The Timing Effects of Reward, Business Longevity, and Involvement on Consumers’ Responses to a Reward Program

Sukoco, Badri Munir and Kuan Lai, Meng and Jou Weng, Wan (2015) The Timing Effects of Reward, Business Longevity, and Involvement on Consumers’ Responses to a Reward Program. ASEAN Marketing Journal, VII (1). ISSN 2085-5044; E-ISSN: 2356-2242

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Official URL: http://journal.ui.ac.id/index.php/amj/issue/view/5...

Abstract

Managers could elicit customers’ repeat purchase behavior through a well-designed reward program. This study examines two extrinsic cues - business longevity and timing effects of reward – to determine the consumers’ perceived risk and intention to participate in this kind of program. Moreover, this study discusses how different levels of involvement might interact with these two cues. An experiment with a 2 (business longevity: long vs. short) x 2 (timing of reward: delayed vs. immediate) x 2 (involvement: high vs. low) between-subject factorial design is conducted to validate the proposed research hypotheses. The results show that an immediate reward offered by an older, more established, firm for a highly-involved product, make loyalty programs less risky and consequently attract consumers to participate. interestingly, immediate rewards that are offered by older firms for a product that customers are less involved in has the opposite effects. Managerial and academic implications are further presented in this study. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Studi ini menguji dua variabel eksternal – jangka waktu berbisnis dan efek dari waktu pemberian reward – dalam menjelaskan persepsi resiko dan niat konsumen dalam berpartisipasi sebuah program reward. Studi ini juga mendiskusikan efek interaksi dari keterlibatan konsumen pada produk terhadap dua variabel eksternal tersebut. Sebuah eksperimen menggunakan between-subject design: 2 (jangka waktu berbisnis: lama vs. pendek) x 2 (waktu pemberian reward: ditunda vs. segera) x 2 (keterlibatan: tinggi vs. rendah) dilakukan untuk menguji secara empiris hipotesis yang dikembangkan. Hasil analisa menunjukkan bahwa reward yang di-segera-kan dan ditawarkan oleh perusahaan yang beroperasi lebih lama dengan produk yang memiliki keterlibatan tinggi menjadikan program reward dipersepsikan memiliki resiko yang lebih rendah dan konsekuensinya menjadikan konsumen memiliki niat untuk berpartisipasi yang lebih tinggi. Menariknya, reward yang di-segera-kan yang ditawarkan oleh perusahaan yang lebih tua untuk produk yang memiliki keterlibatan rendah memiliki dampak yang sebaliknya. Implikasi manajerial dan akademis dipresentasikan lebih lanjut dalam studi ini.

Item Type: Article
Additional Information: Terakreditasi No. 040/P2014
Uncontrolled Keywords: timing of reward, business longevity, involvement, perceived risk, and reward program
Subjects: H Social Sciences > HF Commerce > HF5548.8 Psychology, Industrial
Divisions: Artikel Ilmiah
04. Fakultas Ekonomi dan Bisnis > Manajemen
Creators:
CreatorsEmail
Sukoco, Badri MunirUNSPECIFIED
Kuan Lai, MengUNSPECIFIED
Jou Weng, WanUNSPECIFIED
Depositing User: Nurma Harumiaty
Date Deposited: 01 Jun 2016 05:47
Last Modified: 01 Jun 2016 05:49
URI: http://repository.unair.ac.id/id/eprint/30821
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