Designing promotion incentive to embrace social sharing: Evidence from field and lab experiments

Tianshu Sun, Nina Huang, Siva Viswanathan, Elena Zheleva

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This study examines whether and how firms can design novel incentives to engage customers in this social sharing era. In collaboration with a leading online deal platform, we conduct a large-scale randomized field experiment and two lab experiments to test the effectiveness of different incentive designs (varied by shareability and scarcity of promotion codes) in driving social sharing senders' purchase and referrals. We find that providing senders with one non-shareable promo code significantly increases their purchase likelihood but does not influence their referrals. In contrast, the senders who receive one shareable code are less likely to purchase themselves yet are more likely to make successful referrals. Meanwhile, the incentive design with two codes that has one non-shareable code and one shareable code increases neither the senders' purchase nor their successful referrals. We further conduct two lab experiments on Amazon Mechanical Turk to explore the underlying mechanisms of the observed relationships.

Original languageEnglish (US)
Title of host publication40th International Conference on Information Systems, ICIS 2019
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683197
StatePublished - 2020
Event40th International Conference on Information Systems, ICIS 2019 - Munich, Germany
Duration: Dec 15 2019Dec 18 2019

Publication series

Name40th International Conference on Information Systems, ICIS 2019

Conference

Conference40th International Conference on Information Systems, ICIS 2019
CountryGermany
CityMunich
Period12/15/1912/18/19

Keywords

  • Incentive design
  • Lab experiments
  • Randomized field experiment
  • Social sharing

ASJC Scopus subject areas

  • Computer Science Applications
  • Information Systems

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