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The effects of social distance on proposer's offer and responder's intention to accept in online referral bonuses programs under Chinese setting

Published: 07 August 2012 Publication History

Abstract

The referral bonuses program is one of the most effective ways to attract potential customers to attend online group-buy sites. This study tends to explore the underlying mechanism on why and how the social distance between a proposer and a responder influences the proposer's sharing behavior and responder's acceptance behavior. Drawing upon the ultimatum game theory as well as social norm and market norm literature, we design three experiments to investigate this problem. The results suggest that the proposers would like to share more to the socially closer people than the distant ones, and the responders are more likely to accept the referrals from their socially closer friends than the socially distant ones. Interestingly, the result also reveals that sharing amount deviates from the fair value when social distance is near rather than far. Theoretical and practical implications are discussed.

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      cover image ACM Other conferences
      ICEC '12: Proceedings of the 14th Annual International Conference on Electronic Commerce
      August 2012
      357 pages
      ISBN:9781450311977
      DOI:10.1145/2346536
      Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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      Published: 07 August 2012

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      Author Tags

      1. group-buy websites
      2. lab experiment
      3. market norm
      4. referral bonuses program
      5. social distance
      6. social norm

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      • Singapore Management University

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