IDEAS home Printed from https://ideas.repec.org/a/pal/jofsma/v23y2018i1d10.1057_s41264-018-0039-8.html
   My bibliography  Save this article

The impact of brand experience, service quality and perceived value on word of mouth of retail bank customers: investigating the mediating effect of loyalty

Author

Listed:
  • Kaushik Mukerjee

    (National Institute of Bank Management, NIBM Road)

Abstract

The purpose of this research is to study the impact of the antecedents—brand experience, service quality, and perceived value on word of mouth (WOM) recommendations by retail banking customers in an emerging market. The paper also investigates the mediating effect of loyalty on WOM with respect to the abovementioned antecedents. A survey of 412 retail customers of various banks in India was undertaken using a structured questionnaire developed using existing constructs. The results show that brand experience, service quality, and perceived value have a significant impact on WOM recommendations of customers of retail banks. Further, the relationships between the abovementioned antecedents and WOM are mediated by loyalty. This study makes several contributions to the academic literature. First, it establishes the importance of brand experience, service quality, and perceived value as antecedents of WOM in the context of retail banks in an emerging market. Second, it also establishes that loyalty plays a mediating role for the abovementioned antecedents for WOM recommendations by retail customers of banks in an emerging market.

Suggested Citation

  • Kaushik Mukerjee, 2018. "The impact of brand experience, service quality and perceived value on word of mouth of retail bank customers: investigating the mediating effect of loyalty," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 23(1), pages 12-24, March.
    • Handle: RePEc:pal:jofsma:v:23:y:2018:i:1:d:10.1057_s41264-018-0039-8
    DOI: 10.1057/s41264-018-0039-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41264-018-0039-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41264-018-0039-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gruen, Thomas W. & Osmonbekov, Talai & Czaplewski, Andrew J., 2006. "eWOM: The impact of customer-to-customer online know-how exchange on customer value and loyalty," Journal of Business Research, Elsevier, vol. 59(4), pages 449-456, April.
    2. J.J. Brakus & B.H. Schmitt & L. Zarantonello, 2009. "Brand Experience: What Is It? How Do We Measure It? And Does It Affect Loyalty?," Post-Print hal-00799102, HAL.
    3. Hartline, Michael D. & Jones, Keith C., 1996. "Employee performance cues in a hotel service environment: Influence on perceived service quality, value, and word-of-mouth intentions," Journal of Business Research, Elsevier, vol. 35(3), pages 207-215, March.
    4. Rajesh Chandy & Om Narasimhan, 2015. "Millions of Opportunities: An Agenda for Research in Emerging Markets," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 251-263, December.
    5. Payne, Adrian & Storbacka, Kaj & Frow, Pennie & Knox, Simon, 2009. "Co-creating brands: Diagnosing and designing the relationship experience," Journal of Business Research, Elsevier, vol. 62(3), pages 379-389, March.
    6. David Godes & Dina Mayzlin, 2009. "Firm-Created Word-of-Mouth Communication: Evidence from a Field Test," Marketing Science, INFORMS, vol. 28(4), pages 721-739, 07-08.
    7. Chris Baumann & Kim Ngoc Phan & Nabil Ghantous, 2013. "Managing brand associations to drive customers’ trust and loyalty in Vietnamese banking," Post-Print hal-01823099, HAL.
    8. Cindy Chung & Peter Darke, 2006. "The consumer as advocate: Self-relevance, culture, and word-of-mouth," Marketing Letters, Springer, vol. 17(4), pages 269-279, December.
