The Role of Metaperception on the Effectiveness of Referral Reward Programs

Wirtz, Jochen; Orsingher, Chiara; Chew, Patricia; Tambyah, Siok Kuan

doi:10.1177/1094670512462138

Cited by 94 publications

(143 citation statements)

References 60 publications

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“…In a CRP environment, with the reward being the central element, reward salience is certainly given. This assumption is in line with Wirtz, Orsingher, Chew, and Tambyah () who state that incentivizing referrals even “changes the nature of the interpersonal communication” (p. 83) for the customer making the recommendation. Further, Yi and Jeon () find that customer responses increase with the perceived size of rewards in loyalty programs.…”

Section: Conceptual and Theoretical Backgroundsupporting

confidence: 70%

“…The authors further assume that customer recommendation behavior is not only directly influenced by brand evaluation, but also by the perceived reward attractiveness. A more attractive reward, subsequently, is related to higher recommendation odds (e.g., Ryu & Feick, 2007;Wirtz et al, 2013) since more attractive stimuli unfold stronger attitudinal and behavioral reactions (Baker & Churchill, 1977;Berscheid & Walster, 1974). In this regard, researchers exploring the power of attractiveness generally acknowledge its effects on customer behavior to be highly relevant for marketers (e.g., Caballero, Solomon, & Dean, 1984).…”

Section: A Schema Congruity Theory Perspectivementioning

confidence: 99%

See 1 more Smart Citation

Customer Referral Reward–Brand–Fit: A Schema Congruity Perspective

Stumpf

Baum

2016

Psychology and Marketing

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Customer referral programs (CRPs) are widely applied as an effective means to stimulate word‐of‐mouth. While previous research mainly focuses on CRPs’ impact of acquiring new customers, this study introduces referral programs as a strategic brand management tool. In doing so, this article emphasizes what has been largely neglected by scholars: A “recommenders‐perspective.” Guided by two competing theoretical perspectives, this article proposes that the perceived congruity between a reward and the recommended brand is an essential driver of referral program performance outcomes. The results show that rewards that conform to the image of the recommended brand yield more favorable reward attractiveness perceptions. Furthermore, the authors show that reward attractiveness perceptions inevitably affect the brand customers are asked to recommend in exchange for receiving this reward. The research reported here extends the literature on judgmental evaluations resulting from schema‐based processing and provides novel insights into the design of CRPs.

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Section: Conceptual and Theoretical Backgroundsupporting

confidence: 70%

Section: A Schema Congruity Theory Perspectivementioning

confidence: 99%

Customer Referral Reward–Brand–Fit: A Schema Congruity Perspective

Stumpf

Baum

2016

Psychology and Marketing

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“…Second, numerous scholars have explored referral programs using tie strength as a moderator (Ryu & Feick, 2007;Verlegh et al, 2013;Wirtz & Chew, 2002;Wirtz, Orsingher, Chew, & Tambyah, 2013). In our research we explored the use of another important moderator-product involvement.…”

Section: Theoretical Implicationsmentioning

confidence: 99%

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

Chan¹,

Lin²,

Bodhi³

2014

soc behav pers

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Marketers use both financial and nonfinancial incentives to create word-of-mouth (WOM) communication but few empirical researchers have explored how these different types of incentives might affect the design of referral programs and new customer responses to them. In this study we adopted an experimental design and established hypotheses to investigate the persuasive effect of different referral reward programs, such as a member-get-member setup. Our findings show that low-involvement products offer financial rewards to new members. This means that managers can stimulate exogenous WOM by encouraging enterprise. Additional managerial implications and limitations are discussed.

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“…These perspectives are different in the sense that learning from word-of-mouth is more indirect. Customers who learn from word-of-mouth must rely on experiences that they did not observe directly (Kuo et al, 2013;Wirtz et al, 2013). In other words, observational learning involves customers seeing another customer's experience with their own eyes.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Finally, research indicates that customers learn about brands and services through word-of-mouth (Kuo et al, 2013;Wirtz et al, 2013). Researchers should compare the relative impacts of learning about service recovery through observation versus word-of-mouth on evaluations of a service provider.…”

mentioning

confidence: 99%

Service recovery's impact on customers next-in-line

Vaerenbergh

Vermeir

Larivière

2013

Managing Service Quality

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Purpose -Previous research considers service recovery as a one-on-one interaction between a service provider and a complaining customer. However, customers frequently complain at the place where they receive the service, making an investigation of the impact of a service recovery on observing customers necessary. Using observational learning theory and attribution theory as theoretical anchors, this paper examines whether observing a service recovery influences the observing customers' satisfaction and repurchase intentions. In addition, this paper tests whether service quality perceptions mediate, and customers' locus of control attributions moderate these relationships. Design/methodology/approach -Study 1 tests the main hypothesis using a scenario-based experiment in two settings (restaurant, retail). Study 2 further elaborates on these findings using a scenario-based experiment in a hotel setting. Findings -The findings show that the negative consequences of a failed recovery extend beyond the complaining customers to observing customers, whereas the positive consequences of observing a satisfactory recovery do not influence the observing customer when compared to observing a failurefree service delivery. These relationships are driven by the service quality information customers extract from observing a service recovery. In addition, the results indicate that the negative spill-over effects are attenuated if the observing customer gets information about who caused the failure. Originality/value -From a theoretical point of view, this study contributes by outlining service recovery's different impacts on complaining and observing customers: whereas service recovery forms a critical for complaining customers, it only acts as a dissatisfier for observing customers. In addition, it is the first to test a potential explanation for why observing a service recovery leads to lower customer outcomes, and provides insights about how service providers might attenuate the negative spill-over effects of a failed recovery.

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The Role of Metaperception on the Effectiveness of Referral Reward Programs

Cited by 94 publications

References 60 publications

Customer Referral Reward–Brand–Fit: A Schema Congruity Perspective

Customer Referral Reward–Brand–Fit: A Schema Congruity Perspective

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

Service recovery's impact on customers next-in-line

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