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Customer referral management: the implications of social networks

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  • Monica Law

Abstract

This study suggests that trust -- credibility and benevolence -- is the key element in the process of customer referral management. Along with tie strength and shared value, the proposed referral model was tested with life-insurance buyers. The results indicated that the first step for salespeople to gain more referrals and to develop closer relational strength is the development of higher levels of benevolence. Conversely, salespeople emphasise establishing mutual value, thereby building more ability-based trust, which is not as effective in obtaining more referrals. The study findings will be useful to companies to develop different types of relationship marketing programmes.

Suggested Citation

  • Monica Law, 2008. "Customer referral management: the implications of social networks," The Service Industries Journal, Taylor & Francis Journals, vol. 28(5), pages 669-683, June.
    • Handle: RePEc:taf:servic:v:28:y:2008:i:5:p:669-683
    DOI: 10.1080/02642060801988209
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    Cited by:

    1. Jarratt, Denise & Ceric, Arnela, 2015. "The complexity of trust in business collaborations," Australasian marketing journal, Elsevier, vol. 23(1), pages 2-12.

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