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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.

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.

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.

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

The purpose of this paper is to focus on an optimizing maintenance policy with repair limit time for a new type of aircraft component, in which the lifetime is assumed to be an uncertain variable due to no historical operation data, and the repair time is a random variable that can be described by the experimental data.

To describe this repair limit time policy over an infinite time horizon, an extended uncertain random renewal reward theorem is firstly proposed based on chance theory, involves uncertain random interarrival times and stochastic rewards. Accordingly, the uncertain random programming model, which minimized the expected maintenance cost rate, is formulated to find the optimal repair limit time.

A numerical example with sensitivity analysis is provided to illustrate the utility of the proposed policy. It provides a useful reference and guidance for aircraft optimization. For maintainers, it plays an important guiding role in engineering practice.

The proposed uncertain random renewal reward process proved useful for the optimization of maintenance strategy with maintenance limited time for a new type of aircraft components, which provides scientific support for aircraft maintenance decision-making for civil aviation enterprises.

Managerial accounting education generally insists that managers should never consider sunk costs. This suggestion seems inconsistent with a common mode of thinking about future rewards: quasi-hyperbolic discounting. This paper aims to explore the conflict between sunk cost consideration and quasi-hyperbolic discounting and to illustrate when sunk cost consideration may be appropriate.

The author conducted three numerical experiments, i.e. simulated experiments based on analytical models, to demonstrate how it can be beneficial to consider sunk costs in some circumstances. All three numerical experiments assume quasi-hyperbolic discounting. First, the author tested considering sunk costs with future rewards that are certain. Second, the author tested considering sunk costs with uncertain future rewards. Finally, the author tested two different educational interventions to change decision-makers’ thought patterns.

The author found that considering sunk costs worsens decisions when there is bad news and improves them when there is good news. The author found that an educational intervention that partially dissuades managers from considering sunk costs improves decisions when bad news arrives and worsens them when good news arrives. The author also found that an educational intervention that reduces uncertainty improves decisions when bad news arrives and does not worsen these decisions when good news arrives.

The author provided numerical examples of situations in which considering sunk costs is valuable. The findings on educational interventions provide information about the tradeoffs of teaching that sunk costs should never be considered.

Based on a synthesis of findings from psychology, neuroscience, and machine learning, we propose a unified theory of curiosity as a form of motivated cognition. Curiosity, we propose, is comprised of a family of mechanisms that range in complexity from simple heuristics based on novelty, salience, or surprise, to drives based on reward and uncertainty reduction and finally, to self-directed metacognitive processes. These mechanisms, we propose, have evolved to allow agents to discover useful regularities in the world – steering them toward niches of maximal learning progress and away from both random and highly familiar tasks. We emphasize that curiosity arises organically in conjunction with cognition and motivation, being generated by cognitive processes and in turn, motivating them. We hope that this view will spur the systematic study of curiosity as an integral aspect of cognition and decision making during development and adulthood.

The relationship between education and training and the currently popular theme of “enterprise culture” is explored. The expression “enterprise culture”, is at present ill‐defined, if defined at all. The confusions surrounding this expression relate in turn to the failure to make proper distinctions between entrepreneurship, enterprise and small business. These terms are defined in this context, as well as “intrapreneur”. Entrepreneurs are defined in terms of a set of attributes, some of which can be measured. Small business is defined in terms of ownership and task structure. Enterprise is seen to be something that means the exercise of entrepreneurial attributes in a wide range of different situations. Intrapreneurship is the exercise of entrepreneurial attributes within a large company or bureauracy. The relationship between these redefined concepts is explored and the issue of whether entrepreneurship can be socially engineered through education and training is addressed. A definition of what constitutes “enterprise culture” is then related to education and training. This link is discussed, both in general terms and particularly in respect of university and management education. It is argued that many of the values and structures pervading in university education and university business schools may be the antithesis of entrepreneurship. In this respect, the links between entrepreneurship as practised in small business and as fostered under the “intrapreneurship” banner in large companies is explored. Finally, policy objectives in fostering entrepreneurship, small business and intrapreneurship, particularly in respect of education and training, are reviewed.

The purpose of this paper is to portray the valuation of financial investments as mental time travel.

