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Book part
Publication date: 24 November 2010

Mahima Hada, Rajdeep Grewal and Gary L. Lilien

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…

Abstract

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.

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-475-8

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Book part
Publication date: 24 November 2010

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-475-8

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Book part
Publication date: 1 August 2017

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Qualitative Consumer Research
Type: Book
ISBN: 978-1-78714-491-0

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Book part
Publication date: 2 September 2014

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Shopper Marketing and the Role of In-Store Marketing
Type: Book
ISBN: 978-1-78441-001-8

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Book part
Publication date: 13 June 2013

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Review of Marketing Research
Type: Book
ISBN: 978-1-78190-761-0

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Book part
Publication date: 3 July 2018

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Innovation and Strategy
Type: Book
ISBN: 978-1-78754-828-2

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Book part
Publication date: 27 June 2016

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Marketing in and for a Sustainable Society
Type: Book
ISBN: 978-1-78635-282-8

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Book part
Publication date: 2 May 2015

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Brand Meaning Management
Type: Book
ISBN: 978-1-78441-932-5

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Book part
Publication date: 25 June 2012

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Special Issue – Toward a Better Understanding of the Role of Value in Markets and Marketing
Type: Book
ISBN: 978-1-78052-913-4

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Book part
Publication date: 13 July 2011

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Review of Marketing Research: Special Issue – Marketing Legends
Type: Book
ISBN: 978-0-85724-897-8

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