Education Policy | Post Primary | Preschool | Primary | Tertiary | Search

 


People in loyalty schemes often fail to detect market value

People in loyalty schemes often fail to detect market value, Canterbury PhD student says

May 19, 2014

People who signed up to loyalty schemes often failed to detect the accurate market value, a University of Canterbury PhD student says.

May Chan is researching consumer psychology, specifically loyalty schemes in New Zealand and Hong Kong. Chan is being supervised by the Psychology Department’s Professor Simon Kemp and Dr Joerg Finsterwalder from the School of Business and Economics.

"Loyalty reward programmes are a significant part of the modern economy. Currencies like frequent flyer miles are thriving and have become the world’s largest currency," Chan says.

"Although the basic principle of loyalty reward currencies is similar to that of real money, the rules it operates on are often complicated, restricted and can be confusing to the consumer, making it harder to accurately estimate the value and take full advantage.

"Loyalty reward members often plan, collect, store, and use these currencies as they would with legal tender, but a different set of internal rules applies to each currency. For instance, the value of a reward is not purely measured in monetary value.

"For example, when choosing to spend their frequent flyer miles between two rewards of equal value, members preferred luxury rewards because they also get to feel good. A currency can be seen as more worthy when it can be used to purchase goods that make their targeted customer feel more satisfied.

"I am investigating the perceived value of such currencies. The first stage of the research has been conducted using three loyalty programmes operating in New Zealand - Air New Zealand’s airpoints; Westpac Bank’s hotpoints and the Fly Buys consumer rewards programme.

"Preliminary results show that these currencies function as an added purchasing power to legal tender. However, people often fail to detect the market value of these currencies. Their perceived value is moderated by factors such as involvement in, or awareness of, the loyalty programme.

"This subsequently affects how the currencies are defined, budgeted for and spent. In the second stage of my research, I would like to test my theory in different cultural settings.

"Hong Kong is a multi-cultural city, with almost double the population size of New Zealand. It is, in my opinion, the perfect place to seek cross-cultural validation by extending my research.

"The results will provide insight into consumer decision-making using empirical results obtained from population samples of east and west."

Chan is based at the City University of Hong Kong until July and her research while in Hong Kong has been funded by the Prime Ministers’ Asia Scholarship Fund.

The University has been awarded $72,000 from the Prime Ministers’ Asia Scholarship Fund to cover the costs of up to 30 selected students to complete a popular study tour course, Chinese Business Practices and Culture. Additionally, two other UC students studying for a Bachelor of Commerce degree, Paige Chen and Samuel Brosnahan, have received individual scholarships from the same fund to spend a semester studying overseas in Hong Kong and China in 2015.

ENDS

© Scoop Media

 
 
 
 
 
Culture Headlines | Health Headlines | Education Headlines

 
Scoop Review Of Books: The Typewriter Factory

I finished reading Don’t Dream It’s Over not long after it came out last August. I even started writing a review, which took something of an ‘I’m sorry people, but it’s already over’ approach. I’ve been pretty negative about journalism as it’s practiced in the mainstream (or MSM, or corporate media or liberal media or whatever terminology you prefer) for quite some time (see for example Stop the Press), and I believe the current capitalist media model is destructive and can’t be reformed. More>>

Sheep Update: Solo World Shearing Record Broken In Southland

Southland shearer Leon Samuels today set a new World solo eight-hours strongwool ewe-shearing after a tally of 605 in a wool shed north of Gore. More>>

ALSO:

Howard Davis Review: Dick Frizzell At The Solander Gallery

One of the most influential and celebrated contemporary Pop artists working in New Zealand, Dick Frizzell is mostly known for his appropriation of kitsch Kiwiana icons, which he often incorporates into cartoon-like paintings and lithographs. Not content with adhering to one particular style, he likes to adopt consciously unfashionable styles of painting, in a manner reminiscent of Roy Lichtenstein. More>>

Old Music: Pop Icon Adam Ant Announces NZ Tour

Following his recent sold out North American and UK tours, Adam Ant is celebrating the 35th anniversary of the release of his landmark KINGS OF THE WILD FRONTIER album with a newly-remastered reissue (Sony Legacy) and Australasian tour. More>>

Scoop Review Of Books:
Looking Back

Writing a memoir that appeals to a broad readership is a difficult undertaking. As an experienced communicator, Lloyd Geering keeps the reader’s interest alive through ten chapters (or portholes) giving views of different aspects of his life in 20th-century New Zealand. More>>

Scoop Review Of Books: Purple (and Violet) Prose

This is the second recent conjoint publication by Reeve and Stapp; all to do with esoteric, arcane and obscure vocabulary – sesquipedalian, anyone – and so much more besides. Before I write further, I must stress that the book is an equal partnership between words and images and that one cannot thrive without the other. More>>

Get More From Scoop

 
 

LATEST HEADLINES

 
 
 
 
Education
Search Scoop  
 
 
Powered by Vodafone
NZ independent news