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The role of computational ease on the decision to spend loyalty program points
Author(s) -
Kwong Jessica Y.Y.,
Soman Dilip,
Ho Candy K.Y.
Publication year - 2011
Publication title -
journal of consumer psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.433
H-Index - 110
eISSN - 1532-7663
pISSN - 1057-7408
DOI - 10.1016/j.jcps.2010.08.005
Subject(s) - loyalty program , loyalty , point (geometry) , cash , marketing , function (biology) , point of sale , currency , advertising , computer science , microeconomics , business , loyalty business model , economics , finance , mathematics , monetary economics , world wide web , geometry , evolutionary biology , service quality , biology , service (business)
Many consumers today hold loyalty program points which function as a currency, but are not cash. This paper examines factors that influence consumers' decisions to keep or spend their accumulated points. We found that consumers are more likely to spend points when they can easily anticipate the benefits they can enjoy with the points. Specifically, the decision to spend points is facilitated when it is easier to compute the percentage savings one can get by using the points. This computational ease has effects on point spending beyond that of saving magnitude.