Download Introduction The mode of advertisement noted as word of mouth (or

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A STUDY ON REFERRAL MARKETING
Dr. N. Makandar
Associate Professor,
Anjuman Degree college
Karnataka, India
ABSTRACT

The powerful impact of referral marketing on customer behaviour is often cited by marketing
practitioners and theorists. Much of modern marketing research has gone into harnessing the power of
Word of Mouth (WOM), especially in the post-war period of 1940s. WOM referral marketing research
studies have been conducted from customer-to-customer perspective, although the concept also exists in
employee and recruitment markets. This paper attempts to identify the gaps by integrating research into a
contingency model. WOM is categorised by valence, focus, timing, solicitation and degree of
management intervention. The same is done in an attempt to answer the two questions: What are the
antecedents and consequences of WOM?
Keywords: Referral marketing; relationship marketing; word of mouth
Introduction
The mode of advertisement noted as word
of mouth (or the WOM) gets enough
recognition since time immemorial. WOM
seemed to have excessive impact on the
knowledge as known to the people, the
way they feel and act. Approach related to
interpersonal impact comprises an ancient
origin. It was Aristotle who stated WOM
as ‘the most important single work in the
history of speechcraft’ in 4th c. BC
(Thonssen and Beard, 1948, p. 63). In the
Rhetoric (Aristotle, trans. Roberts, 1924)
persuasive significance are noted for the 3
artistic proofs being controlled by speaker.
These are: ethos, pathos and logos. The
term Ethos is for personal and ethical
appeals and the way personal qualities get
projected by the speaker, in order to elicit
belief in listener. Pathos is the emotional
appeal
and
Logos/logical
appeal
exemplifies enthymemes by Aristotle as
base for reasoned discourse. After almost
23 centuries, there are immense literatures
about the interpersonal communication
(Littlejohn, 1990). According to Britt’s
(1966) seminal review over the derivative
relationship among behavioural theory of
the consumer and the social sciences, the
WOM impact on consumers gets noted
specifically.
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Asch (1955) and
an aligned
group
(Herr et al., 1991). It has been shown that
conspired by WOM in order to convince
WOM
some
conditions, such as awareness, attitudes,
unaware-experimental
subjects.
can
influence
Irrespective of clear evidence in contrast,
perceptions,
one of three lines noted on card A gets
intentions and radical behaviour. As per
noted as length match from another line
Sheth (1971) WOM stands significant than
that has been drawn on card B. Kotler’s
advertising in the process of raising
(1967, p. 456) earlier edition on marketing
awareness of innovative product and
management acknowledged ‘advertising is
securing trial decision of the consumer.
one of several influences on a person’s
According to Day (1971) the reason
behaviour and probably less important –
behind this is due to the sources counting
because it is known to be self-serving –
flexibility and reliability over interpersonal
than such influences as peers and personal
communication. WOM has been computed
observation’.
the
9 times by him as an effective mode of
establishment of independent speaker is
advertising in the way of converting
thus attained. However, Aristotle would
unfavourable/neutral predispositions in a
have called it an ethical appeal.
very positive manner. Research led by
After 3 decades, in late 1990s, various
Mangold’s (1987) declares WOM impact
marketers, especially those espoused as
in context of professional services with
emergent relational paradigm, remained
more emphatic impact over the buying
keen to harness the power led by WOM.
