Effect of Brand Equity on Consumers` Word-of-Mouth Behaviour in Herbal Market in Ghana

Abstract

High levels of brand awareness, image and credibility have a profound impact on customers’ favourable word-of-mouth behaviour, which can lead to an increase in market share. Despite the important role of brand awareness, image and credibility in supporting customers’ word-of- mouth behaviour, there are limited studies on the mediating role of brand credibility in the impact of brand awareness and image on word-of-mouth praise and activity in the herbal market. Hence, this paper aimed to investigate the impact of brand awareness and brand image on word-of-mouth activity and praise via the mediating role of brand credibility in the herbal market. Data were gathered from a sample of 265 customers in the Cape Coast herbal market using a systematic sampling technique. The research hypotheses were statistically analysed through structural equation modelling, using SPSS and Amos 26. The research found that the impact of brand awareness and brand image on word-of-mouth activity is not mediated by brand credibility. However, the effect of brand awareness and image on word-of-mouth praise is fully mediated by brand credibility. The research established that brand credibility is an important element in building brand awareness and image to strengthen word-of-mouth praise in the herbal market in Ghana.