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The Role of Customer Perceived Value in Online Word-of-Mouth

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The Role of Customer Perceived Value in Online Word-of-Mouth
Lin Yang, Monash University, Malaysia Campus, Malaysia
Kim-Shyan Fam, Victoria University of Wellington, New Zealand
James E. Richard, Victoria University of Wellington, New Zealand
Introduction
Internet media allow consumers to generate content themselves and there has been a
mushrooming of user-created communication content online in the last decade or so. These
media facilitate participation and interactive communication, and they allow consumers to
engage in two-way communication easily, cost effectively, and in real time. Some of the
communications are within the brand’s official online space, and some occur way beyond the
brand’s space and are just amongst customers without any corporate influence (Smith & Zook,
2011). Media such as chat rooms, message boards, weblogs, and social networking sites have
enabled today’s consumers to ‘talk’ to individuals outside their personal network of family,
friends and colleagues. This ability to exchange opinions on the Internet is known as online
word of mouth (OWOM). OWOM has been acknowledged as a critical tool for facilitating
information diffusion throughout online communication networks. According to a study of
social media site users conducted in America, 47% of such individuals share information
about their shopping experience with a broader audience (AmericanExpress, 2012). OWOM
attracts considerable attention across disciplines, however OWOM research has mostly been
conducted in the West (Chan & Ngai, 2011). Similar to other countries, the Internet is
embedded more than ever into consumers’ lives in China, and the OWOM phenomenon is
becoming more pervasive. By the end of 2014, China has over 600 million Internet uses and
their engagement with online channels has deepened, as evidenced by the widespread
adoption of such activities as social networking, blogging and messaging (CNNIC, 2014). A
number of driving factors have been investigated in various contexts (e.g., Berger &
Schwartz, 2011; Jeong & Jang, 2011; Jin et al., 2010; Wolny & Mueller, 2013; Yang, 2013).
Following the indication of Yang’s research difference exists in consumer’s perceived value
between China and the Western society (Yang, Fam, & Richard, 2014), this study investigates
and verifies this difference, and examines the fundamental role that customer perceived value
plays in affecting initiation of post-purchase OWOM in China.
Literature Review and Hypotheses
Definition and Conceptualisation of Online Word-of-Mouth
Carl (2006) defines OWOM as informal, evaluative communication (positive or negative)
between at least two conversational participants about characteristics of an organisation
and/or a brand, product, or service that take place” in online communities. (p.605).
Harrison-Walker’s (2001) took a different perspective, investigating the meaning of the WOM
concept by focusing on four aspects: frequency, number of contacts, detail, and praise. The
distinction between OWOM and traditional WOM primarily lies where the communication
occurs: online or offline. This study adopted Harrison-Walker’s (2001) position. Taking into
the consideration of online characteristics, OWOM was recognized as a multi-facet construct,
including the aspects of frequency of WOM incidents, volume of information, and praise.
Definition and Conceptualisation of Customer Perceived Value
Zeithaml (1988) suggests that perceived value can be regarded as “consumer’s overall
assessment of the utility of a product based on perceptions of what is received and what is
given” (p. 14). The conceptualisation of consumer perceived value is quite fragmented, with
different points of view being advocated (e.g., McKee, Simmers, & Licata, 2006; Woodruff,
1997). Sheth, Newman and Gross (1991) propose a broader theoretical framework of
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perceived value. They view consumer choice as a function of multiple ‘consumption value’
dimensions, suggesting five dimensions (social, emotional, functional, epistemic and
conditional value) that make varying contributions in different choice situations (e.g. social
value in choices involving highly visible product and emotional value in choices involving
product/service with aesthetic appeals) (Sheth et al., 1991). Perceived value is a more tangible
signal since it includes the aforementioned dimensions in the ‘given product/service, and
these dimensions represent both extrinsic and intrinsic attributes of product/service. Sweeney
and Soutar (2001) argue that consumers assess products not just in functional terms of
expected performance and value for money, but also in enjoyment or pleasure derived from
the product and the social consequences of what the product communicates to others. They
specified the value dimensions and developed the “PERVAL” scale to measure the four
dimensions of customer perceived value, i.e. quality/performance (“quality” hereafter),
price/value for money (“price” hereafter), emotional, and social value. The authors suggest
that PERVAL can be applied in a variety of purchase situations. The current study adopts this
conceptualisation and measurement, and thus customer perceived value is considered to
encompass the aforementioned four dimensions.
Relationship between Perceived Value and Online Word-of-Mouth
Consumers react differently depending on their perception of the product/service value.
