• Title/Summary/Keyword: Reward Perception

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Effects of Reward Programs on Brand Loyalty in Online Shopping Contexts (인터넷쇼핑 상황에서 보상프로그램이 브랜드충성도에 미치는 영향에 관한 연구)

  • Kim, Ji-Hern;Kang, Hyunmo;Munkhbazar, M.
    • Asia Marketing Journal
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    • v.14 no.2
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    • pp.39-63
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    • 2012
  • Previous studies of reward programs have generally focused on designing the best programs for consumers and suggested that consumers' perception of the value of reward programs can vary according to the type of reward program (e.g., hedonic vs. utilitarian and direct vs. indirect) and its timing (e.g., immediate vs. delayed). These studies have typically assumed that consumers' preference for reward programs has a positive effect on brand loyalty. However, Dowling and Uncles (1997) pointed out that this preference does not necessarily foster brand loyalty. In this regard, the present study verifies this assumption by examining the effects of consumers' perception of the value of reward programs on their brand loyalty. Although reward programs are widely used by online shopping malls, most studies have examined the conditions under which consumers are most likely to value loyalty programs in the context of offline shopping. In the context of online shopping, however, consumers' preferences may have little effect on their brand loyalty because they have more opportunities for comparing diverse reward programs offered by many online shopping malls. That is, in online shopping, finding attractive reward programs may require little effort on the part of consumers, who are likely to switch to other online shopping malls. Accordingly, this study empirically examines whether consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. Meanwhile, consumers seek utilitarian and/or hedonic value from their online shopping activity(Jones et al., 2006; Barbin et al., 1994). They visit online shopping malls to buy something necessary (utilitarian value) and/or enjoy the process of shopping itself (hedonic value). In this sense, reward programs may reinforce utilitarian as well as hedonic value, and their effect may vary according to the type of reward (utilitarian vs. hedonic). According to Chaudhuri and Holbrook (2001), consumers' perception of the value of a brand can influence their brand loyalty through brand trust and affect. Utilitarian value influences brand loyalty through brand trust, whereas hedonic value influences it through brand affect. This indicates that the effect of this perception on brand trust or affect may be moderated by the type of reward program. Specifically, this perception may have a greater effect on brand trust for utilitarian reward programs than for hedonic ones, whereas the opposite may be true for brand affect. Given the above discussion, the present study is conducted with three objectives in order to provide practical implications for online shopping malls to strategically use reward program for establishing profitable relationship with customers. First, the present study examines whether reward programs can be an effective marketing tool for increasing brand loyalty in the context of online shopping. Second, it investigates the paths through which consumers' perception of the value of reward programs influences their brand loyalty. Third, it analyzes the effects of this perception on brand trust and affect by considering the type of reward program as a moderator. This study suggests and empirically analyzes a new research model for examining how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. The model postulates the following 10 hypotheses about the structural relationships between five constructs: (H1) Consumers' perception of the value of reward programs has a positive effect on their program loyalty; (H2) Program loyalty has a positive effect on brand loyalty; (H3) Consumers' perception of the value of reward programs has a positive effect on their brand trust; (H4) Consumers' perception of the value of reward programs has a positive effect on their brand affect; (H5) Brand trust has a positive effect on program loyalty; (H6) Brand affect has a positive effect on program loyalty; (H7) Brand trust has a positive effect on brand loyalty; (H8) Brand affect has a positive effect on brand loyalty; (H9) Consumers' perception of the value of reward programs is more likely to influence their brand trust for utilitarian reward programs than for hedonic ones; and (H10) Consumers' perception of the value of reward programs is more likely to influence their brand affect for hedonic reward programs than for utilitarian ones. To test the hypotheses, we considered a sample of 220 undergraduate students in Korea (male:113). We randomly assigned these participants to one of two groups based on the type of reward program (utilitarian: transportation card, hedonic: movie ticket). We instructed the participants to imagine that they were offered these reward programs while visiting an online shopping mall. We then asked them to answer some questions about their perception of the value of the reward programs, program loyalty, brand loyalty, brand trust, and brand affect, in that order. We also asked some questions about their demographic backgrounds and then debriefed them. We employed the structural equation modeling (SEM) method with AMOS 18.0. The results provide support for some hypotheses (H1, H3, H4, H7, H8, and H9) while providing no support for others (H2, H5, H6, H10) (see Figure 1). Noteworthy is that the path proposed by previous studies, "value perception → program loyalty → brand loyalty," was not significant in the context of online shopping, whereas this study's proposed path, "value perception → brand trust/brand affect → brand loyalty," was significant. In addition, the results indicate that the type of reward program moderated the relationship between consumers' value perception and brand trust but not the relationship between their value perception and brand affect. These results have some important implications. First, this study is one of the first to examine how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. In particular, the results indicate that the proposed path, "value perception → brand trust/brand affect → brand loyalty," can better explain the effects of reward programs on brand loyalty than existing paths. Furthermore, these results suggest that online shopping malls should place greater emphasis on the type of reward program when devising reward programs. To foster brand loyalty, they should reinforce the type of shopping value that consumers emphasize by providing them with appropriate reward programs. If consumers prefer utilitarian value to hedonic value, then online shopping malls should offer utilitarian reward programs and vice versa.