    9. Kristine de Valck & Roberts V. Kozinets & Andrea C. Wojnicki & Sarah J.S. Wilner, 2010. "Networked Narratives: Understanding Word-of-Mouth Marketing in Online Communities," Post-Print hal-00458424, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mirza Mohammad Didarul Alam & Nor Azila Mohd Noor, 2020. "The Relationship Between Service Quality, Corporate Image, and Customer Loyalty of Generation Y: An Application of S-O-R Paradigm in the Context of Superstores in Bangladesh," SAGE Open, , vol. 10(2), pages 21582440209, May.
    2. Elizabeth Emperatriz García-Salirrosas & Dany Yudet Millones-Liza & Jorge Alberto Esponda-Pérez & Ángel Acevedo-Duque & Jessica Müller-Pérez & Lisette C. Sánchez Díaz, 2022. "Factors Influencing Loyalty to Health Food Brands: An Analysis from the Value Perceived by the Peruvian Consumer," Sustainability, MDPI, vol. 14(17), pages 1-16, August.
    3. Mirza Ashfaq Ahmed & Riffat Zulfiqar & Muhammad Anwar ul Haq & Noreena Kausar & Shaista Khalid, 2020. "Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(10), pages 1187-1202, October.
    4. Kamajaya, Audi Putri & Aribowo, Agus, 2021. "The Effect of Perceived Value and Service Quality on Depositor Loyalty," OSF Preprints ausbr, Center for Open Science.
    5. Shirie Pui Shan Ho & Amy Wong, 2023. "The role of customer personality in premium banking services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(2), pages 285-305, June.
    6. Sonja Fourie & Michael Goldman & Michael McCall, 2023. "Designing for loyalty programme effectiveness in the financial services industry," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 502-525, September.
    7. Emmanuel Silva Quaye & Cleopatra Taoana & Russell Abratt & Peter Anabila, 2022. "Customer advocacy and brand loyalty: the mediating roles of brand relationship quality and trust," Journal of Brand Management, Palgrave Macmillan, vol. 29(4), pages 363-382, July.
    8. Cristobal Rodolfo Guerra-Tamez & María-Laura Franco-García, 2022. "Influence of Flow Experience, Perceived Value and CSR in Craft Beer Consumer Loyalty: A Comparison between Mexico and The Netherlands," Sustainability, MDPI, vol. 14(13), pages 1-22, July.
    9. Ratikant Bhaskar & Okey Peter Onyia & Dharen Kumar Pandey & S. Ananda, 2023. "Navigating the complexities of financial services marketing through a bibliometric analysis of the Journal of Financial Services Marketing (2009–2022)," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(4), pages 724-747, December.
    10. Neena Sinha & Nidhi Singh, 2023. "Moderating and mediating effect of perceived experience on merchant's behavioral intention to use mobile payments services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 448-465, September.
    11. Osman Durmaz, 2022. "Is brand experience a good mediator? An empirical study on ISP sector," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 53-67, January.
    12. Syed Shujaat Ali Shah & Zia Khan, 2021. "Creating advocates: understanding the roles of CSR and firm innovativeness," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(2), pages 95-106, June.
    13. Jahangir Hamzavi, 2023. "Developing a comprehensive model for the knowledge productivity in electronic word-of-mouth marketing for banks," SN Business & Economics, Springer, vol. 3(2), pages 1-29, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yucheng Zhang & Zhiling Wang & Lin Xiao & Lijun Wang & Pei Huang, 2023. "Discovering the evolution of online reviews: A bibliometric review," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-22, December.
    2. Ana Babić Rosario & Kristine Valck & Francesca Sotgiu, 2020. "Conceptualizing the electronic word-of-mouth process: What we know and need to know about eWOM creation, exposure, and evaluation," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 422-448, May.
    3. Enrique Bigné & Carla Ruiz & Luisa Andreu & Blanca Hernandez, 2015. "The role of social motivations, ability, and opportunity in online know-how exchanges: evidence from the airline services industry," Service Business, Springer;Pan-Pacific Business Association, vol. 9(2), pages 209-232, June.
