Bonus Program Research Articles

DESIGNING A CUSTOMER LOYALTY PROGRAM WEB SERVICE

Currently, bonus programs from various companies are very popular, using which companies increase the loyalty of the company's customers, thereby ultimately increasing profits. The article describes the process of developing a web service of the company's loyalty program. The subject area has been studied, different types of loyalty programs have been considered, and its own loyalty program has been developed, which formed the basis for the model of the web service being developed. Next, an overview and analysis of development tools is performed, the most suitable technology stack for implementation is proposed using the example of the .Net Framework platform for implementing the server side and using open libraries to implement the user interface. Based on the analysis of the subject area and the development tools intended for use, a database model of the system was developed, and a database management system represented by MySQL was selected. The architecture of the system was designed using the MVC architectural pattern, Onion design patterns and Repositories, and a scheme for the implementation of the methods of operation of the web service with client accounting systems was proposed. A cashback service project has been developed, which is a web application that interacts with client programs. A module for integration into accounting systems has been developed, using the example of such software products as Topaz-gas station, Frontol and 1C.

Reducing the gender gap in parental leave through economic incentives? – Evidence from the gender equality bonus in Sweden

Using a regression discontinuity design, I evaluate an internationally unique policy in Sweden that rewarded equal division of parental leave with a cash bonus. The policy caused a small but significant reduction in the difference in days of leave between the parents. But since parent couples responded in different directions depending on the gender of the person with the lower uptake, the average effect on the mother-father difference in uptake was insignificant. Expectedly, given this result, the bonus did not affect average gender differences in earnings or indicators of later childcare responsibility. However, mothers who lowered their uptake of parental leave in response to the bonus displayed positive point estimates with regard to earnings while mothers who increased their uptake displayed negative estimates. This indicates that we cannot rule out a potential link between the length of parental leave and later allocation of time between home and market production. While the bonus did not affect average gender differences in parental leave and earnings, a key finding is that parents’ division of parental leave can be affected by economic incentives, suggesting that better calibrated bonus programs have potential to be useful policy tools.

Управління лояльністю споживачів в контексті диджиталізації як засіб підвищення фінансової стійкості компанії

The article highlights the issue of forming and managing customer loyalty in the service sector by using digital tools. The importance of customer loyalty as one of the most powerful components of an enterprise’s intellectual capital is emphasized. The types of loyalty are characterized according to the criteria of attitude to the brand (positive/negative) and the frequency of repeated transactions (absolute, hidden, false, zero). Loyalty indicators and how to calculate them are covered: customer retention rate, customer long-term value, Net Promoter Score, customer satisfaction surveys, customer effort evaluation, cause and effect questions, repeated purchases and referrals, engagement. It was noted that among the various types of loyalty (bonus program, fixed discount, temporary discount, multi-level discount program, product as a gift, partner loyalty program, paid loyalty program) the non-commercial program deserves the most attention, because in the long term it forms and testifies to absolute customer loyalty. The main types of loyalty management in the context of digitalization include transactional, social-network, related to the influence on engagement, emotions, consumer behavior, and intentions to recommend a service. It is emphasized that automated systems, such as software for managing business processes and online services for booking procedures, are becoming an integral part of modern beauty salons and offer a wide range of possibilities: online booking for services through a website or mobile application, reminders about visits by messages or e-mail; a calendar of appointments for services with the possibility of synchronization with personal calendars of beauty masters; automatic control of consumables balances, formation of supply orders, cash book management, income and expense accounting, profitability analysis; newsletters about promotions and special offers, maintenance of pages in social networks; storage of information about customers, their preferences, history of visits through the CRM system. The positive consequences of using automation in beauty salons include increasing efficiency and productivity, improving customer service, increasing profitability, expanding marketing and advertising opportunities, improving ratings and reviews, but among the negative ones, we single out dependence on technology, loss of personal contact, and threats to data privacy. A developed set of advertising events with seasonal specialization using online tools (conducting master classes and virtual consultations, seasonal loyalty programs, charity initiatives, promotions for special dates) is presented.

Do Reemployment Bonuses Increase Employment? Evidence from the Idaho Return to Work Bonus Program

Do Reemployment Bonuses Increase Employment? Evidence from the Idaho Return to Work Bonus Program

Determinants of the utilization of cancer screening among older adults in Saxony-Anhalt-What is the influence of health literacy?

