Impact of Referrals on Buying Decisions and Cognitive Behaviour among Aging Consumers

Abstract

This study attempts to explore the consumer decision process among aging consumers through referral marketing like interpersonal communications, corporate referral programs, advertising, and word-of-mouth. The study has been conducted in Mexico City by administering the semi-structured research questionnaire among 114 elderly consumers, who represented C+ and C socio-economic demographic segments. By analysing the key variables on brand communication, social media, brand attributes, consumption experience, quality of referrals, trust, value for money, and perceived consumer value, the study reveals that face-to-face interactions with fellow consumers serve as more effective referrals than knowledge for making purchase decisions among elderly consumers. The results of the study emphasise that the quality of referrals on brands are built around brand promise, value for money, and perceived consumer values. Quality of referrals develops trust on brands, and influences upstream marketing values among elderly consumers. Accordingly, consumers steer cognitive process to develop emotions and brand attachment, which augment their perceived value.