Loyalty Reward Research Articles

Check‐in significance: Differentiating loyalty reward members and non‐members

AbstractInteractions between service employees and customers at check‐in shape customers' first impressions and lead to their future behavioral intentions. Even though customer relationship management (CRM) relies heavily on the hospitality check‐in experience, research is scarce on its impacts and the moderating effect of loyalty membership programs. Based on the broaden‐and‐build theory, the current study examined customer check‐in significance associated with their outcomes and compared two groups to determine if loyalty programs have a meaningful impact. The findings confirmed the importance of the check‐in experience and the moderating effect of loyalty membership was significantly related to customers' perceptions.

Effect of implementation strategies on pre-exposure prophylaxis persistence among female sex workers in South Africa: an interrupted time series study

A disproportionate number of new HIV infections in South Africa are among female sex workers; pre-exposure prophylaxis (PrEP) for HIV prevention is freely available to female sex workers in the country, but unique barriers challenge PrEP persistence. TB HIV Care, a large South African non-profit organisation that provides daily oral PrEP (tenofovir disoproxil fumarate and emtricitabine), has implemented multiple strategies to improve PrEP persistence. We aimed to evaluate the effect of different implementation strategies on PrEP persistence in a large-scale real-world setting. In this interrupted time series study, we estimated level changes in 1-month oral PrEP persistence associated with roll-out of various implementation strategies among female sex workers across nine districts in South Africa. We used routinely collected data from TB HIV Care programme files from June 7, 2016, to April 30, 2021. Poisson regression of 1-month persistence was used to assess the effect of these strategies. In secondary analyses, we tested the association between each of the strategies and 4-month persistence. The median 1-month PrEP persistence for female sex workers was 33% (IQR 27-40). SMS support and refill reminders were associated with an 11% relative increase in 1-month persistence (risk ratio [RR] 1·11, 95% CI 1·02-1·26) and clinical mentoring for PrEP providers was associated with a 127% relative increase (RR 2·27, 95% CI 1·94-2·66) among female sex workers. The loyalty rewards programme was negatively associated with 1-month persistence (RR 0·71, 95% CI 0·67-0·83). Although clinical mentoring improved 4-month persistence, SMS support text messages had no significant effect. Identification and subsequent use of clinical mentoring for PrEP providers and SMS support and refill reminders might improve the usefulness of PrEP overall to prevent new HIV infections among female sex workers. PrEP persistence remains an important issue, and strategies to build on our findings are needed. National Institute of Mental Health and National Institute of Allergy and Infectious Diseases.

UNDERSTANDING GEN Z CONSUMER PREFERENCES FOR PRICING METHODS: A CASE STUDY IN CEBU, PHILIPPINES

This study investigates how pricing methods affect the likelihood of purchase decisions made by Generation Z (Gen Z). Data from a sample of Gen Z buyers were gathered using a descriptive survey method in order to examine the different pricing indicators on their purchase behavior. The findings revealed that pricing strategies significantly play a role in the purchasing behavior of Gen Z consumers, and the mean scores of the different pricing categories indicate their importance in the decision-making process. The study identifies that value-based pricing is critical to Gen Z consumers, who place significant emphasis on the perceived value of products. Hence, aligning pricing with product value can increase the likelihood of purchase. The findings also indicate that regular discounts or promotional offers can trigger the behavioral tendency of motivating Gen Z consumers to make purchases. The results also suggest that pricing strategy has a substantial impact on consumer loyalty and brand-switching behaviors. Companies can use pricing as a tool to encourage brand loyalty and reduce the likelihood of customers switching to competitor products. Offering personalized pricing and loyalty rewards are some ways to strengthen brand-consumer relationships. Finally, the findings suggest that pricing strategies are crucial to the purchasing decisions of Gen Z consumers. Businesses must prioritize pricing as a vital component of their marketing strategy and tailor it to meet the needs and preferences of this demographic. The study contributes to the existing literature by providing insights into the role of pricing on Gen Z consumer behavior and providing recommendations for businesses seeking to target this demographic. KEYWORDS: Gen Z, purchasing decisions, pricing, descriptive survey method, value-based pricing, discount pricing, brand loyalty, brand switching, marketing strategy, competitive advantage.

