Abstract

The store atmosphere of servicescape has influenced customer decision-making regarding products and services. Servicescape communicates to customers through sensory perceptions that effect their beliefs, attitudes, satisfaction, loyalty, and word of mouth (WOM) about products, services, or service providers. As such, the objectives of the study were: (1) to examine the effect of servicescape on the service quality and word-of-mouth in Thailand, and (2) to investigate the role of service quality on the effect of servicescape on the word-of-mouth in Thailand. This paper was mainly embedded in the quantitative method. The research largely involved a survey design. The data were collected via questionnaire interviews from 720 samples comprising customers of retail stores in Thailand. Respondents were asked to rate, on a seven-point Likert scale, their agreement or disagreement on the servicescape, service quality, and WOM indicators. Structural equation modeling was used for data analysis due to the proposed model being a simultaneous system of equations having latent constructs and multiple indicators. It was found that there was a significant effect of servicescape on the service quality and WOM in the retailing sector in Thailand. Also, the relationship between servicescape and WOM was partially mediated by the service quality.

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