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"It's nice to get a wee treat if you've had a bad week": Consumer motivations in retail loyalty scheme points redemption

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  • Smith, Andrew
  • Sparks, Leigh

Abstract

Research into loyalty schemes focuses primarily on business (strategy) rather than consumer perspectives. This paper investigates consumer motivations in retail loyalty scheme points redemption, through a qualitative study of participants in a major UK retail loyalty scheme. Academic research tends to neglect investigation of points redemption, despite its probable significance to consumers and certain value to businesses. The research identifies planned behavior towards redemption goals, plus interruptions by various circumstances and events. Self-gifting for reward and/or therapy purposes is common. Redemption activities have positive implications for consumer perceptions of the scheme and the retailer and appear to enhance future purchasing behavior. From these findings, this paper draws implications for theory and practice.

Suggested Citation

  • Smith, Andrew & Sparks, Leigh, 2009. ""It's nice to get a wee treat if you've had a bad week": Consumer motivations in retail loyalty scheme points redemption," Journal of Business Research, Elsevier, vol. 62(5), pages 542-547, May.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:5:p:542-547
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    Cited by:

    1. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," Working Papers hal-01904416, HAL.
    2. Dorotic, Matilda & Verhoef, Peter C. & Fok, Dennis & Bijmolt, Tammo H.A., 2014. "Reward redemption effects in a loyalty program when customers choose how much and when to redeem," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 339-355.
    3. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    4. Cheng, Fei & Chen, Tong & Chen, Qiao, 2020. "Rewards based on public loyalty program promote cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 378(C).
    5. Malika Chaudhuri & Clay M. Voorhees & Jonathan M. Beck, 2019. "The effects of loyalty program introduction and design on short- and long-term sales and gross profits," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 640-658, July.
    6. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," CEPN Working Papers hal-01904416, HAL.
    7. Li, Chen & Swaminathan, Srinivasan & Kim, Junhee, 2021. "The role of marketing channels in consumers’ promotional point redemption decisions," Journal of Business Research, Elsevier, vol. 125(C), pages 314-323.
    8. Steinhoff, Lena & Zondag, Marcellis M., 2021. "Loyalty programs as travel companions: Complementary service features across customer journey stages," Journal of Business Research, Elsevier, vol. 129(C), pages 70-82.
    9. Brahim Idir, 2018. "L’impact des bénéfices perçus des programmes de fidélisation sur la fidélité à l’enseigne : le rôle médiateur de la fidélité au programme de fidélité," CEPN Working Papers 2018-03, Centre d'Economie de l'Université de Paris Nord.
    10. Feurer, Sven & Haws, Kelly L., 2022. "Justifiable justifications in sequential indulgent choice situations: A framework for future research based on perceived exceptionality," Journal of Business Research, Elsevier, vol. 149(C), pages 630-639.
    11. So Yeon Chun & Dan A. Iancu & Nikolaos Trichakis, 2020. "Loyalty Program Liabilities and Point Values," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 257-272, March.
    12. Chan, May & Kemp, Simon & Finsterwalder, Jörg, 2016. "The concept of near money in loyalty programmes," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 246-255.
    13. Gandomi, A. & Zolfaghari, S., 2013. "Profitability of loyalty reward programs: An analytical investigation," Omega, Elsevier, vol. 41(4), pages 797-807.
    14. Brahim Idir, 2018. "L’impact des bénéfices perçus des programmes de fidélisation sur la fidélité à l’enseigne : le rôle médiateur de la fidélité au programme de fidélité," Working Papers hal-01897443, HAL.
    15. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," CEPN Working Papers 2018-04, Centre d'Economie de l'Université de Paris Nord.
    16. Noble, Stephanie M. & Esmark, Carol L. & Noble, Charles H., 2014. "Accumulation versus instant loyalty programs: The influence of controlling policies on customers' commitments," Journal of Business Research, Elsevier, vol. 67(3), pages 361-368.
    17. Brahim Idir, 2018. "L’impact des bénéfices perçus des programmes de fidélisation sur la fidélité à l’enseigne : le rôle médiateur de la fidélité au programme de fidélité," CEPN Working Papers hal-01897443, HAL.
    18. Ashley, Christy & Noble, Stephanie M. & Donthu, Naveen & Lemon, Katherine N., 2011. "Why customers won't relate: Obstacles to relationship marketing engagement," Journal of Business Research, Elsevier, vol. 64(7), pages 749-756, July.
    19. Els Breugelmans & Yuping Liu-Thompkins, 2017. "The effect of loyalty program expiration policy on consumer behavior," Marketing Letters, Springer, vol. 28(4), pages 537-550, December.
    20. Ashley, Christy & Gillespie, Erin A. & Noble, Stephanie M., 2016. "The effect of loyalty program fees on program perceptions and engagement," Journal of Business Research, Elsevier, vol. 69(2), pages 964-973.

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