How to Effectively Design Referral Rewards to Increase the Referral Likelihood for Green Products

Di Kuang, Xiao-Fei Li and Wen-Wen Bi
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Di Kuang: School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
Xiao-Fei Li: College of Business Administration, Capital University of Economics and Business, Beijing 100070, China
Wen-Wen Bi: School of Economics and Management, Yan’an University, Yan’an 716000, China

Sustainability, 2021, vol. 13, issue 13, 1-16

Abstract: Interpersonal referrals can effectively promote purchases. In view of the low sales of green products, this study introduces the referral reward program into green marketing and investigates the impact of reward type on customers’ referral likelihood for green product. Through a lab experiment with 302 participants in China involved, this study reveals the differential effects of monetary versus donation rewards on existing customers’ referral likelihood. Specifically, compared with monetary rewards, donation rewards are more effective in promoting recommendations. It is also indicated that the perceived fit between the reward and green products partially mediates the relationship between the reward type and referral likelihood. In addition, the relationship between the reward type and perceived fit is moderated by consumers’ green product knowledge. This research not only extends the literature on green marketing and referral reward programs, but also provides feasible suggestions for government and enterprises to promote green products and to improve social wellbeing.

Keywords: green product; referral reward program; reward type; perceived fit; referral likelihood (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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