, regression, mediation and SEM for analysis, interpretation and results. While trust, relationship satisfaction and reciprocity components of relationship marketing have been found to be significant predictors of customer loyalty in other studies, our study findings reveal contrasting results. This is a unique finding in our study. However, in line with earlier studies, our findings indicate a positive significant relationship between relationship marketing components of communication, commitment and customer loyalty. The study also finds a significant positive relationship between the relationship marketing components of communication and commitment and word of mouth and a significant positive relationship between word of mouth and customer loyalty. Telecommunication companies should pay attention to relationship encounters that build commitment, should develop targeted communication channels which build positive word of mouth communication. This will ultimately create loyal customers for mobile telecommunication companies.

Keywords

• uganda’s ict sector
• mobile telecommunications
• word of mouth
• relationship marketing