Journal ArticleDOI
Growing Existing Customers' Revenue Streams Through Customer Referral Programs
TLDR
In this article, a large-scale customer data set from a global cellular telecommunications provider was assessed and it was shown that participation in a referral program also increases existing customers' loyalty.Abstract:
Customer referral programs are an effective means of customer acquisition. By assessing a large-scale customer data set from a global cellular telecommunications provider, the authors show that participation in a referral program also increases existing customers' loyalty. In a field experiment, recommenders' defection rates fell from 19% to 7% within a year, and their average monthly revenue grew by 11.4% compared with a matched control group. A negative interaction between referral program participation and customer tenure reveals that the loyalty effect of voicing a recommendation is particularly pronounced for newer customer–firm relationships. A laboratory experiment further demonstrates that referral programs with larger rewards strengthen attitudinal and behavioral loyalty, whereas smaller rewards affect only the behavioral dimension. This article contributes to our theoretical understanding of the roles played by the commitment–consistency principle and positive reinforcement theory as mechanisms ...read more
Citations
More filters
Journal ArticleDOI
Building, measuring, and profiting from customer loyalty
TL;DR: The authors examined the consequences of this heterogeneity by empirically mapping current conceptual approaches using an item-level coding of extant loyalty research, then testing how operational and study-specific characteristics moderate the strategy → loyalty → performance process through meta-analytic techniques.
Journal ArticleDOI
Understanding loyalty program effectiveness: managing target and bystander effects
TL;DR: In this article, the authors present three studies, two experiments and one survey, in support of the notion that a greater understanding of loyalty program performance demands an expanded theoretical framework, and they provide insights into why and when loyalty programs fail and into the complex trade-offs managers face.
Journal ArticleDOI
Endogeneity bias in marketing research: Problem, causes and remedies
TL;DR: In this article, the authors outline the problem of endogeneity bias, and provide an overview of potential sources, including omission of variables, errors-in-variables, and simultaneous causality.
Journal ArticleDOI
Leaving the Home Turf: How Brands Can Use Webcare on Consumer-generated Platforms to Increase Positive Consumer Engagement
Julia Schamari,Tobias Schaefers +1 more
TL;DR: In this paper, the authors propose webcare as a reaction to positive engagement to be an effective marketing tool for reinforcing observing consumers' engagement intentions, especially on consumer-generated platforms, and reveal that personal webcare is more effective in driving consumer engagement intentions than impersonal webcare.
References
More filters
Journal ArticleDOI
Evaluating Structural Equation Models with Unobservable Variables and Measurement Error
Claes Fornell,David F. Larcker +1 more
TL;DR: In this paper, the statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined, and a drawback of the commonly applied chi square test, in additit...
Book ChapterDOI
Regression Models and Life-Tables
TL;DR: The analysis of censored failure times is considered in this paper, where the hazard function is taken to be a function of the explanatory variables and unknown regression coefficients multiplied by an arbitrary and unknown function of time.
Journal ArticleDOI
The central role of the propensity score in observational studies for causal effects
TL;DR: The authors discusses the central role of propensity scores and balancing scores in the analysis of observational studies and shows that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates.
Book
Exchange and Power in Social Life
TL;DR: In a seminal work as discussed by the authors, Peter M. Blau used concepts of exchange, reciprocity, imbalance, and power to examine social life and to derive the more complex processes in social structure from the simpler ones.
BookDOI
Density estimation for statistics and data analysis
TL;DR: The Kernel Method for Multivariate Data: Three Important Methods and Density Estimation in Action.
Related Papers (5)
A Penny for Your Thoughts: Referral Reward Programs and Referral Likelihood:
Gangseog Ryu,Lawrence Feick +1 more
The effects of incentives, deal proneness, satisfaction and tie strength on word‐of‐mouth behaviour
Jochen Wirtz,Patricia Chew +1 more