The Moderating Role of Uncertainty Avoidance on Consumer Brand Engagement and Band Loyalty in Virtual Brand Communities

This study aims to investigate the role of consumer brand engagement (CBE) in virtual brand communities regarding loyalty attitudes and uncertainty avoidance. Data set of 750 responses was collected from the students of NTU who joined any brand community on Facebook or Instagram. SPSS was used for descriptive statistics and SmartPLS 4.0 for Structural Equation Modeling. The results revealed positive association of brand community identifications and rewards on CBE, and a positive effect of CBE on brand loyalty. The results revealed partial mediating effect of CBE between brand community identification, loyalty reward and brand loyalty. Moreover, results showed that culture is an important factor in defining the moderating effect of uncertainty avoidance on brand loyalty. This paper is among the first to provide empirical, and practical insights into the impact of uncertainty avoidance in virtual brand communities regarding consumer brand engagement and brand loyalty. The study is helpful for brand managers concerned about attitude of customers connected with online communities.

Dare If You Can: Offering Subscription Discounts, Loyalty Rewards, and Deep Promotions to Your (Grocery) Customers

Dare If You Can: Offering Subscription Discounts, Loyalty Rewards, and Deep Promotions to Your (Grocery) Customers

Time‐Limited Loyalty Rewards*

I examine an infinite‐horizon model in which a monopolist can commit to sell the good to repeat customers at a reduced price. Such an option may or may not expire. Consumer preferences are subject to temporary shocks, which implies that loyalty rewards can raise efficiency by contracting prior to private information arrival. I show that expiration dates enhance the effectiveness of loyalty programs by disciplining consumers, who otherwise would excessively delay the redemption of rewards, and reduce the frequency of purchases. Moreover, if firms can influence future regular prices then loyalty programs become more profitable, but may harm consumers.

The Positive Influence of Watching Others Receive Preferential Treatment on Rewards Program Participation: The Moderating Role of Rule Knowledge

Watching others receive superior treatment, a phenomenon known as the bystander effect, typically results in negative customer responses. In contrast, we investigate how to encourage positive responses from bystanders. The results of our experimental and survey studies show that witnessing preferential treatment leads bystanders to experience envy, which then triggers self-enhancement motivation that influences future intentions about participating in a loyalty program. In addition, when bystanders know the rules that allow preferential treatment, self-enhancement motivation encourages them to participate in the loyalty program. Theoretical contributions and practical implications for managing loyalty rewards programs are discussed.

Dynamic market share through advertising and loyalty reward programs: A case study of Ofo versus Mobike

The emerging business models have impelled firms’ competition in a brand-new and fast-growing market. This study examines such a competition for market share through advertising and loyalty reward programs. Two stages can be distinguished based on the transformation of the competition strategies. These stages can be formulated as a dynamic differential game model and a static Hotelling game model. The operation strategies and performances of two firms are determined and compared via analytical studies and case analyses toward a bicycle-sharing program, i.e., Ofo versus Mobike. Historical data are used to fit the curve of the market size and to estimate the parameter values of these models. The results show that during the first stage, the difference in market share between these firms gradually decreases (increases) when the advertising response constant is low (high). Meanwhile, in the second stage, these firms offer converse reward strategies.

Reward for the loyalty, retribution for treachery: judicial practice of Chinggis Khan

The article is an analysis of judicial activity of Chinggis Khan towards persons who entered his service under different circumstances. Analysis allows to state that Chinggis Khan not always used the same criteria taking his decision on the reward for loyalty and punishment for treachery. Authors attempt to explain the reasons of taking one or another decision by Chinggis Khan and clarify their correlation with political ideology formed by him during the establishing of the Mongol Empire. Besides, it seems that the analysis of specific cases could help trace the process of forming the system of khans court which foundation was laid by Chinggis Khan just during the period of the unification of Mongol tribes at the initial stage of creating of his empire. The source base for the research includes medieval historical works: Secret history of Mongols, Sheng-wu qin-cheng-lu, Compendium of chronicles by Rashid ad-Din, Yuan shih, Altan Tobchi by Lubsan Danzan and some others. Positions of different scholars on decisions of Chinggis Khan are also taken into account.

How digital marketing can use a smart phone app to improve any business’s bottom line

The marketing strategy of offering customer loyalty rewards has evolved with the use of technology. Instead of printing old-fashioned paper coupons, punch cards, and flyers to advertise special offers, customers can access their rewards through a customized app. The app functions as an all-in-one tool to attract customers, send offers, communicate specials, take orders, offer new products and services to existing customers, and so much more. During the restrictions of the COVID-19 lockdown, businesses found online communication soaring, with the ability to offer no-contact delivery of goods and services, and many businesses are keeping the technology they implemented during lock down because it is just good business. The use of application creation for digital marketing has the ability to supercharge sales by more effectively reaching the target audience and providing business analytics on users.

