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

Journal of Service Research, Forthcoming

52 Pages Posted: 15 Aug 2011  

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

Date Written: February 2, 2011

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.

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

JEL Classification: D10, M30, M31

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: https://ssrn.com/abstract=1910160

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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