Factors Affecting Word of Mouth (WOM) Behaviour in Restaurant Industry: A Study on Rangpur City

Authors/ Publisher: Md. Masud-Ul-Hasan

Abstract:

This study examines the factors that drive consumers' word-of-mouth (WOM) behavior regarding restaurants in Rangpur City. Using a structured questionnaire, the research investigates how various aspects, such as food quality, personal interaction quality, physical environment quality, and perceived value, influence customers’ WOM behavior. Data were collected from restaurant patrons through the questionnaire, and the analysis was performed using Structural Equation Modeling (SEM) with SmartPLS-4. The model accounted for 46.4% of the variance in WOM behavior. The results indicate that both the quality of the physical environment and perceived value have a significant positive impact on WOM behavior, while food quality and personal interaction quality do not show a notable effect. The findings highlight the increasing importance of experiential and value-driven strategies for restaurant businesses. Additionally, the study discusses its practical implications, theoretical contributions, and suggests directions for future research.

Keywords: Word of Mouth (WOM), Restaurant Industry, Customer Satisfaction, Bangladesh – Rangpur City, SmartPLS

JEL Classification: M31, M37, D12, C83