The role of impulsive behaviour and meta-perception in referral reward programs

Abstract

This study investigates the differences in referral likelihood and referral times of customers with different impulsive purchase propensity in the context of referral reward programs. One field experiment and two lab experiments demonstrated that when consumers have higher impulsive purchase propensity, consumers provided with referrer-benefit (only referrer awarded) rewards will have a higher referral likelihood than those provided with referee-benefit (referee can get the partial or full reward). This effect is mediated by meta-perceptions that people with a higher propensity for impulsive consumption are less likely to form the negative meta-perception. In addition, this study revealed that referral contexts (private and public communication environments) might have a moderating effect on consumers’ subsequent referrals (i.e., referral times). The negative effects of meta-perceptions stemming from the referrer-benefit rewards can be mitigated in private contexts.