Advances in Relationship Marketing
Advances in Relationship Marketing
Thought and Practice: The Influence
Thought and Practice: The Influence
of Social Network Theory
of Social Network Theory
Presented at the
Presented at theNetworks and Complex Systems
Networks and Complex Systems
A talk series at Indiana University Bloomington
A talk series at Indiana University Bloomington
September 18, 2006
September 18, 2006
Constance Elise Porter, Ph.D.
Constance Elise Porter, Ph.D.
Assistant Professor of Marketing
Assistant Professor of Marketing
University of Notre Dame
University of Notre Dame
Marketing focuses on the exchange process,
Marketing focuses on the exchange process,
making it relational,
making it relational,
by definition.
by definition.
•
Relationship marketing is a dominant
Relationship marketing is a dominant

communities/knowledge networks)
The fundamental premise of this
The fundamental premise of this
talk….
talk….
Because marketing is relational,
Because marketing is relational,
social network theory (SNT) helps to
social network theory (SNT) helps to
advance marketing theory and
advance marketing theory and
practice.
practice.
Discussion Topics
Discussion Topics
1.
1.
A Historical Perspective
A Historical Perspective
•
How does the marketing perspective compare to the
How does the marketing perspective compare to the
sociological perspective?
sociological perspective?
2.
2.
How has SNT advanced relationship marketing
How has SNT advanced relationship marketing
thought and practice?
thought and practice?

questions and methods differ.
questions and methods differ.
Points of Alignment:
Points of Alignment:
•
Networks are socially connected actors
Networks are socially connected actors
(more than 2)
(more than 2)
•
Resources (e.g. information) are transferred among actors in
Resources (e.g. information) are transferred among actors in
a network
a network
•
There is a flow of resources within the network
There is a flow of resources within the networkPoints of Difference:
Points of Difference:
•
SN theorist (and early marketing researchers) seek to
SN theorist (and early marketing researchers) seek to
describe individual actors and their relations/patterns of
describe individual actors and their relations/patterns of
connections
connections
–
Sociometric theory….Whole Network…Software tools (e.g. UCINET and KRACKplot)

Degree
Degree
–
The number of actors with
The number of actors with
whom an individual has a
whom an individual has a
direct connection
direct connection
Marketing Applications
Marketing Applications
•
Word of Mouth
Word of Mouth
–
Actors:
Actors:
opinion leaders,
opinion leaders,
gatekeepers/market mavens and
gatekeepers/market mavens and
followers
followers
•
Those who are likely to
Those who are likely to
influence
influence
others
others

•
Product attributes (new, important,
Product attributes (new, important,
distinctive, risky)
distinctive, risky)
•
Diffusion of Innovations (borrowed from
Diffusion of Innovations (borrowed from
Rogers) & New product adoption
Rogers) & New product adoption
Finally, marketers tend to take a
Finally, marketers tend to take a
relational perspective of networks.
relational perspective of networks.
(exception: Hopkins, Henderson and Iacobucci 1995)
(exception: Hopkins, Henderson and Iacobucci 1995)
Relational Perspective
Relational Perspective
•
focuses on the extent to which
focuses on the extent to which
all actors are interconnected
all actors are interconnected
–
Relations
Relations
(strands):
(strands):
content, direction and and strength
content, direction and and strength

–
Assumes structural
Assumes structural
equivalence
equivalence
How has SNT advanced
How has SNT advanced
relationship marketing
relationship marketing
thought and practice?
thought and practice?
The Most Popular SNT
The Most Popular SNT
perspectives used in Marketing
perspectives used in Marketing
•
The Structural Perspective
The Structural Perspective
•
The Socio-Economic Perspective
The Socio-Economic Perspective
•
The Socio-Cognitive Perspective
The Socio-Cognitive Perspective
The Structural Perspective:
The Structural Perspective:
“
“
The structure of relations drives marketing outcomes.”
The structure of relations drives marketing outcomes.”

Social
Social
Structure
Structure
•
Interpersonal Relations
Interpersonal Relations
•
Strength of Tie
Strength of Tie
•
Membership in a subgroup for one good
Membership in a subgroup for one good
•
Centrality
Centrality
•
Cosmopolitaness (out-network ties)
Cosmopolitaness (out-network ties)
Outcomes
Outcomes
•
Brand Congruence
Brand Congruence
•
Brand Congruency for Multiple Brands
Brand Congruency for Multiple Brands
•
Flow of Communication across subgroups
Flow of Communication across subgroups