Effectiveness Of Rewards Research Articles

The Analysis of Financial Rewards on Employee Engagement in the Public Sector: Cross-Cultural as a Moderating Variables

Cross-cultural research on the influence of individuality and collectivism on employee engagement is lacking. This study aims to analyse the impact of employee financial rewards on employee engagement with a focus on individualistic and collectivistic cultures as moderating variables in a public sector organisation. This research employed standardised face-to-face open-ended interviews. The research instrument is made from one theme and five open-ended questions to address the objectives of this study. The constant comparative data analysis approach was employed in conjunction with content analysis. The researcher categorized the data based on their disparities as well as their similarities. This study found that the municipality offers its employees financial rewards; however, due to inequality, unfairness, favouritism, and political influence, employees are not rewarded fairly, leading to employees being unhappy and disengaged from their work and the organisation. The municipality does not practice either a collectivistic or individualistic culture. A poor imbalance between individualistic and collectivistic cultures reduces the impact of financial rewards on employee engagement. This study's findings emphasise that the effectiveness of financial rewards on employee engagement depends on the organisation's practices and the equilibrium of individualistic and collectivistic cultures.

Effectiveness of Non-Monetary rewards in Employee Motivation in Private Sector of Chennai

Effectiveness of Non-Monetary rewards in Employee Motivation in Private Sector of Chennai

The effectiveness of financial reward on improving the job performance of public sector employees through organisational commitment: the case of Maldives civil service employees

PurposeThough public sector organisations have continuously borrowed human resource management practices from the private sector, there seems to be sparse evidence on the effectiveness of financial rewards for public sector employees, especially in developing countries where pay remains low. Therefore, the objective of this research is to test the effectiveness of financial rewards on the job performance of those working in the Maldives civil service from the perspective of a developing country where public sector pay, especially civil pay, remains comparatively low. Additionally, this study tested the mediating effect of organisational commitment on the relationship between financial rewards and job performance.Design/methodology/approachA cross-sectional study was conducted using quantitative design methodology, whereby data were collected from 341 employees working in the Maldives civil service and analysed using structural equation modelling.FindingsThe findings indicate that financial rewards negatively affect civil service employees’ job performance. However, financial rewards improve organisational commitment, which reduces the negative effects, although the effect sizes of the mediator are not very significant.Originality/valueThe results of this study present critical theoretical and practical contributions to public administration researchers on using financial incentives as a mechanism to boost job performance, particularly in developing countries, where salaries and other benefits remain low. Furthermore, it presents practical recommendations for managing employees in the Maldives and other countries, where the public sector is less developed and budget constraints remain a challenge.

Systematic review of randomised controlled clinical trials examining effectiveness of contingent financial rewards for smoking cessation during pregnancy: intention-to-treat and causal effects on birthweight.

