Abstract

http://ssrn.com/abstract=1910160
 
 

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Can We Talk? The Impact of Willingness to Recommend on New to Market Service Brand Extension within a Social Network


Lerzan Aksoy


Koc University

Alexander


Ipsos Loyalty

Bruce Cooil


Vanderbilt University - Statistics

Timothy L. Keiningham


Ipsos Loyalty - North America

DeDe Paul


AT&T - AT&T Laboratories

Chris Volinsky


AT&T - AT&T Laboratories

February 2, 2011

Journal of Service Research, Forthcoming

Abstract:     
Adoption of new services in the marketplace, and the impact that word of mouth has on adoption, has long been of interest to marketers. Managers have therefore become increasingly interested in measuring word-of-mouth activity most commonly through the recommend intention metric. The circumstances under which the predictive ability of this metric can be established, however, are not clear. This research provides the first longitudinal examination of the relationship between recommend intention and the adoption of a new to market service brand extension. Analysis is conducted using anonymized data provided by a large US telecommunications provider for 791 customers and their corresponding telephone network (11,552 individuals). The findings indicate an interaction effect where recommend intention predicts new service adoption only when the recommending customers are more recent adopters of the service and are in more frequent contact with the potential customer. Therefore, when managers are using the recommend intention metric to predict adoption, there is a need to take into consideration the exposure of the individual to others in their network and the timing of their adoption.

Number of Pages in PDF File: 52

Keywords: Social Network, Word-of-Mouth, Service Adoption, Willingness to Recommend, Customer Satisfaction

JEL Classification: D10, M30, M31

Accepted Paper Series


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Date posted: August 15, 2011  

Suggested Citation

Aksoy, Lerzan and Alexander and Cooil, Bruce and Keiningham, Timothy L. and Paul, DeDe and Volinsky, Chris, Can We Talk? The Impact of Willingness to Recommend on New to Market Service Brand Extension within a Social Network (February 2, 2011). Journal of Service Research, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1910160

Contact Information

Lerzan Aksoy
Koc University ( email )
Cayir Cad. No: 5 Istinye
Sariyer 80910, Istanbul, 34450
Turkey
Alexander Buoye
Ipsos Loyalty ( email )
Parsippany, NJ
United States
Bruce Cooil (Contact Author)
Vanderbilt University - Statistics ( email )
Nashville, TN 37203
United States

Timothy L. Keiningham
Ipsos Loyalty - North America ( email )
Parsippany, NJ
United States
DeDe Paul
AT&T - AT&T Laboratories ( email )
United States
Chris Volinsky
AT&T - AT&T Laboratories ( email )
United States
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