Saving Face While Earning Rewards: Reward-Both Referral Programs More Effectively Elicit Referrals for Experiential Purchases than Reward-Me Programs
Companies offer rewards when an existing customer invites a new customer to try their product, but the recipient of the reward varies depending on the type of referral program. In Reward-Me programs, only the recommending customer is rewarded, while in Reward-Both programs, both the recommender and the recipient who acts on the recommendation are rewarded. We examined whether purchase type (material vs. experiential) moderates the impact of a reward program on referral likelihood. The results reveal that purchase type does moderate referral likelihood across the two types of reward programs: for material purchases, referral likelihood does not differ between the two referral programs, whereas for experiential purchases, referral likelihood is greater under Reward-Both programs than under Reward-Me programs.
Authors
- Raj Raghunathan
- Hyunkyu Jang (ORCID: https://orcid.org/0000-0001-9081-1373)
Publication Details
- Journal
- ASIA MARKETING JOURNAL
- Published
- 2025-10-01
- DOI
- https://doi.org/10.53728/2765-6500.1658
- Primary Topic
- Healthcare Policy and Management
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- Ewha Womans University