Unintended effects of incentivizing consumers to recommend a favorite brand

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Marketers often use incentives such as coupons, rewards or special membership discounts in order to motivate consumers to purchase or recommend a particular brand. This practice is based on the underlying assumption that an increase in incentives will lead to an increase in consumer response – an idea which has been at the core of traditional economic thinking for decades. Some psychologists have claimed, however, that under specific conditions an increase in incentives can reduce (rather than increase) one's willingness to perform the behavior which is being incentivized. If materialized, the possibility that extrinsic incentives may diminish consumer willingness to recommend a favorite brand could have important theoretical and practical consequences in the context of word-of-mouth or buzz marketing. This study tests that possibility in the context of an experiment about Apple computers, a favorite brand among US college students. Participants were asked to recommend the brand to a friend (1) in absence of any monetary reward and (2) for a small monetary incentive. Students who were promised a small monetary reward experienced a decrease in intrinsic motivation and wrote shorter recommendations than those who were not promised any incentives. Data also suggest that the quality of the recommendation may decrease when incentives are offered. The results are discussed in line of their possible theoretical and practical significance.

Original languageEnglish
Pages (from-to)210-223
Number of pages14
JournalJournal of Marketing Communications
Volume21
Issue number3
DOIs
Publication statusPublished - 1 Jan 2015
Externally publishedYes

Fingerprint

Incentives
Reward
Willingness
Word-of-mouth
Coupons
Economics
Intrinsic motivation
College students
Purchase
Discount
Consumer response
Marketing
Monetary incentives
Marketers
Apple
Experiment

Keywords

  • advertising
  • incentives
  • intrinsic motivation
  • motivation crowding
  • WOM marketing

ASJC Scopus subject areas

  • Business and International Management
  • Marketing

Cite this

Unintended effects of incentivizing consumers to recommend a favorite brand. / Anghelcev, George.

In: Journal of Marketing Communications, Vol. 21, No. 3, 01.01.2015, p. 210-223.

Research output: Contribution to journalArticle

@article{59590f76d4764ef2b88745dd584a5539,
title = "Unintended effects of incentivizing consumers to recommend a favorite brand",
abstract = "Marketers often use incentives such as coupons, rewards or special membership discounts in order to motivate consumers to purchase or recommend a particular brand. This practice is based on the underlying assumption that an increase in incentives will lead to an increase in consumer response – an idea which has been at the core of traditional economic thinking for decades. Some psychologists have claimed, however, that under specific conditions an increase in incentives can reduce (rather than increase) one's willingness to perform the behavior which is being incentivized. If materialized, the possibility that extrinsic incentives may diminish consumer willingness to recommend a favorite brand could have important theoretical and practical consequences in the context of word-of-mouth or buzz marketing. This study tests that possibility in the context of an experiment about Apple computers, a favorite brand among US college students. Participants were asked to recommend the brand to a friend (1) in absence of any monetary reward and (2) for a small monetary incentive. Students who were promised a small monetary reward experienced a decrease in intrinsic motivation and wrote shorter recommendations than those who were not promised any incentives. Data also suggest that the quality of the recommendation may decrease when incentives are offered. The results are discussed in line of their possible theoretical and practical significance.",
keywords = "advertising, incentives, intrinsic motivation, motivation crowding, WOM marketing",
author = "George Anghelcev",
year = "2015",
month = "1",
day = "1",
doi = "10.1080/13527266.2012.747980",
language = "English",
volume = "21",
pages = "210--223",
journal = "Journal of Marketing Communications",
issn = "1352-7266",
publisher = "Routledge",
number = "3",

}

TY - JOUR

T1 - Unintended effects of incentivizing consumers to recommend a favorite brand

AU - Anghelcev, George

PY - 2015/1/1

Y1 - 2015/1/1

N2 - Marketers often use incentives such as coupons, rewards or special membership discounts in order to motivate consumers to purchase or recommend a particular brand. This practice is based on the underlying assumption that an increase in incentives will lead to an increase in consumer response – an idea which has been at the core of traditional economic thinking for decades. Some psychologists have claimed, however, that under specific conditions an increase in incentives can reduce (rather than increase) one's willingness to perform the behavior which is being incentivized. If materialized, the possibility that extrinsic incentives may diminish consumer willingness to recommend a favorite brand could have important theoretical and practical consequences in the context of word-of-mouth or buzz marketing. This study tests that possibility in the context of an experiment about Apple computers, a favorite brand among US college students. Participants were asked to recommend the brand to a friend (1) in absence of any monetary reward and (2) for a small monetary incentive. Students who were promised a small monetary reward experienced a decrease in intrinsic motivation and wrote shorter recommendations than those who were not promised any incentives. Data also suggest that the quality of the recommendation may decrease when incentives are offered. The results are discussed in line of their possible theoretical and practical significance.

AB - Marketers often use incentives such as coupons, rewards or special membership discounts in order to motivate consumers to purchase or recommend a particular brand. This practice is based on the underlying assumption that an increase in incentives will lead to an increase in consumer response – an idea which has been at the core of traditional economic thinking for decades. Some psychologists have claimed, however, that under specific conditions an increase in incentives can reduce (rather than increase) one's willingness to perform the behavior which is being incentivized. If materialized, the possibility that extrinsic incentives may diminish consumer willingness to recommend a favorite brand could have important theoretical and practical consequences in the context of word-of-mouth or buzz marketing. This study tests that possibility in the context of an experiment about Apple computers, a favorite brand among US college students. Participants were asked to recommend the brand to a friend (1) in absence of any monetary reward and (2) for a small monetary incentive. Students who were promised a small monetary reward experienced a decrease in intrinsic motivation and wrote shorter recommendations than those who were not promised any incentives. Data also suggest that the quality of the recommendation may decrease when incentives are offered. The results are discussed in line of their possible theoretical and practical significance.

KW - advertising

KW - incentives

KW - intrinsic motivation

KW - motivation crowding

KW - WOM marketing

UR - http://www.scopus.com/inward/record.url?scp=84929290849&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84929290849&partnerID=8YFLogxK

U2 - 10.1080/13527266.2012.747980

DO - 10.1080/13527266.2012.747980

M3 - Article

AN - SCOPUS:84929290849

VL - 21

SP - 210

EP - 223

JO - Journal of Marketing Communications

JF - Journal of Marketing Communications

SN - 1352-7266

IS - 3

ER -