In order to preserve health and thus social participation, it is important for older people to make health-related decisions, such as those regarding the use of asecondary prevention service like cancer screening. National and international studies show that various predictors determine cancer screening participation. The aim of this study is to determine the cancer screening utilization of older people in astructurally weak region. In 2021, across-sectional study in each of two urban and rural communities in Saxony-Anhalt surveyed individuals aged 55years and older about determinants, reasons, and barriers to preventive service use (n = 954). Binary logistic regression analysis is used to analyze determinants of cancer screening use. Three quarters of the study population (76.6%) self-reported participating in acancer screening service at least once. The multivariable analyses demonstrate factors that influence the utilization of cancer screening. Age, partial knowledge on cancer screening, cancer screening as abenefit offered by astatutory health insurances' bonus program, experience with cancer in the immediate environment, thoughts about one's own health, and the feeling of security that participation gives are factors that significantly influence the use of cancer screening. Descriptively, the physician's recommendation is the strongest factor for participation. The analyses show that cancer screenings are generally well received by older people in Saxony-Anhalt, but participation in them is not related to health literacy. In keeping with the National Cancer Plan, older people should generally be supported in making an informed decision, for example, through target-group-specific physician education.

The Influence of Debt Covenant, Tunneling Incentive, and Bonus Program on Tax Avoidance with Transfer Pricing as the Mediating Variable

This research aims to examine and analyze the influence of debt covenant, tunneling incentive, and bonus program on tax avoidance, with transfer pricing as the mediating variable. This study employs explanatory research with a quantitative approach. The population of this study consists of non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (BEI) from 2017 to 2021. The sample was selected using purposive sampling, with a total of 200 company data. The data analysis method includes multiple linear regression analysis and the Sobel test. The research results indicate that the bonus program has a positive effect on tax avoidance. However, debt covenant and tunneling incentive do not have a significant influence on tax avoidance. Transfer pricing can mediate the influence of debt covenant and bonus program on tax avoidance. On the other hand, transfer pricing cannot mediate the effect of tunneling incentive on tax avoidance.

Effects of employee stock ownership plans on firm performance – evidence from listed commercial banks of Vietnam

This study presents the effect of employee stock ownership plans on the firm performance of joint stock commercial banks in Vietnam. By using the Cobb-Douglas production function model and regression analysis model, combined with the use of financial statement data and Employee Stock Ownership Plan (ESOP) issuance reports of 18 banks listed on Ho Chi Minh and Hanoi stock exchanges from 2015 to 2019, it is found that ESOP had a positive impact on the performance of banks, but there was a lag of about two years. It can be seen that ESOP issuance has a positive effect on the financial ratios of joint stock commercial banks. Especially, the higher the issuance ratio in accordance to the size of a bank, the better the influence on the indices. Though there are many advantages of ESOP compared to traditional bonus programs, only eight joint stock commercial banks in Vietnam have applied ESOP. Banks in particular and businesses in Vietnam in general need to prepare knowledge and resources to expand and promote the true effectiveness of ESOP. From there, some suggestions and recommendations to make the ESOP program really effective for both employees, banks and shareholders will be given.

Conduit Incentives: Eliciting Cooperation from Workers Outside of Managers’ Control

ABSTRACT Can managers use monetary incentives to elicit cooperation from workers they cannot reward for their efforts? I study “conduit incentives,” an innovative incentive design, whereby managers influence bonus-ineligible workers’ effort by offering bonus-eligible employees a monetary reward for performance that critically depends on the cooperation of the bonus-ineligible workers. Motivated by the reward, bonus-eligible employees use social motivators to elicit cooperation from their ineligible colleagues. I examine an intervention in a California hospital in which a one-time bonus program aimed to improve handwashing compliance. State regulation prevented physicians from receiving bonus payments. However, because physicians’ handwashing counted toward the bonus-related goal, bonus-eligible workers used social pressure to incentivize physicians’ performance, absent any tangible benefits for the physicians. The physicians improved performance during the intervention, and their improvements persisted beyond the removal of the incentives. The response to the temporary intervention significantly predicted the persistence of the performance improvements. Data Availability: The data used in this study are subject to a confidentiality agreement and cannot be shared without the hospital’s legal representatives’ explicit consent. JEL Classifications: I12; M4; M12; M14; M52.

FINANCIAL, ECONOMIC AND SOCIAL POLICY OF SPAIN IN THE NEW CONDITIONS

The article deals with the latest trends and problems of the economic and social development of Spain in conditions of large-scale geopolitical and energy crises, the deterioration of the terms of world trade caused by the war in Ukraine. The main ones are growing inflation, falling dynamic of domestic demand, business activity, negative growth rates in the agricultural sector of the economy, uncertainty in the development of some industries and services, growing social inequality. The author focuses her attention on the analysis of the current social policy of the government of the PSOE aimed primarily at mitigating inflationary blow to the socially vulnerable segments of the population. The article also discusses some new promising directions (in the field of employment policy, social security and education) and the mechanism of budget financing based on short-term and medium term planning, special bonus programs and, of course, the long-term basic “Spanish plan for the recovery, transformation and resilience of the national economy”. The successful implementation of this plan, approved by the European Commission and generously funded by European funds, could have a consolidating and a life-changing impact on other EU memberstates and on the Community as a whole. And vice versa.

