Customer perceived ethicality and electronic word of mouth approach to customer loyalty: the mediating role of customer trust

Purpose

Drawing from stakeholder (ST) and social exchange theory (SET), the purpose of this study is to examine the relationship between customer perceived ethicality (CPE), electronic word of mouth (eWOM), customer trust (CT) and customer loyalty (CL). Furthermore, this study aimed to understand the dual role of CPE and eWOM in obtaining CT and achieving CL.

Design/methodology/approach

Using a quantitative, cross-sectional research design, data were collected from face-to-face surveys, yielding 358 responses. The partial least square algorithm was used to test the proposed hypothesis.

Findings

The analysis revealed that CPE and eWOM positively affect CT and CL, and CT has a mediating effect on the association between CPE–CL and eWOM–CL. CT was also found to positively affect CL.

Practical implications

Hotel managers can prioritize ethical practices and leverage the power of eWOM to build trust and achieve loyalty. This integrated approach not only enhances customer satisfaction and retention but also creates a competitive advantage.

Originality/value

The novelty of this study lies in the investigation of the dual role played by CPE and eWOM as antecedents of CT and CL within the hotel industry. Finally, this study explains the drivers of CT and CL, thereby making a novel contribution to the literature.