Authors: Bernadett Koles; Marzena Nieroda; Zsófia Tóth
Supplier selection is associated with certain risks, especially when there is no direct or indirect connection between the buyer and the potential suppliers, in which cases trust is nested within personal relationships. Online referrals are potentially powerful tools to decrease perceived risks and increase the attractiveness of the supplier in a pre-selection phase. Online referrals such as client testimonials and short case studies serve as important B2B marketing communication tools and have been shown to influence the B2B online buying process, as potential buyers can check the expertise and connections of the supplier and thus decipher their attractiveness and other qualities (Jalkala and Salminen, 2009). There are potentially controversial effects of B2B online referrals. First, SMEs often use corporate online referrals on an ad hoc basis without any strategic consideration. Second, many firms tend to present themselves as bigger, more powerful, or more influential in order to attract buyers, which is a strategy that may backfire. In fact, in the case of SMEs, putting referrals of only large partners can discourage other SMEs to initiate the relationship with the supplier in the first place, because of being perceived as too expensive or out of their league. Nonetheless, online referrals can be beneficial if used appropriately and can increase supplier attractiveness. This is especially important in certain industries where 1) the role of inter-personal relationships is less dominant: 2) the digital element of the search and buying process is prevalent: 3) market turbulence and the consequent need to build new relationships is higher and 4) the visibility of prices is limited. The literature indicates that there is limited evidence about the attractiveness and effectiveness of online B2B referrals. Current research will explore these aspect in the context of the supplier selection process of SMEs in their search for online marketing agencies. We deploy Critical Incident Technique (CIT) form of interviews where a sample (n=15) of managers are interviewed about their last experience of selection of online marketing services supplier (Gremler, 2004). In line with the CIT methodology, the data are then analysed with content analysis (Kassarjian, 1977). Services offered by online marketing agencies provide a good example given the growing demand for them in various sectors (Stroud, 2012). The research focuses on SMEs because their buying processes are less formalised and personal perceptions play a more substantial role in their decision-making process. This initial qualitative inquiry serves as a stepping stone to further experimental studies evaluating an optimal combination of different referral–related factors and its effect on supplier attractiveness and selection.
Journal: n.a. (n.a. – n.a.)
Web Address: n.a.
Publish Year: 2016
Conference: Poznan, Poland (2016)