Exploring the impact factor of positive word-of-mouth influences satisfied customers

Abstract

Numerous studies have explored the satisfaction and positive word-of-mouth (PWOM) relationship; however, empirical research has not reached consistent conclusions. This study examines the key moderating factors to explain the inconsistent relationship between satisfaction and PWOM in previous research. We employed data from bank customers (n = 240) in Taiwan to explore three moderating variables, namely product involvement, perceived risk, and tie strength, which determine whether satisfaction has an impact on PWOM intention or behaviour. The hierarchical regression method was used to examine the main and interaction effects of these moderating variables. The empirical results indicate that (1) product involvement and tie strength have positive influences on word-of-mouth intention and behaviour; (2) the interaction effect of product involvement and perceived risk has a positive influence on PWOM intention and behaviour. This study suggests that financial service institutions should identify target customer groups to allocate its resources effectively and simultaneously reduce expenditures on ineffective strategies, depending on the different moderators. Finally, implications and limitations for future research are discussed.