decision of the consumer than any other
Foundation
for
expectations,
diversified
behavioural
influencing sources. The reason behind
WORD OF MOUTH: The Power
this is the trustworthiness towards personal
WOM in general is considered to remain
sources (Murray, 1991). In terms of
influential over behaviour rather than any
industrial purchasing, the act of WOM is
other source for market control. As a
subject to lay impact over the perceptions
matter of fact, WOM has been noted to
and the expectations while searching data
remain more influential against neutral
for the process of buying process and
prints like ‘Which and Consumer Reports’
implementing impact over attitude in the
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pre-selected mode of evaluation is related
WORD OF MOUTH: Definitions
to the alternative service providers (Lynn,
According to Arndt (1967) initiated the
1987; Stock and Zinsner, 1987; Woodside
concept of defining WOM over the
et al., 1992). WOM laid impact on
behaviour of the consumer and featured it
expectations as noted by Webster (1991)
as
and Zeithaml et al. (1993). It can also
communication among the communicator
influence the process of making decisions
and the receiver, as received by the
both positively (Engel et al., 1969;
receiver as non-commercial, about a brand,
Richins, 1983) and negatively (Tybout et
service/product (Arndt, 1967). It noted the
al., 1981; Bolfing, 1989). Negative WOM
WOM domain for research. In a recent
remains very powerful against the positive
research Stern (1994) defines WOM
WOM (Arndt, 1967). As for instance,
through
Technical Assistance Research Program
advertising aspects as, ‘WOM differs from
(1986, p. 4) reports that dissatisfied
[advertising. . .] in its lack of boundaries..
customers are more into the way of
.
informing about the hassle twice as many
ephemeral
times as satisfied customers. According to
between a contiguous source and a
Desatnick (1987) in context of a research
recipient who communicate directly in real
for White House Office of Consumer
life . . . Consumers are not assumed to
Affairs confirmed ‘90% or more who are
create, revise and record pre-written
dissatisfied with the service they receive
conversational exchanges about products
will not buy again or come back. Worse
and services. Nor do they ordinarily use
still, each of those unhappy customers will
poetry or song to discuss consumption.
tell his or her story to at least 9 other
Finally, WOM communication vanishes as
people, and 13% of those unhappy former
soon as it is uttered, for it occurs in a
customers will tell their stories to more
spontaneous manner and then disappears’
than 20 people’. However, it is total WOM
(Stern, 1994, p. 7).
recipients are not added to retell the story.
However, WOM might be about a brand,
oral,
.WOM
person-to-person
distinctiveness
involves
oral
or
the
mode
made
of
from
exchange
of
spoken messages
service or product. It can be about
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organization focused. WOM in current IT
of nonpersonal presentation of ideas,
age is about face to face, oral, direct, or
goods or services by an identified sponsor’
ephemeral communication. There are some
(Alexander, 1964), the WOM is never the
virtual aspects related to WOM that is
option. Advertising is noted through paid,
noted by functions of electronic bulletin
non-personal, element of transparent mode
boards noted analogously towards face-to-
of sponsorship kind of communication and
face WOM. As for instance, Cobra Golf
it is different from WOM being eroded.
Inc., is noted as the manufacturer of golf
There
equipment that created a site for board of
incentivized as well as rewarded, whereas
bulletin where the surfers can post all
other mode of WOM gets produced
kinds of unedited messages related to
electronically. These elements distinguish
Cobra’s tools and competitors’ equipments
WOM as the way for uttering through
(Hagel and Armstrong, 1997). A Web site
sources assumed through receivers with
is also there to dedicate towards negative
independent
mode of WOM related to United Airlines
influence. Instance and practice of WOM
(as
gets featured by –
in
www.united.com).
All
the
are
some
view
passengers are reported about the way they

valence,
experienced execrable service of United in

focus,
Electronic

timing,
community is liable to generate virtual

solicitation and
mode of WOM that is not face to face,

intervention.
the
‘unfriendly
skies’.
WOM
towards
that
gets
corporate
oral, direct and ephemeral. Electronic
WOM from historical point is traceable by
Valence
archival threads.
Marketing viewpoint about WOM remains
positive or negative. In case of positive
WORD OF MOUTH: Features
WOM the testimonials of good news and
WOM has been noted with a mischievous
endorsements as preferred by respective
nickname under free advertising. In case
company.
advertising gets defined as ‘any paid form
remains as mirror image and is worth
Negative
mode
of
WOM
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negative kind of corporate viewpoint that
Connectivity among the six-markets model
can be considered extremely positive
(Fig. 1) notes that marketers are about the
against consumer viewpoint. File et al.
