Receiver Responses to Rewarded Referrals: The Motive Inference Framework.

PWJ Verlegh, G Ryu, Mirjam Tuk, L Feick

Research output: Contribution to journalArticleAcademicpeer-review

83 Citations (Scopus)

Abstract

Referral reward programs have been shown in past research to stimulate referrals and also to contribute positively to customer lifetime value and firms’ profitability. In this paper we examine whether, how, and under what conditions providing a reward for a referral affects receivers’ responses to the referral. Based on a multiple motives inference framework, we propose that rewards adversely affect responses because they lead receiving consumers to infer ulterior motives for the referral. Using experiments and a survey, we find support for this hypothesis and show that this effect is stronger for unsolicited and weak tie referrals. We also demonstrate that rewarding both the referral provider and receiver or providing symbolic rewards can eliminate the negative effect of rewarded referrals. The paper makes conceptual contributions to the literature on referral reward programs, word-of-mouth, and motive inferences. The work has implications for managers considering ways to construct referral programs and design marketing activities to increase referrals.
Original languageEnglish
Pages (from-to)669-682
Number of pages14
JournalJournal of the Academy of Marketing Science
Volume41
Issue number6
DOIs
Publication statusPublished - 2013

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