The role of tie strength in bank credit card referral reward programs with scarcity messages

2019 ◽  
Vol 38 (2) ◽  
pp. 296-309 ◽  
Author(s):  
Chanho Song ◽  
Tuo Wang ◽  
Haakon T. Brown ◽  
Michael Y. Hu
Keyword(s):  
Credit Card ◽  
Linear Models ◽  
Bank Credit ◽  
Tie Strength ◽  
Strong Ties ◽  
Content Type ◽  
Logit Transformation ◽  
Reward Programs ◽  
Amazon's Mechanical Turk

Purpose The purpose of this paper is to investigate how referral reward programs (RRPs) utilizing scarcity messages influence bank credit holders’ referrals to and adoptions by close or distant friends. Design/methodology/approach A 2×2 experiment is implemented with 760 consumers solicited through Amazon’s Mechanical Turk worker panel. Logit transformation and general linear models are used to test the proposed hypotheses. Findings Results showed that offering RRPs with limited available referrals (quantity scarcity) increases the overall number of referrals to and adoptions by close and distant friends. The percent of strong ties also increases with RRPs. As quantity scarcity is relaxed, the percentages of referrals to and adoptions by close friends decrease. Originality/value The inclusion of tie strength with scarcity framing greatly enhances our understanding of the effectiveness of RRPs for bank credit cards. To the authors’ knowledge, this is the first research attempt on this topic.

Referral reward programs with scarcity messages on bank credit card adoption

2019 ◽  
Vol 37 (2) ◽  
pp. 531-544 ◽  
Author(s):  
Chanho Song ◽  
Tuo Wang ◽  
Michael Y. Hu
Keyword(s):  
Behavioral Intentions ◽  
Credit Card ◽  
Linear Models ◽  
Positive Impact ◽  
Analysis Of Covariance ◽  
Bank Credit ◽  
Content Type ◽  
Reward Programs ◽  
Amazon's Mechanical Turk ◽  
The Relationship

Purpose The purpose of this paper is to investigate how referral reward programs (RRPs) with scarcity messages influence consumer’ recommendation behavioral intentions about a bank credit card. Design/methodology/approach In total, 1,599 consumers are accessed through Amazon’s Mechanical Turk worker panel. The authors use general linear models, analysis of variance and analysis of covariance to test the proposed hypotheses. Findings The results showed that offering RRPs with scarcity messages increases a consumer’s behavioral intentions to recommend. The limited-quantity message in RRPs has the highest positive impact on consumers’ behavioral intentions. Originality/value No prior studies have addressed the relationship between referral rewards and scarcity messages in the bank credit card context. The study contributes to the understanding of the effectiveness of RRPs with scarcity message in improving consumer’s referral.

The moderating role of perceived social risk in bank credit card referral programs

2020 ◽  
Vol 38 (7) ◽  
pp. 1601-1616
Author(s):  
Chanho Song ◽  
Tuo Wang ◽  
Hyunjung Lee ◽  
Michael Y. Hu
Keyword(s):  
Credit Card ◽  
Social Risk ◽  
Content Type ◽  
Referral Decisions ◽  
Social Risks ◽  
Risk Balance ◽  
Referral Decision ◽  
Amazon's Mechanical Turk ◽  
Moderating Role

PurposeThe purpose of this paper is to investigate how the effects of referral rewards in referral reward programs (RRPs) are moderated through perceived social risk of a recommender.Design/methodology/approachA total of 717 consumers are accessed through Amazon's Mechanical Turk worker panel. The authors use t-test and analysis of variance to test the proposed hypotheses.FindingsThe findings show that consumers with high perceived social risk balance financial rewards with social risks, while low social risk consumers largely ignore these social risk elements surrounding a referral decision.Originality/valueThe inclusion of perceived social risk provides the opportunity to fully understand how a consumer goes about balancing social risk and referral rewards in making referral decisions. The concept of social risk has not been previously applied to this context.

