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Article

Seung‐Bae Park, Namho Chung and Sang‐Cheol Woo

The purpose of this study is to propose long‐term orientation as a moderating effect on restaurant customer reward programs. Unlike in short‐term oriented and…

Abstract

Purpose

The purpose of this study is to propose long‐term orientation as a moderating effect on restaurant customer reward programs. Unlike in short‐term oriented and transactional marketing, long‐term orientation is an important factor in creating new loyal customers.

Design/methodology/approach

This research shows how the moderating effect of long‐term orientation affects customer reaction to reward timing (Experiment 1) and reward type (Experiment 2). The independent variables of Experiment 1 were timing of rewards (immediate/accumulate) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The independent variables of Experiment 2 were the types of rewards (monetary/nonmonetary) and long‐term orientation (high/low), with the dependent variable being customer loyalty. The treatment groups are different from each other with regard to reward type and reward timing.

Findings

Depending on the reward type and its timing, long‐term orientation has a moderating effect on customer loyalty. In customers with a high long‐term orientation, there is no difference in the effect of rewards, whether they are immediate or accumulated and monetary or nonmonetary. On the other hand, for customers with a low long‐term orientation, the effect of rewards increases for monetary rewards more than nonmonetary ones and for immediate rewards more than for accumulated ones.

Originality/value

This paper helps restaurant managers to better understand customer loyalty and the value of reward programs that take into account the long‐term orientation concept.

Details

Managing Service Quality: An International Journal, vol. 23 no. 3
Type: Research Article
ISSN: 0960-4529

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Article

Yongrui Duan, Chen Chen and Jiazhen Huo

To encourage buyers to contribute product reviews, some online sellers offer monetary rewards. The purpose of this paper is to investigate the impact of monetary rewards

Abstract

Purpose

To encourage buyers to contribute product reviews, some online sellers offer monetary rewards. The purpose of this paper is to investigate the impact of monetary rewards on buyers’ purchase decisions and review contributions, as well as the impact on the seller’s price decisions and profit.

Design/methodology/approach

The authors consider an online seller in a two-stage setting. Prior to Stage 1, the profit-maximizing seller sets the price and decides whether to offer a monetary reward secretly to motivate online reviews. Then, a continuum of buyers arrives and makes purchase decisions at the beginning of each stage. First-stage buyers may contribute reviews if they are satisfied, which will affect demand in the second stage. Using this analytical framework, the authors analyze the impact of monetary rewards.

Findings

If the monetary reward is small, it decreases the seller’s profit and fails to generate more reviews. It also increases price, leading to a decline in total demand. Thus, when the reward is lower than a certain threshold, all buyers are worse off. Only when the reward exceeds the threshold are buyers who contribute reviews better off. Profit and total demand both increase in review quality, while the price may either increase or decrease in it.

Originality/value

To the best of the authors’ knowledge, this paper is the first to analyze theoretically the impact of monetary rewards on buyers’ purchase decisions, review contributions and on online sellers’ decisions.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 31 no. 5
Type: Research Article
ISSN: 1355-5855

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Article

Gergana Markova and Cameron Ford

In this empirical study, the aim is to examine the relative effect of various rewards on performance of knowledge workers. It is predicted that non‐monetary rewards are…

Abstract

Purpose

In this empirical study, the aim is to examine the relative effect of various rewards on performance of knowledge workers. It is predicted that non‐monetary rewards are associated with enhanced intrinsic motivation, which in turn is related to better performance and innovation.

Design/methodology/approach

Data were collected from 288 research and development employees and their supervisors from 30 Fortune 500 companies. The authors tested the hypothesized relationships with mediated multiple regression.

Findings

The results revealed that receiving non‐monetary rewards is a stronger predictor of intrinsic motivation manifested by longer work time in comparison to either group or individual monetary rewards. Furthermore, intrinsic motivation was found to fully mediate the relationships between received non‐monetary rewards and performance and innovation.

Research limitations/implications

The paper offers a field test of the cognitive evaluation theory and the crowding theory that have been mainly applied in experimental research and suggests a potential limit to the efficiency wage models in the case of knowledge workers. However, causal conclusions are limited by the cross‐sectional nature of the data and the operationalization of intrinsic motivation is not without its critics.

