IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v62y2009i5p542-547.html
   My bibliography  Save this article

"It's nice to get a wee treat if you've had a bad week": Consumer motivations in retail loyalty scheme points redemption

Author

Listed:
  • Smith, Andrew
  • Sparks, Leigh

Abstract

Research into loyalty schemes focuses primarily on business (strategy) rather than consumer perspectives. This paper investigates consumer motivations in retail loyalty scheme points redemption, through a qualitative study of participants in a major UK retail loyalty scheme. Academic research tends to neglect investigation of points redemption, despite its probable significance to consumers and certain value to businesses. The research identifies planned behavior towards redemption goals, plus interruptions by various circumstances and events. Self-gifting for reward and/or therapy purposes is common. Redemption activities have positive implications for consumer perceptions of the scheme and the retailer and appear to enhance future purchasing behavior. From these findings, this paper draws implications for theory and practice.

Suggested Citation

  • Smith, Andrew & Sparks, Leigh, 2009. ""It's nice to get a wee treat if you've had a bad week": Consumer motivations in retail loyalty scheme points redemption," Journal of Business Research, Elsevier, vol. 62(5), pages 542-547, May.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:5:p:542-547
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(08)00169-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kivetz, Ran & Simonson, Itamar, 2002. "Self-Control for the Righteous: Toward a Theory of Precommitment to Indulgence," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(2), pages 199-217, September.
    2. Arkes, Hal R. & Joyner, Cynthia A. & Pezzo, Mark V. & Nash, Jane Gradwohl & Siegel-Jacobs, Karen & Stone, Eric, 1994. "The Psychology of Windfall Gains," Organizational Behavior and Human Decision Processes, Elsevier, vol. 59(3), pages 331-347, September.
    3. Mick, David Glen & DeMoss, Michelle, 1990. "Self-Gifts: Phenomenological Insights from Four Contexts," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(3), pages 322-332, December.
    4. Hsee, Christopher K, et al, 2003. "Medium Maximization," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(1), pages 1-14, June.
    5. Z. John Zhang & Aradhna Krishna & Sanjay K. Dhar, 2000. "The Optimal Choice of Promotional Vehicles: Front-Loaded or Rear-Loaded Incentives?," Management Science, INFORMS, vol. 46(3), pages 348-362, March.
    6. Luomala, Harri T. & Laaksonen, Martti, 1999. "A qualitative exploration of mood-regulatory self-gift behaviors," Journal of Economic Psychology, Elsevier, vol. 20(2), pages 147-182, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," Working Papers hal-01904416, HAL.
    2. Dorotic, Matilda & Verhoef, Peter C. & Fok, Dennis & Bijmolt, Tammo H.A., 2014. "Reward redemption effects in a loyalty program when customers choose how much and when to redeem," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 339-355.
    3. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    4. Cheng, Fei & Chen, Tong & Chen, Qiao, 2020. "Rewards based on public loyalty program promote cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 378(C).
    5. Malika Chaudhuri & Clay M. Voorhees & Jonathan M. Beck, 2019. "The effects of loyalty program introduction and design on short- and long-term sales and gross profits," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 640-658, July.
    6. repec:hal:cepnwp:hal-01904416 is not listed on IDEAS
    7. Li, Chen & Swaminathan, Srinivasan & Kim, Junhee, 2021. "The role of marketing channels in consumers’ promotional point redemption decisions," Journal of Business Research, Elsevier, vol. 125(C), pages 314-323.
    8. Steinhoff, Lena & Zondag, Marcellis M., 2021. "Loyalty programs as travel companions: Complementary service features across customer journey stages," Journal of Business Research, Elsevier, vol. 129(C), pages 70-82.
    9. Brahim Idir, 2018. "L’impact des bénéfices perçus des programmes de fidélisation sur la fidélité à l’enseigne : le rôle médiateur de la fidélité au programme de fidélité," CEPN Working Papers 2018-03, Centre d'Economie de l'Université de Paris Nord.
    10. Feurer, Sven & Haws, Kelly L., 2022. "Justifiable justifications in sequential indulgent choice situations: A framework for future research based on perceived exceptionality," Journal of Business Research, Elsevier, vol. 149(C), pages 630-639.
    11. So Yeon Chun & Dan A. Iancu & Nikolaos Trichakis, 2020. "Loyalty Program Liabilities and Point Values," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 257-272, March.
    12. Chan, May & Kemp, Simon & Finsterwalder, Jörg, 2016. "The concept of near money in loyalty programmes," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 246-255.
    13. Gandomi, A. & Zolfaghari, S., 2013. "Profitability of loyalty reward programs: An analytical investigation," Omega, Elsevier, vol. 41(4), pages 797-807.
    14. Brahim Idir, 2018. "L’impact des bénéfices perçus des programmes de fidélisation sur la fidélité à l’enseigne : le rôle médiateur de la fidélité au programme de fidélité," Working Papers hal-01897443, HAL.
    15. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," CEPN Working Papers 2018-04, Centre d'Economie de l'Université de Paris Nord.
