• Asia Marketing Journal
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• v.14 no.2
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• pp.39-63
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• 2012

Previous studies of reward programs have generally focused on designing the best programs for consumers and suggested that consumers' perception of the value of reward programs can vary according to the type of reward program (e.g., hedonic vs. utilitarian and direct vs. indirect) and its timing (e.g., immediate vs. delayed). These studies have typically assumed that consumers' preference for reward programs has a positive effect on brand loyalty. However, Dowling and Uncles (1997) pointed out that this preference does not necessarily foster brand loyalty. In this regard, the present study verifies this assumption by examining the effects of consumers' perception of the value of reward programs on their brand loyalty. Although reward programs are widely used by online shopping malls, most studies have examined the conditions under which consumers are most likely to value loyalty programs in the context of offline shopping. In the context of online shopping, however, consumers' preferences may have little effect on their brand loyalty because they have more opportunities for comparing diverse reward programs offered by many online shopping malls. That is, in online shopping, finding attractive reward programs may require little effort on the part of consumers, who are likely to switch to other online shopping malls. Accordingly, this study empirically examines whether consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. Meanwhile, consumers seek utilitarian and/or hedonic value from their online shopping activity(Jones et al., 2006; Barbin et al., 1994). They visit online shopping malls to buy something necessary (utilitarian value) and/or enjoy the process of shopping itself (hedonic value). In this sense, reward programs may reinforce utilitarian as well as hedonic value, and their effect may vary according to the type of reward (utilitarian vs. hedonic). According to Chaudhuri and Holbrook (2001), consumers' perception of the value of a brand can influence their brand loyalty through brand trust and affect. Utilitarian value influences brand loyalty through brand trust, whereas hedonic value influences it through brand affect. This indicates that the effect of this perception on brand trust or affect may be moderated by the type of reward program. Specifically, this perception may have a greater effect on brand trust for utilitarian reward programs than for hedonic ones, whereas the opposite may be true for brand affect. Given the above discussion, the present study is conducted with three objectives in order to provide practical implications for online shopping malls to strategically use reward program for establishing profitable relationship with customers. First, the present study examines whether reward programs can be an effective marketing tool for increasing brand loyalty in the context of online shopping. Second, it investigates the paths through which consumers' perception of the value of reward programs influences their brand loyalty. Third, it analyzes the effects of this perception on brand trust and affect by considering the type of reward program as a moderator. This study suggests and empirically analyzes a new research model for examining how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. The model postulates the following 10 hypotheses about the structural relationships between five constructs: (H1) Consumers' perception of the value of reward programs has a positive effect on their program loyalty; (H2) Program loyalty has a positive effect on brand loyalty; (H3) Consumers' perception of the value of reward programs has a positive effect on their brand trust; (H4) Consumers' perception of the value of reward programs has a positive effect on their brand affect; (H5) Brand trust has a positive effect on program loyalty; (H6) Brand affect has a positive effect on program loyalty; (H7) Brand trust has a positive effect on brand loyalty; (H8) Brand affect has a positive effect on brand loyalty; (H9) Consumers' perception of the value of reward programs is more likely to influence their brand trust for utilitarian reward programs than for hedonic ones; and (H10) Consumers' perception of the value of reward programs is more likely to influence their brand affect for hedonic reward programs than for utilitarian ones. To test the hypotheses, we considered a sample of 220 undergraduate students in Korea (male:113). We randomly assigned these participants to one of two groups based on the type of reward program (utilitarian: transportation card, hedonic: movie ticket). We instructed the participants to imagine that they were offered these reward programs while visiting an online shopping mall. We then asked them to answer some questions about their perception of the value of the reward programs, program loyalty, brand loyalty, brand trust, and brand affect, in that order. We also asked some questions about their demographic backgrounds and then debriefed them. We employed the structural equation modeling (SEM) method with AMOS 18.0. The results provide support for some hypotheses (H1, H3, H4, H7, H8, and H9) while providing no support for others (H2, H5, H6, H10) (see Figure 1). Noteworthy is that the path proposed by previous studies, "value perception → program loyalty → brand loyalty," was not significant in the context of online shopping, whereas this study's proposed path, "value perception → brand trust/brand affect → brand loyalty," was significant. In addition, the results indicate that the type of reward program moderated the relationship between consumers' value perception and brand trust but not the relationship between their value perception and brand affect. These results have some important implications. First, this study is one of the first to examine how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. In particular, the results indicate that the proposed path, "value perception → brand trust/brand affect → brand loyalty," can better explain the effects of reward programs on brand loyalty than existing paths. Furthermore, these results suggest that online shopping malls should place greater emphasis on the type of reward program when devising reward programs. To foster brand loyalty, they should reinforce the type of shopping value that consumers emphasize by providing them with appropriate reward programs. If consumers prefer utilitarian value to hedonic value, then online shopping malls should offer utilitarian reward programs and vice versa.

