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

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dc.contributor.author Urban, Felix
dc.contributor.author Thies, Ferdinand
dc.date.accessioned 2023-12-26T18:43:50Z
dc.date.available 2023-12-26T18:43:50Z
dc.date.issued 2024-01-03
dc.identifier.isbn 978-0-9981331-7-1
dc.identifier.other 064de5c9-7999-4e54-8458-bc8cef721436
dc.identifier.uri https://hdl.handle.net/10125/106910
dc.language.iso eng
dc.relation.ispartof Proceedings of the 57th Hawaii International Conference on System Sciences
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject Electronic Marketing
dc.subject digital marketing
dc.subject digital platforms
dc.subject network effects
dc.subject referral programs
dc.subject transportation platforms
dc.title Riding the Referral Express: Examining the Impact of Referral Reward Programs on Digital Transportation Platforms
dc.type Conference Paper
dc.type.dcmi Text
dcterms.abstract This 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.extent 10 pages
prism.startingpage 4365
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