Objective: To examine birth weight change caused by adding financial rewards for smoking cessation compared to no rewards for pregnant women. To estimate the average expected birth weight change for those who quit because of rewards. This study updates a previous systematic review and refocuses the outcome from smoking cessation to birth weight.Eligibility Criteria: Trials with an experimental design allowing treatment effects to be attributed to rewards were included. Trials involving non-pregnant participants, or with no report of magnitude, treatment duration, timing or where most rewards were contingent on another behaviour (e.g., treatment attendance) were excluded.Information sources: Medline, PsycInfo, Embase, Cochrane (Central Register of Controlled Trials, Tobacco Addiction Group Specialised Register and Database of Systematic Reviews), and PubMed searched to 5th December 2023.Risk of bias: Risk of bias and certainty of evidence used Cochrane 'Risk of bias 2' and GRADE assessments.Synthesis of results: Primary analysis estimated Intention-To-Treat (ITT) mean birthweight difference when randomised to offer of rewards versus control. Within-trial estimates and standard errors were derived from mean, standard deviation, and sample size data provided, or from publications. Pooled ITT estimates used common (fixed) and random effects models. Secondary analyses used trial team supplied data to derive Complier Average Causal Effect (CACE) estimate of smoking cessation on birth weight, and a standard error. Estimates were pooled using common and random effects models. Similar analyses were applied to low birth weight (<2500g), birth weight for gestational age z-scores, and small for gestational age (<10 th percentile). Included studies: Primary analysis included 8 trials (2351 participants) from the UK (2 trials, 1475 participants); France (1 trial, 407 participants), and the US (6 trials, 469 participants). Secondary analysis included 7 trials as data retrieval from one US trial (51 participants) was not possible.Synthesis of results: Primary ITT analysis (2351 participants) estimated a mean 46.3g (95% CI: 0.0 to 92.6) birth weight increase when offered financial rewards for smoking cessation. Secondary CACE analysis (2239 participants) estimated a mean 206.0g (95% CI: -69.1 to 481.1) increase for smokers who quit because of rewards. There was no effect on low birth weight (<2500g), or birth weight adjusted for gestational age, though less babies were born small for gestational age, particularly if cessation was because of rewards (CACE risk difference -17.7%; 95% CI: -34.9% to -0.4%). Limitation of evidence: Sample size led to imprecision - maximum 2351 participants. A single trial of 3712 participants would give 80% power at 5% significance to show a 46g increase from 3.1kg to 3.146kg with 0.5kg standard deviation in both groups. Consistency - trials where smoking cessation increased (7 of 8) all showed a mean birth weight increase. In one trial smoking cessation fell as did birth weight. Bias is unlikely as 3 of 4 trials with no birth weight data showed increased cessation consistent with higher mean birth weight. Interpretation: Trials of contingent financial rewards for smoking cessation have previously been shown to more than double pregnancy quit rates. We have uncovered a significant (46g) population level increase in mean birth weight, driven by a clinically important mean increase (206g) for those who quit because of financial rewards associated with a reduction in Small for Gestational Age births. Funding: Review update - The U.S. National Institute of Health, National Institute of General Medical Sciences Center of Biomedical Research Excellence Award P30GM149331. Data retrieval, synthesis and analysis - Scottish Cot Death Trust.Registration: https://www.crd.york.ac.uk/prospero/display_record.php?ID=CRD42024494262.

Credit card reward donation with scarcity messages

PurposeThe purpose of this paper is to investigate the effect of reward redemption programs on donation amount, donation percentage and donation intention in the context of a bank credit card.Design/methodology/approachA 2 × 2 × 3 experiment is implemented with 1,070 consumers accessing a national US-based sample with a small compensation. The authors use general linear model to test the proposed hypotheses.FindingsThe findings show the main effects of reward types, limited-time message and value of reward redemptions on the percentage of donations and overall donation intention to charity. The type of reward (cash/points) is found to interact with the limited-time message and with the value of reward redemptions.Originality/valueNo prior studies have addressed the relationship between credit card redemption rewards and scarcity messages in the donation context. The study contributes to the understanding of the effectiveness of credit card redemption rewards with scarcity message in improving a consumer’s donation intention.

Reviewing the effectiveness of reward and punishment in improving employee performance in Jabodetabek

Human resource management involves acquiring, developing, and using human resources to support business goals. Qualifying, rewarding, and punishing employees is crucial for personal growth and professional development. Companies should empower their human resources and implement fair rewards and punishments to improve employee performance. In Indonesia's Jabodetabek region, employee performance is crucial for business growth. Employers must focus on incentives, sanctions, and work discipline to maintain or improve performance. This research examines the effectiveness of rewards and punishments in improving employee performance in the Jabodetabek area. Using the qualitative approach, the study found that companies provide rewards to employees who excel in accordance with company regulations. Sanctions are used to prevent future violations and prevent others from doing the same. Motivational factors and performance satisfaction are crucial in establishing a fair reward and punishment system. The study concludes that effective rewards and punishments can improve employee performance, highlighting the importance of a fair and effective approach in business management.

Can the Monetary Sentimental Value Resolve the Damage of Monetary Rewards to Work Engagement and Affective Organizational Commitment?

