Unintended effects of incentivizing consumers to recommend a favorite brand

Anghelcev, George

doi:10.1080/13527266.2012.747980

Cited by 9 publications

(9 citation statements)

References 65 publications

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“…Further, the effect of rewards in experiental and interactive service settings should be tested. It is likely to be analogous to the results of Anghelcev’s (2013) study, and that crowding-out effects at a certain threshold of monetary incentives may disengage customers (Garnefeld et al , 2012).…”

Section: Limitations and Future Researchsupporting

confidence: 52%

Dynamics and drivers of customer engagement: within the dyad and beyond

Fehrer

Woratschek

Germelmann

et al. 2018

JOSM

103

143

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Purpose The purpose of this paper is to extend existing engagement research in two directions: first, it operationalizes the dynamic nature of the engagement process within a customer-brand dyad and, second, it tests the interrelationships with other network actors in a triadic network setting. Design/methodology/approach A 2×2 experimental design models the iterative nature of the engagement process based on repeated measures at three points in time, considering the contextual effects of connections with other customers and crowding-in effects based on monetary incentives. Findings This research demonstrates that in a utilitarian service setting, customer engagement does not emerge per se in the dyadic interaction between the customer and the brand. For high levels of engagement behavior to occur, incentives and ties to other network actors are essential. Further, the findings suggest a non-linear relationship between engagement behavior and its antecedents and consequences: engagement behavior must overcome a certain intensity threshold to unfold its effect. Research limitations/implications Further research is needed to explore the dynamic nature of the engagement process in experiential and interactive service settings, and more complex network settings that may involve more actors and more complex relationships. Practical implications By facilitating connections between customers and compensating for low intrinsic interest, managers can facilitate actual engagement behavior even in utilitarian service contexts. Once engagement behavior has been triggered, an increased engagement disposition, higher satisfaction, higher involvement and higher loyalty follow. Originality/value This study empirically tests the dynamic nature of the engagement process within and beyond the dyad, and has revealed a non-linear pattern of customer engagement behavior within its nomological network.

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Section: Limitations and Future Researchsupporting

confidence: 52%

Dynamics and drivers of customer engagement: within the dyad and beyond

Fehrer

Woratschek

Germelmann

et al. 2018

JOSM

103

143

View full text Add to dashboard Cite

show abstract

“…Beyond noting these immediate effects, our findings also show that the amount of exaggerations contained in their online WOM contents may lead to delayed sender outcomes of regret and reduced trust in overall WOM information. By including both immediate outcomes of emotional release and happiness and delayed outcomes of regret and online information trust, we particularly respond to the call for more research on the temporal aspects of online WOM participation (Anghelcev, 2015; Brans et al , 2014).…”

Section: Discussionmentioning

confidence: 99%

“…Broadly speaking, existing research has highlighted motives and emotions as two primary drivers of consumers’ online WOM behaviors. Regarding motives, people may transmit WOM online to derive social benefits (Alexandrov et al , 2013; Chen, 2017; Fehr and Gächter, 2000), obtain information benefits (Berger and Milkman, 2012), pursue economic rewards (Hennig-Thurau et al , 2004; Anghelcev, 2015), help others (Price et al , 1995), and boost their reputations or reflect favorably on the self (Berger, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Sender outcomes of online word-of-mouth transmission

Chen

Gao

2019

JCM

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Purpose Despite the importance of online word-of-mouth (WOM) communication to senders, receivers and concerned companies alike, a surprisingly limited amount of research exists on the impacts of online WOM participation on the senders themselves. Motivated by an attempt to fill this significant gap in the literature, this paper aims to investigate the sender outcomes of online WOM participation. Design/methodology/approach The authors draw on insights from focus group studies and psychological theories of emotions, catharsis and regret and the signaling theory to develop a conceptual model linking the drivers and content characteristics of online WOM participation and sender outcomes. Findings The findings show that sender outcomes from online WOM transmission differ by the types of drivers stimulating the online sharing activity and the level of exaggeration in the senders’ self-generated contents. Specifically, online WOM triggered by emotions leads to catharsis and emotional homeostasis among the senders, while that stimulated by motivational drivers such as altruism, reciprocity, self-enhancement and belongingness leads to sender happiness. Exaggeration in self-generated WOM contents by the senders, in turn, leads to delayed outcomes of sender regret and reduced sender trust in general online WOM contents. Research limitations/implications The most important contribution to online WOM research lies in the study of the outcomes of WOM transmission from a sender’s point of view. By drawing on our exploratory findings and psychological theories of emotions, catharsis and regret and the signaling theory, the authors develop a conceptual model linking the drivers and the exaggeration nature of online WOM participation and sender outcomes. Practical implications Managers should realize that the most fundamental way of ensuring positive consumption experiences is to listen to customer voices, including even the most negative of feedback shared privately or publicly, and use that information to improve essential customer experience aspects. The finding on the effects of online WOM exaggerations on sender regret suggests that companies and consumers alike should work on ensuring producing more accurate and complete online customer reviews. The finding on the negative effect of online WOM exaggerations on sender trust raises an important question on the meaning of high quality reviews from the company’s perspective. To pursue high quality reviews, merchants should not only aim at receiving the highest possible numeric ratings but also encourage most truthful accounts of purchase and usage experiences. In turn, online platforms such as Amazon should also factor the quality of online ratings more effectively into their product recommendation algorithms. Social implications In further consideration of consumer welfare implications, online WOM transmissions should be more recognized as a tool for allowing consumers to cleanse their emotions associated with marketing stimuli. Originality/value Overall, the qualitative study and proposed conceptual model contribute to a more thorough and deeper understanding of individual-level sender outcomes of online WOM participation.

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“…Social media platforms such as YouTube, Facebook, and Twitter have become key tools for social media advertising through sponsored/ promoted tweets on Twitter (Twitter users are paid to post brand-related content tweets on their pages; Anghelcev, 2015), banner advertisements and brand communities on Facebook and LinkedIn, and video advertisements on YouTube that can evoke engagement (Boerman & Kruikemeier, 2016). The use of sponsored tweets has raised some ethical concerns (Kim & Song, 2018): this type of promotion is often deemed as hidden and deceptive advertising (e.g., Cain, 2011;Kuhn, Hume, & Love, 2010) because the format of sponsored tweets is similar to that of unpaid tweets (Kim & Song, 2018) and consumers hardly notice the 'promoted-by' label (Boerman & Kruikemeier, 2016).…”

Section: Introductionmentioning

confidence: 99%

An integrated model of social media brand engagement

Gómez

López

Molina

2019

Computers in Human Behavior

164

115

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Despite the increasing use of social media sites to engage consumers, the consumer brand engagement construct is still in its infancy. This study aims to contribute to existing social media research by proposing and empirically testing a model in which social media brand involvement and social media brand communication are the main precursors and brand relationship quality is a relevant outcome of social media brand engagement. The findings show that the influence of social media brand involvement on social media brand engagement is stronger than the influence of social media brand communication. The latter is due to the co-creation of users and firms. Furthermore, interaction and attention are the most relevant components of social media brand engagement, followed by enthusiasm, identification, and absorption. Social media brand engagement is a useful tool for companies to gain competitive advantages. Thus, the findings could help firms better manage their social media tools in the context of social media communication.

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Unintended effects of incentivizing consumers to recommend a favorite brand

Cited by 9 publications

References 65 publications

Dynamics and drivers of customer engagement: within the dyad and beyond

Dynamics and drivers of customer engagement: within the dyad and beyond

Sender outcomes of online word-of-mouth transmission

An integrated model of social media brand engagement

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