• Journal of the Korean Society of Clothing and Textiles
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• v.37 no.4
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• pp.467-481
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• 2013

The study examined the main effect of the reward channel and reward time of customer loyalty programs for on-offline shopping channels; in addition, it investigated the interaction effect of the reward channels and merchandise as well as the interaction effect of the reward time and merchandise. An online apparel shopping web experiment was conducted with a 2 (reward channel: online channel reward vs. offline channel reward) ${\times}2$ (reward time: immediate vs. delayed) ${\times}2$ (merchandise: online channel product vs. offline channel products) between-subject factorial design. An online shopping channel was considered the core-shopping channel and a department store was considered the cross-shopping channel. Loyalty program value, core-channel loyalty and cross-channel loyalty were measured as dependent variables. A total of 845 shoppers (who had experiences in shopping in both channels) participated in the experiment. The results of the study revealed (1) the main effect of the reward channel on loyalty program value, core-channel loyalty and cross-channel loyalty [online>offline channel rewards], (2) the main effect of reward time on loyalty program value, core-channel loyalty and cross-channel loyalty [immediate>delayed reward], and (3) the interaction effect of the reward channel and merchandise on loyalty program value, core-channel loyalty, and cross-channel loyalty. (4) Finally the study found that loyalty program value affected cross-channel loyalty indirectly through core-channel loyalty. This study suggested diverse theoretical and managerial implications for multi-channel retailers.

• Journal of Korean Academy of Nursing Administration
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• v.3 no.2
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• pp.41-59
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• 1997

This study surveyed nurses' value of reward and recognition level of organizational reward, and measured the fit of both. It also looked into the relationship between the reward fit and attitude of nurses toward their job and organization (job involvement${\cdot}$organizational commitment). It was planned to suggest the alternative of a future reward system. The sample consisted of 625 nurses of 8 private University Hospitals. Data for this study was collected from Mar. 25 to Apr. 17 by structured questionnaire. This study examined the differences of nurses' value of reward by their demographic characteristics, and looked into the relationship between the reward fit and job involvement${\cdot}$organizational commitment. Four instruments and a demographic questionnair were used to collect the data. Developed for myself and repaired by panel of judges, the value of reward scale and organizational reward scale consisted of 34 items on five points Likert-type scale. Developed by Kanungo and repaired by panel of judges, the job involvement scale measured overall job involvement on 7 items. The organizational commitment scale was developed by Mowday et al and repaired by panel of judges on 10 items. The data was analyzed by frequency, percentage, ranking, one-way ANOVA, Pearson's correlation coefficient, Chronbach alpha coefficient, t-test, SNK test, factor analysis with SPSS/PC+ progra,.Major findings are as follows 1. The mean of nurses' value of reward is 4.2435 and job content rewards are seen as the most important(M=4.5532). The following orders are seen as follows; financial rewards(M=4.4181), human realtion rewards(M=4.4130), establishment ${\cdot}$ facilities rewards(M=4.1632), professional rewards(M=4.1117), social status or prestige rewards(M=3.9228), career rewards(M=3.8816). Of 34 indivisual reward factors, the retainment allowance is seen to be thought of as the most important thing. 2. The mean of nurses' actual reward is 2.6035. The actual reward responded to the most extremely offered is job content rewards. The following orders are seen as follows ; human relation rewards(M=2.9420), financial rewards(M=2.7682), professional rewards(M=2.4601), social status or prestige rewards(M=2.3696), career rewards(M=2.3466), establishment ${\cdot}$ facilities rewards(M=1.9364). Of 34 indivisual reward factors, medical insurance benefits are felt to be most extremely offered. 3. The mean of fit of reward is -1.6874 and that means actual reward doesn't egual the value of the reward. What is offered mostly to nurses' value of reward is human relation rewards. The following orders are seen as follows; job content rewards(M=-1.5938), career rewards(M=-1.6381), social status of prestige rewards(M=-1.6382), financial rewards(M=-1.6836), professional rewards(M=-1.6854), establishment${\cdot}$facilities rewards(M=-2.3130). Of 34 indivisual factors, the item of fered most closely to nurses' value of reward is seen as the participation in educational programs at the nursing department of the hospital. 4. The mean of nurses' job involvement is 3.1987 and SD is 0.5667. 5. The mean of murses' organizational commitment is 2.9348 and SD is 0.6124, that is seen as a little lower than job involvement. 6. Significant value of reward differences were found among nurses by their demographic characteristics such as married status, tenure, academic career. 7. The fit of reward was significant related to job involvement and organizational commitment. When generalizing the result of this study, the value of reward, which nurses consider important and appropriate offers a reward that corresponds to the nurses' value of reward. This increases nurses' job and organization devotion further, as well as hospital effectiveness. It appears that nurses have recognized that the present reward offered in hospitals doesn't come up to their expectations so I think it is urgent to plan and perform the new reward system which is in accord with the nurses' reward fit.

