Engaging customers through online and offline referral reward programs
ISSN: 0309-0566
Article publication date: 6 February 2019
Issue publication date: 20 September 2019
Abstract
Purpose
This paper aims to examine the psychological consequences of a customer engagement initiative through referral reward programs (RRPs) in online versus offline environments.
Design/methodology/approach
The authors conducted a qualitative study followed by a scenario-based experimental study.
Findings
The authors show that recommenders’ concern about how they are viewed by recommendation recipients (i.e. their metaperception) mediates the effects of incentives on referral likelihood in both offline and online environments. However, metaperception has a stronger effect offline where recommenders show higher impression management concerns compared to online. Furthermore, tie-strength and communication environment moderate the effect of incentives on metaperception. When referrals are made to weak-ties, incentives decrease metaperception favorability offline more than online. For strong-ties, this effect is lower, and it is similar in offline and online environments.
Research limitations/implications
The study focused on an online versus offline dyadic communication and did not consider the differences among social media. Furthermore, the authors did not consider how other forms of positive metaperception, like being seen as helpful or knowledgeable, could be increased in an online incentivized referral context. It is possible that a recommender thinks others see him as more helpful or knowledgeable online because a lot more useful information and other resources could be offered here compared to offline communications.
Practical implications
The authors recommend managers to design both online and offline RRPs that minimize metaperception concerns; target strong ties in any communication environment as metaperception concerns are low; and target weak ties online where metaperception concerns are muted.
Originality/value
This work is the first to examine how recommenders’ psychological responses differ offline and online.
Keywords
Acknowledgements
The authors are grateful for the excellent research assistance provided by Jeevaraj s/o Suppiah who was a student at NUS during the conduct of this study.
Citation
Wirtz, J., Orsingher, C. and Cho, H. (2019), "Engaging customers through online and offline referral reward programs", European Journal of Marketing, Vol. 53 No. 9, pp. 1962-1987. https://doi.org/10.1108/EJM-10-2017-0756
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited