Percorrer por autor "Rostetter, Carl Pascal"
A mostrar 1 - 1 de 1
Resultados por página
Opções de ordenação
- The importance of incentives and the network effect for digital startups to scalePublication . Rostetter, Carl Pascal; Costa, Cláudia Isabel de SousaDigital startups are facing high mortality rates and various challenges. According to the statistics, more than 50% of all new ventures fail. Therefore, this thesis highlights the importance to scale as a digital startup. One of the main reasons for lacking ability to scale refers to a missing customer base which hinders digital startups from achieving a CA in the market. As driver for growth, incentives can help the digital startup to scale faster into a large corporation and therefore the influence of different incentives is critical for early stage startups. By using an empirical study this research aims to explore the impact of incentives to foster the network effect and as such the ability of scaling startups, which will eventually lead to the success of the company. The results of the study show that both monetary and non-monetary incentives are a powerful tool to increase referrals and recommendations compared to no incentives offered. However, the likelihood of buying the product is not significantly affected by the presence of incentives. In this case, the importance of the network effect is negligible as success factor for digital startups. Incentives are more effective due to the extrinsic and intrinsic motivation of consumers to recommend and refer, represent a powerful part of a strategy to acquire initial customers, accelerate digital startups growth and ability to scale successfully.