Illusionary Progress in Loyalty Programs: Moderating Role of Perceived Ease of Estimation and Medium’S Magnitude on Consumer Perceptions

We demonstrate that the perceived ease of estimating redemption costs influences how a medium’s magnitude and reward-distance impacts loyalty program evaluations (e.g., attractiveness, attainability). When it is harder to estimate costs, consumers use magnitude to make inferences. Distances appear larger in the high (vs. low) magnitude conditions and correspondingly, have a stronger influence on perceptions. When cost estimation is perceived to be easy, participants overweigh the rate of return (i.e., points earned per dollar). The rate is higher in the high (vs. low) magnitude conditions and correspondingly, the effect of distance on perceptions is smaller. We investigate the underlying process and report findings from four studies.



Citation:

Rajesh Bagchi and Xingbo Li (2010) ,"Illusionary Progress in Loyalty Programs: Moderating Role of Perceived Ease of Estimation and Medium’S Magnitude on Consumer Perceptions", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 637-637 .

Authors

Rajesh Bagchi, Virginia Tech, USA
Xingbo Li, Virginia Tech, USA



Volume

NA - Advances in Consumer Research Volume 37 | 2010



Share Proceeding

Featured papers

See More

Featured

When Does Being Paid an Hourly Wage Make it Difficult to Be a Happy Volunteer?

Sanford E. DeVoe, University of California Los Angeles, USA
Jieun Pai, University of California Los Angeles, USA

Read More

Featured

Millionaires on Instagram: Millennials’ Display of Experiential Luxury and Personal Branding Strategies on Visual Social Media

Marina Leban, ESCP Europe, France
Benjamin G. Voyer, ESCP Europe, France

Read More

Featured

Handshaking Promotes Deal-Making By Signaling Cooperative Intent

Juliana Schroeder, University of California Berkeley, USA
Jane Risen, University of Chicago, USA
Francesca Gino, Harvard Business School, USA
Michael Norton, Harvard Business School, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.