BOOSTING THAI RAILWAY'S REPUTATION: HOW INNOVATION DRIVES WORD-OF-MOUTH MARKETING: THE MEDIATING ROLE OF CUSTOMER SATISFACTION IN THE THAI RAILWAY INDUSTRY

Main Article Content

Kusuma Soythong

Abstract

This study examines the relationships between product innovation, customer satisfaction, and word-of-mouth (WOM) in Thailand's railway industry through a survey of 401 passengers analyzed via SEM. The findings demonstrate that product innovation significantly enhances customer satisfaction score (β = 0.851, p < 0.001), which in turn strongly predicts WOM (β = 1.654, p < 0.001). While product innovation initially shows a positive direct effect on WOM (β = 0.844, p < 0.001), this reverses to negative (β = -0.546, p < 0.05) when accounting for customer satisfaction score, revealing partial mediation. Our research uncovers a precise 10:9 product innovation-to-WOM ratio - every 10% increase in adopted product innovation generates a 9% boost in positive word-of-mouth, through customer satisfaction score (mediated β = 1.408), with the model explaining 94% of WOM variance (R² = 0.944). Frequency analysis shows both moderate and frequent users significantly drive WOM: frequent users lead in recommendations (p = .011), while moderate users exhibit stronger positive emotions (p = .046) and referrals (p = .011). Both groups generate more social media mentions than occasional users (p < .05). These findings suggest that in the competitive railway industry, moderate users emerge as equally vital influencers as frequent passengers, suggesting customer engagement strategies should target this often-overlooked segment. Moreover, these product innovation collectively enhance service quality and customer experience by blending the practical (digital systems) with the emotional (sustainable design) in mobile ticketing systems, train cleanliness, and on-time performance, not only enhancing customer satisfaction but also organically generating WOM, which serves as cost-effective marketing.

Article Details

How to Cite
Soythong, K. (2025). BOOSTING THAI RAILWAY’S REPUTATION: HOW INNOVATION DRIVES WORD-OF-MOUTH MARKETING: THE MEDIATING ROLE OF CUSTOMER SATISFACTION IN THE THAI RAILWAY INDUSTRY. JOURNAL OF MANAGEMENT SCIENCE UDON THANI RAJABHAT UNIVERSITY, 7(4), 149–171. retrieved from https://so08.tci-thaijo.org/index.php/MSJournal/article/view/4928
Section
Research Article

References

Ameen, A. M., Ahmed, M. F., and Abd Hafez, M. M. (2021). The impact of product innovation on service quality and customer engagement in the service industry. International Journal of Innovation Science, 13(1), 45–60.

Baron, R. M., and Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.

Bamford, D., and Xie, Y. (2022). Service operations management: Improving service delivery (5th ed.). Routledge.

Becker, L., and Jaakkola, E. (2020). Customer engagement with brands: A viral perspective. Journal of Service Research, 23(4), 519–539.

Becker, L., and Jaakkola, E. (2020). Customer experience: Fundamental premises and implications for research. Journal of the Academy of Marketing Science, 48(4), 630 – 648.

Bhattacharya, C. B. (2019). Small actions, big difference: Leveraging corporate sustainability for organizational change and value creation. Routledge.

Bove, L. L., Pervan, S. J., Beatty, S. E., and Shiu, E. (2021). The role of customer engagement in service co-creation. Journal of Service Theory and Practice, 31(2), 213–233.

Chen, H., and Lien, C. (2023). Service innovation and customer loyalty: The mediating role of affective commitment. Service Industries Journal, 43(1-2), 45–64.

Chen, Y., Zhang, H., and Watanabe, T. (2022). Transit frequency and emotional engagement: Evidence from Tokyo Metro. Transportation Research Part F: Traffic Psychology and Behaviour, 85, 126–135.

Cheng, X., Huang, Y., and Wei, Z. (2024). Emotional responses to service innovation: Moderating role of novelty-seeking. Journal of Business Research, 169, 114258.