The influence of “Facebook friends” on the intention to join brand pages

2015 ◽  
Vol 24 (6) ◽  
pp. 580-595 ◽  
Author(s):  
Mariola Palazon ◽  
María Sicilia ◽  
Manuela Lopez
Keyword(s):  
Tie Strength ◽  
Weak Ties ◽  
Strong Ties ◽  
Content Type ◽  
Past Behavior ◽  
Low Levels ◽  
The Individual ◽  
Level Of Experience ◽  
Source Of Information

Purpose – This paper aims to examine the role of Facebook friends on the intention to join brand pages in this social network site (SNS). SNSs have grown in both popularity and use. They allow individuals to articulate their social networks by developing a list of other members on the site with whom they share a connection. These platforms also allow companies to create profiles to promote their brands. However, many firms have jumped into SNSs by creating a “brand page” without fully understanding how to spread it successfully. Design/methodology/approach – Two experiments were developed. In the first one, the authors manipulated how the individual comes to know about brand pages. Participants discovered a brand page through a friend with whom they have either a strong tie or a weak tie. In the second experiment (2 × 2), the authors manipulated tie strength (strong vs weak) and the type of recommendation (active vs passive). Findings – Results of the first study show that as the individual has more experience in Facebook (measured in this paper through satisfaction, past behavior of following brands and Facebook intensity), the effect of tie strength on the intention to join a brand page dilutes. The second study confirms Study 1 and shows that strong ties exert more influence than weak ties when the brand page is actively recommended by Facebook friends. Practical implications – This paper shows that the influence of strong ties is particularly important for individuals with low levels of experience in Facebook. As experience in SNSs is expected to continue growing, managers should not forget the role of weak ties as a source of information for their networked friends. Strong ties only remain more influential than weak ties when the information about the brand page is received through an invitation. Originality/value – This paper explores the interpersonal influences in Facebook, asserting that the influence of tie strength depends on the level of experience in the SNS, and on the way, information about the brand page is received.

scholarly journals Credit card cue effect

2019 ◽  
Vol 38 (2) ◽  
pp. 368-383
Author(s):  
King Yin Wong ◽  
Michael Lynn
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Well Being ◽  
Financial Security ◽  
Consumer Spending ◽  
Content Type ◽  
Moderation Effect ◽  
Show Evidence

Purpose The extant literature has mixed results regarding the credit card cue effect. Some showed that credit card cues stimulate spending, whereas others were unable to replicate the findings or found that cues discourage consumer spending. The purpose of this paper is to investigate how consumers’ sensitivity to the pain of payment affects their mental associations about credit cards and how the differences in credit card associations moderate the credit card cue effect on spending, providing a possible explanation for the mixed results in the literature. Furthermore, this paper examines the role of consumers’ perceived financial well-being, measured by their perceptions of current and future wealth and their sense of financial security, in mediating this moderation effect. Design/methodology/approach An experimental study was conducted with a sample of 337 participants to test the hypothesized model. Findings After being shown credit card cues, spendthrift participants had more spending-related thoughts and less debt-related thoughts, perceived themselves as having better financial well-being and consequently spent more than tightwad participants. Originality/value To the authors’ knowledge, this is the first study to investigate the direct link between an exposure to credit card cues and perceived financial well-being, and one of the few to show evidence of the moderating effect of consumers’ sensitivity to the pain of payment on spending when credit card cues are present. This study suggests that marketers may use credit card cues to promote consumer spending, whereas consumers, especially spendthrifts, should be aware of how credit card cues may inflate their perceived financial well-being and stimulate them to spend more.

Connecting and being connected: investigating friending practices across multiple social networking sites

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chien Wen Yuan ◽  
Yu-Hao Lee
Keyword(s):  
Social Capital ◽  
Social Networking ◽  
Social Networking Sites ◽  
Online Survey ◽  
Social Ties ◽  
Relationship Maintenance ◽  
Strong Ties ◽  
Content Type ◽  
Bonding Social Capital ◽  
Amazon's Mechanical Turk

PurposeSocial networking sites (SNSs) offer people the possibility of maintaining larger networks of social ties, which also entails more complex relationship maintenance across multiple platforms. Whom to “friend” and via which platform can involve complex deliberations. This study investigates the relationships between users' perceived friending affordances of five popular SNSs (Facebook, Twitter, Instagram, Snapchat and LinkedIn) and their friending behaviors concerning strong ties, weak ties (existing and latent ties) and parasocial ties.Design/methodology/approachAn online survey using Qualtrics was provided to participants (N = 626) through Amazon's Mechanical Turk (MTurk). The survey asked their SNS use and their friending behaviors with different ties on each of the sites.FindingsUsers' friending decisions are dependent on an interplay of socio-technical affordances of each SNS and specific needs for the ties. The authors found that the affordances of bridging social capital and enjoyment are aligned with friending weak and parasocial ties, respectively. The affordances of bonding social capital were not valued to friend strong ties.Originality/valueThe study extends the affordance and social capital literature by assessing users' perceived, contextualized SNS affordances in relation to actual communication behaviors in friending different social ties. This approach provides contextualized insights to friending decisions and practices on SNSs.

