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How to Effectively Design Referral Rewards to Increase the Referral Likelihood for Green Products

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  • Di Kuang

    (School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China)

  • Xiao-Fei Li

    (College of Business Administration, Capital University of Economics and Business, Beijing 100070, China
    School of Economics and Management, Tsinghua University, Beijing 100084, China)

  • Wen-Wen Bi

    (School of Economics and Management, Yan’an University, Yan’an 716000, China)

Abstract

Interpersonal referrals can effectively promote purchases. In view of the low sales of green products, this study introduces the referral reward program into green marketing and investigates the impact of reward type on customers’ referral likelihood for green product. Through a lab experiment with 302 participants in China involved, this study reveals the differential effects of monetary versus donation rewards on existing customers’ referral likelihood. Specifically, compared with monetary rewards, donation rewards are more effective in promoting recommendations. It is also indicated that the perceived fit between the reward and green products partially mediates the relationship between the reward type and referral likelihood. In addition, the relationship between the reward type and perceived fit is moderated by consumers’ green product knowledge. This research not only extends the literature on green marketing and referral reward programs, but also provides feasible suggestions for government and enterprises to promote green products and to improve social wellbeing.

Suggested Citation

  • Di Kuang & Xiao-Fei Li & Wen-Wen Bi, 2021. "How to Effectively Design Referral Rewards to Increase the Referral Likelihood for Green Products," Sustainability, MDPI, vol. 13(13), pages 1-16, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:13:p:7177-:d:582678
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    1. Elizabeth Emperatriz García-Salirrosas & Rafael Fernando Rondon-Eusebio, 2022. "Green Marketing Practices Related to Key Variables of Consumer Purchasing Behavior," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    2. Jin, Huijie & Lu, Shouwang & Wang, Kanliang, 2024. "Who is more likely to initiate referrals? Effect of consumer's regulatory focus on referral intention," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).

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