    16. Noble, Stephanie M. & Esmark, Carol L. & Noble, Charles H., 2014. "Accumulation versus instant loyalty programs: The influence of controlling policies on customers' commitments," Journal of Business Research, Elsevier, vol. 67(3), pages 361-368.
    17. repec:hal:cepnwp:hal-01897443 is not listed on IDEAS
    18. Ashley, Christy & Noble, Stephanie M. & Donthu, Naveen & Lemon, Katherine N., 2011. "Why customers won't relate: Obstacles to relationship marketing engagement," Journal of Business Research, Elsevier, vol. 64(7), pages 749-756, July.
    19. Els Breugelmans & Yuping Liu-Thompkins, 2017. "The effect of loyalty program expiration policy on consumer behavior," Marketing Letters, Springer, vol. 28(4), pages 537-550, December.
    20. Ashley, Christy & Gillespie, Erin A. & Noble, Stephanie M., 2016. "The effect of loyalty program fees on program perceptions and engagement," Journal of Business Research, Elsevier, vol. 69(2), pages 964-973.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leenheer, J. & van Heerde, H.J. & Bijmolt, T.H.A. & Smidts, A., 2006. "Do Loyalty Programs Really Enhance Behavioral Loyalty? An Empirical Analysis Accounting for Self-Selecting Members," ERIM Report Series Research in Management ERS-2006-076-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Anton Suvorov & Jeroen van de Ven, 2008. "Goal Setting as a Self-Regulation Mechanism," Working Papers w0122, Center for Economic and Financial Research (CEFIR).
    3. Dorotic, Matilda & Verhoef, Peter C. & Fok, Dennis & Bijmolt, Tammo H.A., 2014. "Reward redemption effects in a loyalty program when customers choose how much and when to redeem," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 339-355.
    4. Feurer, Sven & Haws, Kelly L., 2022. "Justifiable justifications in sequential indulgent choice situations: A framework for future research based on perceived exceptionality," Journal of Business Research, Elsevier, vol. 149(C), pages 630-639.
    5. Hsin-Hsien Liu & Hsuan-Yi Chou, 2022. "Attribute specification effect on hedonic and utilitarian options," Australian Journal of Management, Australian School of Business, vol. 47(2), pages 322-341, May.
    6. De Hooge, Ilona E. & Straeter, Laura M., 2023. "Don't tell me you are sorry with a gift: The negative consequences of apology gifts," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    7. Gupta, Aditya & Eilert, Meike & Gentry, James W., 2020. "Can I surprise myself? A conceptual framework of surprise self-gifting among consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    8. Emin Karagözoğlu & Elif Tosun, 2022. "Endogenous Game Choice and Giving Behavior in Distribution Games," Games, MDPI, vol. 13(6), pages 1-32, November.
    9. Leenheer, J. & Bijmolt, T.H.A. & van Heerde, H.J. & Smidts, A., 2002. "Do Loyalty Programs Enhance Behavioral Loyalty : An Empirical Analysis Accounting for Program Design and Competitive Effects," Discussion Paper 2002-65, Tilburg University, Center for Economic Research.
    10. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    11. repec:cup:judgdm:v:15:y:2020:i:6:p:972-988 is not listed on IDEAS
    12. Yizhao Jiang, 2022. "The Influence of Payment Method: Do Consumers Pay More with Mobile Payment?," Papers 2210.14631, arXiv.org.
    13. Mario Herberz & Tobias Brosch & Ulf J. J. Hahnel, 2020. "Kilo what? Default units increase value sensitivity in joint evaluations of energy efficiency," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(6), pages 972-988, November.
    14. Luigi Mittone & Lucia Savadori, 2008. "Influence of time delay on choice between gambles: Savoring the emotion," CEEL Working Papers 0802, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    15. Bernard Dubois & Sandor Czellar & Gilles Laurent, 2005. "Consumer Segments Based on Attitudes Toward Luxury: Empirical Evidence from Twenty Countries," Marketing Letters, Springer, vol. 16(2), pages 115-128, April.
    16. Jingyi Lu & Zhengyan Liu & Zhe Fang, 2016. "Hedonic products for you, utilitarian products for me," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 11(4), pages 332-341, July.
    17. Alina Filip, 2011. "Loyalty Programs. Role, Structure and Potential Benefits," International Journal of Economic Practices and Theories, Academy of Economic Studies - Bucharest, Romania, vol. 1(2), pages 88-93, September.
    18. Hailiang Huang & Yanhong Li & Yingying Zhang, 2018. "Investors’ attention and overpricing of IPO: an empirical study on China’s growth enterprise market," Information Systems and e-Business Management, Springer, vol. 16(4), pages 761-774, November.
    19. Andrea Lippi & Laura Barbieri & Mariacristina Piva & Werner De Bondt, 2018. "Time-varying risk behavior and prior investment outcomes: Evidence from Italy," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 13(5), pages 471-483, September.
    20. Compeau, Larry D. & Monroe, Kent B. & Grewal, Dhruv & Reynolds, Kristy, 2016. "Expressing and defining self and relationships through everyday shopping experiences," Journal of Business Research, Elsevier, vol. 69(3), pages 1035-1042.
    21. Shaffer, Victoria A. & Arkes, Hal R., 2009. "Preference reversals in evaluations of cash versus non-cash incentives," Journal of Economic Psychology, Elsevier, vol. 30(6), pages 859-872, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:62:y:2009:i:5:p:542-547. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.