Professional Documents
Culture Documents
Referral Behavior*
JACQUELINE JOHNSON BROWN
PETER H. REINGEN**
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.
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
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.
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)
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
TABLE 2
CONGRUENCY EFFECTS
·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
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.
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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