Practical implications

The study findings suggest that incorporating non‐monetary rewards in reward systems is necessary to encourage productivity and creativity of knowledge workers. Organizations should critically evaluate all aspects of their reward systems to reflect the uniqueness of their employees.

Originality/value

The increased importance of innovation for business success mandates that organizations design their reward systems to stimulate creative behaviors. The study results show the importance of non‐monetary rewards over monetary for knowledge workers’ intrinsic motivation.

Details

International Journal of Productivity and Performance Management, vol. 60 no. 8
Type: Research Article
ISSN: 1741-0401

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Article

Gaatha Gulyani and Tanuja Sharma

The purpose of this paper is to examine the influence of total rewards components (monetary, material and non-monetary) on happiness of employees working in Indian…

Abstract

Purpose

The purpose of this paper is to examine the influence of total rewards components (monetary, material and non-monetary) on happiness of employees working in Indian technology-based new ventures. Further, with the theoretical lens of social exchange theory, the mediating role of work engagement between total rewards perceptions and work happiness relationship has also been evaluated.

Design/methodology/approach

A survey of 201 employees working in Indian technology-based new ventures was conducted. Structural equation modeling was utilized to measure the proposed theoretical model. Regression analysis was conducted to test the direct effects of the hypothesized relationships. Sobel test and bootstrapping analysis were utilized to test the indirect effects of the proposed hypothesized relationship.

Findings

The findings supported the hypotheses that employees’ perceptions of total rewards have a significant impact on employee work engagement and happiness at work. However, individual component of total rewards, i.e. monetary rewards, demonstrated an insignificant impact on the employee work happiness. Work engagement was positively related to work happiness and fully mediated the relationship between total rewards perceptions and work happiness.

Practical implications

Special attention should be given to enhance the material and non-monetary rewards, specifically strengthening the feeling of appreciation, learning and growth opportunities and improving feedback functions. Given the challenges of new ventures (productivity and efficiency of talent), management of total rewards mix should be considered as the main concern of human resource (HR) managers and management (founders). The paper also provides important implications for designing a reward system that enhances employee productivity and efficiency in the unstructured and ambiguous work environment of new ventures.

Originality/value

The present study has significant contributions to the HR, entrepreneurship and positive psychology literature. It is an attempt to understand the association between total rewards components and work happiness via mediating mechanism, i.e. work engagement in new ventures. It also extends research in the entrepreneurial context. The emergence and growth of new ventures in India has meant a growing importance for understanding employees’ needs and expectations and guaranteeing their happiness. The findings of the study contribute to social exchange theory, Vroom’s expectancy and self-determination theory. This research is also a rare investigation of employees’ perspectives in an entrepreneurial context.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 6 no. 3
Type: Research Article
ISSN: 2049-3983

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Article

Chompunuch Pongjit and Rian Beise-Zee

This study aims to conceptualize and test the effect of monetary and non-monetary incentives for word-of-mouth (WOM) campaigns on the brand attitude of those receiving an…

Abstract

Purpose

This study aims to conceptualize and test the effect of monetary and non-monetary incentives for word-of-mouth (WOM) campaigns on the brand attitude of those receiving an incentivized brand recommendation. It also studied whether or not the type of relationship between the recommender and the person who receives the recommendation and the expertise of the recommender moderate the impact of incentivization on brand attitude. The results should enable brand management to improve the design of WOM campaigns.

Design/methodology/approach

An experiment was conducted utilizing a sample of about 645 respondents in Thailand. In a 3 × 3 experimental design, three levels of incentivization and three types of social relationships were manipulated. All other variables were measured through a respondent-administered questionnaire. For incentivization of WOM, monetary reward and non-monetary reward are compared to a non-incentivized control state. The three types of social relationships are an authority relationship, a kinship relationship and a market pricing relationship between strangers as the control state.

