The Consumer Influence of Digital Coupon Distribution Through a Referral Program

Increasing digitalization has posed new challenges for businesses, and digital coupons are an important means of promoting their sales. However, there are still gaps in the literature on how they are distributed. The objective of this paper is to study whether the distribution of digital coupons through a referral program increases purchase intention and perceived quality towards a product. By conducting an experimental design, the results point out that consumer purchase intention increases if the recommendation is made by someone with a strong relationship and if a digital coupon is offered, and when the tie relationship is weak or no relationship, it does not vary significantly. On the other hand, the results showed that perceived quality does not vary with the offer of a digital coupon, regardless of the strength of the tie between the person who recommended and the consumer. Current research suggests that managers should use this information to design a digital coupon program tailored to the company’s objectives to retain and capture customers. This new approach to digital voucher distribution is one of the first to investigate their distribution, and their simultaneous use with a referral program.