Firm-Created Word-of-Mouth Recommendation: is it Also Worthwhile?

Maise Pereira,Ivan Garrido,Celso Matos

doi:10.15728/bbr.2015.12.3.5

Abstract

One of the fastest-growing marketing tactics used to persuade and win customers is management of recommendations through incentives to participants. However, these initiatives can raise questions, including ethical problems about credibility of the recommendation. With the aim of measuring the factors that influence acceptance of a word-of-mouth (WOM) recommendation, we propose a model able to relate and measure the impact of elements on acceptance of recommendations and the effect of participation in an organized WOM marketing program. We conducted a survey among 350 participants, using an instrument with a retrospective approach and presenting a hypothetical scenario. As results of the model, we highlight the expertise of the recommender and the similarity of this person with the receivers of the elements related with the recommendation message and their consequent willingness to accept it. We also identified that the existence of an incentive does not prevent acceptance of the recommendation, but it does reduce it, suggesting caution in use of this marketing tactic.

Highlights

One of the fastest-growing marketing tactics used to persuade and win customers is management of recommendations through incentives to participants
Word-of-mouth (WOM) recommendation, until a few decades ago seen as a sociological phenomenon and investigated under the prism of other social theories, has in recent years been increasingly used as a marketing tactic to spread information, persuade and win new customers (TUK et al, 2009, RYU; FEICK, 2007)
6 DISCUSSION OF THE RESULTS Measuring the sources of influence for acceptance of a WOM recommendation was the main objective of this study, with the aim of filling a gap found in the theory, to: (1) compare and quantitatively measure a broader set of antecedents for predisposition to accept a recommendation; and (2) assess the specific impact of WOM through an induced marketing program

Summary

Introduction

One of the fastest-growing marketing tactics used to persuade and win customers is management of recommendations through incentives to participants. Some studies have delved more deeply into the possible ethical dilemma of programs involving payment or other rewards for recommendation (KOZINETS et al, 2008, 2010; TUK et al, 2009; VERLEGH et al, 2004; CARL, 2008), since the spontaneity of the recommendation is replaced by a benefit supplied by the company, many times not revealed to receivers These studies have evaluated the credibility of incentivized recommendations and the types of relationships that affect them, but have not measured their impact on acceptance of the WOM recommendation. This topic of study is still incipient, it is noteworthy that a new lens has been focused on WOM communications: the vision of the receiver of the recommendation

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Results

Conclusion