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Social Ties and Word-of-Mouth

Referral Behavior*
JACQUELINE JOHNSON BROWN
PETER H. REINGEN**

This article presents a network analysis of word-of-mouth referral behavior in a


natural environment. The relational properties of tie strength and homophily were
employed to examine referral behavior at micro and macro levels of inquiry. The
study demonstrates different roles played by weak and strong social ties. At the
macro level, weak ties displayed an important bridging function, allowing information
to travel from one distinct subgroup of referral actors to another subgroup in the
broader social system. At the micro level, strong and homophilous ties were more
likely to be activated for the flow of referral information. Strong ties were also
perceived as more influential than weak ties, and they were more likely to be utilized
as sources of information for related goods.

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O ne of the most widely accepted notions in con-
sumer behavior is that word-of-mouth commu-
demonstrated the continued importance of interper-
sonal influence. For example, Engel, Blackwell, and
nication (hereafter WOM) plays an important role in Kegerreis (1969) found that almost 60 percent of the
shaping consumers' attitudes and behaviors. In an early respondents who could recall the most influential source
study, Whyte (1954) investigated the diffusion of air regarding their adoption of an automotive diagnostic
conditioners in a Philadelphia suburb. He concluded, center named WOM; Feldman and Spencer (1965) de-
on the basis of anecdotal evidence, that the pattern of termined that about two-thirds of new residents in a
ownership could be explained only by the presence of community relied on WOM to select a physician; and
a vast and powerful network consisting of neighbors Arndt (1967) showed that respondents who received
exchanging product information in contexts such as positive WOM about a new food product were much
"over the clothesline" and "across backyard fences." more likely to purchase it compared to those who re-
Subsequent investigations of the WOM phenomenon ceived negative WOM. More recent published research
produced more formal statistical confirmation of its is rare (e.g., Richins 1983).
importance. In one of the first, more formal studies, These studies have contributed significantly to the
Katz and Lazarsfeld (1955) found that WOM was the cumulative understanding ofWOM behavior. However,
most important source of influence in the purchase of it appears that a considerable potential exists for en-
household goods and food products. It was seven times riched conceptualizations and new research directions
as effective as newspapers and magazines, four times as on WOM. These are essential in addressing several sig-
effective as personal selling, and twice as effective as nificant gaps in understanding WOM phenomena that
radio advertising in influencing consumers to switch exist at the macro level of inquiry (e.g., flows of com-
brands. munication across groups), as well as the micro level
In the years ensuing the advent of television as a ma- (e.g., flows within dyads or small groups). At the macro
jor medium of promotion, many other studies that were level, there is a severe lack of understanding of several
conducted primarily during the 1960s and early 1970s important issues, including how WOM interaction in
dyads or small groups aggregates to form large-scale
'This article was a finalist in the 1987 Robert Ferber Award for patterns in the diffusion of information and influence
Consumer Research competition for the best interdisciplinary article concerning innovations, existing products/services,
based on a recent doctoral dissertation. The award is cosponsored by fashions, fads, rumors about products, and the forma-
the Association for Consumer Research and the Journal o/Consumer
Research. tion of widely held consumer attitudes. At the micro
"Jacqueline Johnson Brown is Assistant Professor, Department level, very little is known about a variety of WOM as-
of Marketing, University of San Diego, San Diego, CA 92110. Peter pects, such as which interpersonal ties are more likely
H. Reingen is Professor, Department of Marketing, Arizona State to be activated for the flow of information and which
University, Tempe, AZ 85287. The authors thank William C. Gaidis activated ties are more influential in consumers' deci-
and the anonymous reviewers for their constructive comments.
sion-making.
350
© JOURNAL OF CONSUMER RESEARCH. Vol. 14. December 1987
WORD-OF-MOUTH NETWORKS 351

There are several underlying reasons for these gaps FIGURE A


in understanding. Though WOM behavior arises from EXAMPLE NETWORKS
and is constrained by consumers' social relations with
others, the typical WOM study does not undertake a
relational analysis ofWOM processes precipitating out
of interpersonal networks. This is not only characteristic
of the research on interpersonal communications in
consumer behavior. Rogers (1983), for example, posits
the lack of sociometric analysis as a major shortcoming
of the many hundreds of diffusion of innovations stud-
ies. In addition, in consumer behavior as well as dif-
fusion of innovations, there is almost never an attempt
to directly trace information flows along paths of in-
terpersonal ties, although many investigators have em- NOTE: Referral relations (directed lines) are depicted along a time dimension. Interpersonal
phasized the need for such research (e.g., Reynolds and ties in more densely knit network segments (subgroups composed of referral actors) are
indicated by nondlrected lines. For illustrative purposes, suppose the referrals Involve a financial
Darden 1971; Sheth 1971). Hence, how micro-level in- planning servioo. Further suppose that referral actors A, B, and C are friends living in the
teractions in dyads or small groups aggregate into large- same neighborhood (strong ties), E, F, and G are also lriands employed by the same company,
and that the AD and BE ties represent acqualntanoo relations (weak ties).
scale processes eludes us in most cases (Granovetter

