Exploring the Persuasive Effect of Member-Get-Member Referral Programs

Chan, Simon T. H.; Lin, Tom M. Y.; Bodhi, Priy

doi:10.2224/sbp.2014.42.6.891

Cited by 5 publications

(7 citation statements)

References 25 publications

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“…Involvement has been shown to be an important driver of organic WOM in a large number of empirical studies (e.g. Neumann, 2015;Wangenheim and Bayón, 2007), and a few studies extended these findings to the RRP context where they showed that high involvement products elicited higher intention to accept incentivized referrals (Chan et al, 2014;Fan et al, 2014). This logic is extended to successful recommendation behavior for the first time in this study.…”

Section: Josm 301supporting

confidence: 67%

“…Past studies were largely based on stated intentions with hypothetical RRP scenarios (rather than real RRPs) or self-reported data. Furthermore, an RRP is only effective if inductors recommend and inductees respond with buying the service (cf., Chan et al, 2014;Tuk et al, 2009;Verlegh et al, 2013). As such, it is important to verify findings based on intentions in actual and successful behavior contexts and the present study makes an important contribution to RRP research.…”

Section: Implications For Theorymentioning

confidence: 73%

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Successful referral behavior in referral reward programs

Wirtz

Tang

Georgi

2019

JOSM

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Purpose Referral reward programs (RRPs) incentivize existing customers (inductors) to refer new customers (inductees). The effectiveness of RRPs is not well understood as previous studies either focused on referral intent and/or ignored inductee responses. However, an RRP is only effective if inductors recommend and inductees respond with buying the service. The purpose of this paper is to examine the drivers of existing customers’ successful referral behavior. Design/methodology/approach This study combines a bank’s customer relationship management (CRM) data which were used to identify successful inductors and non-inductors. Then, observed behavioral and customer background data from the CRM database (including successful referrals, deposits in euros, number of products held, relationship duration, income, age, and gender) were combined with survey data capturing attitudinal variables (i.e. perceived relationship quality, reward attractiveness, referral metaperception, opportunism, and involvement). This approach allowed for the simultaneous testing of all hypothesized drivers of successful referral behavior. Findings Metaperception (i.e. the process by which individuals determine the impressions other might form of them and their behavior) was the strongest and most significant driver of successful RRP participation, followed by attractiveness of the reward. That is, inductors recommended successfully when they believed that their incentivized referral did not look bad (or even looked good) and incentives were perceived as attractive. This finding is important as metaperception so far has only been examined in theoretical and experimental studies with intent as dependent variables. Second, latent class analysis (LCA) revealed that there were two segments of inductors of which one was opportunistic. Opportunism as a driver of referral behavior has not been shown in past research using more traditional analyses, whereas LCA uncovered it as a driver for one-third of all respondents. Practical implications The findings offer managers a better understanding of the key determinants of successful referral behavior with important RRP design implications that counter frequent practice (e.g. designing RRPs with high face value but then reducing its usefulness through terms and conditions). Furthermore, managers may consider segment-specific reward structures to improve the effectiveness of their RRPs. Originality/value This study is the first to examine inductor determinants of successful referral behavior and identify inductor segments.

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Section: Josm 301supporting

confidence: 67%

Section: Implications For Theorymentioning

confidence: 73%

Successful referral behavior in referral reward programs

Wirtz

Tang

Georgi

2019

JOSM

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“…CRV should be distinguished from CIV because of the different motives that customers possess to engage in EWOM behavior. Based on previous studies, self enhancement and economic rewards are the two major concrete motives for customers to contribute value (Chan et al, 2014). Another difference is that CRV is more realized in the acquisition process by bringing new customers, whereas CIV is created more by affecting existing customers to expand purchasing and by encouraging prospects (Kumar et al, 2010).…”

Section: Customer Referral Valuementioning

confidence: 99%

“…In the tourism and hospitality context, the role of CRV has been researched on its influence on customer's purchase intention for travel (Fan et al, 2014). Albeit previous studies have examined the driving factors of referrals from a referrer's perspective (Chan et al, 2014), fewer evidences were found in m-Tourism context. Prior research has further indicated that customers with higher satisfaction levels are more inclined to have higher CLVs and more potential to recommend purchase to other customers (Kumar and Reinartz, 2016).…”

