What is it about?
The purpose of this paper is to establish the link between three constructs, namely, service innovation, corporate reputation (CR), and word-of-mouth (hereinafter WOM). Primarily, the aim is to understand whether innovation in a service firm drives its reputation, thereby resulting in positive WOM where the direct effect of service innovation of a firm on WOM is mediated by reputation. Furthermore, the study also seeks to understand whether the type of service firm has an effect on determining the level of the mediation effect.
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Why is it important?
The study helps the decision makers and the managers of the bank to understand that frequent innovation within the firm would help to gain reputation, and thereby customers would tend to give a positive WOM. Further, non-reputable firms can still gain a positive WOM if they continuously innovate new services. In the Indian context, it is noted that there is a difference between private and public banks in determining the mediation effect of reputation between service innovation and WOM.
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This page is a summary of: Service innovation, corporate reputation and word-of-mouth in the banking sector, Benchmarking An International Journal, October 2019, Emerald, DOI: 10.1108/bij-05-2019-0217.
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