The Impact of Word of Mouth on Consumers' Decisions To Purchase Banking Services in Algeria

Abstract

This study investigates how word of mouth (WOM) influences consumers' decisions to purchase banking services in Algeria. A quantitative research design was adopted, using a structured questionnaire distributed to 200 bank customers. Results revealed that 76% of respondents consider recommendations from friends and family as the most trusted information source, and 64% reported changing their bank choice based on positive WOM. Regression analysis confirmed a strong positive relationship (R² = 0.71) between WOM and purchase intention. The study recommends that banks strengthen customer satisfaction and loyalty programs to encourage positive WOM and enhance their market reputation.