The Effect of Pleasure and Arousal on Satisfaction and Word-of-Mouth: An Empirical Study of the Indian Banking Sector
During the last decade, the Indian banking sector has shown a remarkable advancement in terms of innovation, growth, and value creation. Behind this development of the Indian banking sector, several factors like customer satisfaction and word-of-mouth (WOM) are responsible. Literature has reported that pleasure and arousal play an important role in customer satisfaction. Investigations have been carried out on the influence of pleasure and arousal on behavioural intentions including satisfaction and WOM. However, there has been no such study for the banking sector. This gap in research has motivated this study. This paper suggests a conceptual model in which pleasure and arousal directly influence satisfaction and WOM. It also tests the impact of satisfaction on WOM. Based on prior literature, several hypotheses stating the linkages among pleasure, arousal, satisfaction, and word-of-mouth were developed. Russell�s framework for pleasure and arousal (emotion) formed the basis of the model. For the purpose of the study, face-to-face interviews with a structured questionnaire were conducted to collect data. Participants included customers above 18 years from both public and private sector banks in three cities namely, Kolkata, Durgapur, and Haldia of West Bengal, India. Data collection was done with the use of area sampling procedure. Out of 500 questionnaires administered, about 310 questionnaires were useable for analysis. The data analysis was done with SPSS 19 and AMOS 18. Structural equation modeling (SEM) using AMOS 18 was applied to explore the links between the constructs in the conceptual model. The overall fit of the conceptual model was assessed using several indices furnished in the AMOS output. The fit index results suggested model fitness with the data. The results of the study indicate that: Pleasure has significant positive and negative impacts on satisfaction and WOM respectively. Arousal has significant negative and positive impact on satisfaction and WOM. Satisfaction has positive significant impact on WOM.