A Penny for Your Thoughts: Referral Reward Programs and Referral Likelihood

  title={A Penny for Your Thoughts: Referral Reward Programs and Referral Likelihood},
  author={Gangseog Ryu and Lawrence Feick},
  journal={Journal of Marketing},
  pages={84 - 94}
Because referral reward programs reward existing customers and build the customer base, firms use them to encourage customers to make recommendations to others. The authors report on four experiments in which they find that rewards increase referral likelihood. More specifically, they find that rewards are particularly effective in increasing referral to weak ties and for weaker brands. It is also important who receives the reward. Overall, for weak ties and weaker brands, giving a reward to… 

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