Referral Marketing Research Articles

"Ajak Teman'' as a Referral Strategy to Persuade Friends to Use Digital Banking

The emergence of digital banks in Indonesia triggered intense competition among digital banks. This competition encouraged digital banks to create marketing strategies that are tailored to customer behavior and preferences. The invite-a-friend strategy, known as referral marketing, involves the participation of customer connections to recommend products and services to new customers through word of mouth. The potential target customers of digital banks are Generation Z. Therefore, digital banks need to develop innovative business strategies to encourage Generation Z usage decisions by utilizing the referral concept in their promotions. This study examined the effect of the invite-a-friend strategy that occurs due to the dimensions of eWOM - the dimensions of concern for others, economic incentives, helping the company, and expressing positive emotions implemented in the referral program contained in XYZ digital banking on usage decisions. The sample included 148 respondents XYZ digital bank customers who use the referral program. The data analysis technique used in this study was PLS-SEM using SmartPLS version 3 as an analysis tool. The results of this study showed that three dimensions have a positive and significant influence on the usage decisions of Generation Z customers, concern for others, economic incentives, helping the company and expressing positive emotions. Helping the company is the most dominant factor influencing Generation Z customer decisions. Keywords: digital bank, e-referral, strategy to invite friends, usage decision

CK THE INFLUENCE OF REFERRAL MARKETING AND CUSTOMER TRUST ON PURCHASING DECISIONS THROUGH CUSTOMER SATISFACTION AT PT. DHARMA LAUTAN UTAMA SURABAYA

CK THE INFLUENCE OF REFERRAL MARKETING AND CUSTOMER TRUST ON PURCHASING DECISIONS THROUGH CUSTOMER SATISFACTION AT PT. DHARMA LAUTAN UTAMA SURABAYA

Impact of Digital Marketing on Hospital Marketing Strategies: A Comprehensive Literature Review

Background: Digital marketing leverages digital technology to build stronger relationships with markets and promote products and services through online channels in a cost-effective manner. It encompasses a variety of strategies, including Search Engine Marketing (SEM), Email Marketing, Search Engine Optimization (SEO), social media, Display Advertising, Referral Marketing, Affiliate Marketing, Content Marketing, and viral marketing. Methods: This study employs a descriptive literature review methodology to investigate the impact of digital marketing on hospital marketing. Four key articles were reviewed, focusing on the effectiveness of digital marketing strategies in enhancing hospital promotional activities and service quality. Results: The literature analysis reveals several benefits of digital marketing in healthcare settings, including attracting new patients, expanding business reach, increasing customer trust, and strengthening patient loyalty. Studies by Prasetyo and Sulistiadi (2019) identified challenges and strategic plans for digital marketing in dental hospitals, while Rony and Panuju (2018) highlighted its use for online registration and marketing in RS PHC, Surabaya. Sembiluh and Sulistiadi (2022) demonstrated the advantages of digital marketing during the COVID-19 pandemic, and Burhan and Sulistiadi (2022) showed its significant influence on hospital promotional activities. Conclusion: Digital marketing plays a vital role in hospital marketing by enhancing patient engagement and improving the overall brand image. For hospitals to remain competitive and effectively communicate with their target audience in the digital era, continuous innovation and strategic implementation of digital marketing are essential.

Impact of altruism preference difference on the optimal reward structure in online referral marketing

AbstractSocial media have significantly boosted the prevalence of online referral marketing, through which firms use referral reward programs (RRPs) to promote their existing customers to disseminate or refer product information within social connections. We start with the idea that customer referral motives include firm‐offered rewards and altruistic motives to examine the optimal RRPs by developing nested Stackelberg game models among a firm, a rational (absolute) altruistic sender, and a recipient. The findings show that both product factors and customer factors influence the effectiveness of RRPs, and taking customers altruistic motives into account helps avoid reward waste and makes the optimal reward structure shift away from rewarding the sender. Furthermore, the optimal reward structure is closely related to the tie strength between the sender and the recipient and varies with altruism preference differences.