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The Effects of Reward Card Types and Regulatory Focus on Transaction Coupling and Sunk Cost Perception (적립카드 유형과 조절적 초점이 소비자의 거래커플링과 매몰비용 지각에 미치는 효과)

  • Choe, Seon-Gyeong;Kahn, Hyungsik
    • Journal of the Korean Operations Research and Management Science Society
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    • v.38 no.1
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    • pp.103-121
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    • 2013
  • Since American Airlines's mileage program emerged in market, loyalty programs have gained popularity. Many companies have generated many kinds of reward cards in order to induce precious consumers. As a result, reward cards are very important in consumer goods market and become diversified. In spite of its importance, little is known about how these cards influence consumer's perception. The prior research has not focused on reward card types and psychological variables. Accordingly this research intends to investigate psychological variables such as transaction coupling and sunk cost perception. According to the theory of regulatory focus, promotion focus consumers would point to gain-nongain frame work, but prevention focus consumers would point to loss-nonloss frame work. The paper proved the effect of reward card types and regulatory focus on transaction coupling and sunk cost perception. Based on the results from 2(type of card : visible vs invisible) ${\times}$ 2(regulatory focus: promotion vs prevention) between-subjects factorial design experiments, we found that consumer's transaction coupling and sunk cost perception of visible reward card are better recognized than invisible reward card. In addition, the results show that there is a significant interaction effect between the type of reward card and regulatory focus. Specifically promotion focused consumers tend to reveal better perception than prevention focused consumers in use of invisible cards. However, prevention focused consumers tend to show better perception than promotion focused consumers in use of visible cards. These findings will contribute to significant academic development and practically useful help to marketing managers.

Effect of Nurses' Perception of Reward and Organizational Commitment on Their Turnover Intention (간호사의 보상에 대한 인식과 조직몰입이 이직의도에 미치는 영향)

  • Lee, Mi-Aie
    • Journal of Korean Academy of Nursing Administration
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    • v.15 no.3
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    • pp.434-443
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    • 2009
  • Purpose: This study was performed to measure nurses' perception of reward, organizational commitment, turnover intention, and to examine the effect of the first two variables on turnover intention. Methods: This study was cross-sectional survey. Data were collected from 400 nurses working at 8 general hospitals in 6 cities from May 28 to July 18, 2008. Result: Nurses perceived that reward was 'important', and organizational commitment and turnover intention were 'middle'. Being under 30 years old the unmarried staff nurses' organizational commitment was significantly low in statistics and their turnover intention was high. The only financial reward had a positive relationship with turnover intention, and organizational commitment had a negative relationship. The influence variables on turnover intention were affective commitment, period of expected work, financial reward, age, normative commitment, and the explanation power of them was 57.2%. Conclusion: It is concluded that the manager working at a small-middle sized general hospitals in Korean provinces should develop and apply the strategies that can improve nurses' organizational commitment. And they also have to make their organizational reward system keep appropriately.