Perceived value has been hypothesised as a predictor of WOM in a number of studies (e.g.,
Gruen, Osmonbekov, & Czaplewski, 2006; Hartline & Jones, 1996). It has been found that the
consumers who perceive that they receive relatively high value tend to become more
committed to the company and seek to recommend others to become loyal to the same
company (Litwin, 1995; McKee et al., 2006). It is proposed, that customer perceived value is
directly related to customer OWOM activities (Gruen et al., 2006; Litwin, 1995). That is, the
more customers value a product/service they purchase or consume, the more likely they are to
express their opinions and views through positive WOM activity, which is a tendency that is
consistent across cultures (McKee et al., 2006). Therefore, it is hypothesised that:
H1: The extent of customer perceived value is positively related to customer OWOM.
Based on the literature, customer perceived value is also indirectly related to customer
OWOM through other factors. First, customer satisfaction with the purchase or consumption
is a post hoc or retrospective evaluation. Thus, it should be directly influenced by perceived
value (Iacobucci, 2010). In an experiment conducted by Bentler and Stein (1992), a similar
concept of perceived value, goal congruence (a cognitive appraisal indicating the extent to
which consumption of a product/service is congruent or incongruent with an individual’s
expectations, wants or desires), was found to have significant and positive effect on
emotionally based satisfaction. Perceived value, with the focus on quality and price
dimensions, is found to be a determinant of overall customer satisfaction in seven sectors such
as retail, services, durables and nondurables (Chan, Yim, & Lam, 2010). However, perceived
social value has not been extensively included in studies on the relationship between
perceived value and satisfaction, particularly considering it was first proposed as a dimension
of perceived value as early as 1991 (Sheth et al., 1991). Customer satisfaction is an important
post-purchase response often associated with consumer loyalty. Chan et al. (2010) maintain
that after a customer purchases a product/service, a level of satisfaction attitude will be
formed. If satisfaction is high, this creates a greater attitudinal loyalty, meaning a likelihood of
repeated patronage. This attitudinal loyalty then facilitates behaviour of initiating WOM.
Therefore, it is hypothesised that:
H2: The extent of customer perceived value is indirectly related to customer OWOM through
satisfaction and loyalty.
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Second, affective commitment is described as a customer’s long-term orientation towards a
business relationship that is grounded in emotional bonds and based on liking and
identification. Customer perceived value leads to a situation in which the customer acts as the
company voice in their social group, and also considers maintaining their interactions with the
company. Consistent with the theory of reasoned action (Skogland & Siguaw, 2004), a
customers positive perceived value of a product/service can lead to intentions to commit to a
long-term relationship with the company. When customers believe they received high value
from the consumption of a product/service, it is likely to lead to bonds of an emotional kind
that constitute commitment. Brunner, Stöcklin, and Opwis (2008) found the perceived value
of an offering has a direct and positive effect on affective commitment in the cellular phones
market. Highly committed customers present high identification with the company and hold
feelings of attachment to maintaining valued relationships (Harrison-Walker, 2001). They are
more likely to increase their commitment with companies that recognise and reward their
status of special customer (Lacey, Suh, & Morgan, 2007). De Matos and Rossi (2008)
concluded that the highly committed customers are likely to engage positive WOM about the
company in order to reinforce their decision to enter the relationship as a good one. Even
when experiencing lower level of satisfaction, they are likely to endorse the company as a
need to justify their favourable attitude and strong identification with the company (Brown,
Barry, Dacin, & Gunst, 2005). It is hypothesised that:
H3: The extent of customer perceived value is indirectly related to customer OWOM through
affective commitment. Methodology
A two-phrase research design was used. The existing WOM survey instruments were
originally conceptualised and developed for offline activity in a Western cultural context.
Eighteen interviews were conducted to gain a deep understanding of the customer’s OWOM
initiation in a different cultural context and to help inform the survey instrument. Two coders
were used to ensure the findings and conclusions were reasonable and logical. Based on these
findings and related WOM literature, an online survey was developed and launched in China.