Service Marketing, Referral Marketing, and Trust Icon Corporate to Increase Customer Satisfaction

Entrepreneurs must pay attention to customer satisfaction in their corporate environment and drive corporate strategies to increase turnover and achieve the company's core goals. So this research is here to provide new concepts relevant to the current situation and conditions. This study aims to reveal the effect of service marketing, referral marketing, and corporate trust icons on customer satisfaction. The method used is quantitative by promoting partial least squares (PLS) in proving the proposed hypothesis. Then, the sample used was 100 consumers at a company in Gresik. The findings of this study demonstrate that service marketing, referral marketing, and corporate trust icons have a positive and significant effect on customer satisfaction. Theoretical and practical implications are also discussed in this study.

«Wheel of life balance» as a tool for increasing self-awareness and human motivation in the context of current global trends

The article examines the essence of the categories «life balance» and «wheel of life» in the tools of self-examination and self-awareness of those areas that can be improved to improve the quality of a person's life. The structure of the «Wheel of Life Balance» is shown, in particular the following sectors are highlighted: health and physical activity; relationships and family; finances; recreation, leisure; friends, environment; social projects; personal development; work, business. The main components that should be evaluated when conducting an audit in these sectors are presented. It is shown that the trends of world development and the priorities of modern man are: striving for a healthy lifestyle and active longevity; participation in environmental and social initiatives, volunteering; finding a balance between work and personal life; strengthening the role of Internet technologies, active use of social networks; focus on value-based business and referral marketing; personal development, branding, networking and communication skills; the desire to be part of the community, to be modern, to have an interesting environment, self-realization. It is shown that the «Wheel of Life Balance» fully corresponds with these trends. The examples prove that behavioral economics can be useful in the formation of an appropriate architecture of decisions, that is, the formation of a context or circumstances in which a person will gravitate towards decisions that are more rational from the point of view of the long-term perspective. Behavioral economics offers a toolkit of gentle nudges towards more rational human behavior, including in terms of preserving one's health, which leads, for example, to active longevity. A detailed analysis of the concepts of social activity, activism, and volunteerism is given, and emphasis is placed on the differences between these phenomena of social life. The importance of environmental initiatives, which are aimed at transforming the structure of consumption and, in general, the principles of functioning of certain industries or areas of activity, is shown. It has been demonstrated that business today and, in the future, must be based on values and be socially responsible.

РОЗШИРЕННЯ ІНСТРУМЕНТІВ МАРКЕТИНГ-МІКС ЧЕРЕЗ ЗАСТОСУВАННЯ РЕКОМЕНДАЦІЙНОГО МАРКЕТИНГУ

Informatization of all areas of modern human activity and the rapid development of new information and communication technologies create favorable conditions for the implementation of programs of operational access to remote material and intellectual resources distributed throughout the globe. Over the past decade social media has changed the way people communities and organizations create share and consume information from each other and from businesses. However today people have become more attentive to recommendations for the consumption of certain goods and services. It's becoming increasingly clear that social media offers significant opportunities to engage shoppers especially for consumer goods. Examples of such opportunities in social networks include recommendations sharing information about their products sharing experiences etc. The credibility of our study was enhanced by detailed data collection aimed at obtaining a deeper understanding of the WOM phenomenon based on primary data obtained during interviews with marketing company experts and secondary data from the analysis of a large amount of secondary data (industry reports press releases columns about eSports and blogs). Using a reverse approach with primary and secondary data we were able to ensure that all information based on the secondary data set was consistent with the expert interviews and this was the basis for our interviewee research. As part of this process we asked our respondents to describe the motivational factors behind their social media engagement. The main goal of this study was based on the multidimensionality and effectiveness of the interaction of referral marketing with classic marketing mix tools. Applying a qualitative methodological approach the article investigates the individual attitude of consumers to behavior in social networks. Through the prism of personal brand development it is understood that people tend to imitate other people and listen to their opinion. The obtained results help to gain more knowledge about consumers from the point of view of their involvement in marketing communication.

