Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
The Paradox of Points: Theoretical Foundation and Empirical Evidence of Medium Magnitude Effects in Loyalty Programs

The Paradox of Points: Theoretical Foundation and Empirical Evidence of Medium Magnitude Effects in Loyalty Programs

Köcher, Sören

Paperback

Series: Applied Marketing Science / Angewandte Marketingforschung

Business GeneralEconomicsMarketing

ISBN10: 3658095423
ISBN13: 9783658095420
Publisher: Springer Gabler
Published: Apr 21 2015
Pages: 163
Weight: 0.54
Height: 0.42 Width: 5.83 Depth: 8.27
Language: English
In his research, Sören Köcher provides valuable insights on the paradoxical effects of the magnitude of a loyalty program medium--i.e. the sheer number of points, miles, or stamps credited for every purchase and required for reward redemption--on the central consumer decisions in loyalty program memberships. In sum, the results of twelve empirical studies reveal that high magnitude currencies improve the attractiveness of medium collection but entail reluctant medium spending behavior. These findings provide important implications for a more efficient usage of loyalty programs in business practices. In addition, this dissertation discovers a violation of one of the most fundamental assumptions of rational choice theory and thus contributes to a better understanding of when and why people deviate from rational decision-making.

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