• The Journal of the Korea Contents Association
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• v.11 no.8
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• pp.321-330
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• 2011

This study focuses on the moderating effect of sex role on the relationship between perceived values on the reward program of tele-communication firms and customer satisfaction. To test moderating effect, Difference test for distinct parameters in Amos 18.0 program was used. Results show that both kind of perceived values(utilitarian value and hedonic value) have a significant effect on customer satisfaction. And the moderating effect of sex variable was verified. For male, hedonic value has influenced on the customer satisfaction more than utilitarian value. And for female, reversely, utilitarian value has influenced on the customer satisfaction more than female value.

• Asia Marketing Journal
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• v.24 no.4
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• pp.190-205
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• 2023

An accruable point scenario study was applied to examine the effect of the point-accumulation trend (diminishing vs. increasing) and the nominal value (small vs. large) of a medium for repeated consumption on program loyalty. The results showed that both factors affect consumer loyalty toward a reward program. Consumers who received a medium with an increasing accumulation trend and a large nominal value perceived a reward to be more valuable than those who received a diminishing trend and a small nominal value. The results confirmed that a large nominal value or an increasing accumulation trend increased the perception of reward and program loyalty. However, when the desirability of the medium was controlled, the effect of trend was reduced to almost negligible whereas that of the nominal value remained the same. These findings suggest how consumer perceptions of loyalty programs can be practically managed through point accumulation processes.

• The Journal of the Korea Contents Association
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• v.16 no.7
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• pp.760-770
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• 2016

This study aims to investigate and measure the effectiveness between the value of the reward program and loyalty of the reward program as well as its influential transference effect of the loyalty of the entity (theater or exhibition) via investigating both its behavioral loyalty and attitudinal loyalty effectiveness. As a result, higher value of reward program increases the level of loyalty of the reward program. Key results were found that the behavioral loyalty positively influences the loyalty of the theatre/exhibition -the operator the loyalty program since the behavior loyalty requires participatory engagement, the reward program becoming a stimulator acting as a valuable component to drive consumer's revisit. However the attitudinal loyalty effectiveness was not as effectives as the behavioral loyalty since consumers tend to perceive a reward program as an informative beneficial tool rather than an emotionally engaging platform.