Referral-marketing practices of travel agencies

Organisations can make use of high levels of customer-service delivery to stimulate positiveword-of-mouth referrals. Referral marketing is primarily applied by organisations when the budgetis the marketers’ largest limitation. The purpose of the article is to indicate the current status of therelationships that travel agencies in the Western Cape Province have with their referral market,and to provide recommendations to the management of travel agencies in said province regardingthe improved application of the principles of relationship marketing to this market. The targetpopulation for this study comprised 118 travel agencies of which 61 managers and/or ownersparticipated through personal interviews in the completion of questionnaires. Data analysis wasdone by calculating averages and standard deviations, explorative factor analysis, CronbachAlpha-values and practical significance by means of effect sizes. The findings stipulate that theowners and managers of travel agencies must create and establish more closely integratedrelationships with strategic suppliers to increase the value offering of their products and servicesto customers, whereby the travel agencies can ensure that the needs and wants of customerscan be satisfied more successfully, which, in the long run, could lead to positive word-of-mouthreferrals.

Recommend Friends for Miles: Effective Referral Marketing Strategies in Frequent Flyer Programs

ABSTRACT Previous research demonstrated the effectiveness of referral programs in boosting firm performance. However, referrers’ evaluations of such programs are under-examined. This study fills this gap by conducting two studies. Study 1 finds that psychological closeness between a referrer and a referee enhance the referrer’s evaluation of the program. Study 2 reveals that the relationship between such psychological closeness and the referrer’s evaluation is contingent on referral reward type (material vs. experiential). This study advances previous research in referral marketing by drawing on the experience recommendation theory and construal level theory. Referral marketing managers shall note that encouraging existing customers to refer their close others is particularly effective when referral messages highlight material rewards, instead of experiential rewards.

Model Radical Marketing and Customer Satisfaction Bank Jatim Branch Sememi Surabaya Region

Purpose: The purpose of the study is to test and analyze the Influence of Service Marketing, Referral Marketing, Trust Icon Corporate on Radical Marketing through Customer Satisfaction at Bank Jatim Sememi Branch Surabaya.
 Design/methodology/approach: Purposive Sampling Method. The total sample of 100 Customer Respondents at Bank Jatim Sememi Branch. This research is a Survey Research and Quantitative approach. The data analysis technique of this study uses the Partial Least Square (PLS) method.
 Findings: The results of Service Marketing Research do not directly affect Customer Satisfaction, Referral Marketing has a direct effect on Customer Satisfaction, Trust Icon Corporate does not directly affect Customer Satisfaction, Service Marketing has a direct effect on Radical Marketing, Referral Marketing has a direct effect on Radical Marketing, Trust Icon Corporate directly affects Radical Marketing. Service Marketing does not have an indirect effect on Radical Marketing through Customer Satisfaction. Radical Marketing does not have an indirect effect on Radical Marketing through Customer Satisfaction. Trust Icon Corporate does not indirectly affect Radical Marketing through Customer Satisfaction.
 Originality/value: This paper is original
 Paper type: Research paper

Testing the Relationship Between Referral Marketing, Consumer Perception and Brand Loyalty In Ayurvedic Products Amongst Women

