No abstract

Many consumers today hold loyalty program points which function as a currency, but are not cash. This paper examines factors that influence consumers' decisions to keep or spend their accumulated points. We found that consumers are more likely to spend points when they can easily anticipate the benefits they can enjoy with the points. Specifically, the decision to spend points is facilitated when it is easier to compute the percentage savings one can get by using the points. This computational ease has effects on point spending beyond that of saving magnitude.

The authors examine the mitigating effect of an established trusting relationship between service providers and consumers on the consequences of service failures as a function of interdependent–independent self-construal. Two studies reveal that the effect of prior relationship, defined as the length of past patronage of a service provider, on consumer behavioral responses to service failure tends to be more pronounced among consumers with interdependent (vs. independent) self-construal. This variation in the mitigating effect of prior relationship can be attributed to the differential impact of trust in the service provider on the two groups of consumers. The authors conclude with a discussion of managerial implications.

No abstract

No abstract