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Article
Publication date: 3 November 2023

Jhih-Hua Jhang-Li and I. Robert Chiang

The purpose of this paper is to investigate both the impact of different reward types and the adoption of knowledge-sharing practice on a crowdsourcing-based open innovation…

Abstract

Purpose

The purpose of this paper is to investigate both the impact of different reward types and the adoption of knowledge-sharing practice on a crowdsourcing-based open innovation contest. Despite the benefit of knowledge sharing, contestants could struggle to find a balance between knowledge sharing and knowledge protection in open innovation.

Design/methodology/approach

The authors' approach follows a stylised contest model in a game-theoretical setting in which contestants first decide on their efforts and then the contest sponsor chooses the winner. Moreover, the outcome of an open innovation contest is delineated as either intermediate goods that require further refinement and risk-taking versus a market-ready end product for the contest sponsor. The authors also investigate how knowledge sharing among contestants would be influenced by reward types such as fixed-monetary prizes vs performance-contingent awards.

Findings

The contest sponsor will lower the prize level after adopting knowledge sharing. Therefore, the total effort will decline regardless of the reward type. Moreover, the choice of reward types depends on the contest sponsor's characteristics because the performance-contingent award is suitable for a large market size but the fixed-monetary prize can more efficiently raise the quantity of contestant inputs.

Originality/value

Prior studies have tested the connection between contest performance and knowledge sharing in crowdsourcing-based contests; however, there is not an integrated framework to best design the operation of a contest when considering different reward types and knowledge-sharing practices.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 16 July 2018

Depeng Zhang, Fuli Zhang, Si Liu and Helen S. Du

With the rise of customer engagement in online products and services innovation, enterprises are seeking effective referral reward program (RRP) to encourage customers’ follow-up…

1782

Abstract

Purpose

With the rise of customer engagement in online products and services innovation, enterprises are seeking effective referral reward program (RRP) to encourage customers’ follow-up electronic-referral (e-referral) behaviors. Therefore, how to stimulate more customers to participate in the RRP is very important to enterprises. However, little empirical work has systemically investigated the impact of RRP on customers’ follow-up e-referral, as well as the moderating effects of customers’ characteristics. To fill those research gaps, the purpose of this paper is to explore the effects of RRP (particularly, reward amount and reward type) on customers’ follow-up e-referral, and the role of creative self-efficacy.

Design/methodology/approach

Based on the self-perception theory and the context of online customer innovation, this paper establishes a theoretical model and uses an experiment with 160 participants to test the hypotheses on the role of reward (amount and type) and the moderating effect of creative self-efficacy.

Findings

The results of the experiment suggest that both reward amount and reward type in RRP positively impact customers’ follow-up e-referral. Furthermore, customers’ creative self-efficacy moderates the relationship between rewards and customers’ follow-up e-referral. Customers with low creative self-efficacy, reward amount significantly stimulate their follow-up e-referral, but such effect is insignificant when customers’ creative self-efficacy is high. In terms of reward type, gift reward has more positive effect on customers’ follow-up e-referral when they have high (rather than low) creative self-efficacy, but cash reward has more positive effect on those with low (rather than high) creative self-efficacy.

Originality/value

First, based on the self-perception theory, the study clarifies the inconsistent relationship between reward and customers’ e-referral and contributes to related research. Second, the study broadens the existing research perspective by introducing creative self-efficacy, which shows interesting and powerful moderating effect but has been ignored in previous studies. Third, the study provides valuable advice on how enterprises design an effective RRP to enhance customers’ follow-up e-referral.

Details

Information Technology & People, vol. 32 no. 3
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 14 August 2019

Yimin Zhu and Peipei Lin

The purpose of this paper is to explore how the product type (hedonic product and utilitarian product) and reward type (hedonic gift and utilitarian gift) influence customer…

1655

Abstract

Purpose

The purpose of this paper is to explore how the product type (hedonic product and utilitarian product) and reward type (hedonic gift and utilitarian gift) influence customer referral likelihood in referral reward program.