Findings

The results of the experiment show that the introduction of rewards for recommendations harms the attitude of the receiver of a recommendation toward the brand. The attitude of potential buyers toward the brand can be tainted by the impression that a brand has enticed friends and relatives into profiting from their relationship. The negative effects increase further with the introduction of cash rewards. Contrary to expectations, however, the social relationship between the recommender and the new customer did not moderate the effect of incentivization. Source expertise has a direct as well as moderating effect on brand attitude.

Practical implications

The findings suggest that companies should use referral rewards with caution. Brand managers need to be aware that there is a trade-off between the advantages and the disadvantages of incentivized WOM campaigns. Recommendations have been derived about how to improve the design of incentivized WOM campaigns. Whether the advantages outweigh the disadvantages probably depend to some extent on brand-specific factors such as brand strength and market- or industry-specific factors, such as a credence good quality within the industry. It also emphasized that WOM campaigns need to be carefully monitored by measuring customer attitudes toward the brand.

Originality/value

Although past research provides valuable conceptual and empirical insights into consumer responses in incentivized WOM situations, most research has focused on the immediate effectiveness of WOM by measuring purchasing intentions. There is still a lack of information about how different kinds of incentivization affect customer attitudes toward a brand that incentivizes WOM, and how various relationship types moderate the effects; in particular, authority relationships have not yet been studied in this context.

Details

Journal of Product & Brand Management, vol. 24 no. 7
Type: Research Article
ISSN: 1061-0421

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Article

Dongsuk Jang and Anna S. Mattila

This study aims to investigate customer preferences towards loyalty reward programs in the restaurant industry. Willingness to join such programs and expected benefits are…

Abstract

Purpose

This study aims to investigate customer preferences towards loyalty reward programs in the restaurant industry. Willingness to join such programs and expected benefits are also examined.

Design/methodology/approach

Focus group interviews followed by a survey methodology were used to test the research questions. The study sample included participants in a popular arts festival in Pennsylvania, USA and restaurant patrons in Las Vegas, USA.

Findings

A vast majority of study respondents favored immediate, necessary, and monetary gratification. These results were consistent across restaurant types (fast‐food versus casual dining). Although savings was the most sought‐after benefit, intangible benefits such as quality and convenience also received high ratings. Casual dining customers, in particular, seemed to be highly motivated by exploration and entertainment‐type benefits.

Research limitations/implications

Future research should investigate the optimal level or combination of rewards. In addition, other types of restaurants (e.g. fine dining) might require different types of reward schemes.

Practical implications

The findings of this study suggest that restaurant operators in the casual dining and fast‐food segments should consider employing immediate, necessary, and monetary rewards as opposed to points‐system, luxury, and non‐monetary rewards. In terms of motivation to join loyalty reward programs, the study results indicate that casual dining patrons are looking for exciting and entertaining rewards in addition to mere cost savings.

Originality/value

This paper helps restaurant managers to better understand customer preferences for loyalty reward programs and to realize the value of targeted rewards.

Details

International Journal of Contemporary Hospitality Management, vol. 17 no. 5
Type: Research Article
ISSN: 0959-6119

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Article

Jason Aaron Gabisch and George R. Milne

The question over who “owns” and controls consumer data on the internet is emerging as an important issue as individuals increasingly share more of their personal…

Abstract

Purpose

The question over who “owns” and controls consumer data on the internet is emerging as an important issue as individuals increasingly share more of their personal information with marketers in return for services and benefits. This paper aims to examine how compensating consumers for their personal information affects their expectations for data ownership and privacy control.

Design/methodology/approach

The authors conduct two online scenario-based experiments with a sample of adult consumers. The results were analyzed using multivariate and univariate analysis of variance.

Findings

The findings show that receiving compensation, especially when it is a monetary reward, reduces consumer expectations for privacy protection. These effects depend on whether the information provided to marketers is perceived to be sensitive in nature.

Originality/value

While a number of privacy studies have investigated the effects of compensation on encouraging self-disclosure on the internet, there is a lack of research that examines the effect of compensation on privacy expectations. To the authors' knowledge, this is the first paper to test empirically the construct of information ownership in the context of privacy exchanges.

