Incentivised peer referrals on social media: the effect of envy on purchase intention

Purpose This study aims to clarify how incentivised peer referrals, where referrers receive rewards, shape referees’ emotions and purchase intentions by examining how they elicit benign (self-improvement oriented) and malicious (other-undermining) envy. Design/methodology/approach Study 1 (n = 274) tests benign and malicious envy as mediators between incentivised peer referrals and purchase intention. Studies 2 (n = 237) and 3 (n = 222) test whether referrers’ expressions of gratitude moderate the effects of incentivised peer referrals on referees’ envy across two consumption contexts. Findings Malicious envy mediates the effect of incentivised peer referrals on referees’ purchase intention, whereas benign envy does not. Although reward disclosure tends to reduce benign envy, this effect is inconsistent across the studies. Referrers’ expressions of gratitude moderate the relationship between incentivised peer referrals and referees’ benign envy. Research limitations/implications This study explains how envy as an affective mechanism helps account for the underperformance of incentivised referrals on social media and identifies contextual factors that trigger different subtypes of envy in the recipients of peer referrals. Practical implications This study provides insights into how referral reward programmes on social media can be designed to reduce malicious envy, namely by framing rewards as a form of earned recognition, while inspiring benign envy through expressions of gratitude. Originality/value This study highlights how two pathways of envy influence consumers’ reactions to incentivised peer referrals on social media. By emphasising emotional responses rather than cognitive perceptions, this study provides new insights into the psychological processes driving referral reward programmes.