Antecedents to loyalty point redemption: Implications for customer equity management

Joon Ho Hwang, Jaiho Chung, Jae Wook Kim, Dongwon Lee and Weon Sang Yoo

Journal of Business Research, 2016, vol. 69, issue 9, 3731-3739

Abstract: This study examines the determinants of member customers' decision to redeem versus accumulate loyalty program (LP) points by focusing on the effects of the different transaction channels (online versus offline) and the demographic information of member customers. This study finds that transactions that occur through online channels and those made by younger customers demonstrate a greater tendency of redeeming LP points as opposed to accumulating them. This study also finds that online channels show a moderating role by mitigating the demographic effects on member customers' point redemption behavior. These findings allow LP providers to predict future LP point balances by analyzing their main transaction channels and the demographic profiles of member customers.

Keywords: Customer equity; Demographic characteristics; Loyalty program; Online channel; Point redemption (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:9:p:3731-3739

DOI: 10.1016/j.jbusres.2015.12.065

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