The measure for each constructs were adapted from existing literature and modified based on
the interview findings. The scale of OWOM was adapted from an offline WOM study
(Harrison-Walker, 2001), and was modified to suit the online context. The wordings reflected
changes depending on which channel respondents chose. Harrison-Walker (2001)The measure
of perceived value was adapted from the study by Sweeney and Soutar (2001), comprising of
4 dimension. Items measuring Satisfaction, Loyalty and Affective Commitment were adapted
from Oliver (1980), Sirdeshmukh, Singh, and Sabol (2002), and Harrison-Walker (2001)
respectively. All the questions were reviewed and pre-tested on academic staff and other
consumers to ensure face validity and content. Survey questions were translated into Chinese
using back translation method (Brislin, 1970). Participants were asked to choose a product
he/she recently purchased and talked about online, and then were asked to rate the extent to
which they agree with each statement. Reponses were on a 7-point Likert scale, ranging from
1 (strongly disagree) to 7 (strongly agree). Survey data were collected using open online
invitation and email invitation over a period of 1.5 month. The survey yielded 798 responses
(31.7% response rate based on 2,517 click-through responses), and 574 were useable.
Analysis and Results
It is clearly that interviewees tend to view value as a trade-off between quality and price, with
a few indicating pleasure and enjoyment derived from the product/service they purchased and
consumed. The findings suggest that quality and price are weighted on the basis of each other.
They are inter-related. For example, the quality value of a dress is perceived high because it is
linked with and/or weighed based on the price which is lower than expected (with department
store price as the reference price). Sheth et al’s (1991) argue that functional value was created
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by attributes such as reliability, durability and price. The first two have often been seen as
aspects of quality, thus, the quality and price should be measured together. This is supported
by a comment made by an interview informant (see Quote 1 in Appendix 1). Interview
findings also suggest that functional value and emotional value are inter-related, which is
contradict to Sheth et al’s (1991) view. They argue that value dimensions are independent.
However, some researcher suggests that the hedonic and utilitarian components of attitude
may be related (e.g., Osgood, Suci & Tannenbaum, 1957). For example, the purchase of
excellent bathroom/kitchen tiles increase the chances of a favorable emotional as well as a
favorable functional response (Sweeney & Soutar, 2001), as an informant stated in Quote 2 in
Appendix 1. Social value is considered by some interviewees as a different concept from other
three perceived values. Social acceptance and social approval derived from the product or the
brand is a domain that is independent to the quality, price and emotional value. The quotes by
two informants were presented to support this view (see Quote 3 in Appendix 1).
Following the two-step SEM approach recommended by Anderson and Gerbing (1988), a
measurement model was established first. Using AMOS 21 software, confirmatory factor
analysis (CFA) was conducted to assess the convergent validity and reliability of the
measurement. Due to the existence of multivariate non-normality and the need to examine
multiple mediation effects in the model, bootstrap method with resampling of 2000 was used
to pursue parameter estimation. CFA was conducted to validate the measurement for customer
perceived value (PVAL). Although the model demonstrated a reasonable fit (χ2/df=4.64,
CFI=.93, TLI=.92, RMSEA=.08) with discount on χ2/df (over 3), the measurement did not
demonstrate adequate convergent and discriminant validity, with the value of AVE of Social
value below .50, indicating the presence of a convergent validity issue. This result is
consistent with some of the literature (e.g., Osgood, Suci, & Tannenbaum, 1957; Sheth et al.,
1991; Sweeney & Soutar, 2001). These researchers have made conceptual links between
quality, emotion and price values. Perceptions of a products quality and price contribute to its
functional value, and they are interrelated with an emotional response to the purchase or
consumption of a product/service. The interview findings also support this view as discussed
above.The PVAL measurement model was therefore, modified to include two dimensions
QEP value (i.e. quality/emotional/price) and Social value (SOC). Modifications to the model
were performed based on substantive information (i.e. similarity of item content, factor
loadings, modification indices and residuals) to improve the model fit as well as construct
validity. Results indicated excellent overall model fit as evidenced by empirical fit indices
(χ2/df=2.93, CFI=.98, TLI=.98, RMSEA=.086). Table 2 in Appendix 2 shows the item
loadings, communalities, variance extracted, and construct reliability. The measures
demonstrated good convergent validity with all the item loadings were above the desired cut-
off point of .70. Both AVE and CR suggested satisfactory reliabilities with values above the
threshold of .50 and .70 respectively. The correlation between the two constructs (γ=0.721) is
less than the square root of the AVEs of both constructs (.811 and .783 respectively),
indicating a satisfactory discriminant validity. The final overall measurement model with all
constructs shows good model fit (χ2=1822.1, df=650, p<.001, CFI=.93, TLI=.92,
RMSEA=.06) and exhibits satisfactory convergent validity and discriminant validity (see
Table 2 in Appendix 2).
