Engagement Type:
Engaged Research
Activity Type:
None
Start Semester: Spring
Total UNO Students: 0
Start Academic Year: 2021-22
UNO Student Hours: 0
End Semester:
Total K-12 Students: 0
End Academic Year:
None
K-12 Student Hours: 0
Total Number of Other Participants:
0
Topics:
Description :
Incentivized customer referral programs (e.g., “Refer a friend, reward yourself!”) are prevalent, yet they usually have low referring rates. We propose a psychological barrier: existing customers (referrers) view incentivized referring as an exchange activity, which feels incompatible with their communal relationship with friends (referees). In eight studies (N = 2,111; four preregistered, two in the field), we propose and find that disclosing the referrer-reward in the invitation message—a not yet widely adopted practice—can promote referring by making the<br>referring action seem more compatible with communal norms. Specifically, disclosure conveys the referrer’s honesty and highlights the social, collaborative aspect of the referral opportunity, both of which are desirable in communal interactions. We further identify four theoretically and practically relevant boundary conditions: (1) the referrer-referee relationship (communal or exchange), (2) the framing of the referral opportunity (whether it is already framed as a communal activity or not), (3) the relative reward amount (whether the referrer-reward is higher than, the same as, or lower than the referee-reward), and (4) the stated source of the referrer-reward (the company or the referee’s spending). We conclude by discussing the theoretical and practical implications.<br><br>