Ayurveda is an ancient medical method that uses a variety of floras and herbs in preventing sickness and maintaining healthy lifestyle in the Indian Sub-continent. Women consumers in India prefer to use ayurvedic products to protect themselves against medical disorders, personal care and beauty products [1]. During the last decade, the demand for ayurvedic products have grown significantly and therefore every business organization in this sector is aspiring to increase market share by understanding the need of the consumer as well as changing consumer perception through referral marketing and brand preferences. The purpose of this study is to identify links among referral marketing, customer perception, and brand loyalty in relation to ayurvedic products. A structured questionnaire was created for the purpose of survey, and a pilot study was conducted to ensure its validity. Working women and housewives, were the respondents from whom the data were collected. A total of 242 valid responses were collected from the respondents. To examine the link between the latent constructs, structural equation modelling was devised for the constructs- referral marketing, consumer perception and brand loyalty. The study found that referral marketing had positive effect on the perception of the consumer at β = 0.36, CR= 2.59, p=0.000, referral marketing on brand loyalty at β = 0.41, CR= 2.09, p<0.05, accepting the hypothesis H1(Referral marketing has a positive effect on consumer perception); and H2 ( Referral marketing has a positive effect on brand loyalty); Consumer perception affects brand loyalty at β = 0.18, CR= 1.95, p = 0.000, accepting this hypothesis H3. *(The paper presented at the 7th International Conference on Embracing Change & Transformation Innovation and Creativity 26-28 May 2022)

Mathematical model of referral marketing strategy

A marketing strategy is an attempt to campaign for a product so that information about the product becomes viral. Advertising strategy began to be combined by involving customers to campaign for the company’s products. This marketing strategy is known as the referral marketing strategy. Viral information in a community can be analogous to the pandemic condition of a disease. This study aims to examine the relationship between the epidemiological model and the marketing model with a referral strategy. This research is a literature study with the results of a marketing model design with a referral strategy. Based on the research, there are 4 groups in marketing modeling with a referral strategy, namely Unaware, Potential Broadcaster, Broadcaster, and Inert. The epidemiological model that is suitable for this condition is the SEIR model. Adjustments to the SEIR Model need to be made because the dynamics of the Unaware can go directly to the Inert because of the trust factor in marketing information. The simulation results show that the parameters that have an important role in making information viral are the customer network and the incubation time of the information becoming viral.

The Effect Of Retail Shop Format on Customer Relationship and Customer Loyalty With Customer Trust as Mediation Variables (Case Study : Make Over Retail Stores in Surabaya)

To solve these problems, this research aims to analyse the relationship between satisfaction , customer attitude loyalty and customer behaviour loyalty and the influence of different retail formats. The variables used in these research are Satisfaction (S), Trust (T), Attitudinal Loyalty (AL), and Behavioural Loyalty (BL). This research was conducted using a quantitative approach and the data used in this study were obtained from questionnaires to 211 respondents by distributing questionnaires directly (direct survey) to Make Over shops in Surabaya shopping centres. Hypotheses testing in this study use Structural Equation Modelling (SEM). The results of this study indicated that the Satisfaction variable has a positive and significant relationship to the Attitude Loyalty variable and has an influence on Behavioural loyalty through Attitude Loyalty. In addition, the SEM analysis results have a new finding that the Trust variable which is a mediation variable in this study does not have a significant effect on loyalty. From the results of hypothesis testing, this study also formulated managerial implications that can be applied by Make Over as an additional reference to improve service quality in retail stores such as bundling strategies and giving free gifts, implementing referral marketing strategies and focusing on increasing satisfaction

The Relationship Between Online Referral Marketing and Price Promotion: Evidence from a Large E-Commerce Platform

ABSTRACT We empirically examine the effectiveness of referral marketing and price promotion in generating sales in a large e-commerce platform. Our results show that although referral marketing increases sales, its effect is attenuated by price promotion. We argue that price promotion arouses quality concerns and undermines the credibility of online paid referrals in a weak-tie environment. This finding implies diminishing marginal returns for referral marketing and price promotion spending. We conduct a battery of validation tests to support our argument. Our research highlights the importance of scrutinizing the complementarity of marketing promotions in the unique context of the Internet. Depending on the persuasiveness of the brand and the promotional channel, promotional strategies may conflict in addressing consumers’ quality concerns. Our findings suggest that marketing managers should use discretion in combining online referral marketing and price promotion. We advise sellers against using both marketing tactics if they lack a strong brand image.