Between Permissibility and Prohibition: A Fiqh Research on Cashback

This research is focused on “cashback” — a service that partially refunds the cardholder for purchases, which is widely used in Russia as a certain benefit program. Given its variety, the Muslim community does not have a complete understanding of the permissibility or prohibition of this bonus program. Based on the fatwa analysis of contemporary jurists and ulama councils, a conclusion is made about the admissibility of using cashback benefits provided by stores. Also, the use of diff erent types of bank cards and the degree of cashback permissibility in them in modern Russia are clarified.

FIRST COME, FIRST SERVED: INVESTIGATING STRATEGIES TO OVERCOME CONSUMER LEAPFROGGING BEHAVIOUR

The phenomenon of ‘consumer leapfrogging’ represents a conscious shift of consumers’ purchase decision for an innovation to a future product generation, and results in lower-than-expected demand. As consumers skip product generations, new product diffusion for the initial innovation and corresponding company turnover is capped. While previous studies highlight the importance of consumer leapfrogging behaviour, effective marketing strategies to attenuate detrimental consequences are lacking. To close this research gap, this paper empirically tests the effectiveness of various marketing strategies (trade-in program, bonus program, money-back guarantee, and product bundles) as potential countermeasures to consumer leapfrogging via a scenario-based online experiment with a 5 (four marketing strategies and control group) × 2 (low/high radical product) between-subjects design. Our results reveal that trade-in and bonus programs as well as money-back guarantees are effective countermeasures to consumer leapfrogging behaviour. Furthermore, our findings also show that the effectiveness of the instruments decreases with the degree of product radicality.

COST ACCOUNTING: MEMAKNAI BIAYA BONUS DALAM METAFORA SYUKUR

This study aims to determine the method of determining and accounting treatment for e-commerce bonus fees and to find out a review of the gratitude metaphor for the determination and accounting treatment of e-commerce bonus costs. This study is a qualitative study with a phenomenological approach. Sources of data used are primary data obtained through interviews and observation. The data analysis used is triangulation of data sources consisting of data reduction, data presentation, and drawing conclusions. The results of the study found that in determining the bonus cost, there were several methods such as the use of idle products, based on the profits that had been obtained, based on the acquisition price with a minimum purchase, based on taking parties, and based on certain times. As for the accounting treatment, it varies according to the method used, where the dominant among these methods is measuring based on cost, recognizing it as a cost or profit, and presented in the profit and loss component according to its accumulated value. In the review of the gratitude metaphor, the e-commerce business actors studied have fulfilled three existing elements, namely, being sincere in giving bonuses and the like as a form of gratitude with the heart, saying "alhamdulillah" conveying bonus programs and the like to customers as a form of verbal gratitude, and realizing bonuses and the like to customers as a form of gratitude with actions which are the highest level of gratitude itself.

Addressing Changes in Professional Behavior by Teacher Bonuses: A Mixed-Methods Approach

How can a bonus program affect the performance of teachers in classrooms? This paper collected data from teachers employed in Brazilian state-run schools to examine the key mechanisms through which a teacher bonus scheme can have a causal effect on the academic achievements of students. Using mixed-methods research and data triangulation from questionnaires and semi-structured interviews with teachers, this study finds limited empirical evidence supporting the bonus program of the state of São Paulo. The bonus program created no additional incentive for educators to start/continue working in state schools, and it was not responsible for the improvement of teaching activities.

Frequent Flyer Cost Estimation

The marketing activity of a modern airline is quite diverse. Under the conditions of an oligopoly, airlines develop their business in competition for a passenger.In modern conditions in Russia, the use of dumping methods of the early 1990s is very ineffective. There are no weak airlines left on the long-distance air transportation market, and in regional markets large companies lose to small regional carriers due to the high cost of performing flights on large-capacity aircrafts of the airline’s fleet.Generally, non-price methods of competition come out on top. Flexible tariff policy, advertising, and high service in servicing passengers remain leading traditional methods of competing for a passenger.This article is devoted to the study of another marketing method for attracting passengers, or rather retaining passengers on the airline’s flights, which is development of bonus programs, frequent flyer programs. PJSC Russian Airlines (Aeroflot) was chosen as the object for the study. The subject of the research is the «Aeroflot Bonus» program.The objective of the study is to study the cost of the program. For research purposes, this is the value of the frequent flyer program point. The problem proposed to be solved is to determine the amount of expenses for implementation of the bonus program of frequent flyers. When solving the problem in its staging part, the assessment is not limited to direct costs associated with the costs of marketing efforts in the form of costs for organising a special advertising department, issuing bonus cards, software, and wages. The estimation refers also to indirect costs in the form of unreceived proceeds from free bonus tickets. Besides, a rough estimate has been made of the airline’s hidden costs due to an unpaid seat on the plane. The study conclusions indicate that hidden costs will be taken into account in calculating the cost of a flight and the bonus program has a right to exist.

