DOI QR코드

DOI QR Code

Managing Customer's Usage Behavior in a Multi-vendor Loyalty Program

  • Koo, Kay-Ryung (Korea University, Institute for Business Research and Education) ;
  • Woo, Won-Seok (Ewha Womans University, Division of International Studies)
  • Received : 2015.04.14
  • Accepted : 2015.05.14
  • Published : 2015.05.30

Abstract

Purpose - Loyalty programs enable retailers to maintain longer and better customer relationships. In successful services, customers actively use and value these programs. As the proximity to the goal (goal gradient) might signal active participation, this study empirically examines customer's goal gradient behavior in a multi-vendor loyalty program. We also consider the effect of customer's accrual diversity on goal gradients, which is a differentiating feature in a multi-vendor loyalty program, and is further examined. Research Design, Data, and Methodology - The data consists of6,646 OK Cashbag members' individual transaction records from 2006 to 2009. The goal gradient hypothesis was tested as an increase in both the speed and the amount of accumulated award points. Result - The findings suggest that the goal gradient is also observed in a multi-vendor loyalty program, occurring more strongly among members with high accrual diversity. Conclusions - The results indicate that customers with high accrual diversity attend strongly to goal gradients in multi-vendor loyalty programs; hence, it is important for such program managers to better inform members about affiliated partners.

Keywords

Cited by

  1. KODISA Academic Journal Strategy: Synopsis in 2016 and Vistas of the Future vol.14, pp.4, 2015, https://doi.org/10.15722/jds.14.4.201604.5
  2. Customer Churn Prediction using App Log Data of a Coalition Loyalty Program vol.19, pp.8, 2021, https://doi.org/10.14801/jkiit.2021.19.8.107