Word of Mouth Role in Mediating Consumer Trust and Brand Image on Purchase Decisions in PT. Pegadaian (Persero) Medan

Abstract

This research aims to analyze word of mouth role in mediating consumer trust and brand image on purchase decisions on precious metal products at PT. Pegadaian (Persero) Medan. The research method uses an explanatory approach. The population includes all customers who buy precious metals at PT. Pegadaian (Persero) Medan. The sampling technique used random sampling using the Lemeshow formula and a sample of 100 respondents was obtained. Data collection techniques use questionnaires and interviews. The data analisis technique uses a quantitative approach with statistical analysis of outer model, inner model and hypothesis testing using Smart-PLS 4.0. The research results show that consumer trust and brand image each have a positive and insignificant influence on purchase decisions. Consumer trust and brand image each have a positive and significant influence on word of mouth. And then word of mouth plays a positive and significant role in mediating consumer trust and brand image on precious metal purchase decisions at PT. Pegadaian (Persero) Medan.