Perceptions of Word-of-Mouth Referral Programs on Recruiting Clients

Perceptions of Word-of-Mouth Referral Programs on Recruiting Clients by Jean Louise Goers MA, Cardinal Stritch University, 2006 BS, University of Wisconsin-Parkside, 2002 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University November 2018 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 theWord-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. Perceptions of Word-of-Mouth Referral Programs on Recruiting Clients by Jean Louise Goers MA, Cardinal Stritch University, 2006 BS, University of Wisconsin-Parkside, 2002 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University November 2018 Dedication I dedicate this dissertation to my family members who supported me on my doctoral journey. First, to my daughter, Megan, and to my sister, Judy, for their continual moral and emotional support and unconditional love. As well as my son, Christopher, and daughter-in-law, Amanda; my brother, Gary, and my sister-in-law, Sue; to my sister’s, Donna, Carol, and Debbie, who have been supporters cheering me on from day one with whatever I chose to do. I also dedicate this dissertation to all those extended family members who have offered their moral support. Finally, I dedicate this dissertation to those who have passed on: my mother, Laverne; my father, George; my grandmother, Adeline; my sister, Terry; and my brother, Todd. I continually feel their love and support that surrounds me, and they are always watching over and protecting me. Acknowledgments I owe my most profound gratitude to my doctoral chair, Dr. Barbeau, for his guidance, support, mentorship, and wisdom, and for being the guiding force to help me through the dissertation process. Additionally, I appreciate my dissertation committee members, Dr. Levasseur and Dr. Barrow, for their encouragement and guidance to produce a substantial dissertation. I also thank Dr. Gredler for guiding me through the Form and Style review process so that I could produce a strong dissertation. I am grateful and thank Dr. Hay for his continual guidance and support, and to Dr. Kolberg for keeping me on track to complete this dissertation. I also appreciate Dr. Hicks-Bennett, Dr. Chester, Dr. LaRock-McMahon, and Dr. Gorry, as I genuinely feel their encouragement is what helped me to see the finish line. Likewise, I acknowledge the current and graduated cohorts from Walden’s dissertation forum for all their weekly support and guidance. Thank you all for helping me make sense of this Walden University doctoral program. I am also grateful to those family members and friends who have supported me with their encouragement along the way. I would like to thank all the people who provided their assistance in the form of advice, suggestions, and other support. Finally, I am thankful for the universal guidance of a ‘higher power’ for empowerment and instilling gratitude in me to complete the dissertation journey. I learned many life lessons along this dissertation journey and am inspired to make a positive societal impact.