In a series of thought investments, $1 invested in an investment fund is mentally projected forward in time and then discounted back to the present – with no objective time passing. The thought investments feature symmetric valuation (in which discount rates exactly match projection rates) and asymmetric valuation (in which discount rates and projection rates happen to differ). They show how asymmetric valuation can result in differences between the current personal value and market value of an investment and, by way of real-world illustration, between a closed-end investment fund's net asset value and its market value. The authors explore possible reasons for asymmetric valuation.

Thought investments illustrating mental time travel can be used to help understand both financial investment valuation generally and, more specifically, established explanations of the closed-end investment fund puzzle. The authors show how different expectations, different perceptions of time and risk and different risk and time preferences might help determine value.

There are vast literatures on prospection, discounting and future-orientated or intertemporal decision-making. The authors’ innovation is to illustrate how these mental activities might combine to facilitate financial investment valuation. In particular, the authors show that a low personal discount rate could be a consequence of a shortened perception of future time and vice versa.

As value co-creation has become a critical strategy for companies to gain competitive advantage, the purpose of this paper is to investigate the degree of the uncertain reward (DUR) and its impact on customer engagement (CE), particularly in the promotion stage, which has not been sufficiently explored. Further, optimistic estimation (OE) is examined as an underlying mechanism of the uncertain reward effect, as well as the impact of combining this with other marketing strategies: the controllable lottery and the delayed reward.

Three studies were conducted to examine the influence of DUR on CE, which included online experiments and a laboratory experiment. In total, 337 participants were recruited from China and the USA to enhance the study’s reliability and validity.

The research demonstrated that a high-degree uncertain reward led to less OE than a low-degree uncertain reward (LDUR), which subsequently decreased CE (Study 1). However, when other marketing strategies were combined – the controllable lottery (Study 2) and time-delay reward strategy (Study 3) – the uncertain reward effect was reversed (Study 2) or attenuated (Study 3).

The current research only presents two possible reward amounts and independently explores the influence of two popular marketing strategies. Future research can explore customers’ responses to engagement when they face multiple rewards and thoroughly investigate the influence of other social or psychological factors.

Firms could apply an LDUR to enhance CE effects. Furthermore, this could be done at a low cost by empowering customers’ controllability. Nonetheless, firms should be cautious with trade-offs when using time-delay reward strategies.

The research contributes to establishing networks of customer–company and interpersonal relationships, as well as fostering closer social ties and social harmony.

This research offers not only initial research on CE in the promotion stage, but also a novel psychological perspective in CE literature. Meanwhile, the study provides substantial value in guiding managers to effectively transform customers into value co-creators.

This study aims to explore the effect of amount of effort invested by consumers toward the purchase of a product on the amount they will spend on the product. Authors argue that greater effort on the part of the consumer will lead to an irrational focus on sunk effort causing them to spend more.

To explore the effect of amount of effort invested by consumers toward the purchase of a product on the amount they will spend on the product. Authors argue that greater effort on the part of the consumer will lead to an irrational focus on sunk effort, causing them to spend more.

Consumers who invest more effort in buying, spend more on the product in a bid to justify their decision to invest effort in the first place. This effect is stronger in the presence of decisional control.

Much academic research has examined adverse effects of effort spent by consumers and has sought to make things easier for consumers. This research shows that making it harder rather than easier, can make consumers willing to spend more money, particularly when they view themselves in control.

The present study seeks to examine how perceived uncertainty of reward schedule and reward frame (i.e. segregated vs aggregated) affect consumers ' evaluation of loyalty programs.

The authors conducted three experiments to test the hypotheses.

Ambiguity aversion was salient when the subjects perceived low uncertainty in the schedule of a loyalty program, which led to customers ' choice of a loyalty program with an aggregated frame. In contrast, the subjects displayed ambiguity proneness when they detected a high level of uncertainty in the reward schedule; as a result, the subjects preferred a loyalty program that employed a segregated frame.

The findings show that individuals adopt different types of attitudinal pattern and show dissimilar choice behaviors depending on reward schemes. The findings also provide insights to enhance the understanding concerning how consumers perceive the value of loyalty programs.

Previous research suggests the importance of random elements in relationship marketing. The present study supports this assertion by demonstrating that reward programs providing unexpected benefits can enhance the effectiveness of a loyalty program.

The results provide a more refined understanding about the relationship between perceived uncertainty and reward frame and the psychological mechanism underlying this relationship.