Abstract:

This research explores how product type (hedonic product and utilitarian product) and reward type (hedonic gift and utilitarian gift) influence customer referral likelihood in referral reward program. The results show as following. Firstly, product type has significant influences on referral likelihood. Compared with utilitarian product, customers are more likely to make referrals when consumed hedonic product. Secondly, product type and reward type have significant interactions to referral likelihood. When rewarded hedonic gift, customers who consumed hedonic product have great willing to make referrals, however, when rewarded utilitarian gift, customer who consumed utilitarian product have great willing to make referrals. Finally, the research offers some marketing implications to the managers.

Key words: Referral reward program, product type, reward type, referral likelihood