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1973).
Another major (probably related) reason for these
gaps in understanding is that appropriate theory and portrays hypothetical referral flows embedded in a sub-
methods for addressing them were either unavailable set of a larger social system for a particular service (see
or not widely known at the time when most of the WOM the note to Figure A for a description of the scenario).
research in consumer behavior was conducted. Since It provides a context for the discussion of two basic
that time, several conceptual and methodological ad- issues: (1) the distinction between a WOM relation and
vances have occurred in a number of disciplines. On the form of relation from which WOM behavior arises,
the conceptual front, the notions of tie strength (i.e., and (2) the problem of network delimitation in the kinds
intensity of a social relation between consumers) and of open systems that are characteristic of most consumer
homophily (i.e., communication between similar con- behavior contexts.
sumers) have become popular. They appear to be par-
ticularly promising for enhancing the present under-
standing of WOM behavior because these concepts ad- Relational Content and Relational Form
dress properties of social relations from which WOM The relations exhibited in Figure A have both content
behavior arises. Since WOM is a social phenomenon, and form, resulting in two networks. The first network
properties of social relations are likely to playa crucial is the referral network based on relational content (di-
role in WOM behavior at micro as well as macro levels rected lines). In general, relational content refers to the
of inquiry. In terms of methodology, network analysis substantive type of relation represented in the connec-
has been developed into a powerful method for inves- tions among individuals. The content type in the ex-
tigating linkages between micro-level social phenomena ample is a communication relation by which messages
and macro-level processes (see Burt 1980; Knoke and are transmitted from one consumer to another on "who-
Kuklinski 1982; and Wellman 1983 for excellent re- told-whom-about-the-service" paths of referral flow.
views of network analysis). Granovetter (1973, p. 1360) The second network (nondirected lines) is based on re-
argues that in one way or another, it is through inter- lational form. Relational form refers to properties of
personal networks "that small-scale interaction be- the linkage between pairs of actors that exist indepen-
comes translated into large-scale patterns, and that dently of specific contents (Knoke and Kuklinski 1982).
these, in turn, feed back into small groups." One fundamental aspect of relational form illustrated
in the example is tie strength (Burt 1982). Tie strength
PURPOSE AND FOUNDATIONS is indicated by several variables such as the importance
attached to the social relation, frequency of social con-
The purpose of the present study is to examine, from tact, and type of social relation (e.g., close friend, ac-
an interpersonal network perspective, the roles that tie quaintance; Granovetter 1973; Weimann 1983). Tie
strength and homophily may play in macro and micro strength is a continuous variable, but in the example
WOM processes. The specific type of WOM behavior ties are shown as either strong, weak, or absent, which
examined here is referral communication-a common, is customary in the research on this topic.
yet underresearched WOM phenomenon. Conceivably, relations may be identical or highly
Before the study is presented, however, it is beneficial similar in content but quite distinct in form. This is
to explore by means of an example several of its con- illustrated in Figure A where a consumer (A) refers the
ceptual and methodological underpinnings. Figure A service to a weak tie (an acquaintance D) as well as a
352 THE JOURNAL OF CONSUMER RESEARCH

strong tie (a close friend B). It is also possible that re- flows. This is the approach to boundary specification
lations may be identical or highly similar in form but taken in the present study.
different in content. For example, a consumer (A) in The hypotheses tested in this study are presented next,
Figure A refers the service to a consumer (B) but not starting with an examination of the role of tie strength
to another individual (C), although all of these actors in the flow of referral information across subgroups re-
are in strong-tie relations with each other. Thus, rela- siding in a broader interpersonal network composed of
tional content (referral communication here) and re- referral actors. All hypotheses are based on explicit ref-
lational form (tie strength) have different conceptual erence to WOM referral behavior as the criterion of
connotations. common relevance to the WOM participants.

Boundary Delimitation HYPOTHESES


The capacity of network analysis to isolate more Strength of Weak Ties
densely knit network segments (A, B, C and E, F, G in
Figure A) allows for the investigation of how small-scale Granovetter's (1973) theory on "the strength of weak
interaction aggregates to form larger-scale patterns (see ties" provides a promising explanation of the process
the tie between consumers Band E, which was a crucial by which WOM behavior at the micro level is linked
bridge for the diffusion of referrals from one of the seg- to macro-level phenomena. A consumer's social rela-

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ments-A, B, C-to the other-E, F, G). However, tions with other relevant actors typically include a
network analysis (as any method) is not without prob- spectrum of ties ranging from strong primary (such as
lems. One of the most significant challenges facing the close friends) to weak secondary (such as seldom-con-
network analyst in the study of WOM processes in the tacted acquaintances). The few consumer behavior
kinds of open systems that characterize most consumer studies with a direct focus on communication flows in
behavior contexts is that of boundary specification: interpersonal networks obtained results for only the
Where does one set the limits on networks that may strong ties (Arndt 1967; Leonard-Barton 1985). This is
have no obvious boundaries? Many network analyses consistent with the general tendency of researchers to
have been performed on formally bounded systems (in view weak ties as trivial or to simply overlook them.
consumer behavior, the Arndt (1967) study of WOM Granovetter (1973) claims, however, that weak ties play
behavior in a student housing project and the Reingen a crucial role in clarifying and explaining a variety of
et al. (1984) investigation of brand congruency among social phenomena. For WOM referrals, this "strength
sorority sisters are examples of this approach to bound- of weak ties" arises from their important bridging func-
ary specification). Though extremely useful for many tion that allows information to travel from one densely
purposes, this approach to setting limits on networks knit "clump" of social structure composed of referral
may solve the boundary problem in appearance only. actors (A, B, C in Figure A) to another more cohesive
This is apparent when an investigator who examines segment of the broader referral system (E, F, G in Figure
WOM processes in a village, for example, arbitrarily A) through a weak tie (B and E). If weak ties did not
omits WOM relations that occur outside the village and exist, a system would consist of disjointed subgroups,
those that assume boundary spanning roles. If these re- inhibiting the widespread diffusion of information.
lations somehow condition WOM behavior in the vil- Weak ties, therefore, are potentially important in ex-
lage, conclusions based on within-village observations amining how interaction at the dyadic level aggregates
alone may be inappropriate. to form a large-scale pattern. It is crucial to recognize,
In general, delimiting network boundaries depends however, that Granovetter does not argue that all or
to a great extent upon an analyst's purposes (Knoke even most weak ties serve as bridges linking closely knit
and Kuklinski 1982). Similar to previous network anal- network segments: "The importance of weak ties is as-
yses performed on essentially open systems such as elite serted to be that they are disproportionately likely to
social circles (Alba and Moore 1978), information flow be bridges, as compared to strong ties, which should be
chains in urban environments (Erickson et al. 1978; underrepresented in that role" (Granovetter 1982,
Granovetter 1973; Reingen and Kernan 1986), and p. 130).
community influentials (Laumann and Pappi 1976), the Although the theoretical argument of the strength of
approach to boundary specification in Figure A is based weak ties is compelling, its empirical verification is on
on mutual relevance. According to this criterion, the shakier grounds. First, there is the problem of gener-
system in Figure A includes only those actors who are alizability, because many studies examined the role of
relevant to each other because of their participation in weak ties in only one context, namely in individuals'
the same event or activity (i.e., referrals). Obviously search for a new job (e.g., Granovetter 1974; Lin 1982).
each actor has many more interpersonal ties than are Second, and more importantly, Granovetter (1982)
shown in Figure A, but individuals who are not partic- notes in his revisions of the theory that many studies
ipants in referral behavior are excluded because they did not set out systematically to test the argument of
are not directly relevant to the investigation of referral the strength of weak ties. They employed the argument
WORD-OF-MOUTH NETWORKS 353