• Journal of the Korea Society of Computer and Information
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• v.21 no.2
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• pp.113-122
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• 2016

This study investigates how anticipated value(attainment value, intrinsic value, utility value, and reward value) and self-efficacy in providing information have an influence on continuance intention to provide information in the context of online community or social media. We propose a conceptual model for examining the framework for the effect of anticipated value on attitude toward providing information, and the effect of attitude toward providing information and self-efficacy in providing information on continuance intention to provide information. Proposed research model is empirically assessed using the survey data obtained from 221 respondents in Korea. Results show that attainment value and intrinsic value have a significant impact on attitude toward providing information, whereas utility value and reward value are found to be insignificant. In addition, attitude toward providing information and self-efficacy in providing information are positively and significantly related to continuance intention to provide information.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.1
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• pp.1-10
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• 2009

Consumers earn a number of points for every purchase and then they can exchange a specified number of points for a desired reward in a typical loyalty program. The immediate payoff of their effort given as points is not the real reward they actually care about. It is merely an instrument (or medium) which has no value in itself. In a real world, consumers frequently choose the option with a bigger medium even though the economic value of the option is not changed by the medium. We call it 'medium effect.' In this study we explored if the size of medium affects consumers' preferences. For this we controlled the reward options with three types of medium (small, medium, big) and measured the magnitude of preference difference among the three types of reward options. In addition, we manipulated comparability of reward options with wine and gas discount coupon. We confirmed that choosing one of two wines was easier than that of the two gas coupons. 123 respondents were allocated into three experimental groups. In three experimental grounds, the ratios of the focused reward option's medium to the compared reward option's medium were different. For example, the focused reward option has 10 million points whereas the compared reward option has 10 million points for 1 million won purchase amount in the first group. Then each respondent was asked to choose one of two loyalty programs (focused program vs. compared program) in two different conditions (comparability between reward options. easiness vs. difficulty). To compare the medium effects among the experiment conditions we used chi-squares tests. The empirical results show consumer preference increases and then decreases as reward mile-ages/points given according to purchase amount increase. Additionally, they let us know that comparability of alter natives affects change of consumer preference by reward mileages/points.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2008.10a
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• pp.179-190
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• 2008

Consumers earn a number of points for every purchase and then they can exchange a specified number of points for a desired reward in a typical loyalty program. The immediate payoff of their effort given as points is not the real reward they actually care about. It is merely an instrument (or medium) which has no value in itself. In a real world, consumers frequently choose the option with a bigger medium even though the economic value of the option is not changed by the medium. We call it 'medium effect'. In this study we explored if the size of medium affects on consumers' preferences. For this we controlled the reward options with three types of medium (small, medium, big) and measured the magnitude of preference difference among the three types of reward options. In addition, we manipulated comparability of reward options with wine and gas discount coupon. We confirmed that choosing one of two wines was easier than that of the two gas coupons. 164 respondents were allocated into three experimental groups and one control group. In three experimental groups, the ratios of the focused reward option's medium to the compared reward option's medium were different. For example, the focused reward option has 10 million points whereas the compared reward option has 10 million points for 1 million won purchase amount in the first group. Then each respondent was asked to choose one of two loyalty programs (focused program vs. compared program) in two different conditions (comparability between reward options: easiness vs. difficulty). To compare the medium effects among the experiment conditions we used chi-squares tests. The empirical results show the medium effect increases and then decreases as the ratio of reward mileages/points to purchase amount increases. Additionally, they let us know that comparability of alternatives affects on the medium effects depending on the ratio of reward mileages/points to purchase amount.

• Culinary science and hospitality research
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• v.13 no.4
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• pp.80-91
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• 2007

The purpose of the study is to investigate how customer reward programs that are provided strategically to develop customer favors are assessed by customers, if they affect customer loyalty and what effect using membership card(how many possess and use it) takes. The findings from the study can be summarized as follows. Firstly, customer loyalty showed high when shared value and convenient value are felt for preference and referring effect and when shared value and allied value were felt for revisit. Secondly, when the number of cards in possession was a lot, high customer loyalty existed. Thirdly, when the number of cards in use was a lot, the customer loyalty was high. The customer's awareness of values, e.g. economic, shared, use, convenience and allied values, put a very meaningful positive effect on loyalty, i.e. preference, referring effect and revisit. The more the number of food service provider's' membership cards in use and in possession was, the higher customer loyalty was. This implies that continued development of business partners and quality control are critical for various benefits and shared value of the customer reward pro-grams and service upgrade.