Section: Customer Referral Valuementioning

confidence: 99%

Co-creating value with customers: a study of mobile hotel bookings in China

Law

Liu

2018

Int J Contemp Hospitality Mngt

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Purpose-This study aimed to develop a framework to explain the reciprocity of the value cocreation process in mobile hotel booking context, and to clarify values for customer and supplier. Design/methodology/approach-A research framework was developed based on the previous literature to derive insights on value co-creation process. Online surveys were conducted among mobile hotel bookers in China. Confirmatory factor analysis and structural equation modeling were used to test the proposed framework. Findings-The findings suggested that suppliers should improve the values for customers (Functionality, Usability, and Perceived Value) to achieve values for themselves [Customer Lifetime Value (CLV), Customer Knowledge Value(CKV), Customer Referral Value (CRV), and Customer Influencer Value (CIV)]. The relation between satisfaction and CLV was moderated by the CIV from other customers. Practical implications-Suppliers should enhance customer value from the aspects of functionality, usability, and perceived value to earn a competitive advantage. Moreover, for suppliers, non-transactional values such as other Customer's Influencer Value play an increasingly critical role apart from economic value for development. Originality/value-This study not only added empirical analysis on value co-creation in m-Tourism, but also extended the current literature by validating a research model which integrates website evaluation research with Kumar et al. (2010)'s Customer Engagement Value framework. Instead of serving as a mediator, mobile App was regarded as one of the indispensable actors involved in value co-creation.

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“…Through the assessment of experienced practitioners' feedback of a leading OE institution, the researchers' aim is to display a holistic snapshot of the current RM strategy, steering away from assessing the traditional dyadic consumer-brand relationship focussed on by extant RM literature (Chan et al, 2014;Lee and Anantharaman, 2015;Garnefeld, et al, 2013;Shi and Wojnicki, 2014;Hennig-Thurau et al, 2001). A case study of this magnitude allows the researchers to deduce and propose a conceptual model for an effective RM strategy for the OE sector.…”

Section: Statement Of Purposementioning

confidence: 99%

Referral Marketing in Online Higher Education: a Holistic Snapshot of Strategic Initiatives, Effectiveness and Opportunities in a leading International Organization

Boros

Papasava

2020

JMCHE

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Referral Marketing (RM) has only recently sparked the interest of marketers in the online higher education (OE) sector, with distinct gaps identified in the literature. This concept is closely linked with consumer brand engagement, relationship marketing and student loyalty. The researchers selected a for-profit multinational OE organisation, which offers tertiary UK programmes and implements an incentivised RM strategy. Given that loyalty behaviour is linked with consumer experience, integrated marketing communications throughout the consumer journey are also believed to impact RM. The aim of this case study was to broaden knowledge and understanding of RM in this unique sector by identifying sectoral trends and investigating constructs of consumer brand engagement, employee engagement (EE) and integrated marketing communications through the lens of the OE sector. Through a mixed-methods design, combining elements of grounded theory and a constructivist paradigm, two discovery-oriented studies were conducted – namely qualitative interviews with 22 OE executives, and quantitative surveys with 100 OE students. Template analysis and quantitative statistics were implemented with an interpretive approach and methodological triangulation to ensure validity and reliability. Findings suggested a student-centred, bottom-up approach to IMC could be most successful, with employee ‘Belief in Strategy’ as a unique element of EE impacting on RM success.

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Exploring the Persuasive Effect of Member-Get-Member Referral Programs

Cited by 5 publications

References 25 publications

Successful referral behavior in referral reward programs

Successful referral behavior in referral reward programs

Co-creating value with customers: a study of mobile hotel bookings in China

Referral Marketing in Online Higher Education: a Holistic Snapshot of Strategic Initiatives, Effectiveness and Opportunities in a leading International Organization

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