Effect of word-of-mouth dimensions on brand loyalty: A case of mobile money services in Tanzania

Abstract

This paper aimed at determining the individual effects of WOM dimensions (Positive Valence WOM, Negative Valence WOM, WOM content, and WOM intensity) on brand loyalty in the Tanzanian mobile money service industry. The research areas included Sumbawanga and Mpanda Municipal councils from Rukwa and Katavi regions respectively. A structured questionnaire was used to collect data from 300 randomly selected respondents whereas Structural Equation Modeling was applied to analyze the collected data. The findings from this study reveal that Positive Valence WOM, WOM content and WOM intensity have a positive and significant impact on brand loyalty. However, Positive Valence WOM was highly influential than other WOM dimensions. The results also indicate that negative Valence WOM has a negative impact on brand loyalty. The paper concludes that the studied WOM dimensions are predictors of brand loyalty except for the Negative Valence WOM. Thus, it is recommended that mobile money operators (MMOs) should give more emphasis on creating Positive Valence WOM if they are to greatly benefit from WOM recommendation which is less cost full but more powerfully marketing tool than any other marketing tool.