Purpose: Monetary rewards have always been an effective incentive method for enterprises. However, with the advent of the post-pandemic era, working from home and online meetings have become the norm. Under epidemic prevention and control measures, employees are inevitably experiencing negative emotions and even psychological problems, which pose a challenge to the incentive effect of traditional monetary rewards. This article proposes the concept of monetary emotional value based on research related to emotional value and cognitive evaluation theory, and explores its improvement effect on the effectiveness of monetary rewards. Participants and Methods: A questionnaire survey was conducted on 538 employees from six state-owned enterprises in China, including Shanghai, Anhui, and Wuhan. In order to reduce the effects of common method biases and causal lag effect, this study is divided into three stages for data collection, with a time interval of half a month. The hypothesis test was carried out by hierarchical regression analysis, bootstrap and Johnson-Neyman method. Results: The results show that when the monetary sentimental value was high, the interaction between monetary rewards and monetary sentimental value had a strengthening effect on affective organizational commitment and work engagement; When the monetary sentimental value is low, the interaction between monetary rewards and monetary sentimental value has a weakening effect on affective organizational commitment and work engagement. This result confirms the role of monetary sentimental value, which can alleviate the negative impact of monetary rewards on affective organizational commitment and work engagement. Conclusion: This paper proposes the concept of monetary sentimental value, in response to Fletcher’s call to explore the carrier of sentimental value as the main research direction in the future, and expands the research content and application scope of sentimental value. Then, this paper reveals the guiding role of monetary sentimental value in the effectiveness of monetary rewards, which not only responds to Mickel’s viewpoint of neutrality in monetary rewards, but also enriches the connotation of the overall value of money. In addition, by verifying the positive role of monetary sentimental value in the process of influencing employees with monetary rewards, the understanding of the boundary conditions for the effectiveness of monetary rewards has been strengthened, providing some reference for organizations to implement monetary rewards more effectively.

Analisis Penguatan Kepemimpinan Transformasional dan Reward dalam Meningkatkan Kepuasan Kerja Pegawai ASN

State Civil Apparatus (ASN) is a profession for government employees with work agreements in government agencies. Government agencies have different organizational climates from one another. Thus, the performance of ASN has its own challenges in realizing the goals of the organization. Generally, employee performance analysis is only carried out in private organizations. This study aims to analyze the strengthening of ASN performance through transformational leadership and reward job satisfaction. The research method used is a quantitative approach. Data collection was carried out by distributing questionnaires to 202 respondents. The respondents in this study were ASN Directorate General of Islamic Education, Ministry of Religious Affairs of the Republic of Indonesia. The results of the reliability test showed a coefficient of α &gt; 0.60, namely transformational leadership (0.964), reward effectiveness (0.961), and job satisfaction (0.973). The results of this study show that there is a direct positive influence of transformational leadership on job satisfaction. In addition, there is a direct positive effect on the effectiveness of rewards on job satisfaction. Based on the results of the analysis of Scientific Identification Theory to Conduct Operation Research in Education Management (SITOREM), there are eight indicators that need to be improved. This research has implications for government institutions in formulating policies for developing civil servants as part of Human Resources.

When Cash is Not King: An Examination of the Relative Effectiveness of Tangible versus Cash Rewards on Whistleblower Reporting Behavior

SYNOPSISWe investigate the effects of incentive type (i.e., cash versus. tangible) in motivating whistleblower behavior. While prior research indicates that cash rewards are an effective means for motivating whistleblower reporting, research has yet to examine the relative effectiveness of tangible incentives (e.g., gift cards, incentive travel, and merchandise) in promoting these prosocial behaviors. Motivated by mental accounting theory, our study experimentally tests and finds that the type of reward offered (cash versus. tangible) interacts with reward size to predict whistleblower reporting behavior. Specifically, whistleblower reporting was less (more) sensitive to changes in reward size when small tangible (cash) rewards were offered. These findings suggest that tangible (i.e., noncash) rewards can increase both the efficiency and effectiveness of whistleblower incentive programs and should be of considerable interest to managers, corporate boards, audit committees, and those charged with corporate governance.

Monetary rewards and work commitment among teachers in rural public secondary schools in rombo district, Tanzania

