Word-Of-Mouth and Willingness to Pay (WTP) Price Premium: Mediating Role of Herbal Brand Credibility and Brand Trust in Ghana

This paper aimed to examine the impact of word-of-mouth on WTP a price premium through the intervening role of brand credibility and trust in the herbal industry. A survey questionnaire was employed to gather data from 265 samples of customers through a systematic sampling technique. Variance-based structural equation modeling was used to examine the research model through a Smart PLS 3. The study's results indicate that brand credibility plays a partial role in the impact of word-of-mouth on WTP a price premium and brand trust. More so, the research confirmed that the impact of word-of-mouth and herbal brand credibility on WTP a price premium was partially influenced by brand trust. The research concluded that herbal brand credibility and brand trust are critical factors in developing favorable word-of-mouth to strengthen the customers' WTP price premium in Ghana.

Automated summary

This study examined the impact of word-of-mouth on customers' willingness to pay a price premium in the herbal industry, with the intervening role of brand credibility and trust. The findings indicate that brand credibility partially mediates the relationship between word-of-mouth and willingness to pay a price premium, as well as brand trust. Additionally, the study confirmed that brand trust influences the relationship between word-of-mouth, herbal brand credibility, and willingness to pay a price premium. The study concludes that both herbal brand credibility and brand trust are critical for generating favorable word-of-mouth and enhancing customers' willingness to pay a price premium.