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Perceptions of Word-of-Mouth Referral Programs on Recruiting ClientsGoers, Jean Louise 01 January 2018 (has links)
Abstract
Word-of-mouth (WOM) personal referrals are more efficient and influential than other forms of
advertising; however, there is a lack of information regarding the value of referral programs. The
purpose of this qualitative case study was to explore the perceptions of business owners, staff,
and customers of alternative health care organizations in a Midwestern U.S. state about efficient
referral strategies, measuring the effect of those strategies, and motivations of consumers to
make referrals. Maslow's hierarchy of needs theory of motivation and customer decision-making
theories provided the conceptual framework. The research questions addressed how industry
leaders perceived and ranked referral strategies and addressed customers' perceptions and
motivations to make personal referrals. Data collection consisted of semistructured interviews
with 4 business owners, 2 staff members, and 10 client participants. Data were analyzed using
constant comparative analysis methods, and member checking enhanced the accuracy of the
findings. Results indicated that participants viewed WOM personal referrals as the most efficient
nontraditional strategy to make or receive referrals, and they perceived referrals from impartial
and trustworthy sources as the most valued information. This research has implications for
positive social change. Findings may be used to enhance business owners' understanding of the
value of personal referrals in their marketing mix, and of the motivation for customers to make
referrals. WOM personal referrals may be used as a marketing strategy to increase sales and
lower costs of formal advertising, which may contribute to the growth of the business.
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