The Role of Metaperception on the Effectiveness of Referral Reward Programs
Abstract
It is generally believed that referral reward programs (RRPs) work because recommendations from friends or relatives are perceived as impartial and trustworthy in analogy to what happens with word-of-mouth recommendations. To understand how an incentivized recommendation affects recommendation behavior, we conducted qualitative interviews and two experiments. We show that recommendation behavior is driven by the givers perception (i.e., their metaperception) of how they will be viewed by the receivers. Metaperception, in turn, is affected negatively by the presence of an incentive, and positively affected by the tie strength between the giver and the receiver. Our findings show that RRPs can have a positive, neutral, and negative effect on recommendation behavior depending on the relative strengths of the negative indirect effect of incentive on recommendation behavior via metaperception, and the positive effect of the perceived attractiveness of the incentive on recommendation behavior.
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Referral rewards can hinder recommenders' perceptions relative to their beliefs about how recommendations are viewed by others.
“However, referral rewards can hinder recommenders ' perceptions relative to their beliefs about how recommendations are viewed by others (Wirtz et al. 2013).”
From Unintended reward costs: the effectiveness of customer referral reward programs for innovative products and services (2019) · cites this paper as Wirtz et al. 2013
Rewards may prevent referrals by raising social impression concerns.
“On the other hand, rewards may prevent referrals with raising social impression concerns (Wirtz and Chew, 2002; Ryu and Feick, 2007; Wirtz et al., 2013, 2019; Orsingher and Wirtz, 2018).”
From Reward Design for Customer Referral Programs: Reward–Product Congruence Effect and Gender Difference (2021) · cites this paper as Wirtz et al., 2013
A large reward has a positive effect on referral likelihood due to perceived attractiveness.
“It is generally accepted in related research that a large reward has a positive effect on referral likelihood due to perceived attractiveness (Ryu and Feick, 2007; Wirtz et al., 2013, 2019; Zhang et al., 2019; Wolters et al., 2020).”
From Reward Design for Customer Referral Programs: Reward–Product Congruence Effect and Gender Difference (2021) · cites this paper as Wirtz et al., 2013
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“That is, prospective referrers may feel uncomfortable, conflicted, guilty, and other negative emotions, which we dub the “psychological barrier” (see also Aggarwal 2004; Grayson 2007; McGraw, Tetlock, and Kristel 2003; Tuk et al. 2009; Verlegh et al. 2013; Wirtz et al. 2013) that deters them from referring.”
BackgroundInfluentialKuester, M., & Benkenstein, M. (2014) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2014.07.005 · Cited by 33 · see citing works
“Some academics have questioned the value of incentive referral campaigns (e.g., Trusov et al., 2009; Van den Bulte, 2010; see also Schmitt et al., 2011), particularly because rewarded referrals can be driven by motives of self-interest (Wirtz et al., 2013).”
BackgroundThe effect of tokenized rewards on customer loyalty programs
Boukis, A. (2024) · Annals of Tourism Research · doi:10.1016/j.annals.2024.103851 · Cited by 39 · see citing works
Viswanathan, V., Tillmanns, S., Krafft, M., & Asselmann, D. (2018) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-018-0603-8 · Cited by 30 · see citing works
Can Friends Also Become Customers? The Impact of Employee Referral Programs on Referral Likelihood
Wentzel, D., Tomczak, T., & Henkel, S. (2014) · Journal of Service Research · doi:10.1177/1094670513518271 · Cited by 31 · see citing works
“Arguably, participants may have been concerned that their friends would learn that they had received a reward from their firm and that this reward would reflect unfavorably on them (Wirtz et al. 2013; Xiao, Tang, and Wirtz 2011).”
BackgroundMethodResultInfluentialShare experiences: receiving word of mouth and its effect on relationships with donors
Sundermann, L. M. (2017) · Journal of Services Marketing · doi:10.1108/jsm-08-2016-0319 · Cited by 30 · see citing works
“Another five-item scale tested in the context of referral rewards was adapted from Marsden and Campbell (1984) and Wirtz et al. (2013) to measure tie strength (e.g. ‘I have a close relationship with this person’).”
BackgroundMethodInfluentialGarnefeld, I., Helm, S., & Grötschel, A.-K. (2020) · Electronic Markets · doi:10.1007/s12525-020-00425-4 · Cited by 30 · see citing works
“We Earned the Coupon Together”: The Missing Link of Experience Cocreation in Shared Coupons
Fang, E., Dong, B., Zhuang, M., & Cai, F. (2022) · Journal of Marketing · doi:10.1177/00222429221126990 · Cited by 28 · see citing works
“goal is about the procurement of economic gains (e.g., a coupon’s financial savings; Wirtz et al. 2013).”
