Money matters? Effect of reward types on customers' review behaviors

Abstract

PurposeOnline retailers are pioneering the incentivization of customers to generate more product reviews by rewarding them. However, little is known about the impact of reward types on customers' review behavior, including review frequency and sentiment. To address this gap, we investigated the effects of different reward types on customers' review behavior and how these rewards influence customers' review behavior.Design/methodology/approachWe collected secondary data and empirically tested the hypothesis by analyzing the change in reward policy. Regression and two-stage Heckman models were applied to investigate the effects, with the latter used to control potential selection issues.FindingsThe results revealed that monetary rewards can stimulate customers to generate more positive product reviews. Furthermore, the reward amount has a negative moderating effect on the aforementioned relationship. Additionally, customer tenure negatively moderates the relationship between monetary rewards and review behavior.Originality/valueThis study contributes to the understanding of user-generated content motivation and provides managerial implications for reward programs.