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A Study on the Factors Affecting Sharing of Research Data of Science and Technology Researchers (과학기술분야 연구자의 연구데이터 공유의 영향요인에 대한 연구)

  • Kim, Moonjeong;Kim, Seonghee
    • Journal of the Korean Society for Library and Information Science
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    • v.49 no.2
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    • pp.313-334
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    • 2015
  • The purpose of this study was to investigate factors affecting the sharing of research data of science and technology researchers. Data was collected through a survey of 198 science and technology researchers. Independent variables in this study included perception, openness in communication, collaboration, and trust. Latent variable was selected as reward system and dependent variable was research data sharing. The results of analysis of structural equation modeling showed that perception were found to have a positive impact on reward system for data sharing for research. Other factors such as trust, openness in communication and collaboration were not statistically significant in their affect on reward system for data sharing. Finally, reward system was identified as the influential factor on research data sharing.

The Effects of Reward Structure in Cooperative Learning Strategies Applied to Elementary School Science Class (초등학교 과학 수업에 적용한 협동학습 전략에서 보상구조의 효과)

  • 고한중;홍선희;강석진;노태희
    • Journal of Korean Elementary Science Education
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    • v.21 no.1
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    • pp.127-134
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    • 2002
  • Although the reward based on group accomplishment in cooperative learning has a merit to emphasize interdependency, it may have some undesirable side effects such as free rider effect and sucker effect. For the purpose of reducing these side effects, this study examined how the adjustment of the reward structure affected the scholastic achievement, the perception of learning environments, and the attitude toward science class by adding individual reward to group reward. We selected 2 classes of sixth grade in an elementary school, and taught on oxygen and carbon dioxide for 13 class hours in cooperative learning strategies. Group reward was applied to one class, and both group and individual rewards were applied to the other class. Analysis of the results indicated that the achievement scores of the students under the group and individual rewards were significantly higher than those under the group reward. In addition, they had more difficulty in science class and felt less satisfied. The upper level students under the group and individual rewards were also found to exhibit more competition. Educational implications were discussed.

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How Desirable is the Medium? Effect of Point Accumulation Scheme on Consumer Loyalty Toward Reward Program

  • Eujin Park
    • Asia Marketing Journal
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    • v.24 no.4
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    • pp.190-205
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    • 2023
  • An accruable point scenario study was applied to examine the effect of the point-accumulation trend (diminishing vs. increasing) and the nominal value (small vs. large) of a medium for repeated consumption on program loyalty. The results showed that both factors affect consumer loyalty toward a reward program. Consumers who received a medium with an increasing accumulation trend and a large nominal value perceived a reward to be more valuable than those who received a diminishing trend and a small nominal value. The results confirmed that a large nominal value or an increasing accumulation trend increased the perception of reward and program loyalty. However, when the desirability of the medium was controlled, the effect of trend was reduced to almost negligible whereas that of the nominal value remained the same. These findings suggest how consumer perceptions of loyalty programs can be practically managed through point accumulation processes.

The Effects of Urban Housewives′ Environmental Knowledge and Family Resource Management Attitude on Family Resource Management Behavior (도시주부의 환경지식과 자원절약태도가 자원절약행동에 미치는 영향)

  • Hong Sang-Hee;Rhee Kyung-Hee;Kwak In-Suk
    • Journal of the Korean Home Economics Association
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    • v.42 no.9
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    • pp.67-83
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    • 2004
  • The purpose of this study were, (1) to analyze the effect of the selected variables on urban housewives' family resource management attitude and behavior, and (2) to identify the casual effects of variables on family resource management behavior. A sample of 641 was selected from housewives living in urban area. For data analysis, one-way ANOVA, DMR test, t-test, multiple regression, and path analysis were used. The major findings were as follows: 1. The housewives' family resource management behavior level was lower than their attitude level. 2. The family resource management attitude and behavior among the respondents were affected by the following independent variables : interest with environmental reports and newspapers, perception of time constraints, perception of economic reward. 3. The family resource management attitude had the greatest causal effect on the family resource management behavior.

