Abstract
Referral reward programs are frequently used in services marketing. In referral reward programs, a customer receives a reward for convincing others to become a customer. Numerous large service firms offer rewards to their customers when they recommend a service to their friends and acquaintances. Referral reward programs are so ubiquitous as they are an effective and efficient marketing tool for new customer acquisition (Verlegh, Peters and Pruyn 2003). Ryu and Feick (2007) show that the offered reward can be effective in increasing customers’ word of mouth (WOM). As Biyalgorsky, Gerstner, and Libai (2001) point out referral reward programs are not only effective, but also efficient as the company only pays for the reward if WOM is articulated.
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© 2015 Academy of Marketing Science
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Garnefeld, I., Muenkhoff, E., Hogreve, J., Eggert, A. (2015). Referral Reward Programs: New Customer Acquisition by Opportunism?. In: Campbell, C. (eds) Marketing in Transition: Scarcity, Globalism, & Sustainability. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-18687-0_11
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DOI: https://doi.org/10.1007/978-3-319-18687-0_11
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-18686-3
Online ISBN: 978-3-319-18687-0
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