By examining the impact of CRP participation on recommenders, our study makes several important contributions to extant literature. Most studies of word of mouth and CRPs take a customer attraction perspective; we provide novel insights by investigating how referrals influence the recommender. In line with previous research, we demonstrate that CRP participation affects both customer chum and spending behavior; we go further by showing that CRPs influence the revenue stream of the recommender to shed light on customer loyalty determinants and contribute to the development of loyalty-based marketing strategy models (Rust, Lemon, and Zeithaml 2004). We improve understanding of loyalty by demonstrating the role of word of mouth, delivered through CRPs, in fostering loyalty. Our explanation is anchored in a commitment-consistency framework and supported by reinforcement principles (Cialdini 1971; Kelley 1973; Leventhal 1964).
With our test of the impact of reward size, we help clarify the complex situations that emerge from scenarios involving multiple customers and the firm. In contrast with the proposition that large rewards might lead customers to think that they have acted only to gain the reward, with no predicted positive impact on customer attitudes (Ryu and Feick 2007), we find that a large reward translates into increased attitudinal loyalty and small rewards have no effect. This result contrasts with research examining the impact of reward size on the likelihood of a customer referral. In that case, research has found no difference between large and small rewards (Ryu and Feick 2007). The distinction is notable: small rewards seem effective in inducing the delivery of a referral, but larger rewards are required to affect the recommender's attitude toward the firm. Investigations of the more complicated structure of CRPs could advance the development of marketing thought even further.