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1 – 10 of over 5000Jochen Wirtz, Chris Tang and Dominik Georgi
Referral reward programs (RRPs) incentivize existing customers (inductors) to refer new customers (inductees). The effectiveness of RRPs is not well understood as previous studies…
Abstract
Purpose
Referral reward programs (RRPs) incentivize existing customers (inductors) to refer new customers (inductees). The effectiveness of RRPs is not well understood as previous studies either focused on referral intent and/or ignored inductee responses. However, an RRP is only effective if inductors recommend and inductees respond with buying the service. The purpose of this paper is to examine the drivers of existing customers’ successful referral behavior.
Design/methodology/approach
This study combines a bank’s customer relationship management (CRM) data which were used to identify successful inductors and non-inductors. Then, observed behavioral and customer background data from the CRM database (including successful referrals, deposits in euros, number of products held, relationship duration, income, age, and gender) were combined with survey data capturing attitudinal variables (i.e. perceived relationship quality, reward attractiveness, referral metaperception, opportunism, and involvement). This approach allowed for the simultaneous testing of all hypothesized drivers of successful referral behavior.
Findings
Metaperception (i.e. the process by which individuals determine the impressions other might form of them and their behavior) was the strongest and most significant driver of successful RRP participation, followed by attractiveness of the reward. That is, inductors recommended successfully when they believed that their incentivized referral did not look bad (or even looked good) and incentives were perceived as attractive. This finding is important as metaperception so far has only been examined in theoretical and experimental studies with intent as dependent variables. Second, latent class analysis (LCA) revealed that there were two segments of inductors of which one was opportunistic. Opportunism as a driver of referral behavior has not been shown in past research using more traditional analyses, whereas LCA uncovered it as a driver for one-third of all respondents.
Practical implications
The findings offer managers a better understanding of the key determinants of successful referral behavior with important RRP design implications that counter frequent practice (e.g. designing RRPs with high face value but then reducing its usefulness through terms and conditions). Furthermore, managers may consider segment-specific reward structures to improve the effectiveness of their RRPs.
Originality/value
This study is the first to examine inductor determinants of successful referral behavior and identify inductor segments.
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Explores equity theory and its implications for the promotion system in a sales organization. Argues that the increasing number of female sales representatives will encourage the…
Abstract
Explores equity theory and its implications for the promotion system in a sales organization. Argues that the increasing number of female sales representatives will encourage the promotion of women to sales management positions and increase the perception of inequity by male sales managers. Offers several propositions; notes the consequences of perceived inequity; suggests preventive measures; and discusses future research implications.
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Jeeta Sarkar, Lalatendu Kesari Jena and Kalpana Sahoo
This paper aims to investigate the impact of total rewards on retention. The finding relies on need satisfaction approach as a mechanism. This is done by investigating the role of…
Abstract
Purpose
This paper aims to investigate the impact of total rewards on retention. The finding relies on need satisfaction approach as a mechanism. This is done by investigating the role of need satisfaction of “autonomy, competence and relatedness” as possible mediators between elements of total rewards and retention.
Design/methodology/approach
This paper focussed on exploring the literature published in various popular databases .Based on the conceptual analysis, a set of possible frameworks linking the three constructs has been stated for future research.
Findings
The research has evolved with few possible frameworks to model the assertions by investigating and corroborating it with quantitative studies to be empirically tested.
Originality/value
The originality lies in applying self-determination theory framework of need satisfaction mechanism in explaining the relationships between total rewards and retention, thereby adding new insights to the employee retention literature.
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Anton Schlechter, Nicola Claire Thompson and Mark Bussin
The purpose of this paper is to investigate if the presence of non-financial rewards (specifically work-life balance, learning, and career advancement) were able to influence the…
Abstract
Purpose
The purpose of this paper is to investigate if the presence of non-financial rewards (specifically work-life balance, learning, and career advancement) were able to influence the perceived attractiveness of a job offering. A secondary objective was to establish if there were demographic differences, specifically, gender, race, and age differences in the manner in which these non-financial rewards influenced the perceived attractiveness of a job offer.
Design/methodology/approach
A quantitative research approach was followed and a 23 full-factorial experimental design utilised. Data were collected with two questionnaires via convenience (non-probability) sampling. The first job attraction questionnaire assessed the perceived level of attractiveness to one of eight randomly assigned experimental conditions (stimuli) that were expressed as eight fictitious job advertisements. Employees who responded were from various industries (n=180). The data collected were analysed using descriptive statistics and a full-factorial ANOVA. A second questionnaire was used to assess the perceived attractiveness of various elements of a typical total rewards package. The validity and reliability of the second questionnaire was assessed using Exploratory Factor Analysis utilising the Principal Axis Factoring extraction method, employing a Direct Oblimin (i.e. Oblique) rotation, and calculating Cronbach α coefficients, respectively. Descriptive statistics were calculated for the composite factors or reward elements.