building as well as maintenance of
(1994) stated that valence and volume
mutually beneficial relationships under
related to post-purchase state of WOM
varied domains, such as customers (can be
remains effective towards the efforts of
end
management. Further, the added measured
suppliers
impacts
influentials, employees, referral markets
related
to
the
process
of
users
or
being
some
equal
intermediaries),
to
alliances,
complaints management, programmes for
and recruitment (Christopher et al., 1991).
service
to
Most of the management writings are
over the post-
about WOM that is in relation with
recovery
and
unconditional service
purchase
WOM
guarantees
being
clear
to
the
communication with satisfied customer
management laying impact over frequency
with necessary prospect. In another way,
as well as WOM direction.
assumptions related to functions of WOM
are to draw customers into the ‘loyalty
Focus
Thu, it has been assumed that emphasis on
management id just on WOM among the
consumers. This might not appear to be so.
ladder’ (Fig. 2).
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investment (influence markets). It can
By
this
means,
there
is
necessary
remain
significant
data
source
in
conversion of a prospect initiated in terms
recruitment market. As for instance, there
of the customer (Christopher et al., 1991).
is one engineering company that estimates
Empirical evidences related the powerful
80% employees being recruited from the
role led by WOM in diffusing of
personal referrals. As a matter of fact,
innovations
some
gets
well
documented
companies
thereby
reward
(Mahajan et al., 1990). However, there are
employees such suitable recruitments.
some functions of WOM that are liable to
Rewards get ranged from $50 to as high as
migrate customer over loyalty ladder of
$2000 (Tyler, 1996). WOM is noted as the
company X, in context of other WOM that
primary
can equally promote the aspects of
organizational culture gets expressed as
defection off the selected loyalty ladder of
well as reconstituted, thus offering enough
company X. Though the research appears
impact over the employees’ behaviour.
as thin, there is the self-evident related to
WOM which is liable to operate under
other five markets. As for instance, WOM
is liable to influence decisions made about
action
form
where
the
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All kinds of WOM communication does
not get originated from customers. WOM
might get offered with/without solicitation.
However, as authoritative data gets sought,
listener can seek input related to opinion
leader or the influential person.
Intervention
Though WOM can appear spontaneous,
there is the possibility for the increased
count of companies that pro-actively
intervene in an effort for stimulating as
well
as
managing
WOM
activity.
Management of WOM is liable to operate
at individual/organizational level. People
might sought themselves actively by the
delivery of WOM or can serve in the form
of role models for followers. Companies
Timing
remain alert to potential problems in
WOM based referral can get uttered before
connection with celebrity endorsements,
or after any buy. WOM is subject to get
which can turn up unfashionable/attract
operated as a significant source for the
bad publicity, like Michael Jackson, Eric
collection of pre-purchase data, termed as
Cantona and O.J. Simpson.
input WOM. Customers can utter WOM
even
after
consumption
or
purchase
experience, termed as output WOM.
Referrals’ taxonomy
As per an unpublished document of A.F.T.
Payne taxonomy related to the referral
Solicitation
types, widely being split in two determined
groups, which are customer referrals and
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the non-customer referrals. The instance of
referral
customer referrals can be either initiated
unidirectional: where a doctor is subject to
by the customer or company. The referrals
recommend consultant, an architect can
initiated by the customer originate from
specify specialised contractor. Instance of
current/
internal referrals in an organization can
former
customers
having
activities
might
fruitful.
remain
satisfied/delighted experiences. These are
remain
Divisionalized
unpaid advocates (as in Fig. 1). Many
organizations like accounting firms are
companies are trying to harness WOM
liable to cross-refer clients among the
through the means of giving incentives to
divisions, as for instance, audit customers
the customers to refer the product/service
can be targeted for relevant consultancy
to family and friends, like American
services. Referrals related to current
Express, Freemans Home Shopping and
employees or past employees showing
British Telecom. Moreover, the customer
company benefit.
referrals are noted for the companies
having benefit from various other referrals.
