TY - CHAP
T1 - Referral equity and referral management
T2 - The supplier firm's perspective
AU - Hada, Mahima
AU - Grewal, Rajdeep
AU - Lilien, Gary L.
PY - 2010
Y1 - 2010
N2 - From the supplier firm's perspective, a referral is a recommendation from A (the referrer) to B (the potential customer) that B should, or should not, purchase from C (the supplier firm). Thus, as referrals are for a specific supplier firm, they should be viewed as part of the supplier firm's marketing and sales activities. We recognize three types of referrals - customer-to-potential customer referrals, horizontal referrals, and supplier-initiated referrals - that have critical roles in a potential customer's purchase decision.We develop the concept of referral equity to capture the net effect of all referrals for a supplier firm in the market. We argue that supplier firms should view referral equity as a resource that has financial value to the firm as it affects the firm's cash flows and profits. We offer strategies firms can use to manage referrals and build their referral equity and suggest a research agenda.
AB - From the supplier firm's perspective, a referral is a recommendation from A (the referrer) to B (the potential customer) that B should, or should not, purchase from C (the supplier firm). Thus, as referrals are for a specific supplier firm, they should be viewed as part of the supplier firm's marketing and sales activities. We recognize three types of referrals - customer-to-potential customer referrals, horizontal referrals, and supplier-initiated referrals - that have critical roles in a potential customer's purchase decision.We develop the concept of referral equity to capture the net effect of all referrals for a supplier firm in the market. We argue that supplier firms should view referral equity as a resource that has financial value to the firm as it affects the firm's cash flows and profits. We offer strategies firms can use to manage referrals and build their referral equity and suggest a research agenda.
UR - http://www.scopus.com/inward/record.url?scp=84886902857&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84886902857&partnerID=8YFLogxK
U2 - 10.1108/S1548-6435(2010)0000007008
DO - 10.1108/S1548-6435(2010)0000007008
M3 - Chapter
AN - SCOPUS:84886902857
SN - 9780857244758
T3 - Review of Marketing Research
SP - 93
EP - 144
BT - Review of Marketing Research
A2 - Malhotra, Naresh
ER -