The next step was to test the structural model. Figure 1 in Appendix 3 presents the effects, in
their standardised form, of the estimation structural model. The signs of the estimates were as
expected and the majority of estimates are statistically significant (p<.05). The direct effect of
QEP value and Satisfaction on OWOM showed insignificant. The model has satisfactory fit
with χ2/DF slightly above 3 (χ2=2117.32, p<.001, CFI=.91, TLI=.91, RMSEA=.06). All
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significant path estimates remained significant and the model remained fit after trimming the
insignificant paths (χ2=2123.23, p<.001, CFI=.91, TLI=.91, RMSEA=.06) (see Figure 1). The
bootstrap procedure revealed significant total indirect effects between QEP value (QEP) and
OWOM through three different processes with (a) satisfaction (SAT) and loyalty (LOY) as
mediators, (b) social value (SOC) as mediator, and (c) affective commitment (COM) as
mediator. Indirect effects are considered significant when the bias corrected confidence
interval (BCCI) does not include zero (Preacher & Hayes, 2008). This effect size of QEP
value on OWOM is .624 (SE=.057, BCCI=95% (.515, .736), p<.001), indicating QEP value
has a large effect at Cohens (1988) standard (β>.50) on OWOM in part through SAT and
LOY, as well as SOC, and COM. Specifically as presented in Table 1, the sizes of specific
indirect effects are: .089 for Component 1, .111 for Component 2, and .425 for Component 3.
These specific effects represent the ability of each mediator to mediate the effect while
controlling for all other mediators.
Table 1 Specific Indirect Effects (BS=2000, BCCI=95%)
Indirect Effect
Estimates
SE
C. R.
Sig
Component 1: QEP->SAT->LOY->OWOM
0.089
0.024*
3.740
0.001
Component 2: QEP->SOC->OWOM
0.111
0.058*
1.914
0.056
Component 3: QEP->COM->OWOM
0.425
0.076*
5.592
0.001
*: The three standard errors of specific indirect effects (in the lower part of this table) were calculated using the
multivariate delta method. Note: C.R. = Critical Ratio. BS=Bootstrapping.
Discussion
Customers evaluate the product/service on the basis of the magnitude and direction of the gap
between their expectation and their perceived value of the product/service actually delivered
(Zeithaml, Berry, & Parasuraman, 1996). These benefits, gained throughout the consumption
process, are always subject to the customer’s individual perceptions. Quality, emotional, and
price value were considered as three separate values in some studies (Hall, Shaw, Lascheit, &
Robertson, 2000; Sweeney & Soutar, 2001). However, this study shows the three are so
closely intertwined that they should be considered as one - QEP value. The results suggest
that there is no evidence that customer OWOM is influenced directly by customers’ perceived
QEP value as H1 posits. Nevertheless, this study suggests that QEP value influences OWOM
through three sets of mediators, i.e., multiple mediation effects. After investigating the
statistical significance of the mediation effects, it is important to separately consider whether
or not the effects are practically important and meaningful(Little et al., 2007).
Firstly, customer perceived QEP value affects OWOM indirectly first through customer
satisfaction, and then through customer loyalty. It is reasonable to expect that consumers who
perceived high levels of quality, emotional and price value were more satisfied with their
purchase or consumption, which led to higher loyalty toward the company or the brand, which
in turn increased their engagement with OWOM activity. This finding affirms that high
perceived value results in customer satisfaction and loyalty, with perceived value being a
precursor of satisfaction, and satisfaction leading to loyalty.
Secondly, customer perceived QEP value affects OWOM indirectly through customer
perceived social value. It should be noted that this indirect effect is significant at the .10 level,
although the direct effect of QEPSOC is significant at the .001 level and the direct effect of
SOCOWOM at the .05 level. This could be explained by the presence of other mediators
examined in the same model that could potentially cancel out each other. Nevertheless, this
relationship is significant and important in explaining the relationship between customer
perceived value and OWOM. QEP value and social value were found to be distinct but related
both in interviews and survey results in this study. This is an interesting finding because: 1)
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some customer value studies did not include social value (e.g., Lesaffre, 1983; Parasuraman &
Grewal, 2000); and 2) the previous studies applying the same measurement have reported
social value to be a component of the overall perceived value and that the same relationships
exist among social, quality, emotional and price values. The finding of this study indicated
that social value is considered by Chinese consumers as a distinct concept, and is influenced
by the quality, emotional and price values they perceive from the product/service purchased
and consumed. One possible explanation for this differentiation and relationship could be the
emphasis on social contexts that Chinese consumers often place on their consumption.
