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In a field experiment, recommenders\u2019 defection rates fell from 19% to 7% within a year, and their average monthly revenue grew by 11.4% compared with a matched control group. A negative interaction between referral program participation and customer tenure reveals that the loyalty effect of voicing a recommendation is particularly pronounced for newer customer\u2013firm relationships. A laboratory experiment further demonstrates that referral programs with larger rewards strengthen attitudinal and behavioral loyalty, whereas smaller rewards affect only the behavioral dimension. This article contributes to our theoretical understanding of the roles played by the commitment\u2013consistency principle and positive reinforcement theory as mechanisms underlying the effectiveness of customer referral programs.<\/jats:p>","DOI":"10.1509\/jm.11.0423","type":"journal-article","created":{"date-parts":[[2013,4,15]],"date-time":"2013-04-15T14:31:25Z","timestamp":1366036285000},"page":"17-32","update-policy":"https:\/\/doi.org\/10.1177\/sage-journals-update-policy","source":"Crossref","is-referenced-by-count":152,"title":["Growing Existing Customers\u2019 Revenue Streams through Customer Referral Programs"],"prefix":"10.1177","volume":"77","author":[{"given":"Ina","family":"Garnefeld","sequence":"first","affiliation":[{"name":"Schumpeter School of Business and Economics, University of Wuppertal"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Andreas","family":"Eggert","sequence":"additional","affiliation":[{"name":"University of Paderborn"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Sabrina V.","family":"Helm","sequence":"additional","affiliation":[{"name":"Environment and Sustainability Initiative, University of Arizona"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Stephen S.","family":"Tax","sequence":"additional","affiliation":[{"name":"Service Management and Francis G. 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