Design/methodology/approach

The authors test the effect of the product type and reward type on referral likelihood through two studies. Study 1 produces a 2 (product type: hedonic product and utilitarian product) × 2 (reward type: hedonic gift and utilitarian gift) factorial design to test H1, H2 and H3, that is, the effect of the product type and reward type on referral likelihood and their interaction effect. On the basis of study 1, study 2 will select different subjects, different products and different incentive allocation schemes to test H1, H2 and H3 again.

Findings

The results are as follow: first, the product type has significant influences on referral likelihood. Compared with a utilitarian product, customers are more likely to make referrals when consuming a hedonic product. Second, the product type and reward type have significant interactions to referral likelihood. When rewarded a hedonic gift, customers who consumed the hedonic product have great willing to make referrals; however, when rewarded the utilitarian gift, customer who consumed the utilitarian product have great willing to make referrals.

Originality/value

The authors’ findings contribute to the literature of consumers’ recommendation in the following aspects. First, from the perspective of enterprises which launch referral reward program, the present research demonstrates the product type (hedonic product and utilitarian product) and reward type (hedonic gift and utilitarian gift) influence customer referral likelihood. Previous studies discuss attributes of product that influence consumers’ referral likelihood, such as product sensitivity (Kornish and Li, 2010), product involvement (Zhu et al., 2011), brand strength (Ryu and Feick, 2007) and price (Xiao et al., 2011). However, few studies focus on the hedonic and utilitarian attributes of products and explore their impact on the willingness to recommend. This paper makes a useful supplement to the research gap. Most previous studies simply divide the type of reward into tangible and intangible (Shi and Wojnicki, 2007), cash and coupon (Wang, 2010) or cash and gift (Huang et al., 2013). This paper enriches the research on reward types and refines the types of gifts in a referral reward program. The present research divides the type of reward into hedonic gifts and utilitarian gifts, and applies benefit congruency frameworks (Chandon et al., 2000), attitude theory (Eagly and Chaiken, 1993) and over-justification effect (Deci and Ryan, 1985).

Details

Journal of Contemporary Marketing Science, vol. 2 no. 2
Type: Research Article
ISSN: 2516-7480

Keywords

Article
Publication date: 4 January 2023

Yanju Zhou, Cuilian Lu and Yi Yu

With the development of e-commerce, loyalty programmes (LPs) are gradually being adopted in the online retailing environment to improve consumer loyalty. This article determines…

Abstract

Purpose

With the development of e-commerce, loyalty programmes (LPs) are gradually being adopted in the online retailing environment to improve consumer loyalty. This article determines the factors that affect consumers' LP participation intention on mobile e-commerce platforms to help these platforms improve their performance.

Design/methodology/approach

This article focusses on LP reward types and divides them into self-oriented rewards or altruistic rewards. Two experiments are conducted to test the proposed hypotheses. After online data collection, data analysis is performed.

Findings

LP participation intention with altruistic rewards is significantly stronger than that with self-oriented rewards. Perceived value plays a complete mediating role in the impact of reward type on participation intention, while a point leaderboard plays a positive moderating role in the impact of reward type on perceived value.

Practical implications

This study’s findings can improve the design of LPs by mobile e-commerce platforms.

Originality/value

This article focusses on LPs in the online environment, a stream of research that is limited. The results also have implications for prosocial relationship marketing programmes.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 9
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 14 June 2022

Jun Zhang and Jingwen Wang

This study investigates how reward type (single vs. plural), reward characteristic (utilitarian vs. hedonic) and product involvement (high vs. low) affect the design of reward

Abstract

Purpose

This study investigates how reward type (single vs. plural), reward characteristic (utilitarian vs. hedonic) and product involvement (high vs. low) affect the design of reward programs.