Christensen, C. M., Bartman, T., and van Bever, D. (2020). The hard truth about business model innovation. MIT Sloan Management Review, 58(1), 31–40.

Ekinci, Y., and Riley, M. (2023). Service quality delivery and its impact on customer satisfaction in hospitality. Service Industries Journal, 43(2), 135–150.

Elkington, J. (2019). Green swans: The coming boom in regenerative capitalism. Fast Company Press.

Godes, D., and Mayzlin, D. (2004). Using online conversations to study word-of-mouth communication. Marketing Science, 23(4), 545–560.

GPower. (2020). GPower: Statistical power analyses for Windows and Mac (Version 3.1) [Computer software]. Heinrich-Heine-Universität Düsseldorf. https://www.psychologie.hhu.de/arbeitsgruppen/allgemeine-psychologie-und-arbeitspsychologie/gpower.html

Herjanto, H., and Amin, M. (2020). The relationship between customer satisfaction and word of mouth: The role of customer trust. International Journal of Business and Society, 21(3), 1271–1286.

Hsee, C. K., Yang, Y., and Ruan, B. (2020). The diminishing excitement effect: How familiarity reduces emotional responses. Journal of Consumer Psychology, 30(4), 682–698.

Jain, R., and Singh, J. (2020). Service quality in e-commerce and its impact on customer satisfaction and loyalty. International Journal of Business Excellence, 20(1), 45–63.

Johnson, R., and Smith, L. (2023). The impact of service quality on customer satisfaction in retail: A longitudinal study. Journal of Retail and Consumer Services, 71, 103127.

Kavitha, R., and Gopinath, R. (2022). Impact of word-of-mouth communication on customer purchase intention: A study on the telecom industry. Journal of Consumer Behaviour, 21(5), 914–926.

Keller, E., and Fay, B. (2022). The science of sharing: How word-of-mouth marketing shapes consumer behavior. Word of Mouth Marketing Association.

Kim, J., and Lee, H. (2022). Perceived novelty and word-of-mouth behavior: The moderating role of usage context. Asia Pacific Journal of Marketing and Logistics, 34(2), 398–412.

Kim, Y., and Park, E. (2020). The impact of innovative services on emotional satisfaction and behavioral intention in smart tourism. Technological Forecasting and Social Change, 157, 120084.

Kotler, P. (2023). Marketing 6.0: The future is immersive. Wiley.

Kotler, P., and Keller, K. L. (2022). Marketing management (16th ed.). Pearson.

Kotler, P., Kartajaya, H., and Setiawan, I. (2022). Marketing 5.0: Technology for humanity. Wiley.

Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T., and Tillmanns, S. (2020). Undervalued or overvalued customers: Capturing total customer engagement value. Journal of Service Research, 23(2), 140–155.

Kumar, V., Petersen, A., and Leone, R. P. (2020). Defining, measuring, and managing business reference value. Journal of Marketing, 84(3), 42–60.

Leecharoen, T. (2019). The impact of satisfaction on repurchase intention in online fashion retailing in Thailand. Journal of Business and Retail Management Research, 13(3), 45 –56.

Leecharoen, T., and Chaiyapan, N. (2022). Customer satisfaction and repeat purchase intention in Thai electronics e-commerce. International Journal of Business and Society, 23(1), 125–139.

Lemon, K. N., and Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69–96.

Li, M., Wu, J., and Fan, X. (2022). Social media engagement in public transportation: Evidence from high-speed rail passengers in China. Telematics and Informatics, 72, 101828.

Meyer-Waarden, L. (2021). The impact of customer engagement behaviors on word-of-mouth: A study in the Paris public transport system. Journal of Retailing and Consumer Services, 58, 102297.

Nielsen. (2023). Global trust in advertising report. Nielsen. https://www.nielsen.com

Nguyen, T. T., and Tran, Q. H. (2021). Customer satisfaction as a mediator in service innovation and WOM: A study of e-commerce platforms. Electronic Commerce Research, 21(3), 501–518.

