Speaker:Dr Kexian Chen
Site:B127
Time:10:00-11:30 Tuesday Dec.19 2017
Loyalty programs (LPs) have penetrated a broad range of industries and attained global reach in today’s hyper-connected marketplace. Paradoxically, however, researchers and practitioners alike lament LPs’ low redemption and high dropout rates. This disconcerting state of affairs points to the need for insights into how existing members can be effectively motivated. To address this knowledge gap, we draw on Construal Level Theory to illuminate communication framing as a new mechanism for motivating reward pursuit behavior. Specifically, we argue that a “match” between the communication format and the reward structure of a LP can strengthen its members’ motivation for reward pursuit. Overall, our research enriches the theoretical landscape of LP research and suggests a low-cost approach to enhancing LP effectiveness.