Work

Points Accumulation Framework and Spending Behavior—Accelerating vs. Linear Points: The Impact of Loyalty Framework on Consumer Spending

Year: 2025

Type: article

Abstract: Despite widespread adoption of loyalty programs, little is known about how the shape of points accumulation frameworks influences consumer spending via psychological mechanisms and individual differences. Grounded in Prospect Theory and goal-gradient theory, this research examines the impact of linear versus accelerating points accumulation structures on spending intentions across four experiments (N = 1400) using online panels. Stages 1 and 2 manipulation experiments were conducted using simulated loyalty program brochures and e-commerce webpages, demonstrating that accelerating frameworks (versus linear) increase spending intentions by enhancing perceived reward value. Stage 3 used a 2 × 2 between-subjects design, manipulating the points framework with fictitious brochures and priming financial risk tolerance via a portfolio reflection task; temporal discounting was subsequently measured to assess its role (temporal discounting is the tendency for people to assign greater value to immediate rewards than to larger, delayed rewards), confirming the moderating effect of temporal discounting. Stage 4 also employed a 2 × 2 between-subjects design, manipulating the points framework and priming risk tolerance through a writing task, thereby confirming the moderating effect of financial risk tolerance. These findings identify perceived reward value as a key mediator and temporal discount rate and financial risk tolerance as critical moderators. Theoretical contributions include the first-time integration of temporal discounting and individual risk preferences into loyalty program theory, while practical implications offer guidance for designing loyalty programs tailored to specific market segments, thereby enhancing consumer engagement.

Source: Journal of theoretical and applied electronic commerce research

DOI: 10.3390/jtaer20040308

Authors: Song Li, Hongyu Zhang, Atif Ullah, Jiao Feng

Institutions: Beijing Polytechnic College, Southwest Jiaotong University, The University of Agriculture, Peshawar, Ningxia University

Language: English

Topic: Consumer Market Behavior and Pricing

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,207

Funders: Chengdu Science and Technology Bureau, National Office for Philosophy and Social Sciences