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

Abstract

ABSTRACTThis 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.KEYWORDS: Brand credibilitybrand trustWTP price premiumword-of-mouthherbal industry Disclosure statementNo potential conflict of interest was reported by the author(s).