Service quality and word of mouth: a study of the banking sector. Issue 7 (30th September 2014)

• Record Type: Journal Article
• Authors: Choudhury, Koushiki
• Is Part Of: International journal of bank marketing. Volume 32:Issue 7(2014)
• Page Start: 612
• Page End: 627
• Publication Date: 2014-09-30
• Subjects: Bank marketing -- Periodicals; Financial services industry -- Marketing -- Periodicals; 332.106888
• DOI: 10.1108/IJBM-12-2012-0122
• Languages: English
• ISSNs: 0265-2323

Abstract

<abstract> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <sec> <title content-type="abstract-heading">Purpose</title> <p> – The purpose of this paper is to explore the influence of the dimensions of service quality on customers' word-of-mouth (WOM) in the context of the retail banking industry. </p> </sec> <sec> <title content-type="abstract-heading">Design/methodology/approach</title> <p> – A modified SERVQUAL instrument was used to capture customers' perceptions of service quality followed by exploratory factor analysis to study the dimensionality of service quality in retail banking. Multiple regression was used to probe the influence of the dimensions of service quality on WOM. </p> </sec> <sec> <title content-type="abstract-heading">Findings</title> <p> – The study revealed four dimensions of service quality in retail banking, namely, attitude, competence, tangibles and convenience and showed that the service quality factor attitude is most important in influencing WOM. </p> </sec> <sec> <title content-type="abstract-heading">Research limitations/implications</title> <p> – Continued refinement of the scale for measuring service quality in retail banking, proposed in this study, is certainly possible based on further research and trends in retail banking. Further research may also incorporate multiple measures of the WOM construct. </p> </sec> <sec> <title content-type="abstract-heading">Practical implications</title> <p> – Retail bank managers must realise the importance of employees' attitude towards customers, be sensitive to the intangible aspects of the service, particularly the customer-orientation of its frontline personnel and engender and continuously rejuvenate a customer-oriented culture. This is because, the provision of personalised, courteous service and helpful employees who understand the customers' needs is the strongest driver for WOM. </p> </sec> <sec> <title content-type="abstract-heading">Originality/value</title> <p> – This study explores the relationship between service quality and WOM by linking both constructs at their dimensional level. This increases the diagnostics of explaining customers' propensity for WOM.</p> </sec> </abstract>