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

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  • Phuong Hoang Lam

    (Van Lang University, Ho Chi Minh City, Vietnam)

  • Thanh Thi Bui

    (University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam)

  • Mai Thi Tuyet Vo

    (Van Lang University, Ho Chi Minh City, Vietnam)

  • Lan Thi Ngoc Tran

    (Ho Chi Minh City University of Food Industry, Ho Chi Minh City, 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.

Suggested Citation

  • Phuong Hoang Lam & Thanh Thi Bui & Mai Thi Tuyet Vo & Lan Thi Ngoc Tran, 2024. "Determinants of electronic word of mouth in the restaurant industry: An evidence from Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 14(2), pages 79-92.
  • Handle: RePEc:bjw:econen:v:14:y:2024:i:2:p:79-92
    DOI: 10.46223/HCMCOUJS.econ.en.14.2.2620.2024
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    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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