to explain empirical findings that otherwise would have Information Seeking. Hypothesis 2 did not in-
been anomalous, and "furthermore, a number of the corporate aspects of the circumstances prompting tie
studies. . . are mainly theoretical, proposing that, in activation. Activating a tie for information flow may
their subject area, weak ties can be seen as serving im- be due to several reasons, including actively soliciting
portant functions, but not actually bringing any sub- information from a source or flows induced by situa-
stantial body of empirical data to bear on this assertion" tional or environmental cues (Belk 1971). Strong-tie
(Granovetter 1982, p. 129). To empirically verify the consumers will probably know much more about each
strength of weak ties, one needs to show not only that other than do weak-tie ones, including how relevant
ties bridging network segments are disproportionately they are to each other as sources of information about
weak but also that something flows through these consumer goods. This should facilitate active infor-
bridges; they actually serve as conduits bringing infor- mation search behavior among consumers in strong-tie
mation to subgroups that they would otherwise not ob- relations, resulting in the following hypothesis:
tain. The few studies in sociology that put the argument
H3: Active information seeking is more likely to
to a direct test (e.g., Friedkin 1980; Weimann 1983)
provide encouraging but inconclusive evidence (Gra- occur from strong-tie than weak-tie sources
novetter 1982). In consumer behavior, direct evidence of referrals.
linking the strength of weak ties to the flow of infor- Perceived Influence. Ties activated for the flow of
mation through WOM channels of communication ap- information may also vary in the degree of influence as

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pears nonexistent. Thus, the following hypothesis is perceived by receivers. Therefore, it is useful to distin-
tested: guish between flows of information and perceived in-
fluence. As Lin (1971) has observed, the literature on
HI: Weak ties activated for a referral are more
likely than strong ties to serve as bridges interpersonal communication has often failed to dif-
through which WOM referrals flow. ferentiate between these types of flow. They may be
regarded as related but conceptually distinct processes,
because the flow of influence plays a more significant
Strength of Strong Ties role in individuals' decision-making. Research is lack-
ing, but strong-tie sources may be perceived as more
Granovetter (1982, p. 113) acknowledges in his re- credible than weak-tie ones (Rogers 1983). This suggests
visions of the theory "that strong ties can also have the following hypothesis:
some value." However, little research has focused on
the circumstances when strong ties play their unique H4: Information from strong-tie referral sources
role. Whereas weak ties may be crucial in explaining is perceived as more influential in receivers'
macro phenomena of interpersonal communication decision-making than is information obtained
(e.g., flows of information across groups), our general from weak-tie referral sources.
proposition is that strong ties play a more significant
role in several aspects of micro-level referral behavior,
Subgroups. Granovetter (1973) argues that strong-
including tie activation, information seeking, perceived tie networks exhibit a tendency toward transitivity. (If
person A is linked to persons Band C in a strong-tie
influence, emergence of subgroups, and overlap in per-
network, there is a high probability that the B-C link
sonal sources of information.
will also occur). This tendency facilitates the emergence
Tie Activation. In many consumer behavior con- of subgroups of referral actors. Subgroups of this kind
texts, it is possible that a consumer is in social relations have an emergent character, and they tend to be infor-
with several other individuals who were prior partici- mally structured (Reingen and Kernan 1986). Never-
pants in WOM activity dealing with a good. In Figure theless, consistent with Granovetter's (1973, 1982) no-
A, for example, consumer C has social access to two tions of more densely knit "clumps" of social structure,
such individuals (A and B). However, it is unlikely that the subgroups have members who have relatively strong
each tie with these potential sources of information has ties with each other and who have repeated interactions.
an equal probability of being activated for the flow of Based on the research dealing with the impact of in-
information. A variable potentially affecting tie acti- formal groups on members' brand preferences (e.g.,
vation is strength of tie. Since strong ties are typically Reingen et al. 1984; Stafford 1966), members in a
more readily available and result in more frequent in- subgroup composed of referral actors for one good may
teraction through which the transfer of information may also have more homogeneous preferences for a variety
arise, the following hypothesis emerges: of other goods than do those who belong to a different
or to no subgroup. This may be so because the multiple
H2: When a consumer is in social relations with redundant paths of communication in a subgroup imply
both strong and weak ties who are available that its members are generally more readily available
as potential sources of referral, strong ties are to each other as sources of information and influence.
more likely than weak ties to be activated for Reingen et al. (1984) obtained several results that are
the referral flow. consistent with this notion, but their study was con-
354 THE JOURNAL OF CONSUMER RESEARCH

ducted in a sorority setting, guaranteeing that all re- manifests itself in different types of social relations
spondents were in relations with one another. This may varying in strength (e.g., close friend, acquaintance).
have produced a ceiling effect, possibly accounting for Granovetter (1973) suggests that the stronger the tie
the many statistically insignificant results in their study. connecting two individuals, the more similar they tend
To circumvent this potential problem, it is beneficial to be. Direct evidence relating these two constructs to
to extend the Reingen et al. (1984) research to a more WOM in consumer behavior does not exist as far as is
open social system where many consumers have no di- known, but since one would expect weak social ties to
rect linkages. Therefore, the following hypothesis is be heterophilous, the special significance of hetero-
tested: philous communication may be that it facilitates the
flow of information between diverse segments ofa social
H5: Consumers with joint membership in a system. This may help explain why "heterophilous
subgroup of referral actors for one good are communication has a special informational potential,
more likely to prefer the same brand for other even though it may be realized only rarely" (Rogers
goods than are those consumers who belong 1983, p. 175). It is hypothesized that:
to a different or to no subgroup.
H7: Weak ties activated for the WOM referral flow
Overlap. Hypothesis 5 dealt with brand congruency of information are more heterophilous than
among subgroup members in strong-tie networks. The activated strong ties.

