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Antecedents to loyalty point redemption: Implications for customer equity management

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  • Hwang, Joon Ho
  • Chung, Jaiho
  • Kim, Jae Wook
  • Lee, Dongwon
  • Yoo, Weon Sang

Abstract

This study examines the determinants of member customers' decision to redeem versus accumulate loyalty program (LP) points by focusing on the effects of the different transaction channels (online versus offline) and the demographic information of member customers. This study finds that transactions that occur through online channels and those made by younger customers demonstrate a greater tendency of redeeming LP points as opposed to accumulating them. This study also finds that online channels show a moderating role by mitigating the demographic effects on member customers' point redemption behavior. These findings allow LP providers to predict future LP point balances by analyzing their main transaction channels and the demographic profiles of member customers.

Suggested Citation

  • Hwang, Joon Ho & Chung, Jaiho & Kim, Jae Wook & Lee, Dongwon & Yoo, Weon Sang, 2016. "Antecedents to loyalty point redemption: Implications for customer equity management," Journal of Business Research, Elsevier, vol. 69(9), pages 3731-3739.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:9:p:3731-3739
    DOI: 10.1016/j.jbusres.2015.12.065
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    2. 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.
    3. Seung Min Lee & Sang Yong Kim & Shijin Yoo & Tae Ho Song, 2021. "The cross-buying effect in a multi-vendor loyalty program in Korea," Asian Business & Management, Palgrave Macmillan, vol. 20(3), pages 339-369, July.

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