What are the interpersonal antecedents of women’s network satisfaction?

2016 ◽  
Vol 31 (4) ◽  
pp. 266-280
Author(s):  
Maryline Bourdil ◽  
Mickael Géraudel
Keyword(s):  
Women Entrepreneurs ◽  
Design Methodology ◽  
Network Performance ◽  
Strong Ties ◽  
Content Type ◽  
Negative Effect ◽  
Common Interests ◽  
Women's Networks ◽  
Practical Implications

Purpose The purpose of this study is to determine whether women entrepreneurs are satisfied with belonging to a women’s network, as this issue is crucial for network performance and legitimacy. Design/methodology/approach The authors tested the hypotheses on a sample of 127 French women entrepreneurs who belonged to women’s networks using multiple regression analysis. Findings The authors showed that these women entrepreneurs were satisfied when they developed strong ties and when cliques in the network were limited. Education had a negative effect: the higher the educational level, the less satisfaction with their networks the women reported. Research limitations/implications The sample was small and composed only of women entrepreneurs who were members of women’s networks and not women who had left them. Practical implications The survey findings suggest ways that managers can optimize network satisfaction to keep current members while continuing to add new ones: create an environment with no cliques where members can develop strong ties. This means connecting members with similar values or status and common interests, while making sure that cliques do not develop. Originality/value To the authors’ knowledge, satisfaction with professional women’s networks has never been studied. The authors’ highlight the role of strong ties in these networks and identify the contingent effect of cliques.

To toy or not to toy in supermarket instant reward programs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claire Lambert ◽  
Edmund Goh
Keyword(s):  
Retail Industry ◽  
Comprehensive Overview ◽  
Content Type ◽  
The Social ◽  
Supermarket Industry ◽  
Reward Programs ◽  
Marketing Tool ◽  
Repeat Visits ◽  
Practical Implications

PurposeThis industry viewpoint paper provides a comprehensive overview and critical viewpoint on the use of collectable toy premiums via instant reward programs (IRP) within the retail industry as a marketing tool.Design/methodology/approachThis paper draws upon the uses of a “free” collectable toy premium promotion with a fixed purchase spend (via an IRP) in the supermarket industry as a marketing instrument to increase customer basket spend and repeat visits. Reflections on the recent use of toy premiums by Australian supermarket retailers are also utilised to highlight the ingredients for a successful promotion but also the controversies associated with such promotions.FindingsOne of the key findings suggest that the role of toy premiums is a successful marketing tool by retailers to increase customer total basket spending. However, notable points of caution regarding offering IRPs incorporating collectable toy premiums promotions are established, including environmental concerns and the social, ethical dilemma as to whether these promotions are indirectly targeted at children rather than adult consumers.Practical implicationsThe findings have important implications for retailers to attract customer attention, increased market spend and repeat purchases through a desired collectable premium promotion (via an IRP).Originality/valueThis is the first paper to critically review the usage of collectable toy premiums within the supermarket retail industry.

scholarly journals Non-linear effects of relational capital on supply-side resilience

2019 ◽  
Vol 39 (9/10) ◽  
pp. 1053-1075
Author(s):  
Yiyi Fan ◽  
Mark Stevenson
Keyword(s):  
Linear Relationship ◽  
Boundary Spanning ◽  
Curvilinear Relationship ◽  
Tie Strength ◽  
Supply Side ◽  
Relational Capital ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose Prior studies have largely overlooked the potentially negative consequences of a buyer’s relational capital (RC) with a supplier for supply-side resilience, assuming a positive linear relationship between the constructs. Meanwhile, the focus of research has been at an organisational level without incorporating the role of boundary spanning individuals at the interface between buyer and supplier. Drawing on social capital and boundary spanning theory, the purpose of this paper is to: re-examine the relationship between RC and supply-side resilience, challenging the linear assumption; and investigate how both the strength and diversity of a boundary spanner’s ties moderate this relationship. Design/methodology/approach Survey data are collected from 248 firms and validated using a subset of 57 attentive secondary respondents and archival data. The latent moderated structural equation method is applied to analyse the data. Findings An inverted U-shaped relationship between RC and supply-side resilience is identified. Tie strength in particular has a positive moderating effect on the relationship. More specifically, the downward RC–supply-side resilience relationship flips into an upward curvilinear relationship when boundary spanning individuals develop stronger ties with supplier personnel. Research limitations/implications A deeper insight into the RC–supply-side resilience relationship is provided. Findings are based on Chinese manufacturing firms and cross-sectional data meaning further research is needed to determine their generalisability. Practical implications In evaluating how to enhance supply-side resilience, buying firms must decide whether the associated collaborative benefits of developing RC outweigh the potential costs. Managers also need to be concerned with the impact of developing RC between organisations and enhancing the tie strength of individuals simultaneously. Originality/value The paper goes beyond the linear relationship between RC and supply-side resilience. Incorporating the moderating role of boundary spanners identifies a novel phenomenon whereby the RC–resilience relationship flips from an inverted to a U-shaped curve.