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subgroup was the primary unit of analysis. At the dyadic
level of analysis in strong- as well as weak-tie interper- Homophily may also play an important role at the
sonal networks, strong ties may play another unique micro level of WOM behavior. Since homophilous in-
role in the extent to which consumers rely upon the dividuals are more likely to interact with each other
same members of the information flow network for one than heterophilous ones, homophilous ties may have a
good for obtaining information about a related good. greater likelihood of being activated for the WOM flow
Feldman and Spencer (1965) suggest such overlap in of information. Thus, it has been suggested that many
information flow networks, but the role of tie strength flows are homophilous (Feick, Price, and Higie 1986;
has not been previously examined in this context. Since Gatignon and Robertson 1985). It is important to rec-
the greater frequency of interaction among strong-tie ognize, however, that the typical study for homophily
consumers should enhance the likelihood of informa- (e.g., Feldman and Spencer 1965) examined merely the
tion transfer for a variety of goods, the following hy- ties that were activated for the flow of information (e.g.,
pothesis is tested: the AB tie in Figure A) without comparing them to
those that could have been but were not activated (e.g.,
H6: Strong ties, who were activated for the flow the AC tie). It is suggested that a more valid test of the
of referral for one good, are more likely than homophily argument necessitates a comparison be-
weak ties to be activated as sources for a re- tween the ties that are activated and those that are not
lated good. activated for the flow. Finally, homophilous sources of
information may be perceived as more credible than
Homophily/Heterophily heterophilous ones, suggesting that homophilous
sources may be perceived as more influential (Rogers
The previous discussion focused on how one rela- 1983). Thus, the following hypotheses emerge:
tional property-strength of tie-may be of value in
addressing a variety of issues related to micro-level and H8: Of an individual's potential personal sources
macro-level WOM phenomena. Another promising of information, the more homophilous the tie,
construct capable of providing a conceptually enriched the more likely it is activated for the flow of
understanding of WOM behavior is homophily. referral.
Homophily is the degree to which pairs of individuals H9: As homophily of a tie increases, information
are similar in terms of certain attributes, such as age, provided by an activated tie is perceived by
sex, education, and social status (Rogers 1983). A fun- receivers as more influential in decision-
damental principle of human interaction is that people making.
tend to interact with others who are like themselves;
thus, it is also known as the like-me principle (Laumann
1966). Some scholars treat the concepts of strength of
METHOD
tie and homophily as synonymous (e.g., Gatignon and Research Setting
Robertson 1985; Rogers 1983), but our preference is to
employ them as separate but related constructs. A dis- The who-told-whom networks of information flow
tinction between these constructs is that homophily re- were traced for three piano teachers. These marketers
fers to the similarity in attributes individuals possess were located in the same suburban area of a large
who are in a relation (e.g., same or different social sta- Southwestern city, and they were in social relations with
tus), whereas tie strength is a relational property that each other (e.g., all belonged to the same music teacher
WORD-OF-MOUTH NETWORKS 355

association). Since this resulted in a connected graph The 67 initial subjects were sent a preliminary no-
of social relations among all actors regardless of which tification letter bearing the endorsement of their teacher.
initial information diffusion network they belonged to, A few days later they were telephoned by a carefully
the diffusion networks for analysis purposes were treated trained interviewer. As many callbacks as necessary
as a single system. There were other similarities across were made. The respondents were asked how they first
the teachers as well. Each had been teaching full-time learned about their piano teacher. When a subject
for many years, and at the time of the study each had mentioned another person, an address and telephone
at least 20 current and/or recent-past students. None number were requested, which were most often pro-
engaged in formal marketing communication through vided by the initial respondents. These mentioned in-
mass-media channels, and none actively solicited cus- dividuals were then notified by mail and telephoned by
tomers. They instead relied on positive WOM to gen- the same interviewer who conducted all of the initial
erate market transactions. Thus, this setting effectively interviews. They were in turn asked how they had first
isolated the effect of WOM on behavior. Although the learned about the piano teacher; anyone named as a
study examined the interpersonal network used by referral source was similarly contacted. This backward
piano students or their parents to select a piano teacher, tracing process was repeated until a path could not be
it is believed that other service providers such as phy- further traced.
sicians, lawyers, CPAs, hair stylists, and so on may ob- There were 145 potential actors in the system, but
tain their clientele through similar processes. 13 (9 percent) could not be reached, seven (5 percent)

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Since it was initially unknown who belonged to the mentioned an impersonal source (e.g., a press release
referral networks, a two-phase method for collecting about a concert mentioning the teacher), four (3 per-
the data was required. Briefly, in the first phase, cus- cent) refused to participate, and three (2 percent) actors
tomers of a service were asked to reveal how they had had no recall or did not know the source's name. Re-
learned about its existence. When a respondent men- maining were 118 (81 percent) actors who were on re-
tioned another person, that person was contacted and ferral paths traced back to the teachers, thus qualifying
asked the same question. The process was repeated until for further inclusion.
a WOM path was traced back to a marketer. Respon- At the close of the interview, subjects were asked for
dents could include both users and nonusers of the ser- a commitment to participate in the second phase of the
vice who had been information sources. The first phase, study. Letters thanking them for their cooperation were
then, was employed to produce data on just the WOM sent shortly after the first interview.
referral networks. It included only those social actors
who were relevant to each other as defined by the sub- Phase 2 Subjects and Procedure
stantive questions guiding the research, and system
"closure" was obtained through complete backward To begin the second phase of data collection, a list
tracing of WOM referral paths. Once the system was of the names of those mentioned as referral participants
identified, the second phase was conducted. This phase in the first phase was prepared. A copy of this list was
generated data on the social structure among all actors mailed to each of the 118 respondents from Phase 1,
in the system. These data were necessary to examine along with a cover letter explaining the purpose of the
the flow of referrals across subgroups. study. Respondents were asked to look through the list,
mark those persons that they knew, and keep the list
handy so it could be referred to when the interviewer
Phase 1 Subjects and Procedure called.
One hundred thirteen of the 118 potential respon-
The initial population under study (n = 67) consisted dents to this phase completed the interview for a re-
of 23 of the teachers' current and/or recent-past adult sponse rate of 96 percent. One respondent to Phase 1
students, 11 teenage students, and parents of 33 students refused to participate in Phase 2 and the other four in-
who were under 13 years of age. dividuals could not be reached after repeated attempts.
These younger students were generally not inter- Most of the respondents were female (87 percent), be-
viewed because careful pretesting on a similar group of tween 36 and 55 years of age (66 percent), had at least
young students (n = 11) of another piano teacher clearly attended college (84 percent), and had lived in the met-
indicated that the information search process as well as ropolitan area for at least 10 years prior to the start of
the decision to enroll in piano lessons from a particular the study (73 percent).
teacher were typically parental ones (usually performed At the close of this second interview, respondents
by the mother of the child). However, in the few in- were thanked for their participation and asked if they
stances (n = 3) where the initial interview with the par- would like a nontechnical summary of the results.
ent (most often the mother) revealed that the child was
involved in the referral process, an interview was con- Measures
ducted with the child as well. Cross-checks between in-
formation provided by these children and their parents Tie Strength. Respondents were asked to identify
showed no inconsistencies in responses. the type of social relation with each of the actors they
356 THE JOURNAL OF CONSUMER RESEARCH

