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

    32 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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