Reference Group Influence on Banking Services in India

While satisfaction is a post purchase phenomenon, the pre-consumption anticipation or expectations of quality for services can be evolved and crafted in individuals over time. For a fixed level of perceived quality, the overall service quality may vary due to the varying service expectations of customer. Zeithaml, Barry and Parasuraman (1993) suggested that the service expectations are influenced by several controllable (explicit or Implicit service promises) and uncontrollable factors. One or few of these uncontrollable and variable factors may have a significant relationship to social group influences, like WOM, personal needs and perception of services quality alternatives and predicted services. Meuter et al. (2000) discovered that customers more often engage in positive word-of-mouth and if satisfied will repurchase and share their positive experiences. Further studies in the consumer behavior have revealed that for a consumer, pleasure, unhappiness and other elements of satisfactions will lead and motivate consumers to share their respective experiences with others (Dichter 1966; Neelamegham and Jain 1999; Nyer 1997) and most effectively with the relevant others.