BackgroundInfluentialStein, A., & Ramaseshan, B. (2014) · Journal of Service Research · doi:10.1177/1094670514563495 · Cited by 29 · see citing works
“Past studies have examined moderating effects in regression models through interaction variables (Mittal and Kamakura 2001; Bell and Luddington 2006; Wirtz et al. 2013).”
BackgroundInfluentialPergelova, A., & Angulo‐Ruiz, F. (2017) · International Journal of Advertising · doi:10.1080/02650487.2017.1364032 · Cited by 26 · see citing works
“In the services marketing literature many studies have confirmed that people are more likely to rely on interpersonal communication in such industries because of the intangibility and experiential nature of services (de Matos and Rossi 2008; Wirtz et al. 2013).”
BackgroundZhang, D., Zhang, F., Liu, S., & Du, H. S. (2019) · Information Technology & People · doi:10.1108/itp-06-2017-0188 · Cited by 26 · see citing works
Evolution of Referrals over Customers’ Life Cycle: Evidence from a Ride-Sharing Platform
Fernández-Loría, C., Cohen, M. C., & Ghose, A. (2022) · Information Systems Research · doi:10.1287/isre.2022.1138 · Cited by 24 · see citing works
How service quality and outcome confidence drive pre-outcome word-of-mouth
Ifie, K., Simintiras, A. C., Dwivedi, Y. K., & Mavridou, V. (2018) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2018.07.002 · Cited by 23 · see citing works
Receiver responses to referral reward programs in social networks
Wang, Q., Mao, Y., Zhu, J., & Zhang, X. (2017) · Electronic Commerce Research · doi:10.1007/s10660-017-9271-x · Cited by 22 · see citing works
“Furthermore, there are several studies on the motivation of WOM recommendations [1] as well as studies of costs [1, 3].”
InfluentialThe impact of uncertain rewards on customers’ recommendation intention in social networks
Wang, Q., Sun, Y., Zhu, J., & Zhang, X. (2018) · Internet Research · doi:10.1108/intr-03-2017-0116 · Cited by 21 · see citing works
The effect of incentive structure on referral: the determining role of self-construal
Wang, L., & Chen, Z. (2022) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-022-00852-z · Cited by 21 · see citing works
“, vouchers, gifts, free minutes, and cash) forWOM, which have been effective in generating WOM (compared to no incentives,Ryu & Feick, 2007 ; Wirtz et al., 2013).”
BackgroundResultInfluentialYuan, B., & Peluso, A. M. (2021) · Sustainability · doi:10.3390/su13020645 · Cited by 19 · see citing works
“While past research has examined several aspects of this phenomenon, such as the influences of rewards in recommendation plans [17–19], the role of the recommender’s professionalism and expertise [20], the effects of loyalty and satisfaction [21], and the role of recommender–recipient relationship strength in determin…”
BackgroundPeng, X., Xing, Y., Tian, Y., Fei, M., & Wang, Q. (2023) · Decision Support Systems · doi:10.1016/j.dss.2023.113999 · Cited by 19 · see citing works
Reward Design for Customer Referral Programs: Reward–Product Congruence Effect and Gender Difference
Hu, H.-H., & Zhang, X.-M. (2021) · Frontiers in Psychology · doi:10.3389/fpsyg.2021.644412 · Cited by 17 · see citing works
Online or offline? Spillover effect of customer-to-customer interaction in a multichannel background
Liu, Y., Fu, X., & Ren, X. (2023) · Internet Research · doi:10.1108/intr-11-2021-0855 · Cited by 17 · see citing works
Referral reward programs with scarcity messages on bank credit card adoption
Song, C., Wang, T., & Hu, M. Y. (2019) · International Journal of Bank Marketing · doi:10.1108/ijbm-12-2017-0260 · Cited by 17 · see citing works
How scarcity and thinking styles boost referral effectiveness
Ang, D., Gerrath, M. H. E. E., & Liu, Y. (2021) · Psychology and Marketing · doi:10.1002/mar.21557 · Cited by 16 · see citing works
Bifkovics, B., Malota, E., Faria, L. N., & Martinez, L. F. (2023) · Journal of Promotion Management · doi:10.1080/10496491.2023.2253235 · Cited by 15 · see citing works
“As the costs and benefits of taking part in a referral program are evaluated by the customer, the reward has been identified as an important driver in participation (Ryu & Feick, 2007; Wirtz & Chew, 2002; Wirtz et al., 2013).”
