Fee-Based Loyalty Programs: An Empirical Investigation of Benefit Redemption Behavior and Its Effects on Loyalty

2020 ◽  
Vol 12 (2-3) ◽  
pp. 100-118
Author(s):  
Matthew C. Walsman ◽  
Michael J. Dixon

Loyalty program (LP) membership gives customers access to benefits such as free, discounted, or upgraded products or services; however, firms are increasingly charging customers enrollment fees for access to benefits instead of allowing them to earn benefits through repeat patronage. We sketch the evolution and design of LPs over the past 200 years and distinguish between several types of programs (free rewards-based programs and paid membership programs) and the types of benefits they offer (discounts and giveaways). We propose a theoretical model that hypothesizes that members who pay directly for LPs will use different benefits than customer who receive LP membership as a bundled package. Furthermore, we hypothesis that different benefit use moderates loyalty behavior. We test the hypotheses using a database of restaurant LP customers and find partial support for our hypotheses; in response to the sunk-cost effect and expectancy-value theory, a paid LP enrollment brings with it a need to self-justify and find the easiest path to investment payoff. Bundled members are more inclined to use lesser-used benefits. Our results suggest that proliferation of benefits may not translate into improved service, loyalty, or satisfaction.


2019 ◽  
Vol 47 (11) ◽  
pp. 1-10
Author(s):  
Seung Min Lee ◽  
Sang Yong Kim ◽  
Dong Young Kim

We examined the effect on customer loyalty of the type of loyalty program (paid vs. free) and timing of rewards (immediate vs. delayed). To test the research objectives we recruited 142 Korean college students and used a 2 × 2 full-factorial, randomized experimental design. Results suggested that the membership fee in paid loyalty programs acted as a sunk cost, which, compared to free loyalty programs, led to greater loyalty to the provider. An immediate (vs. delayed) reward was generally preferred; however, owing to the sunk cost effect, this depended to some extent on the type of loyalty program. In a paid loyalty program, immediate rewards were effective in increasing customer loyalty, whereas customers in free loyalty programs focused more on receiving the reward regardless of its timing. Our findings contribute to the literature by providing useful information for the design of an effective loyalty program scheme.





2014 ◽  
Vol 50 (5) ◽  
pp. 1442-1450 ◽  
Author(s):  
Jessica F. Magidson ◽  
Brent W. Roberts ◽  
Anahi Collado-Rodriguez ◽  
C. W. Lejuez


2021 ◽  
Vol 76 ◽  
pp. 101320
Author(s):  
Tricia A. Zucker ◽  
Janelle Montroy ◽  
Allison Master ◽  
Michael Assel ◽  
Cheryl McCallum ◽  
...  


Author(s):  
Tantri Sari Safitry ◽  
Teddy Mantoro ◽  
Media Anugerah Ayu ◽  
Ilza Mayumi ◽  
Ratna Dewanti ◽  
...  

The use of Information Communication Technology (ICT) in the classroom activities has become more famous to the teachers over the last decade. Many great deals of studies have proven the benefits of using ICT in the classroom. Unfortunately, there are evidences that the ICT reform efforts have failed due to teacher’s beliefs, skills and attitudes were never taken into consideration. The evidences found that most research only concern on students’ behalftowards ICT. Departing from that, this study tries to investigate the teachers’ perspectives and practices toward the use of ICT in their classroom activities. A survey was conducted to collect the data of the research. Using a revised expectancy-value theory called the Technology Implementation Questionnaire (TIQ), a questionnaire was administered among 20 elementary teachers. The findings revealed that there are still teachers who have more than 10 years experiences in teaching but they never got any formal training on using ICT. The lack of proficiency in ICT such as in using software, lack of technical support from the school also make them feel stressed out even though they have positive perspectives in applying ICT in their classroom activities.



2017 ◽  
Author(s):  
Virginia Gravina ◽  
Christopher Beswick ◽  
Kamden K Strunk

Expectancy-value theory has been used to investigate reasons why students have low achievement and low interest in science, technology, engineering, and mathematics (STEM) courses. The purpose of this study was to investigate the relationship between self-efficacy, perceived teaching practices, and subjective task value in gateway STEM courses. Results demonstrated that self-efficacy influenced perception of teaching practices and subjective task value, and perceived teaching practiced influenced subjective task value. Results and implications for teaching practices are discussed.



Author(s):  
Norman Rudhumbu ◽  
Elize du Plessis

The expectancy value theory (EVT) has been used in many studies to predict the motivation processes of individuals with regard to how they think and act in particular ways. Critical to how individuals think and act are the three elements of the EVT, namely the expectancy cognition (expectancy), instrumentality cognition (instrumentality) and valence. This study therefore seeks to establish whether the EVT could be used to predict and explain the motivation of lecturers to apply culturally responsive pedagogies (CRPs) in the teaching of culturally heterogeneous classes in universities in Botswana. Using a sample of 291 lecturers from three selected universities, the study employed a structured questionnaire for data collection. Confirmatory factor analysis (CFA) was used for data purification. Structural equation modelling (SEM) using AMOS version 22 was used for data analysis. The study established that the expectancy (β = .419; p < .001) and instrumentality (β = .315; p < .001) cognitions of lecturers as well as the valence (β = .268; p < .001) had a significant influence on the motivation of lecturers to apply CRPs in the teaching of culturally heterogeneous classes in universities. These results also showed significant relationships between expectancy cognition and valence (β = .316; p < .001) and also between instrumentality cognition and valence (β = .301; p < .001). These results therefore demonstrate that the EVT could be used to predict the motivation of lecturers in universities to apply CRPs in their teaching of culturally diverse university students.



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