Effect of e-referral incentive programs on referrer loyalty on social platforms

Xiaorong Fu and Jing Pang

The Service Industries Journal, 2022, vol. 42, issue 15-16, 1234-1255

Abstract: E-referral incentive programs are key instruments to carry out relationship marketing on social platforms. This study explores the effect of e-referral incentive programs on customer loyalty and its mechanisms. Two theories, the cognitive dissonance theory and the attention resource theory are adopted in this study, and therefore, referral dissonance and audience size are introduced as a mediator and a context variable separately. The results show that (1) the reward size and reward scheme have a significant interaction effect on customers’ repurchase intention and their re-referral intention; (2) this kind of interaction effect can be mediated by cognitive dissonance; and (3) the effect of referral incentive programs on customer loyalty will be influenced by the audience size. This study also explains how the referral incentive programs influence customer loyalty in social platforms and therefore can serve as a theoretical guidance for enterprises aiming to develop e-referral incentive programs.

Date: 2022
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DOI: 10.1080/02642069.2018.1505872

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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