BackgroundJin, H., Lu, S., & Wang, K. (2023) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2023.103650 · Cited by 15 · see citing works
Zhu, Y., & Lin, P. (2019) · Journal of Contemporary Marketing Science · doi:10.1108/jcmars-01-2019-0008 · Cited by 16 · see citing works
The role of impulsive behaviour and meta-perception in referral reward programs
Zhan, M., Huang, M., Li, A., & Yang, Y. (2023) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2023.103496 · Cited by 14 · see citing works
Optimal promotional mix and pricing when faced with uncertain product value
Wang, R., Wang, Q., & Chiang, W. K. (2023) · European Journal of Operational Research · doi:10.1016/j.ejor.2023.08.042 · Cited by 14 · see citing works
The role of blocked gratitude in non-voluntary tipping
Karabas, I., & Joireman, J. A. (2020) · Journal of Services Marketing · doi:10.1108/jsm-03-2020-0082 · Cited by 14 · see citing works
“Lastly, participants rated the scenario’s realism on a three-item scale (α = .92; e.g., “The scenario is realistic,” 1 = strongly disagree, 7 = strongly agree; adapted from Wirtz et al., 2013).”
BackgroundRole of group cohesiveness in targeted mobile promotions
Gupta, R., Mukherjee, S., & Jayarajah, K. (2021) · Journal of Business Research · doi:10.1016/j.jbusres.2021.01.030 · Cited by 13 · see citing works
Speaking up against service unfairness: The role of negative meta-perceptions
Ho, T. H., Tojib, D., & Khajehzadeh, S. (2016) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2016.11.002 · Cited by 13 · see citing works
For all to see: social risk and observable complaining on Facebook
Armstrong, C., Kulczynski, A., & Brennan, S. M. (2021) · European Journal of Marketing · doi:10.1108/ejm-07-2020-0517 · Cited by 12 · see citing works
Referrals for new client acquisition in professional services
Grierson, S., & Brennan, R. (2017) · Qualitative Market Research An International Journal · doi:10.1108/qmr-04-2016-0039 · Cited by 12 · see citing works
“Ryu and Feick (2007) and Wirtz et al (2013) investigated the effectiveness of referral reward programs.”
BackgroundThe role of tie strength in bank credit card referral reward programs with scarcity messages
Song, C., Wang, T., Brown, H. T., & Hu, M. Y. (2019) · International Journal of Bank Marketing · doi:10.1108/ijbm-02-2019-0070 · Cited by 11 · see citing works
Li, X., Wang, K., & Jiang, Q. (2024) · Information & Management · doi:10.1016/j.im.2024.104002 · Cited by 11 · see citing works
Social dynamics of luxury customization: The unique impact of name personalization
O’Rourke, A.-M., Lin, J., Sung, B., & Septianto, F. (2024) · Psychology and Marketing · doi:10.1002/mar.22136 · Cited by 11 · see citing works
Traditional Word-of-Mouth (WOM)
Ismagilova, E., Dwivedi, Y. K., Slade, E. L., & Williams, M. D. (2017) · SpringerBriefs in business · doi:10.1007/978-3-319-52459-7_2 · Cited by 11 · see citing works
Kuang, D., Ma, B., & Li, X. (2024) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2024.103982 · Cited by 12 · see citing works
Effect of e-referral incentive programs on referrer loyalty on social platforms
Fu, X., & Pang, J. (2018) · Service Industries Journal · doi:10.1080/02642069.2018.1505872 · Cited by 10 · see citing works
“When the reward is large enough, the monetary incentive will strengthen the referrers’ role of marketer and the referrers might feel as though they are ‘selling’ their referrals (Bem, 1972; Ryu & Feick, 2007), and this feeling will conflict with their altruistic motivation (Wirtz et al., 2013).”
BackgroundReward the inductor or inductee? The effect of the inductee's altruism on a shopping guide platform
Zhang, X., & Zhang, Y. (2021) · Asia Pacific Journal of Marketing and Logistics · doi:10.1108/apjml-06-2021-0421 · Cited by 10 · see citing works
How to Effectively Design Referral Rewards to Increase the Referral Likelihood for Green Products
Kuang, D., Li, X.-F., & Bi, W.-W. (2021) · Sustainability · doi:10.3390/su13137177 · Cited by 9 · see citing works
“As for the referral likelihood, the scale was adapted from the study of Ryu and Feick [53] using a 100-point scale (0% = certain not to recommend the backpack; 100% = certain to recommend the backpack).”
