Start Date
11-12-2016 12:00 AM
Description
Information sharing through online WOM has become increasingly important for businesses. Despite the popularity of online referral programs, little is known about how firms can optimally design call for sharing to encourage referrals, as well as the motives underlying those referrals. In collaboration with a large US based online platform, we conduct a randomized field experiment involving 100,000 customers to identify the causal effect of three types of call for sharing (egoistic, equitable and altruistic). Our experiment shows that ‘altruistic’ call for sharing leads to the highest likelihood of sharing and best sharing outcomes. In addition, the analysis results provide direct managerial implications to firms on the optimal design of call for sharing campaigns (how, to whom and when to initial call for sharing). Finally, we discuss the key differences and complementarity between call for sharing and call for purchase, and offer guidance on firm's integrated marketing communication strategy.
Recommended Citation
Jung, JaeHwuen; Bapna, Ravi; Golden, Joseph M.; and Sun, Tianshu, "Does Care Lead to Share? Evidence from a Randomized Field Experiment on Call for Sharing" (2016). ICIS 2016 Proceedings. 15.
https://aisel.aisnet.org/icis2016/EBusiness/Presentations/15
Does Care Lead to Share? Evidence from a Randomized Field Experiment on Call for Sharing
Information sharing through online WOM has become increasingly important for businesses. Despite the popularity of online referral programs, little is known about how firms can optimally design call for sharing to encourage referrals, as well as the motives underlying those referrals. In collaboration with a large US based online platform, we conduct a randomized field experiment involving 100,000 customers to identify the causal effect of three types of call for sharing (egoistic, equitable and altruistic). Our experiment shows that ‘altruistic’ call for sharing leads to the highest likelihood of sharing and best sharing outcomes. In addition, the analysis results provide direct managerial implications to firms on the optimal design of call for sharing campaigns (how, to whom and when to initial call for sharing). Finally, we discuss the key differences and complementarity between call for sharing and call for purchase, and offer guidance on firm's integrated marketing communication strategy.