Chinese are often face conscious and are more concerned with how they are appraised by
others (Lin, 1939). Face conscious consumers usually buy products and brands conveying the
social status and prestige that they approve of (Ting-toomey & Kurogi, 1998). Their
consumption is the process of preserving or gaining face. The Chinese culture is particularly
characterised by a strong desire to gain or protect face (Hoare & Butcher, 2008). The products
and brands have the ability to communicate messages to others and determine how consumers
who own particular products are perceived by others. In either case, the social value derived
from the product/service is determined by the quality, emotional and price value of the
product/service. Because of the high level of QEP value derived from the product/service,
they provide customers with the benefit of higher perceived social status in the eyes of others.
When customers perceive they received a high level of social value, they tend to engage in
WOM about their purchase or consumption to gain social rewards in the form of improving
their social standing or maintaining their current social status. Further adding to the point of
the important role that social context plays in this relationship, social identification and
categorisation theory suggests that individuals tend to identify with a social category, and in
order to preserve the attractiveness of their social identity they engage in various behaviours
that relate positively to that category (Bhattacharya & Sen, 2003; He & Li, 2011). This is
more so for Chinese consumers because they often reference their social groups in their
acquisition and consumption of products/services. Prior to purchase, they tend to make
decisions to purchase and consume certain social group-associated products. They seek
“linking value” from the product/service, and this value allows them to manifest the desire to
integrate with, or to dissociate from, the group of individuals that make up their social
environment (del Rio, Vazquez, & Iglesias, 2001). This is beyond the consumption value of
products/services, and the level of social value, i.e. the certain degree of social acceptance and
social approval, is suggested and determined by the customer perceived QEP value of the
product/service.
Thirdly, customer perceived QEP value affects OWOM indirectly through customer affective
commitment. It is reasonable to expect that consumers who perceived high levels of QEP
value from the consumption of the product/service would be more committed to the brand or
organisation, and endeavour to develop and maintain this precious attribute in their
relationship with the brand or organisation. Affective commitment is higher among
individuals who perceive high QEP value from the acquisition of product/service, thus highly
committed customers are more willing to reciprocate effort on behalf of a brand or
organisation due to the benefits received (Mowday, Porter, & Steers, 1982). Committed
customers are willing to perform voluntary behaviours, such as an increased engagement with
OWOM activity as examined in this study, because they identify with the brand or
organisation’s goals and values and are interested in the welfare of the organisation
(Bhattacharya, Rao, & Glynn, 1995). Customers can be bound by an emotional attachment to
brands/organisations, which is caused by positive emotional experiences (Ellis, 2000),
together with high functional values they perceived from the product/service.
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Appendix 1 Representative Quotes by Interview Informants
I was very happy because I got a bargain. It definitely worth more
than what I paid. I always look for the performance-to-price ratio,
especially when it comes to electronics, like the camera I bought…the
features and price…” [male, mid-20s]
It’s good value for money. This brand has offered top quality ceramic
tiles for many years. I’m very proud of my choice. My friends came to
visit my new apartment, were impressed, and said I bought good tiles.
Every time I walk in, I see it, and think about what my friends said, it
makes me very happy.” [female, mid-50s].
“I can afford “Aigo”, but most of my schoolmates use this
[“Newsmy”]… I don't want to stand out, besides this works
okay.”[female, mid-20s]
“I am a bank manager. My staff expect to see me in the dresses like
this… it’s professional and fit my status. [female, early-40s]
Appendix 2 Measurement Models
Table 1 Measurement Model Subset PVAL Validity Assessment
*Com=Communality; AVE (Average Variance Extracted) and CR (Construct Reliability) were
calculated manually based on the formulas given by Fornell and Larcker (1981).
Table 2 Summary of Final Measurement Model Quality (BS=2000, BCCI=95%)
Construct
Label
Load
ings
Com*
sig.
