The effect of loyalty program fees on program perceptions and engagement
Abstract
Retailers may introduce loyalty program enrollment fees for several reasons, including to offset the costs of the program. The principle of commitment-consistency and sunk cost effects, which suggest consumers who pay a fee-paying consumers have a higher value to the firm and exhibit behavioral loyalty, while the zero-price effect predicts the opposite. Three studies show: consumers who pay to participate in a loyalty program have more favorable...
Paper Details
Title
The effect of loyalty program fees on program perceptions and engagement
Published Date
Feb 1, 2016
Journal
Volume
69
Issue
2
Pages
964 - 973
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