knew at the time of their WOM behavior. The categories respondents had lived in the metropolitan area, how
were: friend, neighbor, relative, acquaintance, and other many piano teachers they had considered, the impor-
(specify). Data on frequency of communication and tance attached to selecting a good teacher, and the per-
importance attached to the relations with those actors ceived risk in making a teacher selection.
were also obtained. Frequency of communication was
scaled: daily, weekly, biweekly, monthly, and less than Data Cross-checks
once a month. Importance was measured on a five-point
scale with anchors "merely an acquaintance" (1), "not Since we had to rely on subjects' verbal reports on
THA T close, but still important" (3), and a person the past behavior, several cross-checks on the data were
respondent "feels so close to it's hard to imagine life performed.
without him/her" (5). Persons who had been named as a WOM source were
asked whether or not they recalled telling anybody about
Homophily. To investigate the hypotheses for ho- the piano teacher and, ifso, who it was (unaided recall).
mophily, standard demographic questions were asked If the person who had identified the sender was not
in both phases about the respondents' occupation, ed- mentioned, the respondent was asked whether s/he re-
ucation, age, and sex. Ties were classified as homo- membered telling the person about the service (aided
philous (heterophilous) when they had identical (dif- recall).
ferent) category memberships for at least three of these Of the non teacher sources that were contacted and

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demographic measures of homophily. For example, a asked to confirm the interaction, 45 percent recalled
dyad was categorized as homophilous (heterophilous) the interaction with no prompting (unaided) and 39
when its members had the same (different) categories percent confirmed the conversation when asked if they
for occupation, education, and age. recalled talking to the other person about lessons (aided
Potential Sources of Information. Respondents were recall). The remaining 16 percent of interactions could
asked in Phase 2 to list all other actors in the system not be verified. A majority of these "failures" were with
they knew at the time of their information acquisition other music professionals (e.g., piano tuner, band di-
behavior. Phase 1 yielded information on the time of rector, choir director). These respondents noted that
each respondent's WOM behavior. Only those actors they are asked quite often for recommendations from
who were known to a respondent at the time of his/her individuals they hardly know and, therefore, do not re-
information acquisition behavior and who possessed member each referral. Others could not be verified due
knowledge of the marketer at that time were considered to refusals to participate or the fact that they were not
potential sources of information. asked for confirmation, usually because their name was
mentioned as a source after they had already been in-
Information Seeking. Respondents were asked in terviewed, or they were cited by several respondents as
Phase 1 whether they had specifically asked the sender a source and verification of each referral was not un-
for information (i.e., initiated the conversation to obtain dertaken.
information) or whether the topic had just come up in Respondents who were receivers of WOM informa-
conversation begun for other reasons. tion about one of the piano teachers were also asked
Perceived Influence. Respondents rated on a five- how certain they were of the source(s) of that infor-
point scale how influential the information provided mation. Ninety-five percent stated that they were either
by a sender had been on the final selection of their piano certain or very certain of the source.
teacher (1 = very little influence; 5 = very great influ- Cross-checks were also performed on what senders
ence). Respondents who had several sources of infor- and receivers said about each other for frequency of
mation were also asked to indicate who was the most/ interaction, for importance of the relationship, and for
least influential source. how long they had known the other person. Correlations
Congruency. To examine brand congruency in for senders and receivers were as follows: frequency of
subgroups, respondents in Phase 1 were asked to name interaction = 0.78, importance of relationship = 0.69,
their preferred restaurant, brand of piano, brand of and years known each other = 0.93. All were significant
shampoo, piano tuner, and dentist. To increase the at p < 0.001. Overall, then, there are indications that
generalizability of findings, these products and services the data were of sufficient quality to warrant the ex-
included related/unrelated (i.e., tuner/dentist) and typ- amination of the hypotheses.
ically publicly consumed/privately consumed items
(e.g., restaurant/shampoo). RESULTS
Overlap. To examine overlap in information flow Overall
networks, respondents were asked to identify the source
of information for their piano tuner. For the respondents who participated in both phases
of data collection, there were 130 sender-to-receiver
Other. Other measures included how long the send- WOM dyads on referral paths that were traced back to
ers and receivers had known each other, how long the the teachers. The vast majority of these dyads involved
WORD-OF-MOUTH NETWORKS 357

nonfamily members (85 percent). Since family dyads TABLE 1


belonged to many different families, for analysis pur- SUMMARY OF RESULTS
poses they were treated as any of the other dyads rather
than collapsing them into a single unit. Hypotheses Results
Most receivers reported that they had one sender (82
percent); 15 percent indicated two senders; two percent, Weak ties activated for a referral are Supported
more likely than strong ties to
three senders; and one percent, four senders. Most of serve as bridges through which
the senders directly or indirectly linked to a piano WOM referrals flow.
teacher on referral paths informed one of the respon- 2 When a consumer is in social Supported
dents (71 percent), 20 percent told two, six percent told relations with both strong and
three, and three percent informed five of the respon- weak ties who are available as
dents. Thus, most of the respondents were senders or potential sources of referral,
strong ties are more likely than
receivers only once. Although the majority of the re- weak ties to be activated for the
spondents expressed that they considered selecting a referral flow.
good teacher as very important (84 percent), most of 3 Active information seeking is more Not supported
them considered only one teacher (62 percent). likely to occur from strong-tie than (oppOSite)
Nevertheless, the majority of respondents indicated low weak-tie sources of referrals.
risk in their final decision (68 percent).

