Positive moods and word-of-mouth in the banking industry: A moderated mediation model of perceived value and relational benefits

The purpose of this paper is to examine the mediating effect of functional value and symbolic value between positive moods and word-of-mouth (WOM) referrals in the context of Taiwan’s banking industry. In addition, this study investigates the moderating effect of relational benefits on the relationship between perceived value and WOM.

The research model was tested using data collected from customers (n=362) of the top 10 domestic banks in Taiwan. Structure equation modeling was employed to test and validate the conceptual model.

Positive moods are found to be an important predictor of functional value, symbolic value and WOM in this banking service study. Four types of relational benefits are identified including social, special treatment, confidence and face. Note that two distinct segments of bank customers are identified in terms of relational benefits: those who appreciate face benefits (n₁=169), and those who appreciate general relational benefits (n₂=193). The findings reveal the existence of partial mediation between a banking customer’s mood and WOM through functional value and symbolic value in the overall sample (n=362). However, it was found that functional value partially mediates the influence of positive moods on WOM among respondents in the “general relational benefits” segment only. That is, relational benefits are found to moderate the relationship between functional value and WOM.

This study expands the existing body of knowledge on customers’ perceptions of value by differentiating types of value perceptions.