Banking industry as a part of service sector in all the world is now in a strong competitive situation. Using Positive Word of Mouth is one of the best tactic to accomplish competitive advantage and to sustain in the market. There is a requirement for generating positive word-of-mouth and an understanding the factors those are influencing on it. Therefore, this research is contributing to identify the main factor that is influencing on Generating Positive Word-Of-Mouth (GPWOM) in relation to banks selectively. To achieve the goal 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. Pearson’s Correlation was used for testing the hypotheses. Data analysis was conducted using SPSS Software. The results of this research revealed that Promotional Efforts (PE) has positive significant relationship with GPWOM and PE has higher influence on GPWOM. This study provides outcomes that could be valuable to bank managers for strategic planning and to compete in the industry.
Table of Contents
1. INTRODUCTION
2. PROBLEM STATEMENT AND OBJECTIVES OF THE STUDY
3. LITERATURE REVIEW
4. METHOD
5. RESULTS
5.1. Bank Choice
5.2. Independent Variable and Its Dimensions
5.2.1. Levels of Independent Variable and Its Dimensions
5.3. Generating Positive Word-of-Mouth and Its Dimensions
5.3.1. Levels of Generating Positive Word-of-Mouth and Its dimensions
5.4. The Relationship between PE and GPWOM
5.5. Regression of Promotional Efforts (PE) on Generating Positive Word-of-Mouth (GPWOM)
6. CONCLUSION, RECOMMENDATION AND IMPLICATION
Research Objectives and Focus
The primary objective of this research is to empirically investigate the influence of Marketing Promotional Efforts (PE) on Generating Positive Word-of-Mouth (GPWOM) within the banking sector of the Colombo Divisional Secretariat Division in Sri Lanka, while identifying key factors that enhance customer referral behavior.
- Analysis of promotional strategies in the Sri Lankan banking sector.
- Empirical evaluation of the causal relationship between promotional efforts and positive word-of-mouth.
- Assessment of the specific dimensions of promotional efforts including incentives, personal communications, and public relations.
- Strategic insights for bank managers to improve competitive advantage through effective communication management.
Excerpt from the Book
1. INTRODUCTION
Word-of-mouth communication originates with human communication; it has become a dynamic part of many key marketing communication campaigns over the past years, due in part to the power inherent in such a social phenomenon. Hence, the word-of-mouth communication is an important feature in marketplace phenomenon too, by which customers obtain information relating to organization and their offerings (Laczniak, DeCarlo and Ramaswami, 2001). It is usually perceived as more essential for services than goods. Dhillon (2013) suggests that most of the service providers get their consumers through word-of-mouth communication referrals.
In Sri Lanka because of some changes in banking system for example emerging and developing private banks, competition in this industry is increasing day by day. In this kind of circumstances retaining existing consumers and attracting new customers need an effective administration in all aspects. Gremler, Gwinner and Brown (2001) recommend that one of the best tools for banks to be distinguished from other banks and reach profit maximization is using word-of-mouth. Further, Dhillon (2013) indicates that by its nature, this form of communication is outside the formal control of banks and yet its effect is such that the ability to influence or encourage word-of-mouth could be a powerful marketing tool.
Therefore, this study particularly in the Sri Lankan context empirically investigates the GPWOM; since banks have considerable faith in positive word-of-mouth communication as a means of fascinating new customers and a variety of customer choice of bank highlight the importance of personal recommendation, thus need to explore the main factor that has significant impact on GPWOM in Sri Lanka. Hence, this study specifically focuses on selected popular banks for testing the PE that influences on GPWOM in Colombo Divisional Secretariat (CDS) Division.
Summary of Chapters
1. INTRODUCTION: Outlines the significance of word-of-mouth in the service sector and defines the research scope regarding the Sri Lankan banking industry.
2. PROBLEM STATEMENT AND OBJECTIVES OF THE STUDY: Identifies the empirical gap regarding promotional impacts on customer referrals and sets the research goals.
3. LITERATURE REVIEW: Defines core concepts such as word-of-mouth and promotional efforts, and establishes the study's hypothesis.
4. METHOD: Details the sampling framework, data collection via structured questionnaires, and the demographic setting of the study.
5. RESULTS: Presents the statistical findings, including correlation analyses and regression models showing the impact of promotion on word-of-mouth.
6. CONCLUSION, RECOMMENDATION AND IMPLICATION: Synthesizes research findings into actionable management strategies and identifies avenues for future research.
Keywords
Banking Industry, GPWOM, Promotional Efforts, Marketing Management, Word-of-Mouth Communication, Service Sector, Consumer Behavior, Sri Lanka, Customer Referral, Strategic Planning, Pearson Correlation, Regression Analysis, Competitive Advantage, Positive Word-of-Mouth, Sales Promotion
Frequently Asked Questions
What is the primary focus of this study?
The study investigates how marketing promotional efforts influence the generation of positive word-of-mouth (GPWOM) among bank customers in the Colombo Divisional Secretariat Division.
Which banking institutions were included in the research?
The research examined six popular banks: Bank of Ceylon (BOC), Peoples Bank, Commercial Bank, Hatton National Bank (HNB), Seylan Bank, and Sampath Bank.
What is the core research question?
The study asks to what extent marketing promotional efforts influence the GPWOM for popular banking services in the specified region.
What research methodology was employed?
A quantitative approach using structured, close-ended questionnaires based on Likert scales was used, with data analyzed via Pearson’s Correlation and regression analysis using SPSS.
What are the main variables defined in the study?
The independent variable is Promotional Efforts (PE), consisting of incentives, personal/non-personal communication, and public relations; the dependent variable is Generating Positive Word-of-Mouth (GPWOM).
What are the key findings regarding the relationship between promotion and word-of-mouth?
The study reveals a strong, positive, and statistically significant relationship (r = 0.891) between promotional efforts and the generation of positive word-of-mouth.
How much of the variation in GPWOM can be explained by promotional efforts?
According to the regression model, approximately 79.3% of the variation in GPWOM can be explained by the promotional efforts of the banks.
What recommendations are provided for bank managers?
Managers are advised to develop structured action plans for advertising and sales promotion, and to appoint dedicated media liaison officers to improve their public relations effectiveness.
- Arbeit zitieren
- Saraniya Devendra (Autor:in), 2019, Marketing Promotional Efforts and Generating Positive Word-Of-Mouth in Colombo Divisional Secretariat Division, München, GRIN Verlag, https://www.grin.com/document/460853
