Nexus among service quality dimensions and halal purchase intention: exploring moderating role of word of mouth

Purpose The prime objective of this study is to examine the impact of different service quality dimensions, namely, reliability, tangibility and physical environment, on halal purchase intention among the customers of fast-moving consumer goods (FMCG). This study also examines the mediating effect of customer satisfaction along with the moderating impact of word of mouth on the path of customer satisfaction and purchase intention. Design/methodology/approach The data were obtained through FMCG-purposive sampling by distributing questionnaires to FMCG customers. A total of 647 questionnaires were surveyed, and the questionnaires were self-administered. Of these, 347 were valid and considered for analysis using variance-based structural equation modeling (PLS) to test the hypothesis. Findings The study’s results reflected that service quality is important in creating customer satisfaction. In the same way, the physical environment where customers are provided with services and service quality reliability are also key to generating customer satisfaction. In terms of the indirect results, Service quality reliability, physical environment and service quality tangibility are positively associated with halal purchase intention through the mediation of customer satisfaction. In addition, word of mouth strengthens the relationship between customer satisfaction and halal purchase intention as a moderator. Practical implications From the managerial point of view, the findings revealed that service quality and word of mouth both have a significant direct and indirect effect on halal purchase intentions through increased customer satisfaction. Therefore, by persuading clients that an FMCG company provides halal products with quality service and by fostering a positive reputation through word of mouth, satisfied customers will be produced. Originality/value The study is unique because it reveals the factors that lead to customer satisfaction and halal purchase intentions toward FMCG. The study found that word of mouth is a new indicator used to build halal purchase intentions through customer satisfaction with FMCG.