THE MODEL of WORD-OF-MOUTH
The instance of reciprocal referrals appears
This is an inclusive WOM model as in Fig.
as two and more companies agreeing to
3, comprises of two variable sets.
cross-refer mode of customers towards
(1) Intrapersonal variables that remain as
each other. It remains as a commonplace in
part of process in connection with either
context of professional service marketing;
seeking input in WOM or precipitating the
law firms, agents of the estate and creating
mode of output from WOM.
societies,
exemplified
by
developing
referral network. Some of the noted
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commercial element as the expectations of
(2)
Extrapersonal
variables
remain
the customer meet level of satisfaction, as
contextual conditions influencing the note
the expectations get underperformed, level
of seeking input related to WOM or output
of dissatisfaction as per expectations
from WOM.
exceed and customer delight is gained
(Oliver, 1997). Delight and satisfaction are
Intrapersonal variables
subject to motivate positive mode of
Results attained from WOM are attained
WOM. From the service sector delight has
from the experiences of the customer in
been noted to remain less connected to
reference
product/service.
‘right first time’ related to service delivery
Disconfirmation paradigm related to the
rather than having an excellent recovery in
customer satisfaction stands equal to
context of service failure (TARP, 1986)
dissatisfaction being predicted with most
and further it has been estimated is noted
to
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to
remain
cost-effective
any
has reviewed tolerance zones and Oliver
management in order to invest twice the
(1997) came up with the integrated
determined profit margin in connection
concept of expectations research (see Fig.
with the sale noted towards recovery that
4).
is about the dissatisfied customer (Fornell
Plausible instance can infer positive WOM
and Wernerfelt, 1986). In the same way,
that gets connected performance that was
negative WOM gets conceptualized is the
predicted as well as negative WOM along
result of unsatisfactory imbalance among
with performance that is below the range
perceptions and expectations. Various
of wanted. According to Westbrook (1987)
researchers have investigated the range of
WOM gets mediated through levels of
possibility of having expected hierarchy.
satisfaction. As per Swan and Oliver
Yale Communication and Attitude Change
(1989) positive WOM is subject to
Program prolifically get researched over
increase satisfaction. However, as per
the
mediated
Engel et al. (1969) emotional response
communication as well as attitude in
towards product/service performance can
1950s, came up with an acceptance of
evoke WOM.
connection
among
the
for
latitude (Hovland et al., 1957). According
to Miller (1977) there are four expectation
Some data show that WOM has been
levels from ideal to the state of lowest
driven by performance of product/service,
acceptability. He further referred to ‘will
yet through dissatisfaction related to the
be’, ‘can be’, ‘must be’ and ‘should be or
process of buying (Tanner, 1996). As per
ought to’ based expectation levels. As per
the research of Hartline and Jones (1996)
Parasuraman et al. (1991) expectations get
WOM intention gets correlated to the
bounded by adequate/minimum aspects
perception of the customer in relation with
and determined desired levels. It creates a
quality and value. Higher the perceptions,
tolerance
consumers.
the stronger are the intention becomes, in
Woodruff et al. (1983) derived a narrower
relation with the utterance of positive
reasonable band related to the expectation
mode of WOM. Stronger of these,
as the indifference zone. Strandvik (1994)
correlates to value. in context of service
zone
for
the
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components the process of delivery signal
customer to others (Adelman et al., 1993).
is subject to ‘value’ towards customers, is
There is the need of social support within
related to the process of management
strong-
noted in isolation of these dimensions as
experienced that there is support of weak-
well as developments related to them,
tie in connection with strangers, service
especially in order to promote referrals.
providers and casual acquaintances. This is
Evidences are noted about the perceptions
the reason that service providers can
of the customers as they get support from
strengthen tie through the means of
social service in encounter with more
offering social support, with
recommended preparation towards the
propensity towards utter mode of positive
service (Adelman and Ahuvia, 1995).
WOM. There is the social support in
Social support is noted as the providers of
relation with professional mode of services
service remain verbal/non-verbal in terms
in relation with environment (as lawyers as
of increased communication with control
well as GPs) being strongly noted in
over customer’s sense through the mode of
correlation in connection with satisfaction
reducing uncertainty, develops customer’s
in the client.
self-esteem/enhances social sense of the
tie
connections.