AVE
CR
Satisfaction (SAT)
0.67
0.91
Satisfied with Purchase
SAT_SP
SAT_1
0.871
0.759
0.002
Feel Bad about Decision
SAT_FBD
SAT_2
0.719
0.517
0.002
Feel different
SAT_FD
SAT_3
0.744
0.554
0.002
Wise Decision
SAT_WD
SAT_4
0.866
0.750
0.002
Right Thing about Decision
SAT_RTD
SAT_6
0.879
0.772
0.002
Loyalty (LOY)
0.68
0.93
Best to do business
LOY_BS
LOY_2
0.837
0.701
0.002
Use when possible
LOY_PSS
LOY_3
0.836
0.699
0.002
First choice
LOY_FS
LOY_4
0.845
0.714
0.002
Like using
LOY_LU
LOY_5
0.806
0.649
0.001
Construct
Label
Loadings
Com*
AVE
CR
Quality, Emotion and Price Value (QEP)
0.658
0.945
Consistent quality
PVAL_CQ
PVAL_1
0.775
0.717
Well made
PVAL_WM
PVAL_2
0.861
0.616
Acceptable quality
PVAL_AQ
PVAL_3
0.820
0.714
Perform consistently
PVAL_PC
PVAL_6
0.781
0.659
Enjoy this brand/org product
PVAL_ENJ
PVAL_7
0.847
0.601
Relaxed using
PVAL_RLX
PVAL_8
0.785
0.741
Wanting to use
PVAL_WTU
PVAL_9
0.845
0.672
Feel good
PVAL_FG
PVAL_10
0.812
0.591
Good product for price
PVAL_GPP
PVAL_14
0.769
0.610
Social value (SOC)
0.614
0.759
Good impression
PVAL_GI
PVAL_18
0.708
0.501
Social approval
PVAL_SA
PVAL_19
0.852
0.726
8
Doubt Switch
LOY_DSW
LOY_6
0.747
0.557
0.001
Favourite
LOY_FAV
LOY_7
0.857
0.734
0.002
Quality, Emotion and Price Value (QEP)
0.67
0.95
Consistent quality
PVAL_CQ
PVAL_1
0.773
0.597
0.001
Well made
PVAL_WM
PVAL_2
0.857
0.735
0.001
Acceptable quality
PVAL_AQ
PVAL_3
0.818
0.669
0.002
Perform consistently
PVAL_PC
PVAL_6
0.781
0.609
0.001
Enjoy this brand/org product
PVAL_ENJ
PVAL_7
0.851
0.724
0.001
Relaxed using
PVAL_RLX
PVAL_8
0.792
0.627
0.001
Wanting to use
PVAL_WTU
PVAL_9
0.841
0.707
0.001
Feel good
PVAL_FG
PVAL_10
0.815
0.664
0.002
Good product for price
PVAL_GPP
PVAL_14
0.768
0.590
0.001
Social Value (SOC)
0.61
0.76
Good impression
PVAL_GI
PVAL_18
0.716
0.512
0.001
Social approval
PVAL_SA
PVAL_19
0.844
0.712
0.001
Affective Commitment (COM)
0.56
0.93
Best of its kind
COM_BS
COM_1
0.742
0.551
0.001
Proud of using
COM_PRD
COM_2
0.737
0.543
0.002
Agree with company
COM_AG
COM_3
0.733
0.537
0.001
Care company fate
COM_CF
COM_5
0.729
0.531
0.001
Inspire being good customer
COM_ISP
COM_6
0.783
0.614
0.001
Like operation
COM_OPE
COM_7
0.709
0.502
0.001
Like company
COM_LCO
COM_9
0.801
0.642
0.001
Special relationship
COM_RLP
COM_10
0.710
0.504
0.002
Help company
COM_HLP
COM_11
0.755
0.571
0.001
Enjoy doing business with
Company
COM_EDB
COM_12
0.768
0.590
0.001
Do business because like it
COM_DLK
COM_13
0.768
0.590
0.001
OWOM
0.62
0.89
Mention frequently
OWOM_MF
OWOM_E1
0.812
0.660
0.001
Told more people about this one
OWOM_TM
OWOM_E2
0.834
0.696
0.001
Seldom miss opportunity to tell
OWOM_SM
OWOM_E3
0.764
0.584
0.001
Tell in great detail
OWOM_TD
OWOM_E4
0.763
0.583
0.001
Proud to tell
OWOM_PR
OWOM_V2
0.772
0.596
0.001
BS=Bootstrapping Sample;BCCI=Bias-Corrected Confidence Interval; COM*= Communalities; AVE
(Average Variance Extracted) and CR (Construct Reliability) were calculated manually based on the
formulas given by Fornell and Larcker (1981).
Appendix 3 Structural Model of OWOM Model
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... WOM refers to formal or informal interpersonal communication about a brand, product, organization or service and are widely regarded as an integral part of the consumer decision-making process (Kumar et al., 2007). WOM is the voluntary communication between consumers after the purchase (Yang et al., 2015). Consumer ratings of green products provide more objective information about green banking services, and their recommendations can help to reduce uncertainty and improve the image of the green brand (Burhanudin et al., 2021). ...
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