BackgroundMethodInfluentialExploring customer engagement behavior: construct proposal and its antecedents
Romero, J., & Okazaki, S. (2015) · International Symposium on Partial Least Squares Path Modeling · doi:10.3990/2.339 · Cited by 10 · see citing works
Sharing Reward Program Based on Face Consciousness in Social Media
Han, X., Ju, C., Bao, F., Xu, C., Zhu, Y., & Chen, Y. (2022) · Psychology Research and Behavior Management · doi:10.2147/prbm.s362920 · Cited by 9 · see citing works
“Considering that, sharers worry about being seen as self-interested and thus reduce their recommendation intentions.(15) The above research emphasizes more on the persuasive utility of information interaction between consumers, but less on the reward mechanism based on informative utility.”
BackgroundThe moderating role of perceived social risk in bank credit card referral programs
Song, C., Wang, T., Lee, H., & Hu, M. Y. (2020) · International Journal of Bank Marketing · doi:10.1108/ijbm-05-2020-0291 · Cited by 9 · see citing works
Jayasuriya, N., Jayasinghe, P. S. K., Rajapaksha, A., Dharmasiri, T., Sumanasinghe, D., & Dasanayake, A. (2024) · Asia Pacific Journal of Marketing and Logistics · doi:10.1108/apjml-02-2024-0168 · Cited by 7 · see citing works
Yang, X., Su, X., Lin, J., Liu, J., Miao, M., & Jiang, Y. (2024) · Journal of theoretical and applied electronic commerce research · doi:10.3390/jtaer19040171 · Cited by 7 · see citing works
Fan, C.-L., Su, Y.-L., Chang, S.-T., & Liu, D.-Y. (2014) · International Journal of Business and Management · doi:10.5539/ijbm.v9n11p21 · Cited by 7 · see citing works
Impact of Customer’s Social Value on Optimizing Referral Reward Programs
Jiang, F., Mei, S., & Zhong, W. (2020) · Journal of Organizational Computing and Electronic Commerce · doi:10.1080/10919392.2020.1761750 · Cited by 7 · see citing works
Too assertive to recommend: The effect of assertive tone on referral behavior
Deng, H., Yang, S., & Jin, L. (2024) · Journal of Retailing · doi:10.1016/j.jretai.2024.12.001 · Cited by 6 · see citing works
Diep, D. M., & Le, M. T. T. (2025) · Journal of Nonprofit & Public Sector Marketing · doi:10.1080/10495142.2025.2488775 · Cited by 6 · see citing works
“Potential donors and volunteers may distinguish NPOs and evaluate their services based on recommendations of existing customers (Arnett et al., 2003; Wirtz et al., 2013).”
Make a good impression: Recommend different products for self-presentation
Wang, L., Chen, H., & Zhang, X. (2023) · Australian Journal of Management · doi:10.1177/03128962231166246 · Cited by 6 · see citing works
“For incentivized WOM, self-presentation is also an essential motivation (Ryu and Feick, 2007; Wang and Chen, 2022; Wirtz et al., 2013).”
InfluentialFriendships in marketing: a taxonomy and future research directions
Banerji, D., Singh, R. P., & Mishra, P. (2019) · AMS Review · doi:10.1007/s13162-019-00153-9 · Cited by 6 · see citing works
Factors Influencing Users’ Word-of-Mouth Intention Regarding Mobile Apps : An Empirical Study
Chen, Y., & Shang, Y.-F. (2018) · Journal of Industrial Distribution & Business · doi:10.13106/ijidb.2018.vol9.no1.51 · Cited by 6 · see citing works
Su, J., Ke, D., Luo, X. R., & Bai, X. (2024) · Electronic Commerce Research · doi:10.1007/s10660-024-09819-4 · Cited by 5 · see citing works
“The effectiveness of referral rewards is influenced by several factors, including the appeal of the rewards [30], the relationship between the referrer and the recipient [31], and the perceived social or economic costs associated with the act of referring [7].”
Chen, C. H., Huang, Y., Liu, Y., & Gao, K. (2023) · Journal of Promotion Management · doi:10.1080/10496491.2023.2216197 · Cited by 5 · see citing works
The Role of Communication Types on Referral Acceptance in Social Networks
Köster, A., Matt, C., & Heß, T. (2015) · doi:10.7892/boris.105435 · Cited by 4 · see citing works
“…that influence the relevance and impact of referrals such as personality (Wirtz and Chew 2002), reward allocation scheme and reward type (Jin and Huang 2014; Ryu and Feick 2007; Wirtz et al. 2013), tie strength and social norms (Shi et al. 2013), and sources of the referral (Gasimov et al. 2010).”
