A Factor Analytic Investigation of Generating Positive Word-of-Mouth towards Banking Industry

Marketing Management

The contemporary study is introduced on factor analytic investigation of Generating Positive Word-of-Mouth towards Banking Industry. Because of tough competition in the service sector particularly in the banking industry, just those organizations are successful that they can use the most innovative techniques to fascinate their customers. One of the best way that banks can be differentiated from others and accomplish competitive advantage is using positive word of mouth. Therefore, this research is contributed to the key element that influencing on Generating Positive Word-of-Mouth (GPWOM) in selective banks. To achieve the goals of this research, the data were collected from convenience sample of 200 banking customers in Colombo Divisional Secretariat Division. The respondents provided the data by means of a close-ended questionnaire. Cronbach’s alpha scale as a measure of reliability. Its value is estimated to be 0.600.Sophisticated statistical model as ‘Exploratory Factor Analysis (EFA)’ has been used. The results show that Generating Positive Word of Mouth extracted from the analysis that together accounted 55.411 percent of the total variance. The results of factor score these groups were ranked, Encouragement, In depth explanation, Differentiation and contacts got the ranks of fourth, third, second and first respectively and constitute the key dimension of Word of Mouth.

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