The impacts of point rewarding and exchanging on users’ loyalty toward mobile payment applications: a dual channeling perspective
Article publication date: 22 April 2022
Issue publication date: 2 November 2022
By distinguishing between core business service and value-added service in mobile payment applications, this paper aims to incorporate point mechanisms (point rewarding and point exchanging) into these two separated roles of services to understand user loyalty formation. Specifically, this study aims to examine the mediating role of need satisfaction and perceived value in the relationships between point mechanisms and user loyalty.
Drawing upon self-determination theory and perceived value lens, this study develops a theoretical model that examines the mediation effects of multiple psychological outcomes on the relationships between point mechanisms (point rewarding and point exchanging) and user loyalty in the context of mobile payment. Data were collected from 731 users of a leading mobile payment application in China through an online survey. Structural equation modeling was used to analyze the hypothesized relationships.
Empirical results suggest that point rewarding enhances users’ need satisfaction of core service, whereas point exchanging increases users' perceived value of additional value-added service. Results also reveal that need satisfaction and perceived value mediate the relationships between point mechanisms (i.e. point rewarding and point exchanging) and user loyalty. In sum, the findings enhance our understanding of user loyalty formation from a dual channeling perspective.
This study informs the managers of mobile payment applications on how to build user loyalty by enhancing users' experience of core business service and value-added service through point mechanism implementation.
This study highlights the importance of both core business service and value-added service in mobile payment applications and provides new insights into the effects of point mechanisms on user loyalty by considering different service routes. Additionally, this study uncovers the mediation mechanisms of users' need satisfaction of core service and users' perceived value of additional value-added service on the two service routes, which further enrich our understanding regarding the user loyalty formation of mobile payment applications.
This paper forms part of a special section “Advancing Mobile Payment Research in the Age of Digital Acceleration”, guest edited by Garry Wei-Han Tan, Keng-Boon Ooi, Yogesh Dwivedi and June Wei.
Funding: This research study was funded by the Humanities and Social Sciences project, Ministry of Education in China (21YJA880065).
Zhang, L., Wang, Y., Anjum, M.A. and Mu, J. (2022), "The impacts of point rewarding and exchanging on users’ loyalty toward mobile payment applications: a dual channeling perspective", Internet Research, Vol. 32 No. 6, pp. 1832-1861. https://doi.org/10.1108/INTR-06-2021-0414
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