Engaging customers through online and offline referral reward programs

2019 ◽  
Vol 53 (9) ◽  
pp. 1962-1987 ◽  
Author(s):  
Jochen Wirtz ◽  
Chiara Orsingher ◽  
Hichang Cho
Keyword(s):  
Impression Management ◽  
Customer Engagement ◽  
Weak Ties ◽  
Psychological Consequences ◽  
Strong Ties ◽  
Content Type ◽  
Communication Environment ◽  
Dyadic Communication ◽  
Online Environments ◽  
Reward Programs

Purpose This paper aims to examine the psychological consequences of a customer engagement initiative through referral reward programs (RRPs) in online versus offline environments. Design/methodology/approach The authors conducted a qualitative study followed by a scenario-based experimental study. Findings The authors show that recommenders’ concern about how they are viewed by recommendation recipients (i.e. their metaperception) mediates the effects of incentives on referral likelihood in both offline and online environments. However, metaperception has a stronger effect offline where recommenders show higher impression management concerns compared to online. Furthermore, tie-strength and communication environment moderate the effect of incentives on metaperception. When referrals are made to weak-ties, incentives decrease metaperception favorability offline more than online. For strong-ties, this effect is lower, and it is similar in offline and online environments. Research limitations/implications The study focused on an online versus offline dyadic communication and did not consider the differences among social media. Furthermore, the authors did not consider how other forms of positive metaperception, like being seen as helpful or knowledgeable, could be increased in an online incentivized referral context. It is possible that a recommender thinks others see him as more helpful or knowledgeable online because a lot more useful information and other resources could be offered here compared to offline communications. Practical implications The authors recommend managers to design both online and offline RRPs that minimize metaperception concerns; target strong ties in any communication environment as metaperception concerns are low; and target weak ties online where metaperception concerns are muted. Originality/value This work is the first to examine how recommenders’ psychological responses differ offline and online.

Perceived value, satisfaction and future intentions in sport services

2019 ◽  
Vol 32 (4) ◽  
pp. 566-579 ◽  
Author(s):  
Mario Alguacil ◽  
Juan Núñez-Pomar ◽  
Carlos Pérez-Campos ◽  
Vicente Prado-Gascó
Keyword(s):  
Linear Models ◽  
Qualitative Comparative Analysis ◽  
Sufficient Conditions ◽  
Perceived Value ◽  
Hierarchical Regression ◽  
Brand Trust ◽  
Predictive Capability ◽  
Content Type ◽  
Necessary And Sufficient

Purpose The purpose of this paper is to analyze the role of brand-related variables as congruence and brand trust on the traditional model formed by perceived quality, perceived value (PV) and satisfaction, in order to compare predictive models for the variables of PV, satisfaction and future intentions of 683 users of sports services. Design/methodology/approach The analysis has been carried out using two different methodologies. First, three models have been proposed to be analyzed by hierarchical regression models, in order to subsequently propose a fuzzy-set qualitative comparative analysis (fsQCA) to verify the existence or not of necessary and sufficient conditions. Findings The results indicate that both the classic service variables and the elements related to the brand significantly predict PV, satisfaction and future intentions, in some cases with greater predictive weight being given to congruence and trust than the classic service variables. In addition, linear models have been shown to improve their predictive capability by including brand-related variables, especially the future intentions model. After the fsQCA, congruence and trust have proved to be sufficient combinations to achieve high levels of PV and future intentions, while this is not the case for satisfaction. Originality/value The importance of the aspects related to the brand, either on their own or in combination with the classic service variables, is demonstrated, contributing to the literature on brand image in sports services, which is practically non-existent.

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