The The Role of Customer Satisfaction on the Relationship between Service Quality, Price and Word of Mouth (WOM): The Experience of EDTL.EP in Dili, Timor-Leste

Abstract

Service quality, price, customer satisfaction and word of mouth (WOM) appear to be the most important variables in today’s business market, and many researchers have focused their attentions on their relationships. This research aims to test the influence of service quality and price to customer satisfaction and WOM, as well as the mediation effect of customer satisfaction in the relationship between service quality and price with WOM. Using accidental sample method, this study collects data from 315 respondents from Timor-Leste Electricity, State-owned Entreprise namely Eletricidade de Timor Leste, Empresa Publica (EDTL.EP) customers who are based in Dili Municipality, and tests hypothesis using SMART-PLS 3.0. Result shows that relationship between both service quality, price, customer satisfaction and WOM have positive and significant effect. This study contributes to the extensive discussions related to service quality, price, customer satisfaction and WOM in different industries. It is also expected to contribute to the improvement EDTL.EP management to provide better service quality and meet customers’ expectation to encourage more positive recommendations to other customers via WOM.