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4 Information from strong-tie referral Supported
There were 73 referral paths originating with one of sources is perceived as more
the teachers and leading to a final actor on a path. Of influential in receivers' decision-
making than is information
these paths, seven (10 percent) had one sender/receiver obtained from weak-tie referral
dyad, 38 (52 percent) had two dyads, 11 (15 percent) sources.
were composed of three dyads, seven (10 percent) had 5 Consumers with joint membership in Supported
four dyads, nine (12 percent) consisted of five dyads, a subgroup of referral actors for
and one (one percent) had six dyads. It is noteworthy one good are more likely to prefer
that 38 percent of the paths involved at least four dif- the same brand for other goods
than are those consumers who
ferent individuals. belong to a different or to no
The hypotheses are examined next. The results are subgroup.
summarized in Table 1. Representative case examples 6 Strong ties, who were activated for Supported
of referrals will be presented at times to enrich the sta- the flow of referral for one good,
tistical analysis (see Figure B). are more likely than weak ties to
be activated as sources for a
related good.
Strength of Weak Ties 7 Weak ties activated for the WOM Not supported
referral flow of information are
Hypothesis 1. It was anticipated that weak ties would more heterophilous than activated
be more likely than strong ties to serve as bridges strong ties.
through which WOM referrals flow. A prerequisite to 8 Of an individual'S potential personal Supported
testing this hypothesis as well as several of the others is sources of information, the more
the determination of strong and weak ties, subgroups, homophilous the tie, the more
likely it is activated for the flow of
and bridges serving as conduits for the flow of infor- referral.
mation.
9 As homophily of a tie increases, Not supported
First, the receivers' data on the type of relation with information provided by an
the senders were dichotomized. If the sender was labeled activated tie is perceived by
a relative, friend, or neighbor, the tie was classified as receivers as more influential in
"strong." If the sender was identified as merely an ac- decision-making.
quaintance or a neighbor but primarily an acquain-
tance, the tie was classified as "weak." Although it is
acknowledged that an individual's social relations with acted more frequently than weak ties (x 2 = 27.46, p
others typically include a spectrum of ties ranging from < 0.001). For example, of65 sender/receiver dyads in-
strong to weak, this dichotomy results in a conservative teracting on a daily or weekly basis, 61 (94 percent)
test of our hypotheses. It is also consistent with oper- were in the strong-tie category. Further support was ob-
ationalization practices in this area (e.g., Lin, Dayton, tained when the ratings on importance attached to a tie
and Greenwald 1983), but to provide a formal check were examined. The ties in the strong-tie classification
on the dichotomy's validity, we also examined the fre- were judged more important by receivers than those
quency of contact and the importance attached to the grouped as weak (X = 3.46 and X = 1.23, respectively;
relation across these two categories. Congruent with t = 14.35, p < 0.001).
Granovetter's (1973) notions of tie strength, at the time Second, more densely knit subgroups within the
of information acquisition behavior, strong ties inter- overall social structure of referral actors needed to be
358 THE JOURNAL OF CONSUMER RESEARCH

FIGURE B dyads) were bridges, as compared to six percent (seven


DIFFUSION OF INFORMATION AND GROUP STRUCTURE dyads) of the 107 strong ties. The hypothesis is sup-
ported (2 = 2.29, p < 0.05).
One example of a weak tie bridging subgroups is the
link between 51 and 118 (six o'clock position of Fig-
ure B):
51/118: 51's son was taking piano lessons from an-
other teacher and needed more advanced instruc-
tion, The previous piano teacher told 51 to call 118
who is also a piano teacher. However, 118 was not
taking new students but recommended 155. Actors
118 and 155 belong to a group with actors 32 and
147. They call each other friends. These relations
emerged from comembership in the same music
teacher association. In turn, 51 passed information
about 155 to 31 and 52, all of whom belong to the
same church. Thus, the acquaintance tie between
51 and 118 served as a bridge linking two otherwise

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disconnected subgroups, thereby extending path
length.
NOTE: The who-told-whom network (directed lines) is embedded in the group structure
(nondirected lines) for one of the marketers (155). For illustrative purposes, not every group Strength of Strong Ties
and dyadic social relation is exhibited. Reading clockwise, the groups are 27, 146, 155; 8,
48,145; 34, 36, 42,155; 32, 118, 147, 155; 31, 51, 52; 30, 72, 155; 1, 60, 155; 60, 124, Hypothesis 2. According to this hypothesis, it was
155; and 22, 141, 148. Comembership in the same social system such as church (e.g., 8,
48,145) or neighborhood (e.g., 34, 36, 42,155) facilitated the emergenoe of these subgroups.
expected that strong ties would be more likely than weak
ties to be activated for the flow when both are available
as potential sources of information. Most actors (90)
had access to both strong-tie and weak-tie potential in-
determined. The sociological concept of group suggests formation sources. In support of the hypothesis, 27 per-
that only the strong ties should be employed in its de- cent (74/273) of the potential strong-tie sources were
termination. However, not every strong tie is necessarily activated, as compared to seven percent (16/211) of the
a relevant source of information. For example, if per- weak-tie ones (x 2 = 17.32, p < 0.001). These data in-
sons A and B were in a strong-tie social relation at the dicate also that only relatively few of relatively many
time of A's WOM behavior related to piano teachers, potential personal sources of information were activated
but B's information acquisition behavior occurred at a for information flow.
later point in time, B could not have been a potential
Hypothesis 3. This hypothesis predicted that infor-
source of information for A. Thus, only those strong
mation seeking would be more likely to occur from
ties were employed for subgroup determination that
strong-tie sources of information. The results were in
existed at the time of an actor's information acquisition
direct contrast to expectations. Eighty-six percent of
behavior and that were his/her potential sources of in-
the weak ties activated for the flow were solicited for
formation. The subgroups were found with an algorithm
information, compared to 50 percent of the strong ties
contained in Sonet-I (Foster and Seidman 1978). It
(x 2 = 8.14, p < 0.01).
searches for socially connected referral actors until no
other actor can be added to a subgroup of at least three The dyad 51/49 at the six o'clock position of Figure
B provides an example of a weak tie that was solicited
connected individuals. This algorithm was selected be-
for information:
cause it was substantively appropriate for the present
study. 51/49: These individuals live in the same neigh-
Third, the information flow paths were embedded in borhood, but they do not socialize or know each
the resulting social structure to search for those WOM other well. They call each other acquaintances. Their
dyads that were not in subgroups. To qualify as a bridge, children, however, sometimes play together and 49
these dyads had to be the only interpersonal link be- knew that 51's son played piano. When 49's child
wanted to start lessons, 49 called 51 to find out who
tween groups (Knoke and Kuklinski 1982). her son's teacher was.
Of 130 WOM dyads, only 23 (18 percent) were in a
weak-tie relation. Thus, the vast majority of ties acti- Although most senders in the present study were so-
vated for the flow of referral arose from stronger rather licited for information (57 percent), it is noteworthy
than weaker social relations. To test the hypothesis, that the remaining referral occurrences "somehow"
however, it is necessary to compare the relative fre- arose during conversation. Although no decisive evi-
quency of bridges across the categories of tie strength. dence can be offered, it appears that situational or en-
Of the 23 weak-tie dyads of WOM, 22 percent (five vironmental cues prompted these WOM instances. One
WORD-OF-MOUTH NETWORKS 359

