Abstract:
This paper discusses the influence of reward size, reward schemes and tie strength on online referral likelihood in referral reward program. The results show that reward size, reward schemes and tie strength have significant effects on consumer online referral likelihood. Moreover, there are significant interactions between reward size and tie strength, reward scheme and tie strength. In the condition of weak ties, when the program provides reward, consumer referral likelihood will be higher; consumer referral likelihood will be even higher with “Reward Me” Scheme. In the condition of strong ties, there is no significant difference of online referral likelihood with and without reward; however, consumer referral likelihood will be higher with "Reward Both" Scheme.