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It’s all relative: how customer-perceived competitive advantage influences referral intentions

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  • Martin Mende
  • Scott Thompson
  • Christian Coenen

Abstract

Better understanding the mechanisms that influence customer intentions to spread positive word-of-mouth (WOM) is crucial to both marketing scholars and managers. This multimethod research contributes to marketing knowledge by revealing how a firm’s customer-perceived competitive advantage (CPCA) influences positive WOM intentions. Analyses of (1) cross-sectional survey data on bank customers in Germany and (2) experimental data on customers of car insurance companies in the USA reveal two crucial insights. First, CPCA influences WOM intentions in both industries, over and above numerous established antecedents of customer loyalty (e.g., satisfaction, trust, and perceived value). Second, this research demonstrates a robust and pervasive CPCA-by-satisfaction interaction effect, such that the influence of CPCA on WOM intentions increases as customer satisfaction decreases. The results show that customer-perceived competitive advantage plays an important role in shaping WOM intentions, especially among less-satisfied customers. Theoretical and managerial implications of these findings are discussed. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Martin Mende & Scott Thompson & Christian Coenen, 2015. "It’s all relative: how customer-perceived competitive advantage influences referral intentions," Marketing Letters, Springer, vol. 26(4), pages 661-678, December.
    • Handle: RePEc:kap:mktlet:v:26:y:2015:i:4:p:661-678
    DOI: 10.1007/s11002-014-9318-x
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    References listed on IDEAS

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    Cited by:

    1. Liu, Hongfei & Meng-Lewis, Yue & Ibrahim, Fahad & Zhu, Xia, 2021. "Superfoods, super healthy: Myth or reality? Examining consumers’ repurchase and WOM intention regarding superfoods: A theory of consumption values perspective," Journal of Business Research, Elsevier, vol. 137(C), pages 69-88.
    2. Heiner Evanschitzky & Valentina Stan & Liane Nagengast, 2022. "Strengthening the satisfaction loyalty link: the role of relational switching costs," Marketing Letters, Springer, vol. 33(2), pages 293-310, June.
    3. Ina Garnefeld & Sabrina Helm & Ann-Kathrin Grötschel, 2020. "May we buy your love? psychological effects of incentives on writing likelihood and valence of online product reviews," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 805-820, December.

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