Details

Journal of Consumer Marketing, vol. 31 no. 1
Type: Research Article
ISSN: 0736-3761

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Article

Alessandro M. Peluso, Laura Innocenti and Massimo Pilati

Monetary and non-monetary rewards have rarely been considered together under the HRM perspective. Despite the vast literature on HRM, there is still a lack of studies that…

Abstract

Purpose

Monetary and non-monetary rewards have rarely been considered together under the HRM perspective. Despite the vast literature on HRM, there is still a lack of studies that explicitly discuss the link between the adoption of a total reward system (TRS) and employee-related outcomes. The purpose of this paper is to investigate this important issue in order to provide insights that can help organisations devise compensation strategies that are effective in sustaining employees’ positive attitudes and behaviours.

Design/methodology/approach

Using a survey of 1,092 employees, the authors examine the effect of the overall TRS on three outcome variables (i.e. job satisfaction, affective commitment, and innovative behaviour at work). Furthermore, the authors examine the impact that each component of the TRS (i.e. base pay, training and development opportunities, and positive work environment) has on the dependent variables.

Findings

The results confirm that the adoption of a TRS exerts a positive influence on the aforementioned outcomes. However, interesting differences emerged when looking at the individual components in the overall sample.

Originality/value

This paper provides original insights into the complex relationship between TRS and the employee-related outcomes of job satisfaction, affective commitment, and innovative behaviour at work.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 5 no. 3
Type: Research Article
ISSN: 2049-3983

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Article

Wei Wu and Xiang Gong

Crowdworkers' sustained participation is critical to the success and sustainability of the online crowdsourcing community. However, this issue has not received adequate…

Abstract

Purpose

Crowdworkers' sustained participation is critical to the success and sustainability of the online crowdsourcing community. However, this issue has not received adequate attention in the information systems research community. This study seeks to understand the formation of crowdworker sustained participation in the online crowdsourcing community.

Design/methodology/approach

The research model was empirically tested using online survey data from 212 crowdworkers in a leading online crowdsourcing community in China.

Findings

The empirical results provide several key findings. First, there are two different types of sustained participation: continuous participation intention (CPI) and increased participation intention (IPI). Second, extrinsic motivation and intrinsic motivation positively influence crowdworker CPI and IPI. Third, community commitment negatively moderates the effects of extrinsic motivation on CPI and IPI, while it positively moderates the effects of intrinsic motivation on CPI and IPI.

Originality/value

This study has significant implications for research on online crowdsourcing community and provides practical guidance for formulating persuasive measures to promote crowdworker sustained participation in the community.

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Article

Lena-Marie Rehnen, Silke Bartsch, Marina Kull and Anton Meyer

New approaches in loyalty programs try to activate membership by rewarding not just financial transactions but also customer engagement. The purpose of this paper is to…

Abstract

Purpose

New approaches in loyalty programs try to activate membership by rewarding not just financial transactions but also customer engagement. The purpose of this paper is to analyze the effect of rewarded customer engagement on loyalty intentions and behavior by applying a social media context.

Design/methodology/approach

A field study in the mobility service industry (focus groups (n=18) and questionnaire (n=1,246)) and a laboratory experiment (n=141, 2 (rewarded engagement and transaction/rewarded transaction)×2 (low/high reward) between subjects design) were conducted to determine the effect of rewarded engagement on loyalty.

Findings

In the field study, the participants could gather loyalty points through their social media engagement. Their attitudinal loyalty to the loyalty program and the company was significantly higher than that of the loyalty members who collected points solely through transactions. This effect is especially prevalent with respect to engagements rewarded with monetary incentives and is underlined by behavioral data. The results of the laboratory experiment show that rewarded engagement positively moderates the impact of intrinsic motivation on loyalty intentions. Offering rewarded engagement in loyalty programs offsets the undermining effect of rewards.

Practical implications

Rewarding customers for social media engagement can be a beneficial way of boosting active participation in loyalty programs, but this experience should be enjoyable and self-determined.

Originality/value

The study is the first to show the impact of rewarded customer engagement on the attitudinal and behavioral loyalty of members of a loyalty program.

Details

Journal of Service Management, vol. 28 no. 2
Type: Research Article
ISSN: 1757-5818

Keywords

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