Going Viral: The Epidemiological Strategy of Referral Marketing

Abstract: By now, Internet word-of-mouth marketing has established its importance for almost every kind of products. When word-of-mouth spread of a marketing campaign goes viral, the success of its strategy has been proved to be path-breaking for the firms. The current study is designed to extend knowledge about customer response to these campaigns, and is focused on the motivations that lead them to different responses. Primary goal of this study is to investigate the reasons that drive this dynamics and to generate a justified theoretical framework of diffusion dynamics of viral marketing campaigns. A rigorous analysis of data obtained through a questionnaire-based survey helped us to understand how people, who are from different age group, sex and locations, define and evaluate the encounter with a referral campaign online, in similar and unique logical ways. The key finding was a conceptual framework of customer motivation which in turn dictates the dynamics of the campaign. We have identified important themes related to customer motives, like significance of: incentives and ease, inherent forgetting, reminders from peers compared to company's remarketing mails, trust and brand value etc. Drawing an analogy with differential equation-based models of infectious disease spread, this paper further provides some initial evidence that participation in viral marketing campaigns has several consumer related dynamical factors which can be incorporated in an epidemiological model for mathematical treatment, to indicate key operational factors in ensuring an effective spread of the marketing campaign.