Mechanisms for Incentivizing Top Managers of the Company in the Long Term

Motivating and rewarding company employees requires constant development and improvement the remuneration of the top management of the company is especially difficult. For this, compensation plans are being developed, which can be conditionally divided into two groups: bonus and stock-based option programs. Bonus programs provide for large-scale remuneration of managers based on the company’s performance in the current year. Compensation plans that reward top management with shares are effective. Such programs are developed only for selected top managers who have a direct impact on the financial results of the company.The purpose of the study is to substantiate the optimal mechanisms for remunerating top managers in Russian conditions and to determine the directions for the development of compensation plans. The object of the research is the mechanisms of involvement and motivation of managers. The subject of the research is the remuneration of the top managers of the company. Methods and methodology of work. General scientific methods were used, such as analysis, synthesis, method of classification and typology, generalization, abstraction, modeling. It has been established that in Russia it is advisable to use «phantom» shares because the domestic legislative framework does not define the mechanisms of reward with shares as broadly as is customary in developed countries. It is also recommended to apply bonus programs with payments in installments for 2–3 years. Directions have been identified to improve the effectiveness of bonus and option compensation plans in Russia.

The Medicare Advantage Quality Bonus Program Has Not Improved Plan Quality.

In 2012 Medicare introduced the quality bonus program, linking financial bonuses to commercial insurers' quality performance in Medicare Advantage (MA). Despite large investments in the program, evidence of its effectiveness is limited. We analyzed insurance claims from the period 2009-2018 from the nation's largest MA claims database for 3,753,117 MA beneficiaries (treatment group) and 4,025,179 commercial enrollees (control group). Using a difference-in-differences framework, we evaluated changes in performance on nine claims-based measures of quality in both groups before and after the start of the bonus program and with adjustment for differential pre-period trends. We observed no consistent differential improvement in quality for MA versus commercial enrollees under the quality bonus program. Program participation was associated with significant quality improvements among MA beneficiaries on four measures, significant declines on four other measures, and no significant change in overall quality performance (+0.6percentage points). Together, these results suggest that the quality bonus program did not produce the intended improvement in overall quality performance of MA plans.

IMPROVEMENT OF THE SYSTEM OF MOTIVATION OF EMPLOYEES OF A TRADING COMPANY

The article is relevant, since the interest of workers in the results of labor is the basis for the successful development of domestic enterprises and business in general. At the same time, the improvement and enhancement of trade processes are taking an increasing place in the economy of any country. In the context of the development of a competitive market, the motivation of sales personnel is the basis for the growth of labor productivity and the achievement of high performance indicators both for the trading enterprise itself, and for the manufacturer and, of course, for the consumer. Correctly developed measures to improve the motivation system of employees of a trading enterprise, as a result, will increase sales revenue and other performance indicators. The article presents the basic principles of motivating employees of the enterprise, investigates the motivational processes of LLC “Arkaim”, on the basis of which changes are proposed in the system of bonuses to employees of the enterprise for the high-quality performance of duties. It was revealed that in LLC “Arkaim” not enough attention is paid to an important motivating factor for increasing the productivity of employees - training of personnel. The main stages of development of the training system at the enterprise are proposed. The budget for staff training for the current year has been formed. The results of the introduction of the new bonus program testify to the effectiveness of the developed measures to stimulate the employees of the trade enterprise.

Childbearing and the distribution of the reservation price of fertility: The case of the Korean baby bonus program

We study the fertility effects of a Korean pro-natalist policy. We show that using the same assumptions and the same binary-choice models used in this literature, and we can estimate the entire unconditional distribution of the reservation price of fertility, which is the minimal compensation an agent must receive to induce her to have a (or an additional) child. Our estimates show that the program’s benefit level and budget would have to be orders of magnitude (about 15 times) larger for the program to bring South Korea back to desired levels of fertility. We also found that over 74% of the program’s expenditures are associated with infra-marginal births – these are births that would have occurred even in the absence of the financial incentive. We show that this is likely not a unique characteristic of the Korean pro-natalist policy but instead a problem of most programs of this nature.