In Tanzania government has abolished school fees and build more infrastructures in these schools the performance of these public schools is still poor. This study examined the effectiveness of monetary rewards on work commitment among teachers in rural public secondary schools in Rombo district in Tanzania. The study was guided by four specific objectives namely: to determine the influence of salary on teachers’ commitment in rural public secondary schools; to examine the influence of overtime payment on teachers work commitment in rural public secondary schools; to examine the influence of bonus on teachers work commitment in rural public secondary schools; lastly to determine the influence of house allowance on teachers work commitment in rural public secondary schools. The study employed Frederick Herzberg’s two factor theory. The study employed mixed approach where both qualitative and quantitative approached were used in the study. Moreover, the study employed cross-sectional survey research design. Also, the study employed 157 respondents. Data collection tools were Questionnaire, Interview and Documentary review. Probability and non-probability sampling approaches were deployed where simple random and purposive techniques were used. Qualitative and quantitative data analysis approaches were deployed using content analysis and SPSS, respectively. The findings shows that basic salary and overtime payment have significant influence on work commitment among teachers. While bonus, and house allowance have no significant influence on work commitment among teachers. The study concludes that there is a lot of dissatisfaction among teachers in public secondary schools due to low payment of salary and lack of other remunerations. The study recommends that the welfare of teachers needs to be significantly improved, teacher benefits regarding overtime allowances, need to be clarified, known to all and made available on time and by government so as to motivate them in their works. Also, this study recommends further research on monetary rewards because it is difficult to reach generalization as the study was conducted in Rombo district with small number of populations. For this matter the research may be investigated further in other location.

Reward interdependence and project professionals' knowledge hiding: the moderating role of knowledge attributes

PurposeBased on interdependence theory, the authors investigated the effect of reward interdependence (RI) on project professionals' knowledge hiding and examined the moderating role of knowledge tacitness (KT) and complexity, in the context of new product development (NPD) teams.Design/methodology/approachThe authors conducted a time-lagged study in the context of NPD teams and collected data from a sample of 231 NPD professionals in China.FindingsThe study's findings indicate that RI was negatively associated with knowledge hiding. Knowledge tacitness negatively moderated the relation between RI and knowledge hiding. In contrast, the moderating effect of knowledge complexity (KC) was not significant.Practical implicationsTo reduce NPD professionals' knowledge hiding, organizations should not only design incentive plans that cultivate interpersonal relatedness but also address the drawbacks (decreased effectiveness of group rewards) resulting from KT.Originality/valueThe authors' paper provides novel insights into the inconsistent understanding of organizational rewards' effectiveness in managing knowledge withholding by demonstrating the differentiated effects of individual and group rewards on knowledge hiding as well as the differential contingent roles of knowledge attributes.

Assessment of Rewards That Motivate Employees in Organisations: The Case of Cape Coast Technical University

Purpose: The purpose of this study is to investigate the rewards that motivate employees in organisations in universities, and to identify the most effective types of rewards that can improve employee motivation and organisational success.&#x0D; Methodology: This study utilizes a mixed-method approach, incorporating both qualitative and quantitative data collection methods. The target population for the study consisted of senior members, senior staff and junior staff of the University with a sample size of 196. A stratified random sampling method was used in selecting staff from the three categories. The qualitative data will be collected through in-depth interviews with employees from various positions in universities, while the quantitative data will be collected through a survey. The data was analysed descriptively using mean scores to identify the factors that influence the effectiveness of rewards in motivating employees.&#x0D; Research Limitation: This study is limited by its sample size, which may not fully capture the diverse range of employees in universities. Additionally, the study's findings may be limited by the specific context in which the study is conducted.&#x0D; Findings: An association between reward and productivity in the workplace was found in the study. Yet, the data also revealed that Cape Coast Technical University does not have a well-defined strategy for reward systems. As a result, workers felt that the institution did not treat them fairly.&#x0D; Practical Implications: The study's findings are expected to have significant practical implications for universities, as they can use the insights gained from this study to develop more effective reward systems that can motivate their employees.&#x0D; Social Implications: The social implications of this research are essential, as motivated employees are more likely to engage with students and provide better educational experiences, which can benefit society as a whole. By improving employee motivation and job satisfaction, universities can provide a better learning environment for their students and contribute to social welfare.&#x0D; Originality/Value/ Novelty: The novelty of this study lies in its focus on rewards that motivate employees in organisations in the higher education sector. While previous studies have explored employee motivation in various sectors, this study's specific focus on universities adds to the existing body of knowledge.