We
have
greater
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as faced in connection with unmet
Negative mode of talent output in relation
expectations; such as voice related to
with WOM gets researched under various
dissatisfaction/exit relationship. There are
contexts of buying, even cars (Swan and
theoreticians have conceptualized three
Oliver,
and
kinds of punitive actions which are taken
for-profit
by the dissatisfied customer; like exit
business modules (Cermak et al., 1991).
relationship, voice of dissatisfaction in
Like positive WOM gets connected to
order to supports supplier as well as utter
satisfaction, having negative WOM being
negative WOM towards social network. In
connected to level of dissatisfaction (Singh
this context, Singh (1988) implied analysis
and Pandya, 1991). Negative mode of
of cluster in reference to complaints data
WOM is a kind of customer complaining
as well as derived evidence in connection
behaviour (or the CCB). As per Hirschman
with tripartite taxonomy related to the
(1970) customers are having two options
complaint style; like voice responses (that
Turgeon,
1989),
1988),
hotels
and
(Cadotte
not-
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is complain for redressing purposes from
tradition in case of marketing (Festinger,
supplier), kind of private responses (that is
1957). The aspect of cognitive dissonance
the negative WOM) a third party responses
is subject to get defined as an imbalance
(like writing to programmes related to
under cognitive system. There are two
consumer affairs or consulting solicitor). A
elements noted in this system that are
general
noted
support
has
been
noted
in
as
expectation,
followed
by
reference to the customers’ dissatisfaction
perceptions on the performance of the
contention with durables that can exhibit
product.
higher kinds of voice levels as well as
considered
for
lower levels in terms of exiting rather than
discomfort
experience
non-durables (Watkins and Liu, 1996).
cognitive dissonance is noted to seek
According to Singh (1990) customer’s
WOM from the sources that are liable to
relative
reduce
investment
in
reference
to
A
very
the
discomfort.
never
common
strategy
customers
with
attained
from
However,
product/service is subject to the process of
customer
redressing value. Many conditions can be
discomfort.
connected to the positive as well as
Till the period of 1940s, communication in
negative WOM. In the domain of health
marketing has
service, features of reliability along with
dominated by ‘magic bullet’ or otherwise
dependability are closely connected to the
termed
positive WOM as well as appearance and
communication. Assumptions are made in
right kind of presentation of negative
relation with massages for mass media
WOM (Headley and Miller, 1993).
laying impact on all kinds of audience
As mentioned above, consumers are keen
members. During late 1940s, Lazarsfeld et
to compare performance and expectation
al.’s (1948) noted that behaviour related to
related to the product/service. In case the
voting showed that messages related to
performance appears to remain below
mass media get intercepted as well as
expectation, there can be the state of
distributed
dissonance in the client. The theory of
individualisation,
cognitive dissonance is having 40 years of
leaders. Hypothesis based on two- step
as
feels
been
the
every
sense
thought
‘inoculation’
under
through
known
to
of
get
mass
strategic
as
opinion
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flow refers to the marketer-controlled
Engel et al. (1993) stated these influential
communication in order to understand
people as opinion leaders, where being
opinion leaders who communicate by
influential is a demographic feature and
WOM to respective peers, influencing
the same vary for different products, yet
their
are
original
attitudes
as
well
as
gregarious,
fashion-conscious,
behaviours. Opinion leaders thus get
innovative, independent and active in
distributed in every level and in all groups
search of data. Theory related to opinion
and can lay impact on one/various topics.
leadership has been criticised by many
According to Katz and Lazarsfeld (1955)
scholars
this can be exemplified by the difference
communication theory noted for effecting
of
diversified
wider range of acceptance. In case of
attributions in connection to food-opinion
multistep world, opinion leaders as well as
leaders, public affairs opinion leaders,
the followers remain legitimate targets of
fashion-opinion leaders and film-going
communication.
opinion leaders. According to Rogers
motivated to seek necessary data. Yale and
(1962), still there is the need to identify
Gilly (1995) stated that data seekers hardly
three traits
prefer to select data sources that matches
That are widely as per opinion leaders;
common profile in case of opinion
which are social participation, status and
leadership that has been deployed in case
state
profiles
of
noted
under
and there is
the
Followers
multistep
might
get
cosmopolitanism.
