Process is What Matters: Effects of Nominal Value and Accumulation Trend on Consumer Loyalty toward Reward Program

Abstract

Existing research shows the effects of a mere existence of a medium on consumers attitude. Through a point accrual scenario study, the effect of nominal value of a medium on program loyalty and moderating role of point accumulation trend were examined. The results showed that nominal value of a medium and point accumulation trend affects loyalty towards a reward program. Consumers who received a medium with larger nominal value perceived a reward as more valuable than those who received a medium with smaller nominal value. Consumers preferred a reward program with increasing accumulation trend than that with decreasing trend.

Keywords: Medium, Nominal Value, Improvement Preference, Decision Making, Reward Program, Program Loyalty