An Investigation of the Effects of Perception and Experience of Internship Training on Job Pursuit Intentions - Focusing on the Hotel & Tourism Colleges of J University in Jeonbuk and C University in Chungnam - (산학 실습 인식 및 경험이 취업의사에 미치는 영향에 관한 연구 - 전북 J대학교와 충남 C대학교의 호텔관광대학을 중심으로 -)

  • Ahn, Seh-Kil
    • Culinary science and hospitality research
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    • v.15 no.2
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    • pp.31-44
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    • 2009
  • Hospitality industry offers internship programs to the students who have studied hospitality related majors in a college, giving them opportunities to improve their executive ability through academic knowledge. However, it has been found that there are several issues against the purposes such as unconcern, work burden, inadequate reward, and discontent. In this respect, this study aims to suggest the advisable solutions to achieve the original purposes of an internship program by examining the effects of the perception of the internship program, anticipation for it, satisfaction with it, and job pursuit intentions after finishing it. Positive factors for the perception of internship training are businesses, allocation of departments, working environments, students abilities, and academical knowledge while its term and reward from it are not the influential factors. The positive perception of the internship training is influenced by affirmative importance-performance thinking, but positive job pursuit intentions is not affected by affirmative perception of the training.

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Factors affecting the collaboration between nurses in community health department and social workers in welfare services department (지역사회 보건복지서비스의 통합적 제공을 위한 간호사와 사회복지사간 협력에 영향을 미치는 요인)

  • Kim, Mi-Ju
    • Health Policy and Management
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    • v.18 no.4
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    • pp.125-147
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    • 2008
  • The purpose of this study is to propose the factors affecting collaboration between community nurses and social workers in Korea. Data that is used in this study, were collected from 295 provider respondents by questionnaire, additionally from telephone survey and secondary data review. This study focuses on the working relationship between professionals in the field of health and social care. Based on the literature review, this study proposes a conceptual framework for collaboration between nurses and social workers in community health and social care. The dependent variable in this study is collaboration. It reveals whether or not the inter-professional works and shows the level of collaboration. The independent variables are categorized in: the client characteristics (frailty of client, client-provider relationship); the provider characteristics (specialization, perception of interdependence, perception of the other professional); the organization characteristics (closeness of the other professional, autonomy, on-the-job training, evaluation-reward); and the community characteristics (urbanization, capacity of resources). Major findings are as follows: First, the factors that appear to have the strongest impact on whether or not inter-professional working of respondent sampled are: the perception of other professional; the perception of interdependence; closeness of, the, other professional; and the frailty of client. Secondly, the factors that found to have the most significant effect on level of cooperation are: the perception of, the other professional; on-the-job training; evaluation-reward; and the closeness of the other professional.

Preception of Equity in Marital Life.Home Management Behavior and Family Life Satisfaction of Urban Housewives (도시주부의 부부간 공평성 인지.가정관리행동 및 가정생활만족)

  • 전지원;이정우
    • Journal of the Korean Home Economics Association
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    • v.38 no.9
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    • pp.57-74
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    • 2000
  • The major purpose of this study was to develop with priority given to the discourse on the correlation between interpersonal resources and home management behavior for family life satisfaction. So, this study was to identify the perception of equity in marital life, through which dynamic aspects is measured with family resource. Some of the major findings are as follows : The perception of equity in marital life show a significant difference by the state of employment and the degree of communication in couple. Housewives'home management behavior show a significant difference by the perception of equity in marital life. It appears that intra system dynamics elements explain housewives'home management behavior. From the Regression Analysis, the Model was found to be highly significant, accounting for 63% of the variances. Especially, housewives'family life satisfaction is influenced by the perception of daily life equity capable of evaluating each of a married couples'contribution and reward for family life lather than perception of psychological-emotional equity.

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