Anandam Vana Retreat: Designing Customer Loyalty Program for Long-Term Customer Relationship

Anandam Vana Retreat endeavor is to unravel the hidden potential of its guests through yoga, meditation and ayurvedic health farms. The Anandam Vana Mission Statement To meet the competition and increase sales, Sunaina was considering whether to adopt a loyalty rewards program and shared her idea with management. The house was divided on proposal and had mixed reactions to the idea, some supporting the idea, while others were philosophically opposed to the idea of special treatment to certain privileged guests. Incase Anandam group adopts the reward program, it will be immensely complex to structure it. What sorts of rewards should the firm offer? Who should qualify? What sorts of partnerships should the group form? Sunaina needs to find ways to improve the financial wellness of the resort and help counter the mounting competition.

고려 전기 공신당(功臣堂)의 설치와 운영 －벽상공신(壁上功臣) 제도와 관련하여－

This paper reviewed the operation of Gongshindang (Meritorious Retainers Shrine) and Byeoksang (Wall-portrait) Gongshin (Meritorious Retainers) system during the early Goryeo Dynasty. ‘Byeoksang’ was an especial and respectful treatment granted only to those vassals who had made a great contribution for the royal family and the national survival. King Taejo established Gongshindang, a shrine for meritorious retainers in the 23rd year of his reign (A.D. 940) and posted portraits of Samhan Gongshin (meritorious retainers around the country) on the wall, and then, implemented Mucha (no discrimination) Convention each year. Here, the Samhan Gongshin figures whose portraits were posted on the wall of Gongshindang were called Samhan Byeoksang Gongshin. Their qualification depended whether being granted a Gongshin name related to the ‘Byeoksang’. As such, those who are found of the title of ‘Byeoksang’ are presumed to be the object of Byeoksang as in ‘Samhan Byeoksang Gongshin’ or ‘Byeoksang Gongshin’. King Hyeonjong reintroduced the Byeoksang Gongshin system of King Taejo era conferring Samhan Hu (‘later’) Byeoksang Gongshin on the meritorious retainers of the War against Georan. King Hyeonjong granted the Gongshin titles of Samhan and Byeoksang which so far had been allowed to meritorious retainers of Taejo’s only to those of his own. And then, the Samhan Hu Gongshin system continued until the end of Goryeo Dynasty. The location of Gongshindang had changed as well after King Hyeonjong. It was moved to Mireuk-sa from Shinheung-sa at the era of King Taejo. Byeoksang Gongshin System of Goryeo has two aspects of Goryeo’s own. Firstly, it was established at a temple, which utilized the attributes of a temple - its public function, its traditional role as the space for ancestral rites and its aspect as an open space. Secondly, they performed a Mucha Convention each year at Gongshindang. This was intending to parade the majesty as King of Jeonryunseonwang (Chakravartin) as well as to visualize the reward for loyalty. The aspects and meaning of Goryeo’s own that were established in the era of King Taejo continued to the era of King Hyeonjong. King Hyeonjong intended to weigh his accomplishments against King Taejo’s by conferring Samhan Hu Byeoksang Gongshin to those meritorious retainers of his when he won a victory at the War against Georan. These endeavors seemed to be successful considering that King Hyeonjong was evaluated as ‘Jungheungjiju’ (King of Revitalization) and ‘Samhanjaejo’ (Re-established Samhan).

Impact of loyalty program investment on firm performance: Seasonal products with strategic customers

Customer loyalty programs are often used by retailers as an important marketing tool. As an essential element of loyalty programs (LPs), the reward amount invested by the retailer is often linked to retailer's profit and customer behavior. We consider a retailer who sells a type of product in two periods to strategic customers. The retailer makes inventory ordering and loyalty program investment decisions. Customers decide whether to purchase immediately (in period 1) to receive the product and reward, or to wait for a markdown discount but face the risk of stockout. We have focused on three main questions: (1) How does the loyalty reward investment decision impact strategic customers’ behavior? (2) What are the optimal decisions and profits for the retailer when investing in a loyalty program? (3) What are the factors influencing the reward investment decision? We find that investing in the loyalty program induces more customers to make an early purchase, leading to a higher inventory ordering decision and more profit for the retailer. The benefits from reward investments are significantly affected by the product's cost and customers’ valuation of the product. Our results shed light on the reward investment decision of LPs. For products with high profit margins and market-determined prices (valuation approximates price), the retailer should invest in a loyalty program to achieve better profits.

The mediating effects of program loyalty in loyalty rewards programs: an experimental design in coffee shops

PurposeThe purpose of this study is to evaluate the impact of reward structure on the customer's value perception of the program, loyalty to the program and loyalty to the firm.Design/methodology/approachA 2 (type of reward) x 2 (timing of redemption) between subjects experimental design was conducted. In addition, the indirect effect of the customer's value perception of the program on loyalty to the firm via loyalty to the program is tested with Hayes and Preacher's mediation procedure.FindingsStudy results indicated that type of reward has a positive impact on the perceived value of a loyalty program. Program loyalty mediates the relationship between the perceived value of the loyalty program and customer loyalty, as well as the relationship between type of reward and customer loyalty.Originality/valueThe findings of this study demonstrate the importance of the type and timing of loyalty program rewards on customer perceptions of the value of the loyalty program. In addition, this study is a step forward in providing a deep understanding of the impact of such perceptions on loyalty. These findings fill a number of research gaps and provide tangible guidance for practitioners.