TABLE 2

CONGRUENCY EFFECTS

Congruence Piano Restaurant Dentist Tuner Shampoo

Percent congruence within group 26 25 17 19 10


Percent congruence not in same group 16 9 2 6 3
Percent raw effect 10 16 15 13 7
Chi-square 3.43 8 41.41b 240.64b 50.26b 16.21b

·p<0.10 .
• p < 0.01.

example is 60/149 (a weak tie at the ten o'clock position Hypothesis 5. It was expected that consumers with
of Figure B). joint membership in a subgroup of referral actors for
60/149: The children of these two individuals were one good would be more likely to prefer the same brand
taking swimming lessons. While 60 and 149 were for other goods than would those consumers who belong
waiting for their children, they started to talk about to a different or to no subgroup. Of the 107 strong ties

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their children's activities, and 60 told 149 about 155. activated for information flow, 81 (76 percent) belonged
to subgroups as previously defined. Following the anal-
Hypothesis 4. It was expected that information from ysis format employed by Reingen et al. (1984), contin-
strong-tie referral sources would be perceived as more gency tables were generated for the various products
influential than information obtained from weak-tie and services examined, with one dimension being "in
referral sources in receivers' decision-making. The the same subgroup/not in the same subgroup" and the
WOM actors who were nonusers of the service (i.e., other being "same brand preference/not the same brand
those who had not engaged in decision-making about preference." Chi-square tests for each product or service
the service provided by any of the three piano teachers) were then conducted.
were omitted from the analysis, leaving data on 84 ac- The results are provided in Table 2. The findings for
tivated strong ties and 18 activated weak ties. The mean restaurant, dentist, tuner, and shampoo were all sig-
level of influence for the strong ties was 4.24, while the nificant at p < 0.001, for piano at p < 0.10. The average
mean level of influence for weak ties was 3.56 (t = 2.22, raw effect (i.e., percent brand congruence for actors in
p < 0.05), supporting the hypothesis. the same subgroup minus percent brand congruence
With regard to our data on most/least influential for actors not in the same subgroup) was 12.1 percent,
sources, there were only five cases where an individual and the range was from seven percent for shampoo to
employed a strong as well as a weak tie as sources of 16 percent for dentist. Overall, these findings support
referral. While a formal statistical test was therefore not the hypothesis of greater brand congruency among
performed, it is noteworthy that in four of the five in- subgroup members for the products and services ex-
stances, weak ties were always ranked as least influential. amined in this study.
The dyads 147/5 (4 o'clock position), 32/49 (5 o'clock
position), and 8/48 (1 o'clock) provide examples for Hypothesis 6. This hypothesis predicted that strong
strong ties perceived as highly influential. ties that were activated for the flow of referral for one
good would be more likely than weak ties to be activated
147/5: 5 originally knew 147 from working with
for the flow for a related good. Of 31 individuals men-
her on a church music program. 5 also knew that
147 was a member of the state's music teacher as- tioned as sources of information for a piano tuner who
sociation. 5 asked 147 to recommend a teacher. 5 were also members of the piano teacher networks, all
felt she "could trust" 147's opinion, especially since were in a strong-tie relation with the receiver (x 2 = 9.08,
147 and 155 were friends. p < 0.01).
32/49: 32 was teaching 49's daughter, but they lived
"too far apart." 49 asked her neighbor 51 from
Homophily/Heterophily
whom her son was taking lessons. 51 recommended Hypothesis 7. This hypothesis predicted that weak
155. 49 then asked 32 about 155 and she highly ties activated for the flow of referral would be more
recommended 155. 49 "valued" 32's recommen- heterophilous than activated strong ties. Contrary to
dation, since 32 is a piano teacher and, thus, is
"knowledgeable in the music field." expectation, however, there was no significant relation-
ship between strong/weak ties activated for referrals and
8/48: 8 and 48 had been neighbors. 48 knew 8's homophily /heterophily (x 2 = 0.10, p > 0.10).
daughter was taking lessons. 8 was very pleased with
her daughter's progress and teacher. 48 felt the in- Hypothesis 8. It was expected that the more homo-
formation obtained from 8 was very influential be- philous the tie, the more likely it would be activated
cause 48 "knew nothing about the piano." from the set of potential sources of information. Of the
360 THE JOURNAL OF CONSUMER RESEARCH

activated ties, 37 percent were homophilous, compared Belk's (1971) observations, it appears that many of the
to 22 percent of the nonactivated ties. The hypothesis strong-tie referral instances were induced by situational
is supported (x 2 = 8.93, p < 0.01). or environmental cues when the topic of piano lessons
or teacher "somehow" arose during a conversation ini-
Hypothesis 9. According to the ninth hypothesis, it tiated for other reasons. The likelihood of more inci-
was predicted that information provided by an activated dental WOM communication may be enhanced as
tie would be perceived as more influential in decision- communication frequency increases. However, an im-
making as the homophily of the tie increases. To test plication of the present findings is that Belk's (1971)
this hypothesis, simple regression analysis was per- notion of this "casual" WOM may not be generalizable
formed. Perceived influence of the source was the de- to weak ties, the vast majority of which were actively
pendent variable, and the independent variable was the solicited for information in the current study.
dummy-coded homophily/heterophily. Individuals who Strong ties activated for the flow of information were
had not engaged in decision-making about the service also perceived by receivers as more influential than weak
provided by any of the three teachers (i.e., nonusers) ties in decision-making. Consistent with the results ob-
were ignored in this analysis. The hypothesis did not tained by Weimann (1983), an important implication
receive confirmation (F = 0.64, p > 0.10). of this finding is that the bridging function of weak ties
is more conducive to the flow of information, whereas
strong ties are more crucial to the flow of influence.