Enhancing Learning Motivation in Elementary Schools: The Impact and Role of Rewards

Motivation is the cornerstone of effective learning, and its cultivation begins in the elementary school years. This research delves into the relationship between rewards and students' learning motivation in elementary schools, offering valuable insights for educators, administrators, and policymakers. Employing a mixed-methods approach, the study combines quantitative surveys, qualitative interviews, and classroom observations to provide a comprehensive understanding of the dynamics at play. The research uncovers a significant positive correlation between the frequency of receiving rewards and students' academic performance, underlining the effectiveness of rewards as extrinsic motivators. However, the qualitative data reveals a more profound layer of motivation, with rewards serving as catalysts for the development of intrinsic motivation. Students describe rewards as initial sparks that gradually transition them from extrinsic to intrinsic motivation, fostering a genuine love for learning. Personalization emerges as a key factor in motivation, as tailoring rewards to individual students' interests and needs enhances long-term motivation. The positive classroom atmosphere observed in reward-rich environments contributes to engagement, enthusiasm, and overall motivation. The study provides practical implications for educators, administrators, and policymakers. It emphasizes the strategic use of rewards to motivate students, create a positive learning environment, and transition students towards intrinsic motivation. This research offers a bridge between theory and practice, empowering stakeholders to enhance the educational experience, ultimately guiding students to become lifelong learners with a passion for knowledge acquisition.

Can social recognition for teachers and principals improve student performance? Evidence from India

ABSTRACT Empirical evidence on the effectiveness of performance-based rewards for teachers is primarily based on the evaluation of monetary reward schemes. We present results from a randomized evaluation of a teacher and principal incentive programme in India that offered a non-pecuniary recognition reward based on students’ test scores on standardized assessments. We find a positive (0.16 SD) yet statistically insignificant effect on student performance when both teachers and principals are incentivized. In schools where only teachers are incentivized, the estimates remain statistically insignificant but are also much smaller in magnitude (0.012 SD). Our findings provide suggestive evidence that recognition rewards may have the potential as a low-cost tool to improve student achievement when both teachers and principals are incentivized. However, further research is required to substantiate the findings and investigate the mechanisms at play.

Stick or carrot for traffic demand management? Evidence from experimental economics

The debate between stick (penalties) and carrot (rewards) strategies has been widely carried out in various academic realms, including transportation. This paper seeks to compare the instantaneous and longitudinal effectiveness of a traditional penalty-based congestion pricing strategy and an innovative Incentive-Based Traffic Demand Management (IBTDM) strategy using an online interactive laboratory experiment focused on departure time choice. We also investigate the social-economic phenomena of loss aversion and risk aversion. The experimental results show that penalties and rewards can both positively induce sustainable travel behavior. The stronger demand-shifting performance of the penalty-based strategy at first demonstrates that ‘loss aversion’ does exist in TDM, at least initially. However, this loss aversion weakens as the experiment continues, which verifies the myopic loss aversion theory. Moreover, risky decision-making in the gambling games proves the existence of risk seeking, which violates the ‘certainty effect’. To overcome the disadvantage of laboratory experiment that participants need to accomplish the experiment all in once for considerably long time, an agent-based model is calibrated based on real participants’ behavior to further verify the long-term effectiveness of penalties and rewards, and to verify the effectiveness of other optimized penalty/reward schemes. The simulated results based on the agent-based model indicate that the theoretical optimal penalty scheme performs better in general in congestion alleviation, while a more reasonable reward scheme that considers psychological factors can achieve the same effectiveness in terms of total system travel time reduction. The findings of this research can be used to guide the design of TDM strategies, and the behavioral data collection approach based on our laboratory experiment is portable for future studies.

The impact of monetary rewards on product sales in referral programs: The role of product image aesthetics

Monetary rewards are widely used in marketing practice to encourage referral behaviors and boost sales. To understand the effectiveness of monetary rewards in different contexts, this study examines how and why product image aesthetics moderate the relationship between monetary rewards and product sales in referral programs. The authors first analyzed a dataset obtained from a large e-commerce platform and calculated product image aesthetics using a computational approach. The results reveal that larger monetary rewards will lead to higher product sales in referral programs, and this effect will be attenuated or even reversed as product image aesthetics increase. Subsequently, the authors conducted a well-controlled laboratory experiment to replicate the documented effect and further validate extrinsic and intrinsic motivation as the underlying mechanisms. These findings extend the extant literature on referral programs by determining the importance of visual presentation of products and providing meaningful managerial implications.

