The role of computational ease on the decision to spend loyalty program points

Jessica Y.Y. Kwong; Dilip Soman; Candy K.Y. Ho

doi:10.1016/j.jcps.2010.08.005

The role of computational ease on the decision to spend loyalty program points

Jessica Y.Y. Kwong^*, Dilip Soman, Candy K.Y. Ho

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › peer-review

41 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	146-156
Number of pages	11
Journal	Journal of Consumer Psychology
Volume	21
Issue number	2
DOIs	https://doi.org/10.1016/j.jcps.2010.08.005
Publication status	Published - Apr 2011

Scopus Subject Areas

Applied Psychology
Marketing

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10.1016/j.jcps.2010.08.005

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title = "The role of computational ease on the decision to spend loyalty program points",

abstract = "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.",

author = "Kwong, {Jessica Y.Y.} and Dilip Soman and Ho, {Candy K.Y.}",

note = "Funding Information: The authors would like to acknowledge the valuable research assistance they received from Ailing Chua, Jaewoo Joo, Carmen Ng, Szeling Tam, Susanna Wong, and Manfred Leung. They would also like to thank Ellick Wong, Meng Zhang, Xiuping Li, Maggie Liu, and David Wilmshurst for their comments and suggestions. This research was supported by Grant CUHK445007 awarded to the first author by the Research Grant Council of the Hong Kong SAR, China . ",

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AU - Soman, Dilip

AU - Ho, Candy K.Y.

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N2 - 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.

AB - 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.

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DO - 10.1016/j.jcps.2010.08.005

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JO - Journal of Consumer Psychology

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The role of computational ease on the decision to spend loyalty program points

Abstract

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