The Influence of Electronic W ord of Mouth on Bank Brand Image andReferral Intention Case study of Iran's Melli Bank

Web-based technologies have created numerous opportunities for electronic word-of-mouth (eWOM)communication. This phenomenon impacts online banks as this easily accessible information couldgreatly affect the online consumption decision. The purpose of this paper is to examine the extent towhich eWOM can influence brand image and referral intention in the context of banking industry.Measurement items are adapted from existing scales found in the marketing literature. Academiccolleagues reviewed the items for face validity and readability. The scales are evaluated for reliability,convergent validity, and discriminant validity using data collected in a survey of Melli bank’scustomers. A structural equation modeling procedure is applied to the examination of the influences ofeWOM on brand image and referral intention. The research model was tested empirically using a sampleof 341 users who had experience within the online customer communities and referred to Melli bank’sagencies in Tehran during the period of research. The paper found eWOM to be one of the most effectivefactors influencing the image of bank brand and referral intention in the area of banking industry.

Keywords:

Internet , Electronic commerce , Consumer behavior , Word of mouth , Brand Image