Deadlines and Memory Limitations

This paper presents the results of two natural field experiments at a dental clinic. Guided by a simple theoretical model, we exogenously vary deadlines and associated rewards for arranging checkup appointments. Our data show strong and systematic effects of deadlines on patients’ behavior. Imposing deadlines induces patients to act earlier and at a persistently higher frequency than without a deadline. We further document that individuals systematically respond to deadlines even if these are not tied to explicit rewards. Several of our findings suggest that individuals’ responses to deadlines are shaped by limitations in memory and attention. Our results illustrate that deadlines can be a powerful management tool to encourage timely task completion and to increase the cost effectiveness of performance-contingent rewards. This paper was accepted by Axel Ockenfels, behavioral economics and decision analysis.

Rewards versus Imprisonment

Abstract This article considers the possibility of simultaneously reducing crime, prison sentences, and the tax burden of financing the criminal justice system by introducing rewards, which operate by increasing quality of life outside of prison. Specifically, it proposes a procedure wherein a part of the imprisonment budget is redirected towards financing rewards. The feasibility of this procedure depends on how effectively the marginal imprisonment sentence reduces crime, the crime rate, the effectiveness of rewards, and how accurately the government can direct rewards towards individuals who are most responsive to such policies. A related welfare analysis reveals an advantage of rewards: they operate by transferring or creating wealth, whereas imprisonment destroys wealth. Thus, the conditions under which rewards are optimal are broader than those under which they can be used to jointly reduce crime, sentences, and taxes. With an exogenous [resp. endogenous] budget for law enforcement, it is optimal to use rewards when the imprisonment elasticity of crime is small [resp. the marginal cost of public funds is not high]. These conditions hold, implying that using rewards is optimal, in numerical examples generated by using estimates for key values from the empirical literature.

Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs

Loyalty programs (LP) and rewards are ubiquitous in retailing, designed to increase customer expenditures and retention, gather abundant customer-level data, and design individually targeted coupons. Although studies have analyzed the individual impacts of LP rewards and targeted coupons on shopping trip incidence and expenditures, they have not compared the two instruments. By investigating the LP of a leading German grocery retailer that uses both LP rewards (points to redeem for free products) and individually targeted coupons, the current study establishes a comparison of their profitability and relative contributions to increasing shopping trips and expenditures. The investigated LP also relies on in-store kiosks to interact with customers, so they can decide when to redeem LP points and request coupons. By jointly modeling the effects of LP point redemptions and coupons on shopping trip incidence and expenditures, using their decision to access the kiosk as a dependent variable and rich data that span thousands of customers over 60 weeks, this study reveals that both instruments increase shopping trip incidence, kiosk access, and expenditures. The LP point redemptions have a stronger effect on shopping trip incidence; coupons have a stronger effect on kiosk access. Although a single redemption of LP points leads to a greater increase in expenditures than a single coupon redemption (€1.46 vs. €0.48), coupons yield three times greater expenditures after controlling for usage frequency; lower discounts also contribute to coupons’ higher profitability. Therefore, LP point redemptions and individually targeted coupons are complementary tools for retailers. This empirical study provides practical insights and pertinent managerial implications regarding the management and design of modern LPs.

Comparing the Effectiveness of Rewards and Individually Targeted Coupons in Loyalty Programs

Loyalty programs (LP) and rewards are ubiquitous in retailing, designed to increase customer expenditures and retention, gather abundant customer-level data, and design individually targeted coupons. Although studies have analyzed the individual impacts of LP rewards and targeted coupons on shopping trip incidence and expenditures, they have not compared the two instruments. By investigating the LP of a leading German grocery retailer that uses both LP rewards (points to redeem for free products) and individually targeted coupons, the current study establishes a comparison of their profitability and relative contributions to increasing shopping trips and expenditures. The investigated LP also relies on in-store kiosks to interact with customers, so they can decide when to redeem LP points and request coupons. By jointly modeling the effects of LP point redemptions and coupons on shopping trip incidence and expenditures, using their decision to access the kiosk as a dependent variable and rich data that span thousands of customers over 60 weeks, this study reveals that both instruments increase shopping trip incidence, kiosk access, and expenditures. The LP point redemptions have a stronger effect on shopping trip incidence; coupons have a stronger effect on kiosk access. Although a single redemption of LP points leads to a greater increase in expenditures than a single coupon redemption (€1.46 vs. €0.48), coupons yield three times greater expenditures after controlling for usage frequency; lower discounts also contribute to coupons’ higher profitability. Therefore, LP point redemptions and individually targeted coupons are complementary tools for retailers. This empirical study provides practical insights and pertinent managerial implications regarding the management and design of modern LPs.