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 journalArticlepeer-review

26 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 languageEnglish
Pages (from-to)146-156
Number of pages11
JournalJournal of Consumer Psychology
Volume21
Issue number2
DOIs
Publication statusPublished - Apr 2011

Scopus Subject Areas

  • Applied Psychology
  • Marketing

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