Riding the Referral Express: Examining the Impact of Referral Reward Programs on Digital Transportation Platforms

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dc.contributor.authorUrban, Felix
dc.contributor.authorThies, Ferdinand
dc.date.accessioned2023-12-26T18:43:50Z
dc.date.available2023-12-26T18:43:50Z
dc.date.issued2024-01-03
dc.identifier.doi10.24251/HICSS.2024.526
dc.identifier.isbn978-0-9981331-7-1
dc.identifier.other064de5c9-7999-4e54-8458-bc8cef721436
dc.identifier.urihttps://hdl.handle.net/10125/106910
dc.language.isoeng
dc.relation.ispartofProceedings of the 57th Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectElectronic Marketing
dc.subjectdigital marketing
dc.subjectdigital platforms
dc.subjectnetwork effects
dc.subjectreferral programs
dc.subjecttransportation platforms
dc.titleRiding the Referral Express: Examining the Impact of Referral Reward Programs on Digital Transportation Platforms
dc.typeConference Paper
dc.type.dcmiText
dcterms.abstractThis paper examines the effectiveness of referral reward programs (RRP) in sustaining network effects in digital transportation platforms (DTP). Using data of 119,130 users, the study assesses differences between referred and non-referred users in terms of revenue, retention, and engagement. Results show that referred users spend 5.77% more on average, have 11.66% less likelihood to defect and refer seven times more than non-referred users. However, the positive effects of RRPs do not significantly affect revenue of younger users and increases risk of defection in older generations over time. The study recommends firms to balance the referral and organic word-of-mouth effects of RRPs as one-size does not fit all.
dcterms.extent10 pages
prism.startingpage4365

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