The Role of Word of Mouth Marketing on Lusaka City CBD Small-Scale Retailers' Business Growth amid the current Energy Crisis

Abstract

This study explored the role of word-of-mouth marketing in the business growth of small-scale retailers in Lusaka's CBD during the current energy crisis. In this study, a qualitative exploratory design was adopted, and semi-structured interviews were conducted with 50 small-scale retailers to gain an understanding of their marketing practices, challenges, and strategies as well as a focus group of 11 customers. This study was informed by the Stimulus Response Model and Social Exchange Theory, which in turn provided the conceptual framework in assessing the consequences of WOM marketing in environments with resource constraints. These findings showed that WOM marketing: both traditional and digital was a crucial tool for small-scale retailers due to its low-cost approach to attracting and retaining customers. Participants discussed how trust and credibility were central to positive WOM, with loyal customers playing an informal role of brand ambassadors. Digital media, especially WhatsApp and Facebook, came out as very important channels in amplifying WOM efforts and engaging customers in real time. However, other challenges were found to include managing negative WOM in their operations, intense competition, and maintaining consistent activity and customer engagement. This study contributed to the existing literature by showing how digital tools enhanced the consequences of WOM marketing in informal economies, especially during economic and operational disruptions. Practical implications include a call for retailers to inspire trust through transparency in their operations, to encourage referrals, and to use digital platforms to widen their reach. Policymakers were encouraged to support small-scale retailers by making it easy to access affordable digital tools and by providing training on customer engagement strategies. This research underlined the importance of WOM marketing as a sustainable growth strategy for small-scale retailers in challenging environments. Further research is needed to explore the long-term effects of digital WOM marketing and its generalizability across industries and cultural contexts.