Constraints of Electricity Mini Off-Grid Systems Diffusion for Entrepreneurship in Rural Areas of Zambia

The low electrification rate of about 52% and an estimated 28% for Africa and Zambia respectively is of concern. There is now a common consensus that renewable energy electricity mini off-grid systems (or simply mini-grids) have a great role to play to reverse the trend especially in remote rural areas that are located farthest from respective national main grids in order to achieve the United Nations Sustainable Development Goal Number 7 which specifically challenges for universal access to sustainable energy by 2030. This study sought to establish the constraints of diffusion for mini-grids intended for entrepreneurial purposes in rural areas of Zambia. The embedded research design; where quantitative data was collected and analysed then followed by collection and analysis of qualitative data was employed for this study. The exponential discriminative snowball sampling technique was used to collect data from a sample of 37 respondents. Likert scales were used to analyse quantitative data in combination with the coefficient of variance and the degree of consensus, while thematic analysis was used to analyse qualitative data. The study established the following constraints of diffusion of mini-grids for entrepreneurial purposes in rural areas of Zambia: high poverty levels, low population density, low profitability of the mini-grids business, substitutes products provide cheap energy sources, fear of the main grid encroachment, high upfront capital expenditure required for setting up the mini-grids business, local taxes, seasonality of business, lack of access to capital finance and limited business ideas, government policy and regulations, ignorance about existence of mini-grids and their benefits, lack of incentives such as capital subsidies, business environment varies depending on speci?c locations and challenging physical geographical conditions. The study conclusively found that; consumer sensitization, the marketing concept and referral marketing are the most effective strategies for promoting diffusion for mini-grids in rural areas of Zambia, supported by the declining costs for renewable energy technologies on the market. The study recommended that sensitization should be intensified since communities respond positively whenever enlightened about the existence of mini grids and their benefits for entrepreneurial purposes. Further, the catchment area for customers deriving benefit from a particular mini-grid should be wide enough by installing mini-grids well far apart to allow attainment of sales critical mass in view of low population density and low profitability in rural areas of Zambia.

Handling Hysteresis in a Referral Marketing Campaign with Self-Information. Hints from Epidemics

In this study we show that concept of backward bifurcation, borrowed from epidemics, can be fruitfully exploited to shed light on the mechanism underlying the occurrence of hysteresis in marketing and for the strategic planning of adequate tools for its control. We enrich the model introduced in (Gaurav et al., 2019) with the mechanism of self-information that accounts for information about the product performance basing on consumers’ experience on the recent past. We obtain conditions for which the model exhibits a forward or a backward phenomenology and evaluate the impact of self-information on both these scenarios. Our analysis suggests that, even if hysteretic dynamics in referral campaigns is intimately linked to the mechanism of referrals, an adequate level of self-information and a fairly high level of customer-satisfaction can act as strategic tools to manage hysteresis and allow the campaign to spread in more controllable conditions.

ДОСЛІДЖЕННЯ МАРКЕТИНГОВИХ КОМУНІКАЦІЙ У СФЕРІ РОЗДРІБНОЇ ТОРГІВЛІ В УМОВАХ COVID-19

The approaches to the interpretation of the concept of «marketing communication» in modern business conditions are singled out. The authors propose to consider this concept as an enterprise activity related to advertising, sales promotion, event sponsorship, public relations, direct, interactive, referral marketing, omnichannel interaction with consumers, digital transformation of the enterprise and fintech ecosystems. The development trends of the essential commodities market and some aspects of goods promotion in retail networks in the conditions of Covid-19 are analyzed. The turnover of retail trade in Ukraine and Lviv region in January-September 2021, monthly expenses for home food in Ukraine in the first quarter of 2021 are studied. It is established that for the 1st quarter of 2021 the equivalent total soaring per person averaged UAH 91.55. for one day. The dynamics of prices for basic necessities in Ukraine in 2021 is presented (in% from December 2020 to September 2021). Analyzing the prices of essential goods from December 2020, it was proved that egg prices fell sharply to -20% from May to August, and prices for sunflower oil rose sharply from March to September 2021. Online and offline tools for promoting retail networks in Ukraine are systematized. It is important to use and develop the system of online tools for promoting local product networks in the conditions of Covid-19, in particular «blogging», prize drawing and promotional offers in social networks, mail advertising related to loyalty programs, posting projects on crowdfunding platforms (indirect advertising) with the possibility to attract investments, sms-advertising or viber-advertising through the CRM-system of the enterprise, Internet advertising. The peculiarities of the functioning of the marketing communications system in the sphere of retail trade in the context of digital transformation and the CRM-systems using of enterprises are investigated. The authors propose to understand the development process of marketing communication system in the conditions of Covid-19 pandemic through the prism of the triad «health-security-mutual aid».

