Word-of-mouth promotion and switching behavior in Japanese and American business-to-business service clients

Abstract

This comparative study examines whether customers in Japan and the US who use referrals to find business-to-business services (e.g., banking, advertising and insurance) are more likely to remain loyal to their service providers. The effects of national culture (Japanese or American) and relative location (foreign or domestic) are anticipated and explored. Regression analysis results indicate that companies who used referrals to source their service providers switched less than those who did not. Furthermore, companies operating in foreign environments (Japanese companies in the US and American firms in Japan) switched more than those operating in domestic environments. Other cross-cultural and international results are presented and discussed.