    4. Gallo, Iñigo & Townsend, Claudia & Alegre, Inés, 2019. "Experiential product framing and its influence on the creation of consumer reviews," Journal of Business Research, Elsevier, vol. 98(C), pages 177-190.
    5. Kick, Markus, 2015. "Social Media Research: A Narrative Review," EconStor Preprints 182506, ZBW - Leibniz Information Centre for Economics.
    6. Inyoung Chae & Andrew T. Stephen & Yakov Bart & Dai Yao, 2017. "Spillover Effects in Seeded Word-of-Mouth Marketing Campaigns," Marketing Science, INFORMS, vol. 36(1), pages 89-104, January.
    7. Gerrath, Maximilian H.E.E. & Usrey, Bryan, 2021. "The impact of influencer motives and commonness perceptions on follower reactions toward incentivized reviews," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 531-548.
    8. Cassandra France & Debra Grace & Joseph Lo Iacono & Joan Carlini, 0. "Exploring the interplay between customer perceived brand value and customer brand co-creation behaviour dimensions," Journal of Brand Management, Palgrave Macmillan, vol. 0, pages 1-15.
    9. Emmanuel Silva Quaye & Cleopatra Taoana & Russell Abratt & Peter Anabila, 2022. "Customer advocacy and brand loyalty: the mediating roles of brand relationship quality and trust," Journal of Brand Management, Palgrave Macmillan, vol. 29(4), pages 363-382, July.
    10. Maise Soares Pereira & Ivan Lapuente Garrido & Celso Augusto de Matos, 2015. "Firm-Created Word-of-Mouth Recommendation: is it Also Worthwhile?," Brazilian Business Review, Fucape Business School, vol. 12(3), pages 91-118, May.
    11. Pham Ngoc Thuy & Le Nguyen Hau & Nguyen Kim Ngoc Duyen, 2019. "A value perspective of service interaction quality: the case of immigrants returning to native countries as medical tourists," International Journal of Quality Innovation, Springer, vol. 5(1), pages 1-15, December.
    12. Mahmoud Yasin & Lucia Porcu & Francisco Liébana-Cabanillas, 2019. "The Effect of Brand Experience on Customers’ Engagement Behavior within the Context of Online Brand Communities: The Impact on Intention to Forward Online Company-Generated Content," Sustainability, MDPI, vol. 11(17), pages 1-17, August.
    13. Bui Thi Nhi & Tran The Nam & Nguyen Thi Thuy & Nguyen Kieu Oanh & Le Thi Thanh Trang, 2023. "Effects of customer perceived value, brand experience on brand attachment, brand satisfaction, and word-of-mouth," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 13(2), pages 39-53.
    14. Tsai, Shu-pei, 2011. "Fostering international brand loyalty through committed and attached relationships," International Business Review, Elsevier, vol. 20(5), pages 521-534, October.
    15. Ziad Abdelmoety & Spiros Gounaris, 2015. "Exporting B2B Solutions: The Impact and Contribution of Using Social Media," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 1(1), pages 23-40, January.
    16. Koivisto, Elina & Mattila, Pekka, 2020. "Extending the luxury experience to social media – User-Generated Content co-creation in a branded event," Journal of Business Research, Elsevier, vol. 117(C), pages 570-578.
    17. Hsu, Liwu & Lawrence, Benjamin, 2016. "The role of social media and brand equity during a product recall crisis: A shareholder value perspective," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 59-77.
    18. Rishikesh Bhaiswar & N. Meenakshi & Deepak Chawla, 2021. "Evolution of Electronic Word of Mouth: A Systematic Literature Review Using Bibliometric Analysis of 20 Years (2000–2020)," FIIB Business Review, , vol. 10(3), pages 215-231, September.
    19. Williams, Martin & Buttle, Francis, 2011. "The Eight Pillars of WOM management: Lessons from a multiple case study," Australasian marketing journal, Elsevier, vol. 19(2), pages 85-92.
    20. Sheng, Jie, 2019. "Being Active in Online Communications: Firm Responsiveness and Customer Engagement Behaviour," Journal of Interactive Marketing, Elsevier, vol. 46(C), pages 40-51.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jofsma:v:23:y:2018:i:1:d:10.1057_s41264-018-0039-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.