Referral Marketing as a Strategic Tool to Expand Customer Networks and Reach
DOI:
https://doi.org/10.32506/joes.v7i1.845Keywords:
Referral Marketing, customer networks, digital trust, incentive design, brand growthAbstract
Referral marketing leverages customer networks to organically and cost-effectively expand brand reach. This study explores the theoretical foundations and practical applications of referral marketing, emphasizing its role in trust-based customer acquisition. Using a qualitative literature review approach, it integrates insights from behavioral economics, network theory, and trust models to explain how referral programs influence consumer behavior and drive brand loyalty. Findings indicate that well-designed programs—with aligned incentives, optimal timing, and cultural adaptability—enhance customer engagement and retention. Challenges such as incentive misalignment, ethical considerations, and attribution complexity are also discussed. The study contributes a conceptual framework that merges psychological, technological, and strategic dimensions, offering businesses a comprehensive roadmap for implementing referral marketing effectively. By situating referral strategies within broader marketing theory, this research informs both academic discourse and practical marketing innovation in a digitized, network-driven economy.
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