IGEM:Carnegie Mellon University/2009/Notebook/SUCCEED Survey and Peer Incentives/2014/02/12

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Notes and Thoughts

Some services/businesses offer some sort of incentive if you get your friends to sign up or use their products. Somehow very difficult to find research regarding rewards and consumer-side behavior

G Ryu, L Feick, 2007: A penny for your thoughts: Referral reward programs and referral likelihood


The authors study the effectiveness of rewards in increasing referrals by reporting on four experiments. They find that rewards increase referral likelihood and that for weak ties and weaker brands, giving a reward to the recommender. For strong ties and stronger brands, providing at least some of the reward to the recomendee seems to be more effective.

(Unfortunately, I do not seem to be able to access this paper so I don't know anything about it outside of the abstract.)

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