Findings
The non-financial reward elements (work-life balance, learning, and career advancement) were found to have statistically significant main effects on employees’ perceived attractiveness of a job offering. Gender was further found to also have a significant main effect, indicating that the presence of non-financial rewards was more attractive in job offerings for women than for men.
Research limitations/implications
The sample group was obtained by means of convenience sampling and may not have been adequately representative of the target population.
Practical implications
Organisations may benefit from these results by implementing and/or emphasising non-financial rewards as part of a total rewards package when they attempt to attract or recruit potential employees. Organisations that seek to attract a higher number of female employees may benefit from the results by incorporating or further emphasising non-financial rewards as part of a targeted job offer.
Originality/value
Substantial research exists that has identified reward elements that are effective in attraction strategies, but the authors are unaware of any literature where use was made of an experimental design to empirically show that non-financial rewards effect/influence perceived job attractiveness. The current study succeeded in identifying that the presence of non-financial rewards, as part of a job advertisement led to significantly higher levels of job attractiveness in prospective employees. Also, that there are gender differences in the extent to which the presence of non-financial rewards effect perceived attractiveness of a job offer.
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Paolo Fedele, Luca Brusati and Mario Ianniello
Interactive decision making has become a recurrent practice across countries, policy sectors and tiers of government. The purpose of this paper is to analyze how organizational…
Abstract
Purpose
Interactive decision making has become a recurrent practice across countries, policy sectors and tiers of government. The purpose of this paper is to analyze how organizational arrangements, i.e. the way the interactive process is designed, influence its outcomes.
Design/methodology/approach
The research is carried out through a multiple case study. Four cases of interactive decision making are analyzed using a qualitative framework.
Findings
Findings can contribute to shed light on the organizational underpinnings of the outcomes of interactive decision making. Accessibility, in particular meant as process openness, i.e. the intensity of the decision-making powers that are devolved to the public, seems to represent the key factor in producing positive outcomes, especially if associated to less-formalized arrangements.
Practical implications
On the practice oriented side, findings provide decision makers with insights about how to design interactive mechanisms to improve the chances they would “work.” Specifically, finding suggest to launch interactive initiatives only when the public’s expectations in terms of process openness can be satisfied.
Originality/value
The way organizational arrangements influence outcomes is likely to be affected by context-specific factors interacting with the formers in generating the latters. Therefore, in order to reach meaningful research results it might be necessary to systematically factor context-specific features in the analysis. Here lies the relative novelty of the paper: although the relation between arrangements and outcomes of interactive decision making has been already investigated by other contributions, the present analysis purposefully focusses on cases occurred in the same policy sector, in one homogeneous geographical location and characterized by the same administrative tradition in order to discount the influence of these factors.
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Chiara Orsingher and Jochen Wirtz
Empirical research presents conflicting findings with regards to the effectiveness of referral reward programs (RRPs) and supports two alternative and conflicting views on the…
Abstract
Purpose
Empirical research presents conflicting findings with regards to the effectiveness of referral reward programs (RRPs) and supports two alternative and conflicting views on the effectiveness of incentivizing recommendations. They are, first, a positive effect via perceived attractiveness of the incentive, and second, a negative effect via metaperception of the recommendation. The purpose of this paper is to examine these two opposing psychological mechanisms to reconcile the conflicting findings.
Design/methodology/approach
The authors conducted three experiments. Study 1 tests the base model. Studies 2 and 3 add moderators to test whether each mediating variable operates exclusively on its intended relationship.
Findings
Incentive size enhanced the attractiveness of an incentive, but reduced the metaperception favorability of the recommendation. These two opposing mechanisms operated in parallel, independently and fully mediated the effects of incentive size to likelihood of making a recommendation. Thus, the net impact of incentives on recommendation behavior depended on the relative strengths of these two opposing forces.
Practical implications
The study recommends managers to design RRPs with incentives that recommenders perceive as highly useful (i.e. to increase attractiveness) but have a low face value (i.e. to reduce metaperception concerns) and to target RRPs to strong rather than weak ties.
Originality/value
Our work offers an integrated theoretical account of consumers’ responses to incentivized recommendations and provides managerially relevant guidelines for the design of effective RRPs.
