Probability-Based Loyalty Programs Increase Motivation

Adrian Camilleri, RMIT University, Australia
Jin Liyin, Fudan University, China
Ying Zhang, Peking University, China
We demonstrate and then discuss why consumers are less motivated in a traditional loyalty program (where a certain number of actions must be completed before the reward is obtained) than a probability-based loyalty program (where there is some non-zero probability of obtaining the reward after every action).
[ to cite ]:
Adrian Camilleri, Jin Liyin, and Ying Zhang (2015) ,"Probability-Based Loyalty Programs Increase Motivation", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 779-779.