Design/methodology/approach

A 2 ✕ 2 ✕ 2 fractional factorial experimental design is constructed to explore the main factors influencing the effectiveness of reward programs on a sample of 436 Chinese customers.

Findings

The results indicate that reward type is an important determinant of customers' preference toward reward programs. Plural rewards are preferable to a single reward when the alternatives provide the same benefits, particularly in the low level of product involvement. In the high level of product involvement, reward characteristic has a significant effect on customers' preference. Hedonic rewards are more effective in building a program's value than utilitarian rewards. Moreover, reward characteristic interacts with reward type, positively impacting customers' preference toward reward programs.

Originality/value

This study suggests that managers should consider the effects of reward type, reward characteristic and product involvement to formulate attractive reward programs for sustainable business in China.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 4
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 6 August 2018

Qi Wang, Yan Sun, Ji Zhu and Xiaohang Zhang

The purpose of this paper is to research the effect of uncertain rewards on the recommendation intention in referral reward programs (RRPs) and investigate the interaction of tie…

1215

Abstract

Purpose

The purpose of this paper is to research the effect of uncertain rewards on the recommendation intention in referral reward programs (RRPs) and investigate the interaction of tie strength and reward type on the recommendation intention.

Design/methodology/approach

The research adopts a quantitative exploratory approach through the use of experiments. Study 1 adopted a 2×2 between-participants design ((reward type: certain reward vs uncertain reward)×(tie strength: strong tie vs weak tie)). Respectively, by manipulating uncertain probabilities and expected value, Studies 2 and 3 further explore the effect of uncertain rewards and tie strength on customers’ referral intention.

Findings

This paper finds the following: compared to certain rewards, customers’ referral intention under uncertain rewards is higher and positive experience has a mediating effect between reward type and recommendation intention; when only the recommender is rewarded, the tie strength between the recommender and the receiver moderates the effect of reward type on the recommendation intention; for strong ties, customers’ recommendation intention is higher in uncertain reward condition, but for weak ties, customers’ willingness to recommend is almost the same in both reward types; when both the recommender and the receiver are rewarded, although certain rewards have a higher expected value than uncertain and random rewards, for strong ties, the participants have a higher referral intention under random rewards than that under uncertain rewards, which have a higher referral willingness than that under certain rewards. Additionally, for weak ties, the reverse is true.

Originality/value

The research has both theoretical implications for research on uncertain rewards and tie strength and practical implications for marketing managers designing and implementing RRPs.

Details

Internet Research, vol. 28 no. 4
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 6 March 2017

Kambiz Heidarzadeh Hanzaee and Fariba Esmaeilpour

The purpose of this paper is to examine how the moderating effect of restaurant type (fast food versus casual dining) affects the Generation Y’s customers’ reaction to reward time…

2006

Abstract

Purpose

The purpose of this paper is to examine how the moderating effect of restaurant type (fast food versus casual dining) affects the Generation Y’s customers’ reaction to reward time redemption (immediate versus delayed) and reward type (economic versus social).

Design/methodology/approach

A 2 × 2 × 2 full-factorial, randomized, between-subject experimental design is conducted to test the research framework. The treatment groups are different from each other by manipulating reward type, reward timing and restaurant type through eight different scenario exposures.

Findings

The findings of the study reveal that the loyalty is significantly higher for immediate than delayed rewards in the both examined restaurant segments. In the casual dining restaurant segment, the effect of rewards increases for social rewards more than economic ones. On the other hand, for fast food restaurant context, there is no difference in the effect of reward type, whether they are economic or social.

Research limitations/implications

Due to the limitations of fine dining restaurants in Iran, the present study consists of only two types of restaurants (fast food vs casual dining).

Originality/value

This study aims to contribute towards the understanding how restaurant type (fast food versus casual dining) affects the impact of restaurant reward programs on the loyalty of Generation Y’s customers.

