Online from: 2011
Information: About this Collection
|Title:||Managing word of mouth: the referral incentive programme that backfired|
|Author(s):||Patricia Chew (Doctoral Candidate with the Department of Marketing, NUS Business School, National University of Singapore, Singapore), Jochen Wirtz (Associate Professor with the Department of Marketing, NUS Business School, National University of Singapore, Singapore)|
|Citation:||Patricia Chew, Jochen Wirtz, "Managing word of mouth: the referral incentive programme that backfired", Emerald Emerging Markets Case Studies Collection, (2011)|
|Keywords:||Incentive schemes, Insurance companies, Market segmentation, Marketing strategy, Singapore|
|Article type:||Case study|
|DOI:||10.1108/20450621111110519 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||This case is based on in-depth qualitative interviews on referral programs in general, and the observations from those interviews were translated into the insurance context for the purpose of illustrating people's responses to referral programs. Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.|
Subject area – Market development; market analysis; customer incentive programmes and segmentation.
Study level/applicability – Undergraduate Business and Management, MBA/MA Management.
Case overview – The Singapore subsidiary of AHL Insurance Corporation (AHL) was trying to expand its customer base through a “recommend-a-friend” programme. Ideally, the incentives would encourage the top tier customers to refer more friends to help AHL further penetrate the market and expand its customer base. Instead, the programme worked the reverse on these customers and referrals from “Apostles” fell. Ray Stevenson had to find out why this was so and think of a way to rectify the problem.
Expected learning outcomes – This case will enable students to analyse a business decision which ultimately proved unsuccessful to the point of adverse market reaction. Students will examine the reasons for this poor market perception; conduct analysis of field test data and provide managerial conclusions and recommendations identifying the correct course of action.
Supplementary materials – Teaching notes.
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