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Henry Egbezien Inegbedion, Emmanuel Edo Inegbedion, Eseosa David Obadiaru, Abiola John Asaleye, Adebanji Ayeni and Charity Aremu
The study examined policy improvement and cassava attractiveness. The purpose was to determine the optimum rewards using three strategies: selling of farm produce to harvesters…
Abstract
Purpose
The study examined policy improvement and cassava attractiveness. The purpose was to determine the optimum rewards using three strategies: selling of farm produce to harvesters, making wholesale of harvested outputs and retailing harvested outputs.
Design/methodology/approach
Three hundred and sixty (360) cassava farmers were surveyed in three local government areas in Edo South senatorial district of Nigeria. From their responses, probabilities were assigned to rewards for each strategy from each of the locations. Subsequently, dynamic programming was employed in data analysis. Specifically, Howard policy improvement technique was used to forecast expected rewards to cassava farmers in the three local government areas using the three strategies.
Findings
Cassava farmers in Edo South senatorial district of Edo state, Nigeria, can maximize their earnings from cassava by retailing at the local markets in Oredo and Egor local government areas and by making wholesales at Ikpoba Okha local government area. Using this policy, they will realize approximately N2360 per basin and approximately N33040 per plot of 100 × 100 ft. This will translate to N143724 per acre (4.35 plots of 100 ft2).
Research limitations/implications
Availability of storage facilities as well as technical constraints to cassava production.
Social implications
Provision of jobs to the unemployed, thereby reducing the level of unemployment in the country.
Originality/value
Suggestion of the sales strategy that will yield optimum returns to cassava farmers, using policy iteration technique, and the projected estimates of the likely turnover when the strategy is adopted. This is a point of departure from previous studies. Thus, the study used operations research methodology to model solutions, through involvement in agriculture, to Nigeria's economic/financial problems, thus making it unique. In broad terms the study demonstrates that investment in agriculture will help to reduce unemployment and enhance the country's national income.
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George Kominis and Clive R. Emmanuel
Managerial motivation depends, in part, on the perceived value or attractiveness of the rewards offered to the manager. This perception‐based study provides empirical evidence of…
Abstract
Managerial motivation depends, in part, on the perceived value or attractiveness of the rewards offered to the manager. This perception‐based study provides empirical evidence of the associations between motivation and performance, and valued rewards. Generally, for this sample of 225 middle‐level managers, intrinsic rewards are more highly valued than extrinsic but higher motivation and performance is positively associated with a preference for a combination of rewards. Preference patterns by stage of career, position in the hierarchy or functional area are not detected. Whilst valued rewards appear to have an influence on motivation and performance, particularly when applied in combination, the determinants of preferences appear to be diverse.
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Alan J. Dubinsky and Thomas N. Ingram
Given the limited empirical work investigating personalcharacteristics of industrial sales people as related to their rewardvalences and the limitation of measuring valences at a…
Abstract
Given the limited empirical work investigating personal characteristics of industrial sales people as related to their reward valences and the limitation of measuring valences at a single level, previous research is extended by examining the relationships between industrial sales people′s personal characteristics and their valences for multiple levels of various rewards. A conceptual framework is presented, previous studies reviewed, hypotheses offered, the methodology explained, and the results and implications of the study discussed.
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Iryna Alves, Bruno Gregório and Sofia M. Lourenço
This study investigates theoretical relationships among personality characteristics, preferences for different types of rewards and the propensity to choose a job in auditing by…
Abstract
Purpose
This study investigates theoretical relationships among personality characteristics, preferences for different types of rewards and the propensity to choose a job in auditing by management-related higher education students. Specifically, the authors consider motivation, locus of control (internal and external) and self-efficacy (SE) as personality characteristics and financial, extrinsic, support and intrinsic as types of rewards.
Design/methodology/approach
Data were collected through a questionnaire targeted at management-related higher education students in Portugal. Partial least squares structural equation modelling was used to analyse the data.
Findings
The full sample results show that different types of motivation, locus of control and SE are related to different reward preferences. The authors also find a positive association between a preference for extrinsic rewards and the propensity to choose a job in auditing. Moreover, when the authors consider the role of working experience in the model, the authors find that the reward preferences that drive the choice of an auditing job differ according to that experience.
Originality/value
This study enriches the literature by assessing preferences for different types of rewards, considering multiple personality characteristics and a comprehensive set of rewards. Furthermore, the authors identify the reward preferences that drive the choice of an auditing career. This knowledge empowers auditing firms to devise recruitment strategies that resonate with candidates’ preferences, which boosts the capacity of these companies to attract new auditors.
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