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ABSTRACT
Advertisement plays an important role in developing customer loyalty towards a brand. Nonetheless, the role of word of mouth (WOM) is also considered critical in assessing customer loyalty. Thus, the mediating role of positive word of mouth is incorporated between advertising and customer loyalty. For research design quantitative research approach is adopted. Concerning with research population, restaurant customers are the potential respondents for this study. Literature confirmed that positive word of mouth will positively impact the customer loyalty because if a customer will be satisfied by the services provided by the brand/organization it will spread good words about the brand. The expected result of this study is that advertisement will influence both customer loyalty and word of mouth. In addition to that, positive word of mouth will mediate the relationship between advertisement and customer loyalty.
Keywords: Advertisement, Customer Loyalty, Positive Word of Mouth (WOM)
1.INTRODUCTION
Organizations want their customers be loyal with them. So, understanding how, why and what conditions are important to build customers loyalty is an important phenomenon to investigate (Ha & Park, 2013). That's why organization gives best services to their customers to retain them. Organizations spends billions or millions from their money on yearly basis just make their brand a well-known brand by hiring celebrities because customers follow the celebrities they love, so brands also use their faces for advertising their products and services, and in a result they get the benefit they dreamed for (Samar; Rahi, Khan, & Alghizzawi, 2020; Wong, Kwok, & Lau, 2015). Once the organization retain their customers then the customers become the financial source for the company (Samar Rahi, Ghani, & Ngah, 2020; Zeithaml, Berry, & Parasuraman, 1996). Customers who have a positive attitude towards a brand and he is willing to buy it again and again no matter what the competitors are offering or what changes appear in environment, this is referred as brand loyalty (Liu, 2007). Clients that are satisfied with the services of the organization plays important role in putting positive word of mouth among people. Sometimes advertisement also play huge role in developing customers loyalty. Clients may choose other organizations after watching advertisement of that organization or brand, but some remain loyal to one organization or brand and try to...