BackgroundAlternatives for Telco Data Network: The Value of Spatial and Referral Networks for Churn Detection
Colot, C., Baecke, P., & Linden, I. (2021) · Information systems management · doi:10.1080/10580530.2021.1887981 · Cited by 3 · see citing works
“This phenomenon of opportunistic behavior in referral programs has already been discussed in the literature (Jin & Huang, 2014; Tuk et al., 2009; Verlegh et al., 2013; Wirtz et al., 2013).”
BackgroundAbid, M., O’Cass, A., Ahmadi, H., & Siahtiri, V. (2026) · Australasian Marketing Journal (AMJ) · doi:10.1177/14413582261423008 · Cited by 4 · see citing works
Schmitz, B., Schmalstieg, J., Plötner, O., Eggert, A., & Habel, J. (2025) · Industrial Marketing Management · doi:10.1016/j.indmarman.2025.09.002 · Cited by 3 · see citing works
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“A pilot study ( N = 120, M age = 29.71, SD age = 8.59, 65.0% female) was conducted to test the perceived realism of these three scenarios using the three-item scale developed by Wirtz et al. (2013).”
InfluentialThe role of risk preference in referral reward programs
Wang, T., Song, C., & Hu, M. Y. (2024) · The Journal of Marketing Theory and Practice · doi:10.1080/10696679.2023.2291709 · Cited by 3 · see citing works
Henseler, J., Ringle, C. M., Roldán, J. L., & Cepeda, G. (2015) · doi:10.3990/2.319 · Cited by 3 · see citing works
Effects of Social Connectedness on the Sharing of Employee-Created Content
Zhang, X., & Chen, M. (2022) · Frontiers in Psychology · doi:10.3389/fpsyg.2022.782304 · Cited by 2 · see citing works
“In practice, many firms often offer various promotional content to attract consumer participation and enhance sales, such as discounts (Wirtz et al., 2013), cash payments (Exley, 2018), and vouchers (Ryu and Feick, 2007), but if the firm cannot accurately target the promotional content to the…”
BackgroundThe influence of reward qualifying conditions on participation in online referral programs
Zhang, J., Lu, Q., Zhang, L., & Harness, D. (2025) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2025.104689 · Cited by 2 · see citing works
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The effect of referral tasks on customers’ referral likelihood on social platforms
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Guo, Q. (2024) · Journal of theoretical and applied electronic commerce research · doi:10.3390/jtaer19020056 · Cited by 3 · see citing works
“Meta-perceptions are social inferences [14] of how consumers are viewed/judged by others when accepting a CRFC [14–19].”
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“Digitale Technologien und das Internet haben zu einer Verlagerung der Weiterempfehlungsprogramme in die Online-Welt geführt und deren Verbreitung beschleunigt (Wirtz et al. 2013).”
BackgroundInfluentialCan Reward Uncertainty Encourage Social Referrals? Evidence from a Large-Scale Field Experiment
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When are Referral Reward Programs Effective: A Perspective of Regulatory Fit Theory
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Engaging with the engaged – Issues around the topic of customer engagement
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- Authors
- Wirtz, J., Orsingher, C., Chew, P., & Tambyah, S. K.
- Affiliations
- National University of Singapore (SG)
- University of Bologna (IT)
- Singapore University of Social Sciences (SG)
- Corresponding author
- Orsingher, Chiara
- Venue
- Journal of Service Research
- Publisher
- SAGE Publications
- Published
- 2012-11-02
- Volume
- 16
- Issue
- 1
- Pages
- 82-98
- ISSN
- 1094-6705 (ISSN-L)
- 1552-7379
- OpenAlex
- W2137607454
- Cited by
- 119
- References
- 85
- Citations by year
- 2026: 8 · 2025: 9 · 2024: 14 · 2023: 10 · 2022: 9 · 2021: 10 · 2020: 13 · 2019: 8 · 2018: 10 · 2017: 8 · 2016: 4 · 2015: 5 · 2014: 7 · 2013: 4
- FWCI
- 16.88
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Service Research (publishedVersion)
- National University of Singapore (submittedVersion)
- Archivio istituzionale della ricerca (Alma Mater Studiorum Università di Bologna) (submittedVersion)
- Topics
- Social Sciences › Sociology and Political Science › Digital Marketing and Social Media
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
- Social Sciences › Business, Management and Accounting › Marketing › Marketing and Advertising Strategies
- Keywords
- referral reward programs, metaperception, recommendation behavior, word of mouth, incentives, tie strength, trust
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