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

ASEAN Marketing Journal

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Title The Timing Effects of Reward, Business Longevity, and Involvement on Consumers’ Responses to a Reward Program
 
Creator Badri Munir Sukoco; Department of Management, Airlangga University, Surabaya, Indonesia 60286; telephone: +62-31-5011956 Ext. 202; fax:+62-31-5015035
Meng-Kuan Lai; Department of Business Administration, National Cheng Kung University, University Road 1, Tainan, Taiwan 701; telephone:+886-6-2757575 Ext. 53342; fax:+886-6-2080179
Wan-Jou Weng; Institute of Business Administration, National Cheng Kung University, University Road 1, Tainan, Taiwan 701; telephone:+886-6-2080080; fax:+886-6-2364427
 
Subject timing of reward, business longevity, involvement, perceived risk, and reward program
 
Description 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.
 
Publisher Management Research Center, Department of Management, Faculty of Economics and Business, U
 
Contributor —
 
Date 2015-06-01
 
Type Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journal.ui.ac.id/index.php/amj/article/view/4602
 
Source ASEAN Marketing Journal; Vol 7, No 1 (2015): June 2015; 40-49
 
Language en