Details

Journal of Islamic Marketing, vol. 8 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 9 May 2013

Seung‐Bae Park, Namho Chung and Sang‐Cheol Woo

The purpose of this study is to propose long‐term orientation as a moderating effect on restaurant customer reward programs. Unlike in short‐term oriented and transactional…

5886

Abstract

Purpose

The purpose of this study is to propose long‐term orientation as a moderating effect on restaurant customer reward programs. Unlike in short‐term oriented and transactional marketing, long‐term orientation is an important factor in creating new loyal customers.

Design/methodology/approach

This research shows how the moderating effect of long‐term orientation affects customer reaction to reward timing (Experiment 1) and reward type (Experiment 2). The independent variables of Experiment 1 were timing of rewards (immediate/accumulate) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The independent variables of Experiment 2 were the types of rewards (monetary/nonmonetary) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The treatment groups are different from each other with regard to reward type and reward timing.

Findings

Depending on the reward type and its timing, long‐term orientation has a moderating effect on customer loyalty. In customers with a high long‐term orientation, there is no difference in the effect of rewards, whether they are immediate or accumulated and monetary or nonmonetary. On the other hand, for customers with a low long‐term orientation, the effect of rewards increases for monetary rewards more than nonmonetary ones and for immediate rewards more than for accumulated ones.

Originality/value

This paper helps restaurant managers to better understand customer loyalty and the value of reward programs that take into account the long‐term orientation concept.

Details

Managing Service Quality: An International Journal, vol. 23 no. 3
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 27 July 2021

Pınar Başgöze, Yaprak Atay, Selin Metin Camgöz and Lydia Hanks

The purpose of this study is to evaluate the impact of reward structure on the customer's value perception of the program, loyalty to the program and loyalty to the firm.

1792

Abstract

Purpose

The purpose of this study is to evaluate the impact of reward structure on the customer's value perception of the program, loyalty to the program and loyalty to the firm.

Design/methodology/approach

A 2 (type of reward) x 2 (timing of redemption) between subjects experimental design was conducted. In addition, the indirect effect of the customer's value perception of the program on loyalty to the firm via loyalty to the program is tested with Hayes and Preacher's mediation procedure.

Findings

Study results indicated that type of reward has a positive impact on the perceived value of a loyalty program. Program loyalty mediates the relationship between the perceived value of the loyalty program and customer loyalty, as well as the relationship between type of reward and customer loyalty.

Originality/value

The findings of this study demonstrate the importance of the type and timing of loyalty program rewards on customer perceptions of the value of the loyalty program. In addition, this study is a step forward in providing a deep understanding of the impact of such perceptions on loyalty. These findings fill a number of research gaps and provide tangible guidance for practitioners.

Details

Journal of Service Theory and Practice, vol. 31 no. 6
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 28 June 2023

Yajun Zhang, Yongge Niu, Zhi Chen, Xiaoyu Deng, Banggang Wu and Yali Chen

Online retailers are pioneering the incentivization of customers to generate more product reviews by rewarding them. However, little is known about the impact of reward types on…

Abstract

Purpose

Online retailers are pioneering the incentivization of customers to generate more product reviews by rewarding them. However, little is known about the impact of reward types on customers' review behavior, including review frequency and sentiment. To address this gap, we investigated the effects of different reward types on customers' review behavior and how these rewards influence customers' review behavior.

Design/methodology/approach

We collected secondary data and empirically tested the hypothesis by analyzing the change in reward policy. Regression and two-stage Heckman models were applied to investigate the effects, with the latter used to control potential selection issues.

Findings

The results revealed that monetary rewards can stimulate customers to generate more positive product reviews. Furthermore, the reward amount has a negative moderating effect on the aforementioned relationship. Additionally, customer tenure negatively moderates the relationship between monetary rewards and review behavior.

Originality/value

This study contributes to the understanding of user-generated content motivation and provides managerial implications for reward programs.

Details

Journal of Research in Interactive Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7122

Keywords

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