As
per
of marketing literature, but will select
(1971)
state
of
people who are noted to have exclusive
cosmopolitanism, the determined leaders
knowledge about the product/service. Both
hardly get distinguished from followers,
data seeker and data source are liable to
yet
perceive source being more knowledgeable
Robertson
they
for
remain
knowledgeable
(for
the
more
gregarious,
expertise)
and
instead of recipient for consultation (Yale
comparatively more innovative. The aspect
and Gilly, 1995). During 1980s, ‘market
related to knowledge remains assumed as
maven’
per personal influence (Solomon, 1992).
advising
developed,
friends
which
enjoyed
about
newer
products/services as well as shopping
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places (Feick and Price, 1987; Higie et al.,
person. As against this the spectrum,
1987). Social integration over maven
cultures remain interdependent to the
instead of any product, notes expertise
personhood. Markus and Kitayama (1991,
offering
are
p. 227) ‘experiencing interdependence
basically women, yet are indistinguishable
entails seeing oneself as part of an
(Bayus et al., 1985; Higie et al., 1987).
encompassing
According to Gelb and Johnson (1995, p.
recognizing
56) ‘not only does the market maven
determined, contingent on, and to a large
prompt word of mouth, but those with links
extent, organized by what the actor
to such individuals are disproportionately
perceives to be the thoughts, feeling and
likely to act on what they are told’.
actions of others in the relationship’. This
power.
Market
mavens
social
that
relation
one’s
and
behavior
is
review about the WOM research has been
Extrapersonal variables
conducted on an individualist point of
Though WOM is proved as a universal
view
phenomenon, as many documents are in
collectivist structure. Researches related to
English
Asian,
and
the
researches
consider
individualist
that
Mediterranean,
is
equal
African,
to
Latin
Western economies. In context of Western
American and Middle Eastern cultures still
culture, people consider self-contained
remain unexplored. In case people in
aspects and autonomous identity. Markus
collectivist
and Kitayama (1991, p. 224) state ‘the
subordinate individuality the sense of
Western view of the individual as a self-
collectivism, this can create relevance to
contained, autonomous entity who (a)
WOM, irrespective of seeking or otherwise
comprises a unique configuration of
giving positive/negative WOM. As for
internal attributes (e.g. traits, abilities,
instance, collectivist culture leads to
motives,
behaves
negative WOM that is about personal
primarily as a consequence of these
unsatisfaction that might not uttered in
internal attributes’ being dominated as per
case collective view gets favoured much.
scientific literature. However, modes of
Collectivists are liable to develop stronger
cultures
emotional
values),
considered
and
for
(b)
independent
cultures
ties
in
are
liable
relation
to
with
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products/services as they are having group
reduction
membership and inclined to develop
uncomfortable feeling created by risk
stronger, trust worthy connection with
exposure.
suppliers. There are some researchers who
WOM has been noted as a very significant
are
cultural
input that act towards the process of
differences in terms of attitudes for
making decision as buying services are
complaining (Arndt et al., 1982; Richins
noted against goods. According to Murray
and Verhage, 1985; Thorelli, 1983). As per
(1991) service consumers are liable to
Watkins
cultural
prefer the act of seeking data from family,
limitations are noted in case of WOM
peers/friends instead of sponsored sources
research. Culture appears to be the
of promotion. Services are of high
extrapersonal condition that lay impact
credence that turn up hard for evaluation
over WOM behaviours.
purposes before consumption. Intangibility
investigating
Culturally
and
determined
Liu
reduce/eliminate
towards service as well as potential aspects
liable to indicate other extrapersonal
related to heterogeneous performance that
situations laying impact over seeking of
can drive the act of seeking WOM.
WOM as well as utterance of WOM.
