Customer reference marketing in internationalizing SMEs: a service perspective

Abstract

Purpose The purpose of this paper is to create a model that compares the effects of product content differentiation and service content differentiation on small- and medium-sized enterprises’ (SMEs) perceived importance of customer reference marketing in foreign markets. Design/methodology/approach A theoretical model is developed and tested through multiple regression and mediation analysis, on an effective sample of 188 Swedish SMEs. Findings The results show that foreign market business assignments characterized by differentiated services make companies relatively more dependent on relationship learning and customer reference marketing. By contrast, situations of differentiated product content correlate negatively with customer reference marketing. Practical implications Reference customers can function as vehicles for international expansion when marketing offerings are complex. The findings imply that in service settings, SMEs need to maintain learning regimes with foreign market customers to effectively use them as references to win new business. Originality/value The study applies a service perspective to explain the contingencies of customer reference marketing, particularly in international business settings. The study contributes to international small business literature and research focusing on service–firm internationalization by explaining the marketing mechanisms at play in the internationalization of SMEs. In so doing, the findings can enrich relationship and network perspectives of internationalization and add a missing link to studies on networking and internationalization.

The New Service Realities

“…Companies require improving their service offerings and strengthening their relationships with customers (Tolstoy, Hånell, & Özbek, 2022). The internet and cloud computing allow companies for true interactivity and connectivity, customer-specific and situational personalization, and realtime adjustments of the firm's offerings (Dagdeviren & Akram, 2022).…”

Potential Customer Analysis Based on Gender, Age, Retention, Motivation Using K-Means and Octalysis Gamification Approach

“…Table 6 also lays out the core drive data for each segment. Based on researches [13], [14], [18] retention and motivation are part of the indicators to determine potential customers. Then the value of potential customers can be determined for the four segments by adding up the average retention and core drive values.…”

“…This data also indicates that high motivation does not guarantee high retention. Many factors affect loyal customers and have significant retention [14], [18], so these factors need to be investigated so that male customers can potentially become potential customers.…”

“…Various efforts need to be made to obtain information and increase the potential or opportunities of these potential customers [13], [14]. Several indicators related to potential customer analysis include gender, age, retention, and motivation [13], [14], [18]. The data related to these indicators can be used to analyze potential customers.…”

Management of Service Quality With Involvement of Technological Developments in Organizations

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