SWITCHERS AND STAYERS: A LONGITUDINAL ANALYSIS OF CUSTOMER REFERRAL

摘要

Relationship marketing has predominantly focussed on customer satisfaction, customer loyalty and marketing induced strategies for retention and acquisition (Oliver 1999). Only recently however, have organizations begun to understand the importance of customer referrals in achieving long-term customer value, profitability, customer loyalty and customer acquisition (Schmitt, Skiera, and Van den Bulte 2011). With the rise in internet technology, mobile technology and social networking platforms, it has become increasingly important for companies to encourage positive word of mouth, word of mouse and customer referrals, as these new technologies and social networking platforms are making it easier to spread 'the word' faster. Nowadays, it is a lot easier and attractive to be the' opinion leader' and encourage or discourage peers to try or buy various products and services. When an individual is seeking information prior to a purchase, they generally search for unbiased, non-commercial information of which they can trust (Mizerski 1982). This is especially common when a customer is searching for a subscription service, since these services are substantially more difficult to evaluate (Harrison-Walker 2001), and expose customers to larger risks than products (Schumann et al. 2010). Therefore, to reduce the risks associated with purchasing services, customers depend less on outright purchase, observation or trial; instead, they engage in information acquisition activities such as customer referrals (Schumann et al. 2010).