Determinants ofcLoyalty Point Redemption: Implications for Customer Equity Management

28 Pages Posted: 13 Jun 2018

See all articles by Joon Ho Hwang

Joon Ho Hwang

Korea University

Jaiho Chung

Korea University Business School

Jae Wook Kim

Korea University Business School (KUBS)

Dongwon Lee

Korea University Business School

Weon Sang Yoo

Korea University Business School (KUBS)

Date Written: September 30, 2015

Abstract

This study examines the determinants of member customers’ decision to redeem versus accumulate loyalty program (LP) points by focusing on the effects of the different transaction channels (online versus offline) and the demographic information of member customers. This study finds that transactions that occur through online channels and those made by younger customers demonstrate a greater tendency of redeeming LP points as opposed to accumulating them. This study also finds that online channels show a moderating role by mitigating the demographic effects on member customers’ point redemption behavior. These findings allow LP providers to predict future LP point balances by analyzing their main transaction channels and the demographic profiles of member customers.

Keywords: Customer Equity, Demographic Characteristics, Loyalty Program, Online Channel, Point Redemption

Suggested Citation

Hwang, Joon Ho and Chung, Jaiho and Kim, Jae Wook and Lee, Dongwon and Yoo, Weon Sang, Determinants ofcLoyalty Point Redemption: Implications for Customer Equity Management (September 30, 2015). Journal of Business Research, Vol. 69, No. 9, 2016. Available at SSRN: https://ssrn.com/abstract=3186021

Joon Ho Hwang

Korea University ( email )

1 Anam-dong 5 ka
Seoul, 136-701
Korea, Republic of (South Korea)

Jaiho Chung

Korea University Business School ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701
Korea

Jae Wook Kim (Contact Author)

Korea University Business School (KUBS) ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701

Dongwon Lee

Korea University Business School ( email )

Anam-Dong, Seongbuk-Gu
Seoul, 136701
Korea, Republic of (South Korea)

HOME PAGE: http://dongwon.info

Weon Sang Yoo

Korea University Business School (KUBS) ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701
Korea

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