According to Gombeski et al.’s (1988) a
Seeking
appear
review made over patient questionnaires
risk/intangible-
derived 50% newer patients that has been
dominant for the products (File et al.,
reported about the peer referral towards the
1994). There are many consumers who
health
experience the act of perceiving risk in
decision at the most. WOM limitations
case of newer product and purchasing
noted by Johnson and Meischke (1991)
aspects. This can be of diversified forms,
derive preferred patients in terms of
like performance, physical conditions,
receiving data about the treatment of
social
cancer
WOM
for
and
input
higher
researches
can
are
important
conditioned
(1996)
that
might
financial
domains,
centre
from
influencing
doctors
For
the
patronage
instead
of
context
of
psychological or even during the instance
family/friends.
of loss (Mitchell and Hogg, 1996). WOM
professional services, buyers are noted in
has been noted as the strategy for risk
terms of seeking customer input. This has
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……………………………………………………………………………………………………………………
been considered with highly claimed
cost leads to dissatisfaction, expression
aspect for the process of making buying
over voice as a response declines, yet exit
decision (Kotler and Bloom, 1984; Gould,
relationship increases. With more featured
1988). A survey-based research made over
receptive aspect of supplier, there is the
324 chief executive officers (or CEOs)
room for customer to complain lower
from six industries noted ‘a personal
incidences of exit as well as voice
endorsement of the professional service
behaviours (Richins, 1983, 1987). Theory
firm from a business associate’ (File et al.,
of attribution leads to the point where the
1994, p. 308) being significant in the
supplier held dissatisfaction, and all CCB
selection of service provider.
forms increase (Folkes et al., 1987).
Output WOM is also connected to price.
Researchers noted various contexts that
According to Richins (1983, 1987) higher
can evoke WOM. As per Bayus (1985)
the price leads to greater likelihood for the
frequent mode of repetitive advertising is
creation of negative WOM, especially in
subject to increase WOM, especially when
case the product is unable to satisfy the
there is no data source. Ambiguity in case
customer. It is related to the consumer
of advertisement can provoke comment
investment for respective product/service.
(King and Tinkhan, 1990). These get
Increase
perceived
connected to advertising axiom for the
significance over the problem remains
creation of higher ‘conversational value’
obvious (Folkes et al., 1987).
as well as consistent with determined
Output WOM is directly related to
evidence which refers to advertising
business environment. Actions related to
message radically generating uncertainty
voice and exit-behaviours are subject to
about the product/service, whereby the
vary
consumers can seek WOM for the
in
the
CCB
context
with
inversely
for
concentrating it to the industry. It has
reduction of perceived risk.
further concentrated, the aspects related to
fewer alternatives as noted by the customer
Research questions
having dissatisfactory face (Fornell and
This review leads to various kinds of
Didow, 1980). As the expressing hassle or
questions. These are:
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(1) What can be the better intention for
is liable to generate enquiries, retention,
predicting WOM or real life behaviour:
trial, and switching of behaviours?
disconfirmation or paradigm on attitude?
(7) What attitude of referring customer as
(2) Does WOM-covary get concerned
well as referred customer is noted for such
about value perception/disconfirmation,
programmes and towards companies that
quality/satisfaction? Note the conditions in
are sponsoring programmes?
this context.
(3) What can be the antecedent marketing
Lastly, as the research gets published in
status that is in close connection with
English, most of the time the context are
–
Western economies, and lots of contexts
product, price, place, promotion, people,
remain unanswered for the cross-cultural
process and physical lay highest impact on
issues
the
multinational companies (or the MNCs)
WOM? For service sector, what 7Ps
utterance
of
WOM?
Note
the
conditions in this context.
to
managers
dealing
with
along with theoreticians.
(4) How can WOM-intention gets linked
to real life performance? What can
(8) How can WOM operate in context of
constrain or enable performance?
cultures related to other cultures than
Western?
Researchers can further extend emphasis
over WOM investigation.
(5) What is the best way to comprehend
the impact of WOM, recruitment and the
forms of internal markets?
As the companies are investing in formal
programmes related to referral market,
various questions get addressed.
(6) What is the level of effective aspects in
context of current referral programmes that
(9) What MNC managers must consider
differentiating
promotion
of
positive
WOM output?
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