Word-of-mouth, servicescapes and the impact on brand effects

Abstract

This paper empirically tests a framework integrating servicescape satisfaction, word-of-mouth (WOM), brand image, brand love, engagement, and consumer loyalty intentions. Survey data within a noncommercial context were electronically collected from three large universities in the United States. Structural equation modeling was used to analyze the data. The findings reveal that positive WOM valence enhances servicescape satisfaction and WOM credibility positively moderates this relationship. Servicescape satisfaction directly affects brand image and brand love, as well as indirectly through the mediating mechanism of servicescape engagement. Brand image was also found to directly affect brand love. In turn, brand image and brand love yield a greater likelihood of consumer loyalty intentions including recommendation and monetary donations. Managers on a quest to achieve brand love need to place an increased focus on managing servicescape experiences. Managers must not become complacent when customer have been retained over the years. They must still monitor and respond to WOM communications and continue to find new ways to engage customers to enhance brand image and brand love. Finally, managers must recognize that servicescapes are the “packaging” that prepares consumers for the level of quality and value of the service.