Empirical Study Of Customer WOM Diffusing Intention Based On Customer Perceived Value In Retail Banking Business

With the global development of retail banking as well as the full liberalization of the domestic financial industry, commercial banks, especially the retail banking business, are facing fierce competition and enormous opportunities. Therefore, it is imperative for the domestic commercial banks to enhance existing customers' WOM diffusing intention to get more profits and competitive advantages. In this context, this paper builds up a theoretical model for the influencing factors (customer perceived value, customer satisfaction, customer loyalty) on the customers'WOM diffusing intention. Firstly, this paper does the research on the impact on customer satisfaction and customer loyalty from three dimensions of customer perceived value (functional value, emotional value and social value) and explores the different impact of the three kinds of customer perceived value on the customer satisfaction and two kinds of customer loyalty. Secondly, it discusses the influence of customer satisfaction, attitudinal loyalty and behavioral loyalty on customers'WOM diffusing intention. Thirdly, it studies on the relationship between the customer satisfaction and the two kinds of customer loyalty.This study collects 256 samples from retail banking customer in Chengdu. SPSS 15.0 and LISREL8.7 are used to test the hypothesis in this study. There are descriptive statistical analysis, exploratory factor analysis, confirmatory factor analysis and structural equation model validation and other methods for data analysis.The results are as followers. Firstly, Customer satisfaction is mainly affected by the functional value, emotional value has a certain influence on customer satisfaction, but the social value does not have significant affect on customer satisfaction. Secondly, it confirms foreign WOM diffusing theory that customer satisfaction, customer attitudinal loyalty and behavioral loyalty have significant positive impact on the customers'WOM diffusing intention. Thirdly, only the customer emotional value and functional value has the positive impact on customer loyalty, but the social value doesn't. In addition, only the functional value has the positive impact on customer behavioral loyalty.Through the quantitative statistical analysis of the customers'WOM diffusing intention for the China's commercial banks, we learned that Chinese consumers are currently most concerned about the functional value such as bank services, business processing speed and so on, however, they do not care much about the social value such as the status symbol and unique taste. Hence, we can provide some suggestions for the commercial bank's customer relationship management, that is, to improve service quality, customer satisfaction, customer functional value and emotional value. Commercial banks should constantly develop the financial products which meet the different customers'needs and enhance the quality of service to establish a good image of the bank. In short, only bring more benefits to customers can we get more customers'WOM recommendation.