Abstract
This paper develops and tests a model that examines factors that may contribute to customers' willingness to provide referrals to their salespeople. Data were collected in a business-to-business setting. Responses were received from 406 decision-makers. The model was tested using structural equations modeling. Findings suggest that the customer's appraisal of the relationship directly influences customer willingness to provide referrals. This study found that customer trust of the salesperson and customer satisfaction with the salesperson influence the customer's appraisal of the relationship. Additionally, conflict with the salesperson was found to have a negative influence on the customer's appraisal of the relationship and the customer's expectation to continue the relationship. Finally, customer expectation of continuing the relationship did not influence customer willingness to provide referrals.
Highlights
This admonition seems to be the current commandment of both academicians and practitioners to salespeople—and, with good reason
We propose that when customers have a positive overall evaluation of the buyer–seller relationship, they will have a desire to give something back to the salesperson
We refer to this overall evaluation as relationship appraisal
Summary
This admonition seems to be the current commandment of both academicians and practitioners to salespeople—and, with good reason. Research has shown that building long-term customer relationships can increase a firm's overall profitability Kalwani and Narayandas, 1995, Reichheld, 1994. Another important benefit of long-term relationships is that loyal customers are likely to be willing to provide referrals. Getting existing customers to provide referrals should be one of the best ways to add new business. Bachrach (1999) describes a study conducted by the Toronto Stock Exchange in which customers were asked if they would be willing to provide referrals to their stockbroker. Ninety-four percent of them said they would. The purpose of this paper is to examine factors that are associated with a customer's willingness to provide referrals to their salespeople
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