Nguyen, T. T., and Vo, H. Q. (2020). Determinants of word-of-mouth in Vietnamese transportation: The mediating effect of satisfaction. Transport Policy, 94, 1–9.

Norman, D. A., and Verganti, R. (2021). Design-driven innovation: Changing the rules of competition by radically innovating what things mean. MIT Press.

Oliver, R. L. (2019). Satisfaction: A behavioral perspective on the consumer (2nd ed.). Routledge.

Parasuraman, A., Zeithaml, V. A., and Berry, L. L. (2020). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 67(4), 420–450.

Parasuraman, A., Zeithaml, V. A., and Berry, L. L. (2020). A conceptual model of service quality and its implications for future research. Journal of Retailing, 64(1), 12–40. Pasha, A. A., and Murtaza, S. (2019). Service reliability and customer satisfaction in banking. Journal of Business Strategies, 13(1), 21–33.

Phophinyo, P., and Jomnonkwao, S. (2021). The influence of emotional satisfaction and service quality on word-of-mouth intention in railway services. Sustainable Cities and Society, 66, 102684.

Pimsuwan, N., Srisakda, C., and Thongyai, K. (2023). The influence of service innovation on customer satisfaction in Thailand's transport services. Journal of Service Innovation Research, 15(2), 115–132.

Pimsuwan, P., Tanongchaiyo, R., and Srisaeng, P. (2023). Service innovation and customer advocacy in Thai hospitality: A structural equation approach. Asia-Pacific Journal of Business Administration, 15(2), 134–150.

Purwanto, A., Deviny, J., and Mutahar, A. M. (2020). The influence of service quality, price, promotion, and trust on customer purchase decision in digital environment. Journal of Asian Finance, Economics and Business, 7(10), 777–788.

Rahi, S., and Ghani, M. A. (2020). Service quality and customer satisfaction in banking: The moderating role of trust. International Journal of Quality and Reliability Management, 37(4), 595–618.

Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81(12), 46–55.

Ryu, G., and Feick, L. (2007). A penny for your thoughts: Referral reward programs and referral likelihood. Journal of Marketing, 71(1), 84–94.

Schilling, M. A. (2019). Strategic management of technological innovation (6th ed.). McGraw - Hill Education.

Sharma, A., Yadav, R., and Singh, G. (2023). Building emotional satisfaction in post-pandemic public transport services. Transportation Research Part F: Traffic Psychology and Behaviour, 95, 55–68.

Smith, K., Johnson, L., and Lee, H. (2021). Quality perceptions and consumer satisfaction in the hospitality sector. International Journal of Hospitality Management, 92, 102712.

SRT (State Railway of Thailand). (2023). Annual report 2023. https://www.railway.co.th

Tanyacharoen, W., Jomnonkwao, S., and Ratanavaraha, V. (2023). Emotional responses and repurchase intention in railway service: The mediating role of satisfaction. Transport Policy, 132, 79–89.

Trott, P. (2020). Innovation management and new product development (7th ed.). Pearson Education Limited.

Womack, J. P., and Jones, D. T. (2023). Lean thinking: Banish waste and create wealth in your corporation (3rd ed.). Simon and Schuster.

Yadav, M., and Yadav, R. (2021). Service responsiveness and customer satisfaction in e-commerce. International Journal of E-Business Research, 17(2), 1–15.

Zhao, Y., Wang, J., and Chen, X. (2021). Service reliability and customer loyalty in public transportation. Journal of Public Transportation, 24(1), 34–49.

Zhang, Y., and Liu, Q. (2021). Service innovation and customer loyalty: The moderating role of perceived risk. Journal of Retailing and Consumer Services, 60, 102444.

Zhang, Y., Chen, M., and Okada, E. (2023). Habituation effects in metro commuting: A Tokyo case study. Transportation Research Part F: Psychology and Behaviour, 89, 174–183.