Money, finances and credit

The role of online word of mouth in influencing consumer behavior in banking services

Economic Annals-XXI

Economic Annals-ХХI: Volume 151, Issue 5-6, Pages: 98-102

Citation information:
Femic, B., & Jovovic, M. (2015). The role of online word of mouth in influencing consumer behavior in banking services. Economic Annals-XXI, 5-6, 98-102. https://ea21journal.world/index.php/ea-v151-24/

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Bojana Femic
PhD Candidate (Economics),
Teaching Assistant,
University of Montenegro
37 Jovan Tomasevic Str., Podgorica, 81000, Montenegro
bojana@ef.ac.me

Milorad Jovovic
PhD (Economics),
Associate Professor,
University of Montenegro
37 Jovan Tomasevic Str., Podgorica, 81000, Montenegro
misko@ac.me

The role of online word of mouth in influencing consumer behavior in banking services

Abstract. With technology and communication development, there is also a growth of impact which online word of mouth (WOM) has on the costumer behavior. The impact of online WOM on customer loyalty in the case of banking sector in Montenegro shows the differences regarding the impact that depend on the source of the message (whether it comes from an expert or someone who does not belong to that category, and can be a friend or acquaintance), message valence or connotation (positive or negative) and the manner in which the message was written. The results of the research have shown that when it comes to affective and conative loyalty, there is no difference in the impact source, but it appears in relation to message valence. Namely, all negative comments have a statistically significant impact on affective loyalty, whilst all positive comments influence conative loyalty. Regardless of the source and valence, all the comments significantly affect the probability that the customer will continue to use the services of the chosen bank; they also affect the probability that this person will recommend the bank to his friends, family members or colleagues. Nevertheless, both positive and negative comments from the expert in that field or from an acquaintance or a friend have a significant impact on the quality of alternatives, whereas comments from an expert or from a friend or an acquaintance, provided the message is negative, have an equal impact on the customer’s feelings regarding the person’s loyalty towards the bank.

Keywords: Online Word of Mouth; Loyalty; Services; Banking; Message Source; Message Valence

JEL Classification: M39; G20

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Received 30.05.2015

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