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Reward Redemption Behaviour in Retail Loyalty Schemes *
Author(s) -
Smith Andrew,
Sparks Leigh
Publication year - 2009
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/j.1467-8551.2008.00561.x
Subject(s) - loyalty , business , marketing , database transaction , taxonomy (biology) , qualitative research , loyalty business model , cluster (spacecraft) , advertising , qualitative analysis , computer science , sociology , database , biology , ecology , social science , programming language , service (business) , service quality
In most retailer loyalty schemes, cardholders obtain ‘points’ based on their purchases. These points may be redeemed for rewards. This paper uses individual cardholder transaction records from a leading UK retailer and a related qualitative study to investigate this redemption behaviour. It provides a description and taxonomy of reward redemption behaviour, including non‐redemption. Amongst those that do redeem points, different types of redemption behaviour are found. Cluster analysis produced a three‐cluster solution. Explanations of this behaviour and the taxonomy are developed through the qualitative research. Implications for loyalty scheme management and research into loyalty schemes are identified.