The influences of service quality of online order and electronic word of mouth on price sensitivity using loyalty as a mediating variable

Abstract

The purpose of this study is to propose the model to confirm the direct and indirect relationship between service quality, customer loyalty, customer satisfaction, electronic word of mouth and price sensitivity. In order to reflect true phenomenon, the model is split into the service quality model and the electronic word of mouth model. The major findings are as follows: (1) service quality, customer loyalty and electronic word of mouth show significant direct effects on price sensitivity; (2) with good service quality and high electronic word of mouth, customers feel low price sensitivity; (3) customer loyalty has a significant indirect effect on both service quality and price sensitivity. Customer loyalty has a significant indirect effect on both electronic word of mouth and price sensitivity; (4) there is a significant correlation between service quality and electronic word of mouth.