The influence of reward qualifying conditions on participation in online referral programs.

Abstract

Online referral reward programs (RRPs) incentivize customers to promote products within their digital social networks by offering rewards, yet these programs often face persistently low participation. This research examines how online RRP qualifying conditions—specifically, whether rewards depend solely on the referrer's own actions or require assistance from others—shape customers' willingness to engage. Drawing on psychological reactance theory, the study investigates both the direct impact of assistance-based conditions and the mediating role of psychological reactance, as well as whether the timing of the reward offer (pre-vs. post-consumption) moderates these effects. Three scenario-based online RRP experiments conducted in gym, meal-kit, and coffee-shop contexts show that assistance-based conditions heighten reactance and reduce engagement, while post-consumption timing attenuates this reactance-driven decline. The findings advance understanding of consumer responses to online RRPs and provide actionable guidance for designing more effective digital referral strategies