THE IMPACT OF REFERRAL MARKETING STRATEGY ON MICRO SMALL SCALE MOTOR VEHICLE MECHANIC

Abstract

This study was carried out to determine the impact of referral marketing strategy on the micro small scale motor vehicle mechanic. Specifically, this study seeks to identify the factors that influence the usability of referral marketing strategy and its effect on referral marketing. Two research questions were answered and two null hypotheses were formulated and tested at 0.05 level of significance to guide the study. The descriptive survey approach was used and the target population for this study was made up of the motor vehicle mechanic customers, motor vehicle mechanic part dealers and motor vehicle mechanic. Eighteen (18) item-questionnaires were used as instruments for data collection, which were analysed according to the research questions. The data collected from the respondents were analysed using mean and Analysis of Variance (ANOVA) and Scheffe's test. The findings of the study include among others; Celebrity endorsement, loyalty and willingness to take a risk are factors that influence the usability of referral marketing strategy for motor vehicle mechanic. It was recommended that Government should formulate policies and programmes to encourage micro small and medium scale entrepreneurs to sail smooth in their private investment. Such encouragement should include interest-free loan.