The Role of Social Ties in Word-of-Mouth Effectiveness: A Segmentation Approach

This article develops consumer segmentation based on the strength of social ties in word-of-mouth (WOM) communication and examines the influence of WOM on behavioral attitude and intention in these segments. Data were collected through a survey among receivers of retail banking WOM. A cluster analysis identifies four WOM receiver segments based on the tie strength between the sender and the receiver, and the cluster solution is successfully validated. Each segment shows distinct patterns of tie strength and influence on the receiver’s perception of WOM, behavioral attitude and intention. Moreover, the WOM influence is examined for customers as well as non-customers.