Receiver responses to referral reward programs in social networks

Wang, Qi; Mao, Yunxia; Zhu, Ji; Zhang, Xiaohang

doi:10.1007/s10660-017-9271-x

Cited by 16 publications

(16 citation statements)

References 51 publications

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“…time, energy and face) willing to pay for peers in the process of participation. As elements related to consumers, the social relationship (Cheng et al, 2020;Lin et al, 2018), social cost (Ntaflos et al, 2019;Wang et al, 2018) and social trust (Sharma et al, 2019;Shi and Chow, 2015) have been widely studied and proven to be very important in SC. However, these studies mainly concentrate on the impact of these three elements on consumers' willingness and behaviors to participate in SC, without estimating them together as social resources in the SCVN.…”

Section: Social Commerce Value Network (Scvn)mentioning

confidence: 99%

“…Referring to previous scholars' understanding of incentives in SC (Wang et al, 2018;Gao et al, 2020;Rai et al, 2021), we define them as the influence of economic stimuli (e.g. discounts and red pockets) or non-economic stimuli (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…In this paper, incentives are specifically reflected as the changes in consumers' resource investments. Previous studies have extensively discussed the effectiveness of incentive mechanisms in SC from the aspects of consumers' behaviors (Gao et al, 2020;Hong et al, 2017;Wang et al, 2018) and enterprises' profits (Cao and Li, 2020). However, these studies have not been involved in network influence and interactions between consumers.…”

Section: Introductionmentioning

confidence: 99%

“…(3) Different types of consumers have different input components of social resources, which flow as the value in the SCVN. Previous works widely studied the impact of the social relationship (Cheng et al, 2020;Lin et al, 2018), social cost (Ntaflos et al, 2019;Wang et al, 2018) and social trust (Sharma et al, 2019;Shi and Chow, 2015) on SC consumers, but lacked comparative research, especially considering their value contributions in the SCVN. To account for this issue, we propose the third research question:…”

Section: Introductionmentioning

confidence: 99%

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Distinguishing the most valuable consumers in social commerce using graphical evaluation and review technique – in the view of incentives

Chen

Liao

et al. 2022

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PurposeThe incentive cost of enterprises increases significantly with the rapid growth of the social commerce (SC) market. In this context, enterprises need to develop the optimal strategy to improve incentive effectiveness and reduce cost. Different types of consumers’ responses to incentives bring different values to enterprises. Hence, this paper proposes the social commerce value network (SCVN) to help enterprises study the contributions of different types of consumers to the network.Design/methodology/approachBased on the graphical evaluation and review technique (GERT), the authors construct the social commerce value GERT (i.e. SCV-GERT) network and design three progressive experiments for estimating the value contributions of “network stage”, “consumer type”, and “resource type” to the SCVN under the same incentives. The authors initialize the SCV-GERT model with consumer data in SC and distinguish the most valuable consumers by adjusting the incentive parameters.FindingsThe results show that the SCV-GERT model can well describe the value flow of SCVN. The incentive on forwarding consumers brings the greatest value gain to the SCVN, and social trust contributes the most to forwarding consumers.Practical implicationsUnder the guidance of the results, platforms and enterprises in SC can select the optimal type of consumers who bring the maximum network value so as to improve the effectiveness of incentive strategy and reduce marketing costs. A four-level incentive system should be established according to the ranking of the corresponding value gains: forwarding consumers > agent consumers > commenting consumers > potential consumers. Enterprises also need to find ways to improve the social resource investments of consumers participating in SC.Originality/valueThis paper investigates the incentive problem in SC grounded in the SCVN and uses the GERT method to construct the SCV-GERT model, which is the first attempt to introduce GERT into the SC context. This study also makes up for the lack of comparative research on different types of consumers in SC and can provide support for enterprises’ customer relationship management and marketing decisions.

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Section: Social Commerce Value Network (Scvn)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Distinguishing the most valuable consumers in social commerce using graphical evaluation and review technique – in the view of incentives

Chen

Liao

et al. 2022

View full text Add to dashboard Cite

show abstract

“…However, existing research focuses on traditional marketing pricing strategies (Kienzler and Kowalkowski, 2017). Although some papers are related to the new marketing model of referral rewards (Chiu et al, 2018;Kim and Kim, 2018;Wang et al, 2018aWang et al, , 2018b, most of them are based on survey analysis or experimental method. Survey analysis or experimental methods are postmortem analysis, which can guide the next decision of a firm, but the next time does not necessarily follow the rules and conclusions of the investigation.…”

Section: Introductionmentioning

confidence: 99%

Marketing strategy selection of referral reward under social network: RRWS, RRMS, or dual strategy?

Gao

Zhao

Qin

2020

Int Trans Operational Res

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With the arrival of the social media era and the fragmentation of consumer habits, how to develop the optimal marketing strategy for products has become a hot topic. When a consumer purchases a product, the firm provides a link for him/her to share with friends, and doing so can expand demand and increase profits. This paper considers three strategies: the referral reward strategy that does not care whether successful, the referral reward strategy that must be successful, and the dual strategy. To provide firms with advice, this paper adopts literature analysis and survey analysis to examine the three strategies of operation mode, and uses backward induction and optimization method to solve the optimal pricing. Finally, the influence of different network structures on strategy selection is studied by numerical simulation experiments. Results show that the strategy of referral reward under social network is feasible and profitable when the firm faces serious information problems and the reward cost is low. Compared with the basic model without bonuses, the introduction of rewards reduces the price of first‐period consumers and affects their motivation to share information. Among the three strategies, the distribution ratio of the unit bonus has little effect on profit. The second‐period price and profits of the dual strategy are higher than those of the two other strategies. Besides, the structure of social networks has a small impact on profits, so adopting the dual strategy can obtain higher profit than adopting either of the other two strategies.

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Different receiver responses to rewarded referrals: The moderating effect of styles of thinking

Zeng

Hao

2023

Manage Decis Econ

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Referral reward programs (RRPs) have attracted increasing attention from researchers and practitioners in recent years. Drawing on the analytic–holistic thinking framework, we explore the degree to which styles of thinking affect receiver's responses to the referrals through three studies. We find that rewards in RRPs adversely affect referral responses, resulting in lower purchase intention and brand evaluation. Such an effect of rewards, however, is moderated by styles of thinking. For holistic thinkers, the above effect of rewards on receiver's responses is valid because holistic receivers are more sensitive to contextual factors (e.g., rewards and tie strength). For analytic receivers, however, there is no significant difference in receiver's responses to unrewarded (vs. rewarded) referrals. In addition to styles of thinking, the results also show that tie strength has a moderating effect on the receiver's response to the referrals. However, the moderating effect of tie strength on receiver's responses is also affected by styles of thinking. For holistic receivers, the moderating effect of tie strength is significant. For analytic receivers, however, the moderating effect of tie strength is not significant. Our conclusions complement the existing research on RRP and provide management implications for enterprises to develop more efficient referral reward programs.

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Receiver responses to referral reward programs in social networks

Cited by 16 publications

References 51 publications

Distinguishing the most valuable consumers in social commerce using graphical evaluation and review technique – in the view of incentives

Distinguishing the most valuable consumers in social commerce using graphical evaluation and review technique – in the view of incentives

Marketing strategy selection of referral reward under social network: RRWS, RRMS, or dual strategy?

Different receiver responses to rewarded referrals: The moderating effect of styles of thinking

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