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DISCUSSION This may be explained by source credibility. It is likely
that a strong tie may be perceived as a more credible
This study demonstrates the different roles played by source of information than a weak tie. However, since
weak and strong social ties in macro-level and micro- source credibility was not assessed by the study, no de-
level WOM phenomena. cisive evidence can be offered at this time.
Strong ties were not only perceived as more influen-
Strength of Weak Ties tial, but they were also far more numerous as sources
of information than weak ties. This is in contrast to
The special significance of weak ties was found to be several previous studies (e.g., Granovetter 1974) that
their disproportionately greater frequency to be bridges found weak ties to dominate the flow of information.
that allowed information to travel from one distinct The inconsistency may be explained by information
subgroup composed of referral actors to another in the availability. In the present study, information was most
broader social system. Thus, the present study extends often available from strong-tie sources. Thus, there was
Granovetter's (1973; 1982) claim that weak ties create usually no need to activate ties beyond those available
bridges by providing empirical evidence that these in the consumers' own social circles.
bridges are indeed activated as intergroup channels of Finally, since the vast majority of strong ties were in
information. By examining the function performed by groups composed of potential sources of information,
weak ties in the transmission of referrals between strong ties may enable an individual consumer to have
subgroups, we have demonstrated that one relational direct access to an enriched information environment.
property-strength of tie-can provide a useful expla- Noteworthy in this context are the study's findings that
nation of how dyadic interactions among consumers the overlap in personal sources of information for re-
aggregate to form large-scale patterns. This is potentially lated services was solely accounted for by strong ties,
important in addressing a variety of topics of interest and that there was greater brand congruency among
to scholars of consumer behavior such as the diffusion subgroup members for a variety of products and ser-
of fashions, innovations, and rumors about products as vices. The latter finding is especially significant because
well as the formation of widely shared consumer atti- the subgroups in the present study were generated on
tudes. the basis of only one type of event or activity (referral
behavior involved in the selection of a service).
Strength of Strong Ties
Homophily/Heterophily
Whereas weak ties were found to playa crucial role
in the flow of WOM information across groups, strong Whereas the predictions derived from tie strength
ties were shown to be important at the micro level of were usually confirmed, those stemming from homo-
referral behavior. When both strong and weak ties were phily received less support. A noteworthy exception is
available as sources of information, strong ties were that tie activation was found to be positively related to
more likely than weak ties to be activated for the flow homophily. This is important because the present study
of information. The greater frequency of social contact extended previous analyses by comparing the ties that
among strong-tie individuals probably accounts for this were activated against those that were not activated for
finding. This argument may also explain the unexpected the flow of information. The other hypotheses positing
result that strong ties were less likely to be directly so- positive relationships between homophily and tie
licited for information than weak ties. Consistent with strength as well as perceived influence did not receive
WORD-OF-MOUTH NETWORKS 361

confirmation, but the possibility of imprecise measure- are relatively underresearched (Rudd and Kohout
ment should not be ignored. As has traditionally been 1983). The network approach stresses the latter, but
the case, demographic measures were employed in the complementing it with an analysis at the level of the
testing of the homophily hypotheses. Future research individual consumer would enhance the present un-
may benefit from incorporating into the analysis atti- derstanding of several important issues, including how
tudinal/lifestyle measures of homophily and from ex- WOM interaction precipitating out of social networks
amining effects of degrees of homophily on WOM be- has an impact on attitude formation or change and how
havior. consumers' decision-making behavior both affects and
is affected by properties of network structure. The re-
Limitations of the Study lationship between social structure and influence es-
pecially needs to be more broadly examined than in the
These findings are subject to several limitations. The present study by including more complex measurement
research focused on who-told-whom processes related of the influence construct at the individual level and
to one service that was not formally promoted by its by expanding the boundary of a network to include ac-
marketers. On the one hand, this setting suited well the tors in addition to those involved in referral activity.
aims of the study and facilitated the testing of its hy- This calls for future research with a focus on obtaining
potheses. On the other, it is unknown whether the find- an in-depth understanding of WOM actors' social mi-
ings can be generalized to formally promoted products lieux, applying tools characteristic of the "social world"

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and services or to other facets of informal communi- rather than the "structural" tradition of network anal-
cations such as negative WOM, feedback loops, and ysis (e.g., McCallister and Fischer 1983).
information exchange behavior among consumers. Al- Third, an enhanced understanding of social influence
though different settings will likely produce variations processes in consumer behavior may simply be obtained
in network structure (e.g., with regard to the number by examining which products or services consumers are
and length of paths, connectedness, etc.), it is not ob- more likely to "talk about." Consistent with the results
vious why they would produce strikingly different find- obtained by Reingen et al. (1984), the current study
ings as they relate to the impact of relational properties highlights the importance of verbal communication
on WOM communication. The latter was the focus of arising from social relationships rather than the tradi-
the study, as opposed to an internal analysis of more tional notion of conspicuousness which has been so
setting-specific network features. Nevertheless, more prominent in guiding the research on influences from
research is clearly needed, replicating and extending the others on a consumer's attitudes and behaviors (e.g.,
present analysis. Bearden and Etzel 1982). Since the consumption of
With regard to methodology, a limitation is that sev- piano teaching and tuning services is probably more
eral WOM paths could not be completed due to non- "private" than "public," the extensive (likely infor-
response or incomplete retrieval of WOM instances mational or expert) influence observed in the present
from memory. Although the study does not appear to investigation is probably due to factors other than con-
suffer unduly from these problems, some bias may have spicuousness.
entered the analysis. The study also relied on individ-
uals' verbal reports on past behavior. Cross-checks per- CONCLUSIONS
formed on the data suggest a high level of confirmation
of the verbal reports. However, there was no true cri- In summary, the study addressed several aspects of
terion against which the reports could be compared. WOM behavior that had not been examined in previous
work. These were investigated from a relational per-
spective in a natural environment. Although the study
Future Research Directions has limitations, the initial findings are promising.
Three major suggestions are made regarding future Nevertheless, it is clear that a great deal of additional
research in addition to the ones mentioned earlier. research remains to obtain a more satisfactory under-
First, although the relational perspective that guided standing ofWOM phenomena. Especially needed is re-
the present study is promising, it alone is unlikely to search that complements relational analysis with more
yield complete understandings of social phenomena traditional attribute-based approaches, relates the anal-
such as WOM. It is, therefore, suggested to complement ysis at the level of the network to one at the individual
relational measures with attribute-based data. For ex- level, and examines the cues prompting WOM behavior.
ample, the traditional communication variable of
source credibility is a promising candidate for comple- [Received March 1986. Revised December 1986.]
menting the relational analysis of WOM behavior.
Second, there is a strong need for combining the net-
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