Double‐Bonuses to Medicare Advantage Plans Do Not Increase Enrollment, Enhance Quality or Promote Equity

Research ObjectiveEnrollment in Medicare Advantage (MA) – private plans for Medicare beneficiaries – has grown remarkably. Fueled by generous Medicare payments, MA offers attractive benefits and modest cost‐sharing. Yet policymakers have argued that MA plans are overpaid and questioned its value. In response, the 2012 ACA cut MA payments while creating the Quality Bonus Program (QBP) in 2012. The QBP awards bonuses to plans with high star ratings (ranging 1–5, 5 being highest) based on clinical care, consumer satisfaction, and drug plan quality.An unusual feature of the QBP is the delineation of “double‐bonus” counties – larger population areas with high MA enrollment and low fee‐for‐service spending – where high‐quality plans receive bonuses that are twice as large as plans with equivalent quality in non‐double‐bonus counties. Double bonuses are large, totaling $2.3 billion in 2019. However, little is known about their impact on MA enrollment, quality, and equity.Study DesignWe used national data to test the association of double bonuses with MA enrollment, quality and equity from 2008 through 2018. First, using difference‐in‐differences (DID) analysis of enrollment in MA vs traditional Medicare, we compared MA enrollment in double‐bonus and non‐double‐bonus counties, before and after double bonus eligibility. Second, using DID analysis of MA quality, we compared performance for 9 measures of quality consistently included in the QBP: breast cancer screening, 4 diabetes measures (e.g., A1c testing), 3 medication adherence measures (e.g., statins), and 1 rheumatoid arthritis management measure. Finally, we tested whether double bonuses were allocated equitably, comparing the probability of residing in a double‐bonus county among Black versus White Medicare beneficiaries.Population StudiedWe evaluated MA enrollment using the 100% Medicare Beneficiary Summary File (544,356,215 beneficiary‐years). We evaluated MA quality using 100% claims data for MA beneficiaries ages 50–74 using the largest commercial MA database in the United States (27,249,714 measure‐beneficiary‐years).Principal FindingsIn the pre‐period (2008–2011), MA enrollment was 36% and 18% in double‐bonus versus non‐double‐bonus counties, respectively. In DID models, double bonuses were not associated with changes in MA enrollment (DID, −1.9 percentage point [pp], 95% confidence interval [CI], −4.1, 0.3). In the pre‐period, quality measures were achieved for 67.7% and 68.2% of MA beneficiaries in double‐bonus versus non‐double‐bonus counties, respectively. In DID models, double bonuses were not associated with changes in MA quality (DID, +2.2 pp, 95% CI, −1.6 to 6.1). Black beneficiaries were 5.8 pp (95% confidence interval [CI], −9.3, −2.3) less likely than White beneficiaries to reside in double‐bonus counties, a relative difference of 24%.ConclusionsIn this national study of the MA double bonus policy, we report three main findings. First, double bonuses were not associated with MA enrollment. Second, double bonuses were not associated with MA quality performance. Finally, double bonuses were offered much less frequently to plans serving Black than White populations.Implications for Policy or PracticeOur findings suggest that double bonuses are not an efficient or equitable mechanism for promoting enrollment or quality in MA. As MA expands, CMS should experiment with alternative strategies for improving value and equity in the program.Primary Funding SourceNational Institutes of Health.

Acceptance of criteria for health and driver scoring in the general public in Germany.

Numerous health insurers offer bonus programmes that score customers’ health behaviour, and car insurers offer telematics tariffs that score driving behaviour. In many countries, however, only a minority of customers participate in these programmes. In a population-representative survey of private households in Germany (N = 2,215), we study the acceptance of the criteria (features) on which the scoring programmes are based: the features for driver scoring (speed, texting while driving, time of driving, area of driving, accelerating and braking behaviour, respectively) and for health scoring (walking distance per day, sleeping hours per night, alcohol consumption, weight, participation in recommended cancer screenings, smoking status). In a second step, we model participants’ acceptance of both programmes with regard to the underlying feature acceptance. We find that insurers in Germany rarely use the features which the participants consider to be the most relevant and justifiable, that is, smoking status for health scoring and smartphone use for driver scoring. Heuristic models (fast-and-frugal trees) show that programme acceptance depends on the acceptance of a few features. These models can help to understand customers’ preferences and to design scoring programmes that are based on scientific evidence regarding behaviours and factors associated with good health and safe driving and are thus more likely to be accepted.