Optimal referral rewards for poverty-alleviating products based on the structural equation interpretation

Abstract

Purpose

The goal of this study is to investigate the mediating effect of referral rewards on consumer willingness to recommend poverty-alleviating products and to identify the most effective referral rewards for incentivizing consumers to recommend poverty-alleviating products.

Design/methodology/approach

Tournament rewards and piece-rate rewards are designed based on the theory of indebtedness, the related literature and the actual background. SPSS 26.0 and AMOS 17.0 are used to analyze the structural equation model.

Findings

According to the structural equation analysis, the following findings were found: under the tournament reward condition, social image, feelings of indebtedness and perceived reward value negatively affect consumer willingness to recommend. Under the piece-rate reward condition, social image and feelings of indebtedness significantly negatively affect consumer recommendation willingness, while perceived reward value significantly positively affects consumer recommendation willingness. The mean recommendation willingness of the tournament reward group is significantly lower than that of the control group. In contrast, the mean recommendation willingness of the piece-rate rewards group is significantly higher than that of the control group.

Originality/value

Based on the study findings, the authors propose that enterprises apply piece-rate rewards to incentivize consumers to recommend poverty-alleviating products when designing such rewards. In this way, the sale of poverty-alleviating products can be improved.

Citation

Zou, F. and Zhou, Y. (2023), "Optimal referral rewards for poverty-alleviating products based on the structural equation interpretation", Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-09-2022-1280