A Literature Review on Consumer’s Complaining Behavior and Dissatisfaction: Implication of Marketing Strategies with Special Reference to the Online Retail Sector

Customer complaint behavior (CCB) is defined as an action that is associated with the evaluation of the consumer experience with the consumption of the product. The product consumption outcome may be positive or negative depending upon the quality of the product and the needs of the consumer. The current research aims to contemplate online consumer behavior and its relationship with the online retail sector. It was found that by developing interactive platforms, the consumers can directly connect with the company and share their grievances and feedback with them. It will help the company to get understanding the needs and wants of the consumers and modify the product or service accordingly to meet their demands. It also includes adopting different marketing tools such as affiliate marketing, referral marketing, blogs, and social media marketing that are used by online retailers to improve consumer service levels.

Model Customer Satisfaction And Customer Behaviour Intention In Improving The Dimension Of Referral Marketing, Experiental Marketing, Service Marketing

This research aims to test and analyze customer satisfaction model and customer behaviour intention in meningkatkandimensireferral marketing, experientalMarketing, service marketing in customer user product PT. DenpooMandiri Indonesia Branch Surabayi have been respondents to the study as much as 130 people, consisting of 90 women and 40 men. This analysis uses the analysis path. Calculation of statistical analysis using SPSS aimed at calculating the significant or absence of a study. This research can contribute to the company PT. DenpooMandiri Indonesia in increasing customer satisfaction by combining the dimensions that will be researched and researchers want to help increase the sales level of Denpoo products so that the product can be felt by the customer. Findings of this research with statistical analysis calculations using SPSS Path analysis that aims to calculate the significant or absence of a study. Based on the results of the overall research of data analysis can be noted that empirically tested by Bersama–sama referral marketing variables, experiential marketing, service marketing, customer satisfaction has a significant impact to the customer behaviour intention. Customers will increase when referral marketing variables, experiental marketing, service Marketingcan be tested and can provide benefits to the community and employees of the company.

Ensuring the spread of referral marketing campaigns: a quantitative treatment

In marketing world, social media is playing a crucial role nowadays. One of the most recent strategies that exploit social contacts for the purpose of marketing, is referral marketing, where a person shares information related to a particular product among his/her social contacts. When this spreading of marketing information goes viral, the diffusion process looks like an epidemic spread. In this work, we perform a systematic study with a goal to device a methodology for using the huge amount of survey data available to understand customer behaviour from a more mathematical and quantitative perspective. We perform an unsupervised natural language processing and hierarchical clustering based analysis of the responses of a recent survey focused on referral marketing to correlate the customers’ psychology with transitional dynamics, and investigate some major determinants that regulate the diffusion of a campaign. In addition to natural language processing for topic modeling, detailed differential equation based analysis and graph theoretical treatment have been carried out to explore the conditions of success for the campaign in terms of realistic parameters both for homogeneous and heterogeneous population structure. Finally, experiments have been performed for generation of a recommendation network to understand the diffusion dynamics in realistic scenario. A complete mathematical treatment with analysis over real social networks helped us to determine key customer motivations and their impacts on a marketing strategy, which are important to ensure an effective spread of a designed marketing campaign. Because of its systematic generalized formulation, the prescribed quantitative framework may be useful in all areas of social dynamics, beyond the field of marketing.