Consumer perceptions on satisfaction and word of mouth in smallholder horticultural stores in an emerging economy

Abstract

Based on the expectancy disconfirmation theory, the study presents a conceptual model exploring consumer perception (perceived service quality, product quality, price, and corporate social responsibility) effect on satisfaction and word of mouth in smallholder horticulture stores. A quantitative analysis using Partial Least Squares-based Structural Equation Modeling (PLS-SEM) was carried. This method was used to identify elements influencing satisfaction and to explore the hypothesised relationships between consumer perceptions, satisfaction, and the spreading of positive word of mouth. The findings identify the perceived service quality and product quality as factors that enhance satisfaction. However, the perceived quality of the product is the only factor that aids word of mouth. Correspondingly, perceived product quality shows a favorable relationship with perceived price. On the other hand, perceived price and corporate social responsibility do not strengthen customer satisfaction, with corporate social responsibility not aiding word of mouth. Furthermore, the study tested the strength of cus-tomer satisfaction as a mediating variable between consumer perception and word of mouth, and none of the results proved significant. Similarly, perceived price does not mediate the path between perceived product quality and customer satisfaction. The study is of benefit to scholars, smallholders, and agricultural policymakers, particularly in emerging economies.