14-M: the Making of a Successful Advocate: How Incentivizing Consumer Referrals Affects Persuasion

Lauren Cheatham, Stanford University, USA
Zakary Tormala, Stanford University, USA
When it comes to consumer product and service referrals, do incentives work? We find that there is an important tradeoff such that incentivizing referrals increases reach but undermines the effectiveness of the advocacy. We provide evidence for this tradeoff being driven by a shift in intrinsic motivation.
[ to cite ]:
Lauren Cheatham and Zakary Tormala (2017) ,"14-M: the Making of a Successful Advocate: How Incentivizing Consumer Referrals Affects Persuasion", in NA - Advances in Consumer Research Volume 45, eds. Ayelet Gneezy, Vladas Griskevicius, and Patti Williams, Duluth, MN : Association for Consumer Research, Pages: 1019-1019.