The Relation between Reward Programs and Loyalty: The Moderating Effect of Need for Closure

• Main Authors: Ting-Yi Lin, 林挺毅
• Other Authors: Yi-Ching Hsieh
• Format: Others
• Language: en_US
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/q798dd

碩士 === 國立中央大學 === 資訊管理學系 === 102 === Purchasing is an important behavior that nearly every people do in their daily lives. While the product or service choices are similar, customer will look for the product value which are more worthy or attracted to their demand. Reward programs are an effective way to engage customer's attention. Reward programs have become popularly used tools for managers to increase their revenue and build customer loyalty. While facing various reward programs, customers make decisions based on their preference and personal characteristic. According to previous research, "need for closure (NFC)" is an important variable of individual difference that influences customers' choice and decision. In this study, need for closure was used as a moderator to explore customer's preference and loyalty to different reward programs. We examined three characteristics of reward programs: reward timing (immediate/delayed), reward probability (100%/50%) and reward precision (precise/imprecise). The results of this study indicated that, first, regardless the level of NFC, respondents show preference to immediate rather than delayed reward. Second, when the rewards varied in probability and precision, respondents with high NFC significantly prefer to 100% and precise rewards, whereas, low NFC reveals no difference between high and low probability, and between high and low precision. Last, when the coupon usage was extended to next patronage, respondents with high NFC showed higher loyalty when they were provided 100% or precise rewards; conversely, respondents with low NFC showed no difference in loyalty.