|Table of Contents|

[1] Jiang Fenfen, Mei Shue, Zhong Weijun,. Analysis of optimal referral reward programsfor innovative offerings [J]. Journal of Southeast University (English Edition), 2020, 36 (3): 357-363. [doi:10.3969/j.issn.1003-7985.2020.03.015]
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Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:
36
Issue:
2020 03
Page:
357-363
Research Field:
Economy and Management
Publishing date:
2020-09-20

Info

Title:
Analysis of optimal referral reward programsfor innovative offerings
Author(s):
Jiang Fenfen;  Mei Shu’e;  Zhong Weijun
School of Economics and Management, Southeast University, Nanjing 211189, China
Keywords:
referral reward programs;  innovativeness;  social value;  social media marketing;  Stackelberg game
PACS:
F272.3
DOI:
10.3969/j.issn.1003-7985.2020.03.015
Abstract:
A nested Stackelberg game among a provider of a product, a sender(existing customer), and a receiver(new customer)is developed to explore the optimal referral reward programs(RRPs)for innovative offerings. The results indicate that the provider should forsake RRPs and purely rely on customers’ organic word-of-mouth communication under certain conditions. In particular, when the innovativeness of the referred product is extremely high, the provider should forsake RRPs completely, even though few customers will make organic referrals for the product. When the innovativeness is on other levels, the provider should make optimal RRPs decision depending on both the sender’s persuasion effectiveness and the tie-strength between the two customers. Moreover, the optimal rewards increase with the innovativeness of the referred product when the provider opts to use RRPs. These results seem contrary to the existing empirical finding to some extent, and it is due to the high referral cost for making a successful referral for the high innovative offerings.

References:

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Memo

Memo:
Biographies: Jiang Fenfen(1991—), female, Ph.D. candidate; Mei Shu’e(corresponding author), female, doctor, professor, meishue@seu.edu.cn.
Foundation item: The National Social Science Foundation of China(No.17BGL196).
Citation: Jiang Fenfen, Mei Shu’e, Zhong Weijun. Analysis of optimal referral reward programs for innovative offerings[J].Journal of Southeast University(English Edition), 2020, 36(3):357-363.DOI:10.3969/j.issn.1003-7985.2020.03.015.
Last Update: 2020-09-20