Consumer Motivation for Reward Pursuit: A Culture-Based and Progress-Based Model of Loyalty Program Effectiveness

Morgan X. Yang*, Haksin Chan, Irina Y. Yu, Henry FOCK

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

Aided by the exponential rate of globalization and digitalization, reward or loyalty programs (LPs) have attained global reach. Paradoxically, however, dropout rates of LPs have averaged over 75%. This disconcerting statistic, coupled with the lack of culture-specific insights in the literature, points to a research area of great theoretical and practical importance. To address the aforementioned issues, we develop a culture-based and progress-based model of consumer motivation that is especially applicable to LP members. Drawing on cross-cultural literature and goal pursuit theory, our research enriches a field that is inherently global in nature. Through a series of research propositions that elucidate how Western individualist (vs. Eastern collectivist) consumers are differentially motivated to pursue LP rewards, we advance theoretical understanding of reward-induced behavior across cultures and offer useful insights for global managers of LPs.

Original languageEnglish
Pages (from-to)255-268
Number of pages14
JournalJournal of Global Marketing
Volume32
Issue number4
DOIs
Publication statusPublished - 8 Aug 2019

Scopus Subject Areas

  • Business and International Management
  • Marketing

User-Defined Keywords

  • consumer motivation
  • culture
  • feedback
  • Loyalty programs
  • reward pursuit

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