Word – of – Mouth Communication and Brand Equity: Analysis of a Health Service Organisation

Abstract

This study investigated the effects of word-of-mouth on brand equity. The major clients of Clinix healthcare were the population having them picked from the headquarters and branches in Lagos, Nigeria. A descriptive survey design was used for the study with a convenience sampling technique with a total sample size of 250 respondents. A structured questionnaire was distributed to respondents having established the instrument’s reliability with a Cronbach’s Alpha coefficient of 0.733. Construct validity and content validity were established through expert opinion. A regression technique was used in analyzing the data in order to reveal the relationship between the dependent variable and the independent variables with aid of statistical tools using SPSS version 20. The study found that word of mouth was proven to have a significant effect on brand image, brand loyalty, and brand preference. Also, according to the result of the analysis, Clinix healthcare has a strong brand image making consumers more likely to patronize and recommend the brand always. Also, Word of mouth had positive and significant effects on brand image and brand preference, with no significant effect on brand leadership (R2=0.140). This indicates that word of mouth significantly invokes brand loyalty, brand image building, and the desirability of consumers. It is recommended that Healthcare and other health service organizations should build on customers ‘preferences to optimize performance and attract organizational goodwill. The study suggested that further studies can examine the influence of word–of–mouth on organizational performance