Case & Working Paper
| Paper Number | KCB-WP-2024-015 |
|---|---|
| Title | Strategic Points Redemption Behavior in Linear Reward Programs under Points Expiration Pressure |
| Title(Other) | |
| Author | Giwon Son ; Duk Bin Jun ; Sungho Park ; Yun Shin Lee |
| Publisher | KAIST College of Business |
| Abstract | This study explores consumer redemption behavior in linear reward programs?points-based, savings-type reward programs with fixed cash-to-points ratio?where expiration deadlines are imposed on points. Specifically, we investigate the impact of basket-related factors (e.g. total regular price of items in the basket, discount amount, and proportion of previously unpurchased items) and points expiration factors (e.g. points expiration pressure and expired points) on the consumers’ redemption behaviors. We analyze transaction and points redemption data from a large-scale linear reward program, employing a two-stage model in redemption behavior. We find that consumers exhibit strategic behavior in points redemption to maximize transaction value and reduce perceived risk. We also reveal that points expiration pressure effectively compels consumers to redeem expiring points. The managerial implications related to strategic points redemption behavior and points expiration pressure are also discussed. |
| Full-Text | * Full-Text 다운로드는 경영대학 학생에게만 제공되고 있습니다. |
Contact : Kim, HaengRan ( hrkim@business.kaist.ac.kr )