The Effect of Smart Shopper Self-Perceptions On Word-Of-Mouth Behaviors in the Loyalty Reward Program Context

Loyalty reward members who redeem their reward points for materials/experiences may perceive themselves as “smart shoppers.” The purpose of this study is to illustrate the effect of smart shopper self-perceptions on word-of-mouth behaviors and to demonstrate emotional attachment as the mechanism underpinning such an effect. Study 1 used a recall-based survey and showed that smart shopper self-perceptions are positively associated with emotional attachment to redeemed products. Using cross-country data, Study 2 utilized a scenario-based experiment and showed that the effect of smart shopper self-perceptions on emotional attachment is greater with experiential (vs. material) products. Using a recall-based survey, Study 3 revealed that emotional attachment mediates the effect of smart shopper self-perceptions on word-of-mouth behaviors. Given the prevalence of redeeming experiential products, such as hotel stay and air travel, social media managers may need to monitor online platforms where loyalty reward program members post reviews about their redemption experiences (e.g., the Points Guy).

Enhancing Customers' Satisfaction Using Loyalty Rewards Programs: Evidence from Jordanian Banks

Enhancing Customers' Satisfaction Using Loyalty Rewards Programs: Evidence from Jordanian Banks

INTERVIEW WITH TERRY GLEBOCKI

INTERVIEW WITH TERRY GLEBOCKI

Legal Protection of Resigning Workers' Right Over Separation Pay Compensation in Justice Perspective

Labor law in Indonesia has not comprehensively provided protection for the rights of resigning workers qualification. Since provisions of labor law does not mention the amount of separation pay for resigning workers. This research is conducted to analyze and find the ratio legis in providing separation pay for resigning workers in the Manpower Act and also the concept of giving separation pay to resigning workers in justice perspective. The research method used in this study is normative legal research by using several approach including philosophical approach, purposive approach, conceptual approach, case approach and historical approach. The result of the study shows that the regulation of separation pay in the Manpower Act is a form of reward for workers given by employers as a reward for devotion and loyalty of workers during a certain period of service. The Regulation of separation pay for resigning workers which reflecting justice is by formulating separation pay for resigning workers equal to the rights of terminated workers because of committing criminal act.

Customer inertia marketing

Inertia might secure consumers’ continued patronage, but it also can stunt potential expansion. By examining the psychology underlying inertia, this research informs managers about whether to engage inertial consumers proactively. In the proposed conceptual model, an inertia mindset orients a customer toward status quo consumption. This mindset emerges from dual sources, and each source consists of a behavioral and a psychological component. Specifically, the behavioral consistency of prior consumption activates an inertia mindset by prompting a psychological inclination to minimize thinking; the magnitude of prior consumption leads to inertia by evoking an inclination to minimize regret. Complementary survey and field studies offer support for the proposed model and reveal that a proactive loyalty reward can reinforce inertia based on regret minimization but disrupt inertia based on thinking minimization. Even well-intentioned marketing initiatives thus might be ineffective or detrimental, depending on the source and strength of inertia already present in the customer.

Customer‐centric category selection for mobile and print promotions in loyalty reward programs

AbstractIn their loyalty reward programs, large retailers adopt category‐specific targeted promotions as an effective means to increase shoppers' basket values. However, neither the literature nor observed marketing practice provides category selection methods that maximize the promotion's profitability. Hence, we provide a predictive customer‐centric category selection approach based on the return on marketing investment measure that accommodates both fixed and variable promotion costs, captures cherry‐picking effects, and encompasses the retailer's entire category assortment. We use a real‐world promotional data set from a leading German retailer to show that our approach predicts customer responses to these promotions with high out‐of‐sample accuracy tested over time and also across promotion frequencies. We find that the most promising categories in mobile promotions maximize cross‐category profits to curtail cherry‐picking and boost the sales of nonpromoted items—that is, the profitability‐driving part of the profit uplift. In contrast, the different cost structure of print promotions requires that categories achieve a high (but not too high) redemption rate, as cross‐category profit declines, in order to recoup customer contacting costs. Our benchmark analysis reveals that current marketing practice fails to hit the profitability functions' “sweet spot” and can even work against the retailer by producing negative returns.